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Federal Register / Vol. 65, No. 2 / Tuesday, January 4, 2000

The FEDERAL REGISTER is published daily, Monday throughFriday, except official holidays, by the Office of the FederalRegister, National Archives and Records Administration,Washington, DC 20408, under the Federal Register Act (44 U.S.C.Ch. 15) and the regulations of the Administrative Committee ofthe Federal Register (1 CFR Ch. I). The Superintendent ofDocuments, U.S. Government Printing Office, Washington, DC20402 is the exclusive distributor of the official edition.The Federal Register provides a uniform system for makingavailable to the public regulations and legal notices issued byFederal agencies. These include Presidential proclamations andExecutive Orders, Federal agency documents having generalapplicability and legal effect, documents required to be publishedby act of Congress, and other Federal agency documents of publicinterest.Documents are on file for public inspection in the Office of theFederal Register the day before they are published, unless theissuing agency requests earlier filing. For a list of documentscurrently on file for public inspection, see http://www.nara.gov/fedreg.The seal of the National Archives and Records Administrationauthenticates the Federal Register as the official serial publicationestablished under the Federal Register Act. Under 44 U.S.C. 1507,the contents of the Federal Register shall be judicially noticed.The Federal Register is published in paper and on 24x microfiche.It is also available online at no charge as one of the databaseson GPO Access, a service of the U.S. Government Printing Office.The online edition of the Federal Register is issued under theauthority of the Administrative Committee of the Federal Registeras the official legal equivalent of the paper and microfiche editions(44 U.S.C. 4101 and 1 CFR 5.10). It is updated by 6 a.m. eachday the Federal Register is published and it includes both textand graphics from Volume 59, Number 1 (January 2, 1994) forward.GPO Access users can choose to retrieve online Federal Registerdocuments as TEXT (ASCII text, graphics omitted), PDF (AdobePortable Document Format, including full text and all graphics),or SUMMARY (abbreviated text) files. Users should carefully checkretrieved material to ensure that documents were properlydownloaded.On the World Wide Web, connect to the Federal Register at http://www.access.gpo.gov/nara. Those without World Wide Web accesscan also connect with a local WAIS client, by Telnet toswais.access.gpo.gov, or by dialing (202) 512-1661 with a computerand modem. When using Telnet or modem, type swais, then login as guest with no password.For more information about GPO Access, contact the GPO AccessUser Support Team by E-mail at [email protected]; by fax at(202) 512–1262; or call (202) 512–1530 or 1–888–293–6498 (tollfree) between 7 a.m. and 5 p.m. Eastern time, Monday–Friday,except Federal holidays.The annual subscription price for the Federal Register paperedition is $555, or $607 for a combined Federal Register, FederalRegister Index and List of CFR Sections Affected (LSA)subscription; the microfiche edition of the Federal Registerincluding the Federal Register Index and LSA is $220. Six monthsubscriptions are available for one-half the annual rate. The chargefor individual copies in paper form is $8.00 for each issue, or$8.00 for each group of pages as actually bound; or $1.50 foreach issue in microfiche form. All prices include regular domesticpostage and handling. International customers please add 25% forforeign handling. Remit check or money order, made payable tothe Superintendent of Documents, or charge to your GPO DepositAccount, VISA, MasterCard or Discover. Mail to: New Orders,Superintendent of Documents, P.O. Box 371954, Pittsburgh, PA15250–7954.There are no restrictions on the republication of material appearingin the Federal Register.How To Cite This Publication: Use the volume number and thepage number. Example: 65 FR 12345.

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Contents Federal Register

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Vol. 65, No. 2

Tuesday, January 4, 2000

Agriculture DepartmentSee Food Safety and Inspection Service

Children and Families AdministrationNOTICESAgency information collection activities:

Submission for OMB review; comment request, 301

Civil Rights CommissionNOTICESMeetings; State advisory committees:

South Carolina, 279

Coast GuardNOTICESFreedom of Information Act; implementation:

Vessel response plan information release on Internet;decision, 314–316

Commerce DepartmentSee International Trade AdministrationSee National Institute of Standards and TechnologySee National Oceanic and Atmospheric Administration

Community Development Financial Institutions FundNOTICESGrants and cooperative agreements; availability, etc.:

Community Development Financial Institutions Program,341–344

Consumer Product Safety CommissionNOTICESAgency information collection activities:

Proposed collection; comment request, 290–291

Customs ServiceNOTICESAgency information collection activities:

Proposed collection; comment request, 320–322

Defense DepartmentNOTICESMeetings:

Nuclear Weapons Surety Joint Advisory Committee, 291Privacy Act:

Systems of records, 291–298

Energy DepartmentNOTICESReports and guidance documents; availability, etc.:

Power Outage Study Team findings from summer 1999;workshops, 298

Federal Aviation AdministrationRULESAirworthiness directives:

Airbus, 204–205, 211–215Boeing, 205–207British Aerospace, 207–209Saab, 209–211

PROPOSED RULESAirworthiness directives:

Airbus, 254–256

Boeing, 250–251Fokker, 251–254

NOTICESPassenger facility charges; applications, etc.:

Metropolitan Oakland International Airport, CA, 316Technical standard orders:

Aerospace fuel, engine oil, and hydraulic fluid hoseassemblies; minimum performance and fireresistance standards, 316–317

Federal Communications CommissionRULESRadio stations; table of assignments:

Mississippi, 219–220Wisconsin and Michigan, 220

PROPOSED RULESRadio stations; table of assignments:

New York, 270NOTICESAgency information collection activities:

Reporting and recordkeeping requirements, 298–300Television broadcasting:

Blanco,TX; auction filing window for new televisionstation (Channel 52), 300

Federal Housing Finance BoardRULESAffordable housing program operation:

Program requirements clarification, 203–204Federal home loan bank system:

Advances to nonmembers; technical amendment;reporting and recordkeeping requirements, 202–203

PROPOSED RULESOrganization, functions, and authority delegations:

Finance Office; issuance of consolidated obligations onwhich Federal home loan banks are jointly andseverally liable, 323–338

NOTICESFederal home loan bank system:

Financial management policy; changes, 339–340

Federal Reserve SystemNOTICESBanks and bank holding companies:

Formations, acquisitions, and mergers, 300Permissible nonbanking activities, 300–301

Meetings; Sunshine Act, 301

Food and Drug AdministrationPROPOSED RULESHuman drugs:

Drug products discontinued from sale for reasons ofsafety or effectiveness; list, 256–258

Food Safety and Inspection ServiceRULESMeat and poultry inspections:

Inspection services—Retail operations exemption from requirements, 201–

202

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IV Federal Register / Vol. 65, No. 2 / Tuesday, January 4, 2000 / Contents

Geological SurveyNOTICESGrants and cooperative agreements; availability, etc.:

Federal Geographic Data Committee; National SpatialData Infrastructure Cooperative Agreements Program,305–306

Reports and guidance documents; availability, etc.:Federal-State Cooperative Water Program; external task

force review, 306–307

Health and Human Services DepartmentSee Children and Families AdministrationSee Food and Drug AdministrationSee National Institutes of Health

Interior DepartmentSee Geological SurveySee Land Management BureauSee Minerals Management Service

Internal Revenue ServiceRULESProcedure and administration:

Agriculture Department; return information disclosuresfor statistical purposes and related activities, 215–217

PROPOSED RULESIncome taxes:

Credit for increasing research activities, 258–263Procedure and administration:

Agriculture Department; return information disclosuresfor statistical purposes and related activities; crossreference, 263–264

International Trade AdministrationNOTICESAntidumping:

Brass sheet and strip from—Canada, 279–280

Elemental sulphur from—Canada, 280

Oil country tubular goods from—Korea, 280–281

Porcelain-on-steel cooking ware from—Mexico, 281–283

Pure magnesium from—China, 283–284

Countervailing duties:Porcelain-on-steel cooking ware from—

Mexico, 284–285Applications, hearings, determinations, etc.:

Ames Laboratory, Energy Department, 284

International Trade CommissionNOTICESMeetings; Sunshine Act, 307

Land Management BureauNOTICESEnvironmental statements; availability, etc.:

Pinedale Anticline Natural Gas Exploration andDevelopment Project, WY, 307

Organization, functions, and authority delegations:Nevada State Office Public Room; change in business

hours, 307

Medicare Payment Advisory CommissionNOTICESMeetings, 307–308

Minerals Management ServiceRULESOuter Continental Shelf; oil, gas, and sulphur operations:

Documents incorporated by reference; update, 217–219

National Institute of Standards and TechnologyNOTICESNational Fire Codes:

Fire safety codes and standards, 285–287Technical committee reports, 287–289

National Institutes of HealthNOTICESGrants and cooperative agreements; availability, etc.:

National Institute on Dental and Craniofacial Research—Centers for research to reduce oral health disparities;

regional workshops, 301–302Inventions, Government-owned; availability for licensing,

302–303Meetings:

National Cancer Institute, 303National Eye Institute, 303National Institute of Allergy and Infectious Diseases,

304–305National Institute of Mental Health, 304National Institute on Drug Abuse, 304Warren Grant Magnuson Clinical Center Board of

Governors, 305

National Oceanic and Atmospheric AdministrationRULESFishery conservation and management:

Magnuson-Stevens Act provisions—Pacific Coast groundfish; annual specifications and

management measures, 221–249PROPOSED RULESFishery conservation and management:

Northeastern United States fisheries—Atlantic surf clams, ocean quahogs, and Maine

mahogany quahogs; fishing quotas, 275–278International fisheries regulations:

Pacific halibut—Catch sharing plan, 272–275

Marine mammals:North Atlantic whale protection; whale watching vessels;

operational procedures, 270–272NOTICESPermits:

Marine mammals, 289–290

Nuclear Regulatory CommissionNOTICESMeetings:

Decommissioning standards review plan; workshop;correction, 309–310

Applications, hearings, determinations, etc.:International Uranium (USA) Corp., 308–309

Postal ServicePROPOSED RULESDomestic Mail Manual:

Palletized standard mail and bound printed matter, etc.;preparation changes, 264–270

Public Health ServiceSee Food and Drug AdministrationSee National Institutes of Health


VFederal Register / Vol. 65, No. 2 / Tuesday, January 4, 2000 / Contents

Research and Special Programs AdministrationNOTICESAgency information collection activities:

Submission for OMB review; comment request, 317–318

Securities and Exchange CommissionNOTICESAgency information collection activities:

Proposed collection; comment request, 310–311Self-regulatory organizations; proposed rule changes:

International Securities Clearing Corp., 311National Securities Clearing Corp., 311–312New York Stock Exchange, Inc., 312–313

Small Business AdministrationNOTICESLicense surrenders:

Business Achievement Corp., 313

Surface Transportation BoardNOTICESRailroad operation, acquisition, construction, etc.:

Canadian National Railway Co. et al., 318–319CSX Corp. et al., 319–320

Transportation DepartmentSee Coast GuardSee Federal Aviation Administration

See Research and Special Programs AdministrationSee Surface Transportation BoardRULESOrganization, functions, and authority delegations:

Federal Motor Carrier Safety Administration;establishment, 220–221

Treasury DepartmentSee Community Development Financial Institutions FundSee Customs ServiceSee Internal Revenue Service

Separate Parts In This Issue

Part IIFederal Housing Finance Board , 323–340

Part IIICommunity Development Financial Institutions Fund, 341–

344

Reader AidsConsult the Reader Aids section at the end of this issue forphone numbers, online resources, finding aids, reminders,and notice of recently enacted public laws.


CFR PARTS AFFECTED IN THIS ISSUE

A cumulative list of the parts affected this month can be found in theReader Aids section at the end of this issue.

VI Federal Register / Vol. 65, No. 2 / Tuesday, January 4, 2000 / Contents

9 CFR303.......................................201381.......................................201

12 CFR935.......................................202960.......................................203Proposed Rules:900.......................................324910.......................................324941.......................................324

14 CFR39 (6 documents) ...............204,

205, 207, 209, 211, 213Proposed Rules:39 (3 documents) ...............250,

251, 254

21 CFRProposed Rules:216.......................................256

26 CFR301.......................................215Proposed Rules:1...........................................258301.......................................263

30 CFR250.......................................217

39 CFRProposed Rules:111.......................................264

47 CFR73 (2 documents) ...............219,

220Proposed Rules:73.........................................270

49 CFR1...........................................220

50 CFR600.......................................221660.......................................221Proposed Rules:216.......................................270222.......................................270300.......................................272648.......................................275

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This section of the FEDERAL REGISTERcontains regulatory documents having generalapplicability and legal effect, most of whichare keyed to and codified in the Code ofFederal Regulations, which is published under50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold bythe Superintendent of Documents. Prices ofnew books are listed in the first FEDERALREGISTER issue of each week.

Rules and Regulations Federal Register

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Vol. 65, No. 2


DEPARTMENT OF AGRICULTURE

Food Safety and Inspection Service

9 CFR Parts 303 and 381

[Docket No. 99–055R]

Exemption of Retail Operations fromInspection Requirements

AGENCY: Food Safety and InspectionService, USDA.ACTION: Interim final interpretative rulewith an opportunity for comment.

SUMMARY: The Food Safety andInspection Service is advising interestedpersons that, in determining whether anestablishment is a retail store orrestaurant or a similar retail-typeestablishment that is exempt fromrequirements for inspection under theFederal Meat Inspection Act or thePoultry Products Inspection Act, theAgency will not consider sales ofproducts that simply ‘‘pass through’’ theestablishment without any processing orhandling other than storage andactivities incidental to storage. Theeffect of this interpretation is to excludethe value of those products in decidingwhether, under the Agency’sregulations, sales to hotels, restaurants,and similar institutions disqualify theestablishment from exemption as a retailstore. The Agency is providing anopportunity to comment on itsinterpretation in advance of upcomingrulemaking on the exemption of retailoperations from inspectionrequirements.FOR FURTHER INFORMATION CONTACT:Philip Derfler, Deputy Administrator,Office of Policy, Program Developmentand Evaluation, Food Safety andInspection Service, Washington, DC20250–3700; (202) 720–2710.DATES: This interpretative rule iseffective January 4, 2000. Commentsmay be submitted by February 3, 2000.

ADDRESSES: Submit one original andtwo copies of written comments to FSISDocket Clerk, Docket No. 99–055R, U.S.Department of Agriculture, Food Safetyand Inspection Service, Room 102,Cotton Annex, 300 12th Street, SW,Washington, DC 20250–3700. Allcomments submitted will be availablefor public inspection in the DocketClerk’s office between 8:30 a.m. and4:30 p.m., Monday through Friday.SUPPLEMENTARY INFORMATION: The FoodSafety and Inspection Service (FSIS)administers a regulatory program underthe Federal Meat Inspection Act (FMIA)(21 U.S.C. 601 et seq.) and the PoultryProducts Inspection Act (PPIA) (21U.S.C. 451 et seq.) that is designed toprotect the health and welfare ofconsumers by preventing thedistribution of products that areunwholesome, adulterated, ormisbranded. Both the FMIA and thePPIA include requirements for federalinspection, and they prohibit selling ortransporting, offering for sale ortransportation, or receiving fortransportation, in commerce, productsthat are adulterated or misbranded andproducts that are required to beinspected, unless they have beeninspected and passed (21 U.S.C.458(a)(2) and 610(c)). Intrastateoperations and transactions areeffectively subject to the samerequirements and prohibitions, pursuantto a State inspection program ordesignation for federal inspection (21U.S.C. 454(c)(1) and 661(c)(1)).

Both the FMIA and the PPIA providethat the statutory provisions requiringinspection of the slaughter of livestockor poultry and the preparation orprocessing of products thereof do notapply to ‘‘operations of typestraditionally and usually conducted atretail stores and restaurants, whenconducted at any retail store orrestaurant or similar retail-typeestablishment for sale in normal retailquantities or service * * * toconsumers at such establishments ifsuch establishments are subject to suchinspection provisions only under thisparagraph’’ (i.e., establishments that aresubject to federal inspection becausethey are located in designated Statesand territories) (21 U.S.C. 454(c)(2) and661(c)(2)). In § 303.1(d) and § 381.10(d),respectively (9 CFR 303.1(d) and381.10(d)), FSIS addresses theconditions under which Federal or state

inspection requirements do not apply toretail operations.

A recent FSIS notice advised thepublic that the Agency is reviewing itsregulations on the exemption of retailoperations from requirements forinspection under the FMIA or the PPIA(64 FR 55694, October 14, 1999). Thenotice advised that the Agency intendsto initiate notice-and-commentrulemaking on the application ofinspection requirements and onhandling conditions necessary to ensurethat products delivered to consumersare not adulterated or misbranded (see21 U.S.C. 454, 455, 463(a), 464, 603through 606, 623, 624, and 661). As partof this review, the Agency hasreevaluated USDA’s historical treatmentof products that simply pass through anestablishment without any processing orhandling (e.g., unwrapping orrewrapping) other than storage andactivities, such as the unloading ofvehicles, that are incidental to storage.

The FMIA defines ‘‘prepared’’ as‘‘slaughtered, canned, salted, rendered,boned, cut up, or otherwisemanufactured or processed’’ (21 U.S.C.601(l)), and for purposes of the PPIA,‘‘processed’’ means slaughtered, canned,salted, stuffed, rendered, boned, cut up,or otherwise manufactured orprocessed’’ (21 U.S.C. 453(w)). Thestatutory provisions that require theinspection of slaughter and productpreparation or processing (21 U.S.C. 455and 603 through 606) do not require theinspection of storage and relatedactivities. Other statutory provisionsapply to businesses that involve productsales and storage, such as warehouses(see, e.g., 21 U.S.C. 460(b)(2) and (e),463(a), 624, 642(a)(2), and 645).

Because products that simply ‘‘passthrough’’ an establishment do notundergo any processing or handlingother than storage and activitiesincidental to storage, sales of theseproducts should not be considered indetermining whether an establishment’soperations are exempt fromrequirements for Federal or stateinspection. Currently, this question canarise when a store that otherwise meetsthe requirements for exemption under§ 303.1(d)(2) or § 381.10(d)(2) has salesto hotels, restaurants, or similarinstitutions. Under the regulations(paragraphs (d)(2)(iii)(b) and (d)(2)(vi) of§§ 303.1 and 381.10), sales of meat orpoultry products to hotels, restaurants,

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and similar institutions do notdisqualify an establishment fromexemption as a retail store so long asthey do not exceed either of twomaximum limits: 25 percent of thedollar value of total product sales andthe total calendar year dollar limitation.(The Administrator adjusts the dollarlimitation, which currently is $41,000under the FMIA and $39,000 under thePPIA (63 FR 41540, August 4, 1998),when the Consumer Price Indexindicates a change of more than $500 inthe price of the same volume ofproduct.) FSIS applies these limitswhen it investigates complaints allegingthat retail stores claiming exemptionunder § 303.1(d) or § 381.10(d) havebeen operating in violation of theconditions prescribed in the regulations(see paragraph (d)(3) of §§ 303.1 and381.10).

Because FSIS’s conclusion rests on itsviews about the scope of the FMIA andPPIA requirements for inspection (21U.S.C. 455 and 603 through 606), theAgency has decided that it should beginapplying its interpretation now withrespect to sales of products that clearlyhave not undergone any processing orhandling other than storage andactivities incidental to storage, ratherthan waiting until the anticipatedrulemaking on the exemptionregulations. The effect of thisinterpretative rule is to exclude thevalue of products such as properlylabeled packages of bacon and cans ofpoultry stew that ‘‘pass through’’ anestablishment in deciding whether salesto hotels, restaurants, and similarinstitutions exceed either of the twomaximum limits. Future calculations ofthe total dollar value of anestablishment’s sales to hotels,restaurants, and similar institutions andthe proportion of its total product salesthat institutional sales represent will notinclude the value of products soidentified.

Not counting sales of products thatclearly ‘‘pass through’’ an establishmentwithout undergoing any processing orhandling other than storage andactivities incidental to storageessentially returns FSIS to USDA’spractice during the early years of theretail exemption regulations. However,USDA then based the practice on adecision that these sales weretraditional and usual for retail stores.That decision was challenged in 1975,and in January 1976, when commentersdid not provide ‘‘evidence to support aconclusion that such sales ofprepackaged inspected products tononhousehold consumers had been atraditional and usual retail operation,’’USDA withdrew a proposed rule that

would have codified rules for applyingthe exclusion (40 FR 15906).

The basis for FSIS’s action today isdifferent, as explained above. In fact,FSIS views the ‘‘traditionally andusually’’ criterion in the retailoperations exemption (21 U.S.C.454(c)(2) and 661(c)(2)) as onlyrestricting the types of preparation orprocessing operations—those ‘‘typestraditionally and usually conducted atretail stores and restaurants’’—that anestablishment may conduct. This is notthe issue here. Other criteria in thestatutory exemption address the productsales aspects of retail operations.

FSIS does recognize that the views ofvarious members of the public maydiffer on the circumstances under whichproducts should be treated as ‘‘passingthrough’’ an establishment. Therefore, itis providing the public with anopportunity to submit comments forconsideration by the Agency duringdevelopment of its proposed rule on theexemption of retail operations frominspection requirements. Pending anychanges in the regulations as a result offurther rulemaking, the Agency willaddress questions about particularproducts on a case-by-case basis.

Additional Public NotificationFSIS has considered the potential

civil rights impact of this interpretativerule on minorities, women, and personswith disabilities. Public involvement inall segments of rulemaking and policydevelopment is important.Consequently, in an effort to betterensure that minorities, women, andpersons with disabilities are aware ofthis interpretative rule and are informedabout the mechanism for providingcomments, FSIS will announce it andprovide copies of this Federal Registerpublication in the FSIS ConstituentUpdate.

FSIS provides a weekly FSISConstituent Update, which iscommunicated via fax to over 300organizations and individuals. Inaddition, the update is available on linethrough the FSIS web page located athttp://www.fsis.usda.gov. The update isused to provide information regardingFSIS policies, procedures, regulations,Federal Register notices, FSIS publicmeetings, recalls, and any other types ofinformation that could affect or wouldbe of interest to our constituents/stakeholders. The constituent fax listconsists of industry, trade, and farmgroups, consumer interest groups, alliedhealth professionals, scientificprofessionals, and other individuals thathave requested to be included. Throughthese various channels, FSIS is able toprovide information to a much broader,

more diverse audience. For moreinformation and to be added to theconstituent fax list, fax your request tothe Congressional and Public AffairsOffice, at (202) 720–5704.

Done at Washington, DC, on: December 27,1999.Thomas J. Billy,Administrator.[FR Doc. 00–44 Filed 1–3–00; 8:45 am]BILLING CODE 3410–DM–P

FEDERAL HOUSING FINANCE BOARD

12 CFR Part 935

[No. 99–69]

RIN 3069–AA91

Information Collection Approval;Technical Amendment to Advances toNonmembers Rule

AGENCY: Federal Housing FinanceBoard.ACTION: Final Rule.

SUMMARY: Under the PaperworkReduction Act of 1995 (Act), the Officeof Management and Budget (OMB) hasapproved a three-year extension of theinformation collection contained in theFederal Housing Finance Board(Finance Board) regulation governingFederal Home Loan Bank advances tononmembers. The OMB control numberapproving the information collectionnow expires on November 30, 2002. Inaccordance with the requirements of theAct, the Finance Board is amending theadvances to nonmembers rule to reflectthis new expiration date.EFFECTIVE DATE: The final rule willbecome effective on January 4, 2000.FOR FURTHER INFORMATION CONTACT:Jonathan F. Curtis, Senior FinancialAnalyst, Policy Development andAnalysis Division, Office of Policy,Research and Analysis, by telephone at202/408–2866, by electronic mail [email protected], or by regular mail atthe Federal Housing Finance Board,1777 F Street, N.W., Washington, D.C.20006.SUPPLEMENTARY INFORMATION:

I. Background

In order to extend the expiration dateof the OMB control number approvingthe information collection contained inits advances to nonmembers rule, theFinance Board published requests forpublic comments regarding theinformation collection in the FederalRegister on June 16 and October 5,1999. See 64 FR 32235 (June 16, 1999)and 64 FR 54021 (Oct. 5, 1999). The


203Federal Register / Vol. 65, No. 2 / Tuesday, January 4, 2000 / Rules and Regulations

Finance Board also submitted ananalysis of the information collection,entitled ‘‘Advances to NonmemberMortgagees,’’ to the OMB for review andapproval. The OMB has approved athree-year extension of the informationcollection under OMB control number3069–0005. The OMB control numbernow expires on November 30, 2002.

Under the Act and the OMB’simplementing regulation, 44 U.S.C.3507 and 5 CFR 1320.5, an agency maynot sponsor or conduct, and a person isnot required to respond to, aninformation collection unless theregulation collecting the informationdisplays a currently valid OMB controlnumber. Accordingly, the FinanceBoard is amending the advances tononmembers rule to reflect the newexpiration date of the OMB controlnumber.

II. Notice and Public Participation

Because the effectiveness of theinformation collection contained in theadvances to nonmembers rule must bemaintained, the Finance Board for goodcause finds that the notice and publicprocedure requirements of theAdministrative Procedures Act areimpracticable, unnecessary, or contraryto the public interest. See 5 U.S.C.553(b)(3)(B).

III. Effective Date

For the reasons stated in part II above,the Finance Board for good cause findsthat the final rule should becomeeffective on January 4, 2000. See 5U.S.C. 553(d)(3).

IV. Regulatory Flexibility Act

The provisions of the RegulatoryFlexibility Act do not apply since thistechnical amendment to the advances tononmember rule does not requirepublication of a notice of proposedrulemaking. See 5 U.S.C. 601(2) and603(a).

V. Paperwork Reduction Act

The rule does not contain anycollections of information pursuant tothe Paperwork Reduction Act of 1995.See 44 U.S.C. 3501 et seq. Consequently,the Finance Board has not submittedany information to the Office ofManagement and Budget for review.

List of Subjects in 12 CFR Part 935

Credit, Federal home loan banks,Reporting and recordkeepingrequirements.

For the reasons stated in thepreamble, the Finance Board herebyamends 12 CFR part 935 as follows:

PART 935—ADVANCES

1. The authority citation for part 935continues to read as follows:

Authority: 12 U.S.C. 1422a(a)(3),1422b(a)(1), 1426, 1429, 1430, 1430b, and1431.

Subpart B—Advances to Nonmembers

§§ 935.22, 935.23 and 935.24 [Amended]

2. Revise the parenthetical statementthat appears after §§ 935.22, 935.23, and935.24 to read as follows:(The Office of Management and Budget hasapproved the information collectioncontained in this section and assignedcontrol number 3069–0005 with anexpiration date of November 30, 2002.)

By the Board of Directors of the FederalHousing Finance Board.

Dated: December 22, 1999.Bruce A. Morrison,Chairman.[FR Doc. 00–38 Filed 1–3–00; 8:45 am]BILLING CODE 6725–01–P


12 CFR Part 960

[No. 99–68]

RIN 3069–AA82

Amendment of Affordable HousingProgram Regulation

AGENCY: Federal Housing FinanceBoard.ACTION: Final rule.

SUMMARY: The Federal Housing FinanceBoard (Finance Board) is adopting asfinal, with no changes, the May 5, 1999Interim Final Rule which amended itsregulation governing the operation ofthe Affordable Housing Program (AHPor Program) to make certain technicalrevisions clarifying Programrequirements and improving theoperation of the AHP.EFFECTIVE DATE: The final rule shall beeffective on January 4, 2000.FOR FURTHER INFORMATION CONTACT:Janet M. Fronckowiak, Acting DeputyDirector, Program Assistance Division,Office of Policy, Research and Analysis,(202) 408–2575; or Sharon B. Like,Senior Attorney-Advisor, Office ofGeneral Counsel, (202) 408–2930,Federal Housing Finance Board, 1777 FStreet, N.W., Washington, D.C. 20006.SUPPLEMENTARY INFORMATION:

I. Statutory and Regulatory Background

Section 10(j)(1) of the Federal HomeLoan Bank Act (Bank Act) requires eachFederal Home Loan Bank (Bank) to

establish a Program to subsidize theinterest rate on advances to members ofthe Federal Home Loan Bank Systemengaged in lending for long-term, low-and moderate-income, owner-occupiedand affordable rental housing atsubsidized interest rates. See 12 U.S.C.1430(j)(1) (1994). The Finance Board isrequired to promulgate regulationsgoverning the operation of the Program.See id.

On August 4, 1997, the Finance Boardpublished a final AHP regulationadopting comprehensive revisions to theProgram, see 12 CFR part 960, which,among other changes, authorized the 12Banks, rather than the Finance Board, toapprove applications for AHP subsidiesbeginning January 1, 1998. See 62 FR41812 (Aug. 4, 1997). On May 20, 1998,the Finance Board published an InterimFinal Rule amending the regulation tomake certain technical revisionsclarifying Program requirements andimproving the operation of the AHP. See63 FR 27668 (May 20, 1998). TheInterim Final Rule was adopted as afinal rule, with several changes, andbecame effective on June 1, 1999.

In the course of implementing thechanges to the Program under the recentrevisions to the AHP regulation, theBanks and Finance Board staffidentified a number of additionaltechnical issues whose resolution wouldclarify Program requirements andimprove the effectiveness of theProgram. Accordingly, on May 5, 1999,the Finance Board published anotherInterim Final Rule amending the AHPregulation, effective June 4, 1999, toaddress these additional issues. TheMay 5, 1999 Interim Final Ruleprovided for a 60-day comment period,which closed on July 6, 1999.

The Finance Board received onecomment letter on the May 5, 1999Interim Final Rule from a financialinstitutions trade association, whichgenerally supported several provisionsin the Interim Final Rule and noted onepotential concern which is discussedbelow.

II. Analysis of the Final Rule

Requirement for IndependentAppraisals from State Certified orLicensed Appraisers for Member RealEstate Owned (REO) Properties andProperties Upon Which a Member Holdsa Mortgage or Lien—§ 960.5(b)(2)(ii)(B)

The May 5, 1999 Interim Final Ruleamended § 960.5(b)(2)(ii)(B) of the AHPregulation to require that anindependent appraisal of the AHPproperty be obtained within six monthsprior to the date the Bank disbursesAHP subsidy to the project. The Interim



Final Rule also amended this section torequire that the independent appraisalbe completed by a State certified orlicensed appraiser, as defined in 12 CFR564.2(j) and (k), in order to ensure amore accurate evaluation of the propertyvalue. The commenter generallysupported these amendments, but notedthat for projects valued at less than$250,000, the cost of such an appraisalmay be burdensome in some cases.

The Finance Board believes that theAHP regulatory appraisal requirementgenerally would not impose anadditional cost on AHP projects. First, itis likely that most projects, regardless ofthe value of the projects, would berequired by at least one of their otherfunding sources to obtain an appraisalcompleted by a State certified orlicensed appraiser. Second, the AHPregulation does not require that theappraisal be in narrative form, whichshould keep the cost of the appraisaldown. Third, if an appraisal of theproject by a State certified or licensedappraiser was completed prior to thesix-month period preceding AHPfunding, only an update or addendum tothe original appraisal need be obtained,which should further limit costs to theproject. Accordingly, no change hasbeen made to the appraisal requirementin the final rule.

III. Regulatory Flexibility Act

Because no notice of proposedrulemaking is required for this finalrule, the provisions of the RegulatoryFlexibility Act (5 U.S.C. 601 et seq.) donot apply. Moreover, the final ruleapplies only to the Banks, which do notcome within the meaning of ‘‘smallentities,’’ as defined in the RegulatoryFlexibility Act. See id. § 601(6).

IV. Paperwork Reduction Act

This final rule does not contain anycollections of information pursuant tothe Paperwork Reduction Act of 1995.See 44 U.S.C. 3501 et seq. Therefore, theFinance Board has not submitted anyinformation to the Office ofManagement and Budget for review.

Accordingly, under the authority of12 U.S.C. 1430(j) (1994), the InterimFinal Rule amending 12 CFR part 960,published at 64 FR 24025 (May 5, 1999),is adopted as final without changes.

Dated: December 20, 1999.By the Board of Directors of the Federal

Housing Finance Board.Bruce A. Morrison,Chairman.[FR Doc. 00–37 Filed 1–3–00; 8:45 am]BILLING CODE 6725–01–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 99–NM–222–AD; Amendment39–11491; AD 99–27–10]

RIN 2120–AA64

Airworthiness Directives; Airbus ModelA310 and A300–600 Series Airplanes

AGENCY: Federal AviationAdministration, DOT.ACTION: Final rule.

SUMMARY: This amendment adopts anew airworthiness directive (AD),applicable to certain Airbus ModelA310 and A300–600 series airplanes,that requires wiring modifications to theengine and auxiliary power unit (APU)fire detection system. This amendmentis prompted by issuance of mandatorycontinuing airworthiness information bya foreign civil airworthiness authority.The actions specified by this AD areintended to prevent the fire warningfrom terminating prematurely, whichcould result in an unnoticed,uncontained engine/APU fire.DATES: Effective February 8, 2000.

The incorporation by reference ofcertain publications listed in theregulations is approved by the Directorof the Federal Register as of February 8,2000.ADDRESSES: The service informationreferenced in this AD may be obtainedfrom Airbus Industrie, 1 Rond PointMaurice Bellonte, 31707 Blagnac Cedex,France. This information may beexamined at the Federal AviationAdministration (FAA), TransportAirplane Directorate, Rules Docket,1601 Lind Avenue, SW., Renton,Washington; or at the Office of theFederal Register, 800 North CapitolStreet, NW., suite 700, Washington, DC.FOR FURTHER INFORMATION CONTACT:Norman B. Martenson, Manager,International Branch, ANM–116, FAA,Transport Airplane Directorate, 1601Lind Avenue, SW., Renton, Washington98055–4056; telephone (425) 227–2110;fax (425) 227–1149.SUPPLEMENTARY INFORMATION: Aproposal to amend part 39 of the FederalAviation Regulations (14 CFR part 39) toinclude an airworthiness directive (AD)that is applicable to certain AirbusModel A310 and A300–600 seriesairplanes was published in the FederalRegister on October 6, 1999 (64 FR54248). That action proposed to requirewiring modifications to the engine andauxiliary power unit (APU) firedetection system.

CommentsInterested persons have been afforded

an opportunity to participate in themaking of this amendment. Dueconsideration has been given to thecomments received.

Support for the ProposalOne commenter supports the

proposed AD.

Request to Change Material in theElectrical Cabling

One commenter provides data thatsuggest that the FAA should require analternative material for the electricalcabling to the engine’s core wiringharnesses for the engine/APU firedetection system, rather than require achange to the control logic of the firedetection system. The commenter statesthat the presently used wire harnesswill degrade rapidly in the hightemperature and vibration environment.The commenter describes an alternativematerial that can withstand these severeenvironments without degradation.Thus, it could prevent damage to thewire harness in the event of an enginefire.

The FAA does not concur with theproposal. The Airbus service bulletinsreferenced as the appropriate sources ofservice information for accomplishmentof the wiring modifications required bythis AD address the potential for theAPU engine fire warning to terminateprematurely; these service bulletinsprovide a design change to the detectionsystem control logic that would addressthe identified unsafe condition. TheFAA has determined that theinstallation of electrical cabling made ofan alternative material, thoughincreasing the harness resistance,wound not ensure a reliable firedetection system control logic. Althougha change in the cabling material mayprovide some long-term benefit, it doesnot directly correct the unsafe conditionidentified and addressed in this AD. Nochange to the AD is required.

ConclusionAfter careful review of the available

data, including the comments notedabove, the FAA has determined that airsafety and the public interest require theadoption of the rule as proposed.

Cost ImpactThe FAA estimates that 113 airplanes

of U.S. registry will be affected by thisAD, that it will take approximately 5work hours per airplane to accomplishthe required actions, and that theaverage labor rate is $60 per work hour.Required parts will cost approximately$408 per airplane. Based on these



figures, the cost impact of the AD onU.S. operators is estimated to be$80,004, or $708 per airplane.

The cost impact figure discussedabove is based on assumptions that nooperator has yet accomplished any ofthe requirements of this AD action, andthat no operator would accomplishthose actions in the future if this ADwere not adopted.

Regulatory Impact

The regulations adopted herein willnot have a substantial direct effect onthe States, on the relationship betweenthe national Government and the States,or on the distribution of power andresponsibilities among the variouslevels of government. Therefore, it isdetermined that this final rule does nothave federalism implications underExecutive Order 13132.

For the reasons discussed above, Icertify that this action (1) is not a‘‘significant regulatory action’’ underExecutive Order 12866; (2) is not a‘‘significant rule’’ under DOTRegulatory Policies and Procedures (44FR 11034, February 26, 1979); and (3)Will not have a significant economicimpact, positive or negative, on asubstantial number of small entitiesunder the criteria of the RegulatoryFlexibility Act. A final evaluation hasbeen prepared for this action and it iscontained in the Rules Docket. A copyof it may be obtained from the RulesDocket at the location provided underthe caption ADDRESSES.


Air transportation, Aircraft, Aviationsafety, Incorporation by reference,Safety.

Adoption of the Amendment

Accordingly, pursuant to theauthority delegated to me by theAdministrator, the Federal AviationAdministration amends part 39 of theFederal Aviation Regulations (14 CFRpart 39) as follows:

PART 39—AIRWORTHINESSDIRECTIVES


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

§ 39.13 [Amended]

2. Section 39.13 is amended byadding the following new airworthinessdirective:99–27–10 Airbus Industrie: Amendment

39–11491. Docket 99–NM–222–AD.Applicability: Model A310 and A300–600

series airplanes, certificated in any category;except those on which Airbus Modifications

06267 and 07340 have been accomplishedduring production.

Note 1: This AD applies to each airplaneidentified in the preceding applicabilityprovision, regardless of whether it has beenotherwise modified, altered, or repaired inthe area subject to the requirements of thisAD. For airplanes that have been modified,altered, or repaired so that the performanceof the requirements of this AD is affected, theowner/operator must request approval for analternative method of compliance inaccordance with paragraph (b) of this AD.The request should include an assessment ofthe effect of the modification, alteration, orrepair on the unsafe condition addressed bythis AD; and, if the unsafe condition has notbeen eliminated, the request should includespecific proposed actions to address it.

Compliance: Required as indicated, unlessaccomplished previously.

To prevent the fire warning fromterminating prematurely, which could resultin an unnoticed, uncontained engine/auxiliary power unit (APU) fire, accomplishthe following:

Modifications(a) Within 24 months after the effective

date of this AD, accomplish the wiringmodifications to the engine and APU firedetection system in the relay box 282VU andthe electronics rack 90VU in accordance withAirbus Service Bulletin A310–26–2024,Revision 04, dated March 5, 1999 (for ModelA310 series airplanes); or A300–26–6038,dated March 5, 1999, or Revision 1, datedSeptember 8, 1999 (for Model A300–600series airplanes); as applicable.

Alternative Methods of Compliance(b) An alternative method of compliance or

adjustment of the compliance time thatprovides an acceptable level of safety may beused if approved by the Manager,International Branch, ANM–116, FAA,Transport Airplane Directorate. Operatorsshall submit their requests through anappropriate FAA Principal MaintenanceInspector, who may add comments and thensend it to the Manager, International Branch,ANM–116.

Note 2: Information concerning theexistence of approved alternative methods ofcompliance with this AD, if any, may beobtained from the International Branch,ANM–116.

Special Flight Permits

(c) Special flight permits may be issued inaccordance with sections 21.197 and 21.199of the Federal Aviation Regulations (14 CFR21.197 and 21.199) to operate the airplane toa location where the requirements of this ADcan be accomplished.

Incorporation by Reference

(d) The modifications shall be done inaccordance with Airbus Service BulletinA310–26–2024, Revision 04, dated March 5,1999; Airbus Service Bulletin A300–26–6038,dated March 5, 1999; or Airbus ServiceBulletin A300–26–6038, Revision 1, datedSeptember 8, 1999; as applicable. Thisincorporation by reference was approved bythe Director of the Federal Register in

accordance with 5 U.S.C. 552(a) and 1 CFRpart 51. Copies may be obtained from AirbusIndustrie, 1 Rond Point Maurice Bellonte,31707 Blagnac Cedex, France. Copies may beinspected at the FAA, Transport AirplaneDirectorate, 1601 Lind Avenue, SW., Renton,Washington; or at the Office of the FederalRegister, 800 North Capitol Street, NW., suite700, Washington, DC.

Note 3: The subject of this AD is addressedin French airworthiness directive 1999–238–286(B), dated June 2, 1999.

(e) This amendment becomes effective onFebruary 8, 2000.

Issued in Renton, Washington, onDecember 23, 1999.Vi L. Lipski,Acting Manager, Transport AirplaneDirectorate, Aircraft Certification Service.[FR Doc. 00–12 Filed 1–3–00; 8:45 am]BILLING CODE 4910–13–U



14 CFR Part 39


RIN 2120–AA64

Airworthiness Directives; BoeingModel 767–200, –300, and –300F SeriesAirplanes


SUMMARY: This amendment adopts anew airworthiness directive (AD),applicable to certain Boeing Model 767–200, –300, and –300F series airplanes,that requires replacement of thehydraulic reducer fitting in the returnport of the alternate brake selector valvewith a new restrictor fitting. Thisamendment is prompted by a reportindicating that a brake housing hadfractured due to high loads associatedwith brake vibration during landing gearretraction, which allowed the torque rodto swing free. The actions specified bythis AD are intended to prevent failureof the brake housing in the torque rodregion, which could reduce the brakingcapability of the airplane and/or preventthe extension of a main landing gear byany method.DATES: Effective February 8, 2000.

The incorporation by reference ofcertain publications listed in theregulations is approved by the Directorof the Federal Register as of February 8,2000.ADDRESSES: The service informationreferenced in this AD may be obtainedfrom Boeing Commercial Airplane



Group, P.O. Box 3707, Seattle,Washington 98124–2207. Thisinformation may be examined at theFederal Aviation Administration (FAA),Transport Airplane Directorate, RulesDocket, 1601 Lind Avenue, SW.,Renton, Washington; or at the Office ofthe Federal Register, 800 North CapitolStreet, NW., suite 700, Washington, DC.FOR FURTHER INFORMATION CONTACT:David Herron, Aerospace Engineer,Systems and Equipment Branch, ANM–130S, FAA, Transport AirplaneDirectorate, Seattle Aircraft CertificationOffice, 1601 Lind Avenue, SW., Renton,Washington 98055–4056; telephone(425) 227–2672; fax (425) 227–1181.SUPPLEMENTARY INFORMATION: Aproposal to amend part 39 of the FederalAviation Regulations (14 CFR part 39) toinclude an airworthiness directive (AD)that is applicable to certain BoeingModel 767–200, –300, and –300F seriesairplanes was published in the FederalRegister on August 4, 1998 (63 FR41481). That action proposed to requirereplacement of the hydraulic reducerfitting in the return port of the alternatebrake selector valve with a newrestrictor fitting.

CommentsInterested persons have been afforded

an opportunity to participate in themaking of this amendment. Dueconsideration has been given to thecomments received.

Support for the ProposalOne commenter concurs with the

requirements of the proposed AD. TheAir Transport Association (ATA) ofAmerica states that one of its membersdoes not currently operate any airplanesaffected by the proposed rule, andanother member has no objection to theproposed rule.

Request To Revise the DiscussionSection

One commenter states that it does notagree that the brake vibration is causedby excessive flow of hydraulic fluid intothe alternate system metering valvesduring gear retract braking, as describedin the Discussion section of theproposed AD. The commenter contendsthat the gear retract braking system,common to Model 757, 747–400, and777 series airplanes, and to Model 767series airplanes equipped with steelbrakes, has demonstrated trouble-freeservice experience in all of thoseairplane models without brakevibration. The brake vibration that hasoccurred during gear retract braking onModel 767 series airplanes equippedwith Boeing part number (P/N)S160T300-series carbon brakes is

attributed to the friction-materialcharacteristics of the carbon brakes.Reducing the brake-pressure onset rateconsistently reduces peak brake-torqueamplitudes and brake vibration levels,when present.

The new carbon brake, Boeing P/NS160T4000–210, for Model 767 seriesairplanes, uses a new carbon heatsinkthat has demonstrated extremely stabledynamic characteristics duringlaboratory and flight tests. Therefore,replacement of the existing carbonbrakes, P/N S160T300-series, with thenew carbon brake will, in itself,alleviate the high loads associated withbrake vibration, without replacing thehydraulic restrictor fitting. Thecommenter recommends revising theDiscussion section to read ‘‘Brakevibration during gear retract braking canbe reduced on the existing carbonbrakes by reducing the hydraulic flow tothe brakes.’’

The FAA does not concur that thecause of the brake vibration on Model767–200, –300, and –300F seriesairplanes is due to the brake materialand not the gear retract braking system.In addition, it is not necessary to revisethe Discussion section, as that sectiondoes not appear in the final rule.

Because the brake system comprises agroup of components that include thebrake friction material and gear retractbrakes, which are subsets of the brakesystem, the FAA considers eachcomponent to be a contributor to theunsafe condition. Additionally, BoeingService Bulletin 767–32–0152, datedJune 6, 1996, and Revisions 1 and 2 ofthat service bulletin, do not specify thatthe cause of the vibration is the brakematerial, but only that the vibrationoccurs in airplanes equipped withcarbon brakes. In fact, the thirdparagraph of the Summary section ofRevision 1 of the service bulletin statesthat ‘‘Installation of the restrictor fittingwill reduce the flow into the alternate-system metering valves during gearretract braking. This will reduce peaktorque levels and vibration of thelanding gear during retract braking.’’

Request To Change the Applicability ofthe Proposal

The commenter states that since thebrake vibration is associated only withP/N S160T300-series carbon brakes, theapplicability of the AD should berevised to read ‘‘Model 767–200, –300,and 300F series airplanes equipped withP/N S160T300-series carbon brakes;certified in any category.’’ The FAAinfers that the commenter considers thatit is a combination of carbon brakematerial and the excessive onset ofhydraulic pressure that results in the

unsafe condition; and that brakesmanufactured with a ceram-metalliccomposite, while benefiting from thechange, do not exhibit the unsafecondition the FAA seeks to correctthrough the issuance of this AD.

The FAA concurs that the brakevibration is associated only withairplanes equipped with Boeing P/NS160T300-series carbon brakes. TheFAA also agrees with the manufacturerthat including the specified part numberin the applicability of the final rulecorrectly identifies those airplanes withthe unsafe condition, and has revisedthe final rule accordingly. (Theapplicability of this AD continues toinclude the same airplanes ‘‘1 through607 inclusive;’’ however, the term ‘‘linepositions,’’ which was used in theproposed AD, has been changed to ‘‘linenumbers’’ in this AD.)

Request To Revise Certain TerminologyOne commenter states that, with

reference to an alternative means(method) of compliance (AMOC), an‘‘equivalent’’ level of safety rather thanan ‘‘acceptable’’ level of safety shouldbe considered. The commenter providesno justification for its request.

The FAA does not concur that thelevel of safety should be specified as‘‘equivalent’’ rather than ‘‘acceptable.’’When considering any AMOC request,the Manager of the Seattle AircraftCertification Office evaluates the requestand determines whether the proposedAMOC request is acceptable (i.e.,whether the proposed AMOCadequately addresses the unsafecondition). If so, the manager approvesthe request, even if it is not technically‘‘equivalent’’ to the method ofcompliance required by the AD. Nochange to the final rule is necessary.


data, including the comments notedabove, the FAA has determined that airsafety and the public interest require theadoption of the rule with the changepreviously described. The FAA hasdetermined that this change will neitherincrease the economic burden on anyoperator nor increase the scope of theAD.

Cost ImpactThere are approximately 373 Model

767–200, –300, and –300F seriesairplanes of the affected design in theworldwide fleet. The FAA estimates that86 airplanes of U.S. registry will beaffected by this AD, that it will takeapproximately 4 work hours perairplane to accomplish the requiredactions, and that the average labor rate



is $60 per work hour. Required partswill cost approximately $104 perairplane. Based on these figures, the costimpact of the AD on U.S. operators isestimated to be $29,584, or $344 perairplane.

The cost impact figure discussedabove is based on assumptions that nooperator has yet accomplished any ofthe requirements of this AD action, andthat no operator would accomplishthose actions in the future if this ADwere not adopted.

Regulatory Impact

The regulations adopted herein willnot have substantial direct effects on theStates, on the relationship between thenational government and the States, oron the distribution of power andresponsibilities among the variouslevels of government. Therefore, inaccordance with Executive Order 12612,it is determined that this final rule doesnot have sufficient federalismimplications to warrant the preparationof a Federalism Assessment.

For the reasons discussed above, Icertify that this action (1) is not a‘‘significant regulatory action’’ underExecutive Order 12866; (2) is not a‘‘significant rule’’ under DOTRegulatory Policies and Procedures (44FR 11034, February 26, 1979); and (3)will not have a significant economicimpact, positive or negative, on asubstantial number of small entitiesunder the criteria of the RegulatoryFlexibility Act. A final evaluation hasbeen prepared for this action and it iscontained in the Rules Docket. A copyof it may be obtained from the RulesDocket at the location provided underthe caption ADDRESSES.







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

§ 39.13 [Amended]2. Section 39.13 is amended by

adding the following new airworthinessdirective:99–27–05 Boeing: Amendment 39–11486.

Docket 97–NM–241–AD.Applicability: Model 767–200, –300, and

–300F series airplanes, line numbers 1through 607 inclusive; equipped with partnumber S160T300-series carbon brakes;certificated in any category.

Note 1: This AD applies to each airplaneidentified in the preceding applicabilityprovision, regardless of whether it has beenmodified, altered, or repaired in the areasubject to the requirements of this AD. Forairplanes that have been modified, altered, orrepaired so that the performance of therequirements of this AD is affected, theowner/operator must request approval for analternative method of compliance inaccordance with paragraph (b) of this AD.The request should include an assessment ofthe effect of the modification, alteration, orrepair on the unsafe condition addressed bythis AD; and, if the unsafe condition has notbeen eliminated, the request should includespecific proposed actions to address it.


To prevent failure of the brake housing inthe torque rod region, which could reducethe braking capability of the airplane and/orprevent the extension of a main landing gear,accomplish the following:

Replacement(a) Within 360 days after the effective date

of this AD, replace the hydraulic reducerfitting in the return port of the alternate brakeselector valve with a new restrictor fitting, inaccordance with Boeing Service Bulletin767–32–0152, dated June 6, 1996; Revision 1,dated June 27, 1996; or Revision 2, dated July10, 1997.

Alternative Methods of Compliance(b) An alternative method of compliance or

adjustment of the compliance time thatprovides an acceptable level of safety may beused if approved by the Manager, SeattleAircraft Certification Office (ACO), FAA,Transport Airplane Directorate. Operatorsshall submit their requests through anappropriate FAA Principal MaintenanceInspector, who may add comments and thensend it to the Manager, Seattle ACO.

Note 2: Information concerning theexistence of approved alternative methods ofcompliance with this AD, if any, may beobtained from the Seattle ACO.




(d) The replacement shall be done inaccordance with Boeing Service Bulletin767–32–0152, dated June 6, 1996; BoeingService Bulletin 767–32–0152, Revision 1,

dated June 27, 1996; or Boeing ServiceBulletin 767–32–0152, Revision 2, dated July10, 1997. This incorporation by reference wasapproved by the Director of the FederalRegister in accordance with 5 U.S.C. 552(a)and 1 CFR part 51. Copies may be obtainedfrom Boeing Commercial Airplane Group,P.O. Box 3707, Seattle, Washington 98124–2207. Copies may be inspected at the FAA,Transport Airplane Directorate, 1601 LindAvenue, SW., Renton, Washington; or at theOffice of the Federal Register, 800 NorthCapitol Street, NW., suite 700, Washington,DC.

(e) This amendment becomes effective onFebruary 8, 2000.




14 CFR Part 39


RIN 2120–AA64

Airworthiness Directives; BritishAerospace Model BAC 1–11 200 and400 Series Airplanes


SUMMARY: This amendment adopts anew airworthiness directive (AD),applicable to to all British AerospaceModel BAC 1–11 200 and 400 seriesairplanes, that requires replacing thethrust reverser control unit selectorvalve with a new or modified valve andinspecting for proper rigging of thethrust reverser cable drums and thrustreverser control unit selector valvedetent, and corrective actions, ifnecessary. This amendment alsorequires revising the Airplane FlightManual to provide the flight crew withprocedures to address uncontrolledoperation of the thrust reverser system.This amendment is prompted byissuance of mandatory continuingairworthiness information by a foreigncivil airworthiness authority. Theactions specified by this AD areintended to provide the flight crew withprocedures in the event ofuncommanded deployment of the thrustreverser, and to prevent uncommandeddeployment of the thrust reverser inflight or on the ground, which couldresult in reduced controllability of theairplane.



DATES: Effective February 8, 2000.The incorporation by reference of

certain publications listed in theregulations is approved by the Directorof the Federal Register as of February 8,2000.ADDRESSES: The service informationreferenced in this AD may be obtainedfrom British Aerospace, ServiceSupport, Airbus Limited, P.O. Box 77,Bristol BS99 7AR, England. Thisinformation may be examined at theFederal Aviation Administration (FAA),Transport Airplane Directorate, RulesDocket, 1601 Lind Avenue, SW.,Renton, Washington; or at the Office ofthe Federal Register, 800 North CapitolStreet, NW., suite 700, Washington, DC.FOR FURTHER INFORMATION CONTACT:Norman B. Martenson, Manager,International Branch, ANM–116, FAA,Transport Airplane Directorate, 1601Lind Avenue, SW., Renton, Washington98055–4056; telephone (425) 227–2110;fax (425) 227–1149.SUPPLEMENTARY INFORMATION: Aproposal to amend part 39 of the FederalAviation Regulations (14 CFR part 39) toinclude an airworthiness directive (AD)that is applicable to all BritishAerospace Model BAC 1–11 200 and400 series airplanes was published inthe Federal Register on September 15,1999 (64 FR 50023). That actionproposed to require replacing the thrustreverser control unit selector valve witha new or modified valve and inspectingfor proper rigging of the thrust reversercable drums and thrust reverser controlunit selector valve detent, andcorrective actions, if necessary. Thataction also proposed to require revisingthe Airplane Flight Manual (AFM) toprovide the flight crew with proceduresto address uncontrolled operation of thethrust reverser system.

Comments

Interested persons have been affordedan opportunity to participate in themaking of this amendment. Dueconsideration has been given to thecomments received.

Clarification of Paragraph (c)

The commenter proposes addingclarification in paragraph (c) of theproposed AD to distinguish AdvanceAmendment Bulletin 16 (which appliesto Model 200 series airplanes) fromAdvance Amendment Bulletin 12(which applies to Model 400 seriesairplanes). The FAA concurs with thisproposed change to distinguish betweenAdvanced Amendment Bulletins 16 and12 and the appropriate airplane series,and has revised paragraph (c) of thefinal rule accordingly.

Correction to British AirworthinessDirective Number

This same commenter states that thecorrect number of the Britishairworthiness directive (identified as‘‘002–09–08’’ in the Explanation ofRelevant Service Information of theproposed AD) should be ‘‘002–09–98.’’

The FAA agrees that the number wasincorrectly identified in the referencedsection of the proposed AD. However,the Explanation of Relevant ServiceInformation section is not restatedwithin the final rule; therefore, nochange to the final rule is necessary.British airworthiness directive 002–09–98 is correctly identified in NOTE 3 ofthe proposal and this final rule.

Conclusion

After careful review of the availabledata, including the comments notedabove, the FAA has determined that airsafety and the public interest require theadoption of the rule with the changedescribed previously. The FAA hasdetermined that this change will neitherincrease the economic burden on anyoperator nor increase the scope of theAD.

Cost Impact

The FAA estimates that 16 airplanesof U.S. registry will be affected by thisAD.

It will take approximately 6 workhours per airplane to accomplish theinspections, at an average labor rate of$60 per work hour. Based on thesefigures, the cost impact of theinspections required by this AD on U.S.operators is estimated to be $5,760, or$360 per airplane.

It will take approximately 1 workhour per airplane to accomplish thereplacement, at an average labor rate of$60 per work hour. Required parts willcost approximately $16,000 perairplane. Based on these figures, the costimpact of the replacement required bythis AD on U.S. operators is estimatedto be $256,960, or $16,060 per airplane.

It will take approximately 1 workhour per airplane to accomplish theAFM revision, at an average labor rateof $60 per work hour. Based on thesefigures, the cost impact of the AFMrevision required by this AD on U.S.operators is estimated to be $960, or $60per airplane.

The cost impact figures discussedabove are based on assumptions that nooperator has yet accomplished any ofthe requirements of this AD action, andthat no operator would accomplishthose actions in the future if this ADwere not adopted.

Regulatory Impact

The regulations adopted herein willnot have substantial direct effects on theStates, on the relationship between thenational government and the States, oron the distribution of power andresponsibilities among the variouslevels of government.

Therefore, in accordance withExecutive Order 12612, it is determinedthat this final rule does not havesufficient federalism implications towarrant the preparation of a FederalismAssessment.








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

§ 39.13 [Amended]

2. Section 39.13 is amended byadding the following new airworthinessdirective:99–27–11 British Aerospace Airbus

Limited (Formerly British AerospaceCommercial Aircraft Limited, BritishAerospace Aircraft Group): Amendment39–11492. Docket 99–NM–31–AD.

Applicability: All Model BAC 1–11 200and 400 series airplanes, certificated in anycategory.

Note 1: This AD applies to each airplaneidentified in the preceding applicabilityprovision, regardless of whether it has beenmodified, altered, or repaired in the areasubject to the requirements of this AD. For



airplanes that have been modified, altered, orrepaired so that the performance of therequirements of this AD is affected, theowner/operator must request approval for analternative method of compliance inaccordance with paragraph (e) of this AD.The request should include an assessment ofthe effect of the modification, alteration, orrepair on the unsafe condition addressed bythis AD; and, if the unsafe condition has notbeen eliminated, the request should includespecific proposed actions to address it.


To provide the flight crew with proceduresin the event of uncommanded deployment ofthe thrust reverser and to preventuncommanded deployment of the thrustreverser in flight or on the ground, whichcould result in reduced controllability of theairplane, accomplish the following:

(a) Within 30 days after the effective dateof this AD, perform an inspection for properrigging of the thrust reverser cable drums, inaccordance with British Aerospace AlertService Bulletin 76–A–PM6043, Issue No. 1,dated September 18, 1998. If any drum isfound to be improperly rigged, prior tofurther flight, accomplish the adjustmentsspecified in paragraph 3, ‘‘Adjustments,’’ ofthe alert service bulletin.

(b) Prior to further flight afteraccomplishing the inspection required byparagraph (a) of this AD, perform aninspection for proper rigging of the thrustreverser selector valve detent, in accordancewith Rolls-Royce Spey Service BulletinSp78–131, dated September 1998. If anydiscrepancy is found, prior to further flight,accomplish the adjustments specified inparagraph 3, ‘‘Adjustments,’’ of the servicebulletin.

(c) Within 30 days after the effective dateof this AD, revise the Emergency andAbnormal Procedures Sections of the FAA-approved Airplane Flight Manual (AFM) byinserting, into the applicable sections of theAFM, British Aerospace AdvanceAmendment Bulletin No. 12 (for Model 400series airplanes) or No. 16 (for Model 200series airplanes), as applicable; both datedAugust 19, 1997.

(d) Within 12 months after the effectivedate of this AD, replace the thrust reversercontrol unit selector valve with a new ormodified selector valve in accordance withBritish Aerospace Service Bulletin 78–PM6047, Revision 1, dated November 27,1998.

Alternative Methods of Compliance(e) An alternative method of compliance or

adjustment of the compliance time thatprovides an acceptable level of safety may beused if approved by the Manager,International Branch, ANM–116, FAA,Transport Airplane Directorate. Operatorsshall submit their requests through anappropriate FAA Principal MaintenanceInspector who may add comments and thensend it to the Manager, International Branch,ANM–116.


Special Flight Permits(f) Special flight permits may be issued in

accordance with sections 21.197 and 21.199of the Federal Aviation Regulations (14 CFR21.197 and 21.199) to operate the airplane toa location where the requirements of this ADcan be accomplished.

Incorporation by Reference(g) The actions shall be done in accordance

with British Aerospace Alert Service Bulletin76–A–PM6043, Issue No. 1, dated September18, 1998; Rolls-Royce Spey Service BulletinSp78–131, dated September 1998; BritishAerospace Service Bulletin 78–PM6047,Revision 1, dated November 27, 1998; BritishAerospace Advance Amendment Bulletin No.12, dated August 19, 1997; and BritishAerospace Advance Amendment Bulletin No.16, dated August 19, 1997. Thisincorporation by reference was approved bythe Director of the Federal Register inaccordance with 5 U.S.C. 552(a) and 1 CFRpart 51. Copies may be obtained from BritishAerospace, Service Support, Airbus Limited,P.O. Box 77, Bristol BS99 7AR, England.Copies may be inspected at the FAA,Transport Airplane Directorate, 1601 LindAvenue, SW., Renton, Washington; or at theOffice of the Federal Register, 800 NorthCapitol Street, NW., suite 700, Washington,DC.

Note 3: The subject of this AD is addressedin British airworthiness directives 002–09–98and 005–11–98.

(h) This amendment becomes effective onFebruary 8, 2000.




14 CFR Part 39


RIN 2120–AA64

Airworthiness Directives; Saab ModelSAAB SF340A and SAAB 340B SeriesAirplanes


SUMMARY: This amendment adopts anew airworthiness directive (AD),applicable to certain Saab Model SAABSF340A and SAAB 340B seriesairplanes, that requires repetitiveinspections of the control quadrant forloose screws, and replacement of thecontrol quadrant with a modified part,which constitutes terminating action for

the repetitive inspections. Thisamendment is prompted by issuance ofmandatory continuing airworthinessinformation by a foreign civilairworthiness authority. The actionsspecified by this AD are intended toprevent the power levers from bindingdue to the backing out of screws thatsecure the solenoid bracket within theflight idle stop assembly, which couldresult in the malfunction of the flightidle stop mechanism and the overridefunction, and the inability to move thepower levers aft of flight idle.DATES: Effective February 8, 2000.

The incorporation by reference ofcertain publications listed in theregulations is approved by the Directorof the Federal Register as of February 8,2000.ADDRESSES: The service informationreferenced in this AD may be obtainedfrom Saab Aircraft AB, SAAB AircraftProduct Support, S–581.88, Linkoping,Sweden. This information may beexamined at the Federal AviationAdministration (FAA), TransportAirplane Directorate, Rules Docket,1601 Lind Avenue, SW., Renton,Washington; or at the Office of theFederal Register, 800 North CapitolStreet, NW., suite 700, Washington, DC.FOR FURTHER INFORMATION CONTACT:Norman B. Martenson, Manager,International Branch, ANM–116, FAA,Transport Airplane Directorate, 1601Lind Avenue, SW., Renton, Washington98055–4056; telephone (425) 227–2110;fax (425) 227–1149.SUPPLEMENTARY INFORMATION: Aproposal to amend part 39 of the FederalAviation Regulations (14 CFR part 39) toinclude an airworthiness directive (AD)that is applicable to certain Saab ModelSAAB SF340A and SAAB 340B seriesairplanes was published in the FederalRegister on September 13, 1999 (64 FR49418). That action proposed to requirerepetitive inspections of the controlquadrant for loose screws, andreplacement of the control quadrantwith a modified part, which wouldterminate action for the repetitiveinspections.

Comments

Interested persons have been affordedan opportunity to participate in themaking of this amendment. Dueconsideration has been given to thecomments received.

Restatement of Unsafe Condition

One commenter, the manufacturer,requests that the proposed AD berevised to restate the identified unsafecondition. The commenter states thatmalfunction of the automatic flight idle



stop mechanism would result in theinability to move the power levers aft offlight idle, rather than ‘‘to flight idle,’’as stated in the proposed AD. Thecommenter also notes that, should theautomatic system fail, it can beoverridden by the emergency overridefunction. The commenter suggests thatpertinent sections of the AD be revisedto read ‘‘* * * could result inmalfunction of the automatic flight idlestop mechanism and the overridefunction, preventing the power lever tobe moved aft of flight idle.’’ The FAAconcurs that the restatement suggestedby the commenter is a more accuratereflection of the unsafe conditionidentified in this AD, and has revisedthe final rule accordingly.

Revision of Corrective ActionThe same commenter requests that

paragraph (b) of the proposed AD berevised to allow installation of anunmodified quadrant, provided it hasbeen inspected without discrepanciesdetected, and provided it is subject torepetitive inspections until it has beenmodified. The commenter states that itbelieves that an acceptable level ofsafety can be maintained if theseconditions are followed. This wouldallow a quadrant other than a modifiedquadrant to be installed in the event thatloose screws are found in the installedquadrant during any inspection requiredby paragraph (a) of the AD.

The FAA concurs that installation ofany control quadrant that has beenmodified, or that has been inspected inaccordance with the requirements ofthis AD and found to have no loosescrews, is an acceptable correctiveaction to address the identified unsafecondition. The FAA has revisedparagraph (b) of the AD to require suchaction prior to further flight if loosescrews are found in a control quadrant.The FAA also has revised paragraph (d)of the AD, which addresses installationof spare quadrants, to require suchaction for any control quadrant prior toinstallation on any airplane.

Revision of Spares ParagraphThe commenter also advises the FAA

that the version of the proposed AD thatwas published in the Federal Registeromitted certain information pertinent toparagraph (d) of the AD and should becorrected. The commenter states that thelist of combinations of acceptable partnumbers and reference letters isincorrect, and the list is missing severalcombinations.

The FAA acknowledges theinadvertent typographical erroridentified in the Federal Registerversion of the proposed AD. The

omission related to certain modifiedcontrol quadrants acceptable forinstallation on the airplane. However, aspreviously described, paragraph (d) ofthe AD has been broadened to allowinstallation of both modified and certainunmodified quadrants. Therefore, thelist of combinations of part numbers andreference letters is now omitted, andfurther change to paragraph (d) of theAD is unnecessary.

Cost EstimateThe same commenter states that it

believes an estimate of one work hourfor the inspection, as provided in thecost impact information of the proposedAD, to be an overestimate. The FAAinfers that the commenter is requestingthat the cost estimate be reviseddownward.

The FAA does not concur. Theestimate of 1 work hour was obtained byrounding upward from the referencedservice bulletin’s Manpower estimate of15 minutes. This practice is followed forsimplicity in cost estimating, and doesnot significantly affect the total cost tooperators. No change to the AD isnecessary.

Change to the Proposed ADParagraph (a) of the proposed AD cites

Saab Service Bulletin 340–76–043,Revision 01, dated July 29, 1999, as theappropriate source of serviceinformation. However, reference to thisrevision was inadvertently omitted fromparagraphs (b) and (c) of the proposedAD. The procedures described inRevision 01 of the service bulletin areidentical to those contained in theoriginal issue of the service bulletin,dated July 2, 1999; and Note 3 in the ADgives credit to operators that may havepreviously accomplished requiredactions in accordance with the originalversion. The FAA has revisedparagraphs (b) and (c) of the AD toreference Revision 01 of the servicebulletin.


data, including the comments notedabove, the FAA has determined that airsafety and the public interest require theadoption of the rule with the changesdescribed previously. The FAA hasdetermined that these changes willneither increase the economic burdenon any operator nor increase the scopeof the AD.


of U.S. registry will be affected by thisAD, that it will take approximately 1work hour per airplane to accomplish

the required inspection, and that theaverage labor rate is $60 per work hour.Based on these figures, the cost impactof the required inspection on U.S.operators is estimated to be $17,340, or$60 per airplane, per inspection cycle.

The FAA estimates that it will takeapproximately 4 work hours perairplane to accomplish the requiredreplacement, at an average labor rate of$60 per work hour. Required parts willbe supplied by the parts manufacturer atno cost to the operators. Based on thesefigures, the cost impact of the requiredreplacement on U.S. operators isestimated to be $69,360, or $240 perairplane.

The cost impact figures discussedabove are based on assumptions that nooperator has yet accomplished any ofthe requirements of this AD action, andthat no operator would accomplishthose actions in the future if this ADwere not adopted.

Regulatory Impact

The regulations adopted herein willnot have substantial direct effects on theStates, on the relationship between thenational government and the States, oron the distribution of power andresponsibilities among the variouslevels of government. Therefore, inaccordance with Executive Order 12612,it is determined that this final rule doesnot have sufficient federalismimplications to warrant the preparationof a Federalism Assessment.










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


adding the following new airworthinessdirective:99–27–08 SAAB Aircraft AB: Amendment

39–11489. Docket 99–NM–200–AD.Applicability: Model SAAB SF340A series

airplanes, serial numbers 004 through 159inclusive; and Model SAAB 340B seriesairplanes, series number 160 through 459inclusive; certificated in any category.

Note 1: This AD applies to each airplaneidentified in the preceding applicabilityprovision, regardless of whether it has beenmodified, altered, or repaired in the areasubject to the requirements of this AD. Forairplanes that have been modified, altered, orrepaired so that the performance of therequirements of this AD is affected, theowner/operator must request approval for analternative method of compliance inaccordance with paragraph (e) of this AD.The request should include an assessment ofthe effect of the modification, alteration, orrepair on the unsafe condition addressed bythis AD; and, if the unsafe condition has notbeen eliminated, the request should includespecific proposed actions to address it.


To prevent the power levers from bindingdue to the backing out of screws that securethe solenoid bracket within the flight idlestop assembly, which could result in themalfunction of the flight idle stopmechanism and the override function, andthe inability to move the power levers aft offlight idle, accomplish the following:

Inspection

(a) Within 800 flight hours after theeffective date of this AD, perform aborescopic inspection of the control quadrantfor loose screws, in accordance with SaabService Bulletin 340–76–043, Revision 01,dated July 29, 1999. If no loose screws arefound, repeat the inspection thereafter atintervals not to exceed 800 flight hours, untilthe requirements of paragraph (c) areaccomplished.

Note 2: Saab Service Bulletin 340–76–043,dated July 2, 1999, references Adams RiteAerospace Service Letter General SL–01,dated April 6, 1999, as an additional sourceof service information to accomplish theinspection.

Note 3: Inspections and replacementsaccomplished prior to the effective date ofthis AD in accordance with Saab ServiceBulletin 340–76–043, dated July 2, 1999, areconsidered acceptable for compliance withthe applicable action specified in thisamendment.

Corrective Action

(b) If any loose screw is found during anyinspection performed in accordance with

paragraph (a) of this AD, prior to furtherflight, replace the existing control quadrantwith a modified control quadrant, or with aserviceable control quadrant that has beeninspected and found to have no loose screws,in accordance with Saab Service Bulletin340–76–043, Revision 01, dated July 29,1999.

Terminating Action

(c) Within 8,000 flight hours or 6 yearsafter the effective date of this AD, whicheveroccurs earlier: Replace the existing controlquadrant with a modified control quadrant inaccordance with Saab Service Bulletin 340–76–043, Revision 01, dated July 29, 1999.Such replacement constitutes terminatingaction for the repetitive inspections requiredby paragraph (a) of this AD.

Spares

(d) As of the effective date of this AD, noperson shall install a control quadrant on anyairplane, unless the quadrant has beenmodified, or has been inspected and found tohave no loose screws, in accordance with therequirements of this AD.

Alternative Methods of Compliance

(e) An alternative method of compliance oradjustment of the compliance time thatprovides an acceptable level of safety may beused if approved by the Manager,International Branch, ANM–116, FAA,Transport Airplane Directorate. Operatorsshall submit their requests through anappropriate FAA Principal MaintenanceInspector, who may add comments and thensend it to the, Manager, International Branch,ANM–116.



(f) Special flight permits may be issued inaccordance with sections 21.197 and 21.199of the Federal Aviation Regulations (14 CFR21.197 and 21.199) to operate the airplane toa location where the requirements of this ADcan be accomplished.


(g) The actions shall be done in accordancewith Saab Service Bulletin 340–76–043,Revision 01, dated July 29, 1999. Thisincorporation by reference was approved bythe Director of the Federal Register inaccordance with 5 U.S.C. 552(a) and 1 CFRpart 51. Copies may be obtained from SaabAircraft AB, SAAB Aircraft Product Support,S–581.88, Linko

¨ping, Sweden. Copies may be

inspected at the FAA, Transport AirplaneDirectorate, 1601 Lind Avenue, SW., Renton,Washington; or at the Office of the FederalRegister, 800 North Capitol Street, NW., suite700, Washington, DC.

Note 5: The subject of this AD is addressedin Swedish airworthiness directive SAD No.1–143, dated July 2, 1999.

(h) This amendment becomes effective onFebruary 8, 2000.




14 CFR Part 39


RIN 2120–AA64

Airworthiness Directives; Airbus ModelA300 B4–203 Series Airplanes

AGENCY: Federal AviationAdministration, DOT.ACTION: Final rule; request forcomments.

SUMMARY: This amendment adopts anew airworthiness directive (AD),applicable to certain Airbus ModelA300 B4–203 series airplanes. Thisaction requires repetitive inspections ofthe attachment bolts of the brake bar onthe main landing gear (MLG) to detectmissing or damaged bolts, andreplacement with new bolts, ifnecessary. This amendment is promptedby issuance of mandatory continuingairworthiness information by a foreigncivil airworthiness authority. Theactions specified in this AD areintended to prevent detachment of thebrake bar from the MLG strut, whichcould result in failure of the mainlanding gear to extend.DATES: Effective January 19, 2000.

The incorporation by reference ofcertain publications listed in theregulations is approved by the Directorof the Federal Register as of January 19,2000.

Comments for inclusion in the RulesDocket must be received on or beforeFebruary 3, 2000.ADDRESSES: Submit comments intriplicate to the Federal AviationAdministration (FAA), TransportAirplane Directorate, ANM–114,Attention: Rules Docket No. 99–NM–327–AD, 1601 Lind Avenue, SW.,Renton, Washington 98055–4056.

The service information referenced inthis AD may be obtained from AirbusIndustrie, 1 Rond Point MauriceBellonte, 31707 Blagnac Cedex, France.This information may be examined atthe FAA, Transport AirplaneDirectorate, 1601 Lind Avenue, SW.,Renton, Washington; or at the Office of

VerDate 15-DEC-99 16:01 Jan 03, 2000 Jkt 190000 PO 00000 Frm 00011 Fmt 4700 Sfmt 4700 E:\FR\FM\04JAR1.XXX pfrm06 PsN: 04JAR1


the Federal Register, 800 North CapitolStreet, NW., suite 700, Washington, DC.FOR FURTHER INFORMATION CONTACT:Norman B. Martenson, Manager,International Branch, ANM–116, FAA,Transport Airplane Directorate, 1601Lind Avenue, SW., Renton, Washington98055–4056; telephone (425) 227–2110;fax (425) 227–1149.SUPPLEMENTARY INFORMATION: TheDirection Generale de l’Aviation Civile(DGAC), which is the airworthinessauthority for France, notified the FAAthat an unsafe condition may exist oncertain A300 B4–203 series airplanes.The DGAC advises that three cases ofbrake bar (rod) loss after fracture ofretaining bolts have been reported byoperators of Model A300 seriesairplanes equipped with La Guardialanding gears and Messier Bugatti steelbrakes. In three other cases, there wasno bar separation but retaining boltswere found damaged. The reason forthese anomalies is not known at thistime. However, such discrepancies, ifnot corrected, could result in failure ofthe main landing gear (MLG) to extend.

Explanation of Relevant ServiceInformation

Airbus has issued Service BulletinA300–32–0430, dated January 29, 1999,which describes procedures forrepetitive detailed visual inspections ofthe attachment bolts on the brake bar ofthe MLG to detect damaged or missingbolts, and replacement of any damagedor missing bolt with a new bolt. Theservice bulletin describes damagecriteria and procedures for determiningwhen the brake bar attachment boltsneed to be replaced. Accomplishment ofthe actions specified in the servicebulletin is intended to adequatelyaddress the identified unsafe condition.The DGAC classified this servicebulletin as mandatory and issuedFrench airworthiness directive 1999–284–290(B), dated July 13, 1999, inorder to assure the continuedairworthiness of these airplanes inFrance.

FAA’s Conclusions

This airplane model is manufacturedin France and is type certificated foroperation in the United States under theprovisions of section 21.29 of theFederal Aviation Regulations (14 CFR21.19) and the applicable bilateralairworthiness agreement. Pursuant tothis bilateral airworthiness agreement,the DGAC has kept the FAA informedof the situation described above. TheFAA has examined the findings of theDGAC, reviewed all availableinformation, and determined that AD

action is necessary for products of thistype design that are certificated foroperation in the United States.

Explanation of Requirements of theRule

Since an unsafe condition has beenidentified that is likely to exist ordevelop on other airplanes of the sametype design registered in the UnitedStates, this AD is being issued toprevent detachment of the brake barfrom the main landing gear strut, whichcould result in failure of the mainlanding gear to extend. This AD requiresaccomplishment of the actions specifiedin the service bulletin describedpreviously, except as discussed below.

Differences Between the Rule and theService Information

The manufacturer’s service bulletinrecommends repetitive inspections tobegin at the next ‘‘A’’ check with an‘‘A’’-check repetitive interval. TheDGAC has established an initialinspection time of 500 flight hours anda repetitive inspection interval of 500flight hours. In developing anappropriate compliance time for thisaction, the FAA considered the safetyimplications, the compliance time of theDGAC, and normal maintenanceschedules for timely accomplishment ofthe inspections. Consequently, the FAAconcurs with the DGAC’s mandatedcompliance time.

Cost ImpactNone of the airplanes affected by this

action are on the U.S. Register. Allairplanes included in the applicabilityof this rule currently are operated bynon-U.S. operators under foreignregistry; therefore, they are not directlyaffected by this AD action. However, theFAA considers that this rule isnecessary to ensure that the unsafecondition is addressed in the event thatany of these subject airplanes areimported and placed on the U.S.Register in the future.

Should an affected airplane beimported and placed on the U.S.Register in the future, it would requireapproximately 2 work hours toaccomplish the required inspection, atan average labor rate of $60 per workhour. Based on these figures, the costimpact of this AD would be $120 perairplane, per inspection cycle.

Determination of Rule’s Effective DateSince this AD action does not affect

any airplane that is currently on theU.S. register, it has no adverse economicimpact and imposes no additionalburden on any person. Therefore, priornotice and public procedures hereon are

unnecessary and the amendment may bemade effective in less than 30 days afterpublication in the Federal Register.

Comments InvitedAlthough this action is in the form of

a final rule and was not preceded bynotice and opportunity for publiccomment, comments are invited on thisrule. Interested persons are invited tocomment on this rule by submittingsuch written data, views, or argumentsas they may desire. Communicationsshall identify the Rules Docket numberand be submitted in triplicate to theaddress specified under the captionADDRESSES. All communicationsreceived on or before the closing datefor comments will be considered, andthis rule may be amended in light of thecomments received. Factual informationthat supports the commenter’s ideas andsuggestions is extremely helpful inevaluating the effectiveness of the ADaction and determining whetheradditional rulemaking action would beneeded.

Comments are specifically invited onthe overall regulatory, economic,environmental, and energy aspects ofthe rule that might suggest a need tomodify the rule. All commentssubmitted will be available, both beforeand after the closing date for comments,in the Rules Docket for examination byinterested persons. A report thatsummarizes each FAA-public contactconcerned with the substance of this ADwill be filed in the Rules Docket.

Commenters wishing the FAA toacknowledge receipt of their commentssubmitted in response to this rule mustsubmit a self-addressed, stampedpostcard on which the followingstatement is made: ‘‘Comments toDocket Number 99–NM–327–AD.’’ Thepostcard will be date stamped andreturned to the commenter.

Regulatory ImpactThe regulations adopted herein will

not have substantial direct effects on theStates, on the relationship between thenational government and the States, oron the distribution of power andresponsibilities among the variouslevels of government. Therefore, inaccordance with Executive Order 12612,it is determined that this final rule doesnot have sufficient federalismimplications to warrant the preparationof a Federalism Assessment.

For the reasons discussed above, Icertify that this action (1) is not a‘‘significant regulatory action’’ underExecutive Order 12866; (2) is not a‘‘significant rule’’ under DOTRegulatory Policies and Procedures (44FR 11034, February 26, 1979); and (3)



will not have a significant economicimpact, positive or negative, on asubstantial number of small entitiesunder the criteria of the RegulatoryFlexibility Act. A final evaluation hasbeen prepared for this action and it iscontained in the Rules Docket. A copyof it may be obtained from the RulesDocket at the location provided underthe caption ADDRESSES.







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


adding the following new airworthinessdirective:99–27–09 Airbus Industrie: Amendment 39–11490. Docket 99–NM–327–AD.

Applicability: Model A300 B4–203 seriesairplanes, certificated in any category,equipped with La Guardia main landinggears (MLG) and Messier Bugatti steel brakes.

Note 1: This AD applies to each airplaneidentified in the preceding applicabilityprovision, regardless of whether it has beenmodified, altered, or repaired in the areasubject to the requirements of this AD. Forairplanes that have been modified, altered, orrepaired so that the performance of therequirements of this AD is affected, theowner/operator must request approval for analternative method of compliance inaccordance with paragraph (b) of this AD.The request should include an assessment ofthe effect of the modification, alteration, orrepair on the unsafe condition addressed bythis AD; and, if the unsafe condition has notbeen eliminated, the request should includespecific proposed actions to address it.


To prevent detachment of the brake barfrom the MLG strut, which could result infailure of the MLG to extend, accomplish thefollowing:

(a) Within 500 flight hours after theeffective date of this AD, perform a detailedvisual inspection to detect missing brake barattachment bolts on the left and right MLG,in accordance with Airbus Service BulletinA300–32–0430, dated January 29, 1999.

(1) If no attachment bolt is missing, priorto further flight, remove the attachment bolts,

and perform a detailed visual inspection todetect damage, as specified by Figure 1 of theservice bulletin. Accomplish the actions inaccordance with the service bulletin.

(i) If no damage is detected, repeat thedetailed visual inspection required byparagraph (a) of this AD thereafter atintervals not to exceed 500 flight hours.

(ii) If any damage is detected, prior tofurther flight, replace the two attachmentbolts with new bolts in accordance with theservice bulletin. Repeat the detailed visualinspection required by paragraph (a) of thisAD thereafter at intervals not to exceed 500flight hours.

(2) If any attachment bolt is missing, priorto further flight, replace the two attachmentbolts with new bolts, in accordance with theservice bulletin. Repeat the detailed visualinspection required by paragraph (a) of thisAD thereafter at intervals not to exceed 500flight hours.

Note 2: For the purposes of this AD, adetailed visual inspection is defined as: ‘‘Anintensive visual examination of a specificstructural area, system, installation, orassembly to detect damage, failure, orirregularity. Available lighting is normallysupplemented with a direct source of goodlighting at intensity deemed appropriate bythe inspector. Inspection aids such as mirror,magnifying lenses, etc., may be used. Surfacecleaning and elaborate access proceduresmay be required.’’


(b) An alternative method of compliance oradjustment of the compliance time thatprovides an acceptable level of safety may beused if approved by the Manager,International Branch, ANM–116, FAA,Transport Airplane Directorate. Operatorsshall submit their requests through anappropriate FAA Principal MaintenanceInspector, who may add comments and thensend it to the Manager, International Branch,ANM–116.





(d) The actions shall be done in accordancewith Airbus Service Bulletin A300–32–0430,dated January 29, 1999. This incorporationby reference was approved by the Director ofthe Federal Register in accordance with 5U.S.C. 552(a) and 1 CFR part 51. Copies maybe obtained from Airbus Industrie, 1 RondPoint Maurice Bellonte, 31707 BlagnacCedex, France. Copies may be inspected atthe FAA, Transport Airplane Directorate,1601 Lind Avenue, SW., Renton,Washington; or at the Office of the FederalRegister, 800 North Capitol Street, NW., suite700, Washington, DC.

Note 4: The subject of this AD is addressedin French airworthiness directive 1999–284–290(B), dated July 13, 1999.

(e) This amendment becomes effective onJanuary 19, 2000.

Issued in Renton, Washington, onDecember 23, 1999.Vi L. Lipski,Acting Manager, Transport AirplaneDirectorate, Aircraft Certification Service.[FR Doc. 00–8 Filed 1–3–00; 8:45 am]BILLING CODE 4910–13–P



14 CFR Part 39


RIN 2120–AA64

Airworthiness Directives; Airbus ModelA300 B4–600R and A300 F4–600RSeries Airplanes


SUMMARY: This amendment supersedesan existing airworthiness directive (AD),applicable to all Airbus Model A300B4–600R and A300 F4–600R seriesairplanes, that currently requires a one-time visual inspection for damage of thecenter tank fuel pumps and fuel pumpcanisters, and replacement of damagedfuel pumps and fuel pump canisterswith new or serviceable parts. Thisamendment also requires repetitivevisual inspections of the fuel pumpsand repetitive eddy current inspectionsof the fuel pump canisters, andreplacement of damaged fuel pumpsand fuel pump canisters with new orserviceable parts. This amendment alsoreduces the applicability to include onlythose airplanes that have a trim tanksystem installed. This amendment isprompted by issuance of mandatorycontinuing airworthiness information bya foreign civil airworthiness authority.The actions specified by this AD areintended to detect damage to the fuelpump and fuel pump canister, whichcould result in loss of flame trapcapability and could provide a fuelignition source in the center fuel tank.DATES: Effective February 8, 2000.

The incorporation by reference ofAirbus Alert Service Bulletin A300–28A6061, dated February 19, 1999, aslisted in the regulations, is approved bythe Director of the Federal Register as ofFebruary 8, 2000.

The incorporation by reference ofAirbus All Operators Telex (AOT) 28–



09, dated November 28, 1998, as listedin the regulations, was approvedpreviously by the Director of the FederalRegister as of December 28, 1998 (63 FR70639, December 22, 1998).ADDRESSES: The service informationreferenced in this AD may be obtainedfrom Airbus Industrie, 1 Rond PointMaurice Bellonte, 31707 Blagnac Cedex,France. This information may beexamined at the Federal AviationAdministration (FAA), TransportAirplane Directorate, Rules Docket,1601 Lind Avenue, SW., Renton,Washington; or at the Office of theFederal Register, 800 North CapitolStreet, NW., suite 700, Washington, DC.FOR FURTHER INFORMATION CONTACT:Norman B. Martenson, Manager,International Branch, ANM–116, FAA,Transport Airplane Directorate, 1601Lind Avenue, SW., Renton, Washington98055–4056; telephone (425) 227–2110;fax (425) 227–1149.SUPPLEMENTARY INFORMATION: Aproposal to amend part 39 of the FederalAviation Regulations (14 CFR part 39)by superseding AD 98–25–53,amendment 39–10956 (63 FR 70639,December 22, 1998), which is applicableto all Airbus Model A300 B4–600R andA300 F4–600R series airplanes, waspublished in the Federal Register onOctober 27, 1999 (64 FR 57800). Theaction proposed to require a one-timevisual inspection for damage of thecenter tank fuel pumps and fuel pumpcanisters, and replacement of damagedfuel pumps and fuel pump canisterswith new or serviceable parts. Theaction also proposed to requirerepetitive visual inspections of the fuelpumps and repetitive eddy currentinspections of the fuel pump canisters,and replacement of damaged fuelpumps and fuel pump canisters withnew or serviceable parts. The action alsoproposed to reduce the applicability toinclude only those airplanes that have atrim tank system installed.

Comments

Interested persons have been affordedan opportunity to participate in themaking of this amendment. Nocomments were submitted in responseto the proposal or the FAA’sdetermination of the cost to the public.

Conclusion

The FAA has determined that airsafety and the public interest require theadoption of the rule as proposed.

Cost Impact

There are approximately 67 airplanesof U.S. registry that will be affected bythis AD.

The inspection that is currentlyrequired by AD 98–25–53, and retainedin this AD, takes approximately 2 workhours per airplane to accomplish, at anaverage labor rate of $60 per work hour.Based on these figures, the cost impactof the currently required actions on U.S.operators is estimated to be $120 perairplane.

The new inspections that are requiredin this AD action will takeapproximately 2 work hours perairplane to accomplish, at an averagelabor rate of $60 per work hour. Basedon these figures, the cost impact of thisrequirement of this AD on U.S.operators is estimated to be $8,040, or$120 per airplane, per inspection cycle.

The cost impact figures discussedabove are based on assumptions that nooperator has yet accomplished any ofthe current or proposed requirements ofthis AD action, and that no operatorwould accomplish those actions in thefuture if this AD were not adopted.

Regulatory Impact

The regulations adopted herein willnot have a substantial direct effect onthe States, on the relationship betweenthe national Government and the States,or on the distribution of power andresponsibilities among the variouslevels of government. Therefore, it isdetermined that this final rule does nothave federalism implications underExecutive Order 13132.








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


removing amendment 39–10956 (63 FR70639, December 22, 1998), and byadding a new airworthiness directive(AD), amendment 39–11488, to read asfollows:99–27–07 Airbus Industrie: Amendment 39–

11488. Docket 99–NM–130–AD.Supersedes AD 98–25–53, Amendment39–10956.

Applicability: Model A300 B4–600R andA300 F4–600R series airplanes, on whichAirbus Modification 4801 (trim tank system)has been accomplished, certificated in anycategory.

Note 1: This AD applies to each airplaneidentified in the preceding applicabilityprovision, regardless of whether it has beenotherwise modified, altered, or repaired inthe area subject to the requirements of thisAD. For airplanes that have been modified,altered, or repaired so that the performanceof the requirements of this AD is affected, theowner/operator must request approval for analternative method of compliance inaccordance with paragraph (d) of this AD.The request should include an assessment ofthe effect of the modification, alteration, orrepair on the unsafe condition addressed bythis AD; and, if the unsafe condition has notbeen eliminated, the request should includespecific proposed actions to address it.


To detect damage to the fuel pump andfuel pump canister, which could result inloss of flame trap capability and couldprovide a fuel ignition source in the centerfuel tank, accomplish the following:

Inspections

(a) Prior to the accumulation of 5,000 totalhours time-in-service, or within 250 hourstime-in-service after the effective date of thisAD, whichever occurs later, perform adetailed visual inspection for damage of thecenter tank fuel pumps and fuel pumpcanisters, in accordance with Airbus AllOperators Telex (AOT) 28–09, datedNovember 28, 1998. Repeat the inspectionprior to the accumulation of 12,000 totalhours time-in-service, or within 250 hourstime-in-service after accomplishment of theinitial inspection, whichever occurs later.Thereafter, repeat the inspection at intervalsnot to exceed 250 hours time-in-service, untilaccomplishment of the initial inspectionrequired by paragraph (b) of this AD.

Note 2: For the purposes of this AD, adetailed visual inspection is defined as: ‘‘Anintensive visual examination of a specificstructural area, system,installation, orassembly to detect damage, failure, orirregularity. Available lighting is normallysupplemented with a direct source of goodlighting at intensity deemed appropriate by



the inspector. Inspection aids such as mirror,magnifying lenses, etc., may be used. Surfacecleaning and elaborate access proceduresmay be required.’’

(b) At the applicable time specified inparagraph (b)(1), (b)(2), or (b)(3) of this AD:Perform a detailed visual inspection to detectdamage of the center tank fuel pumps andperform an eddy current inspection to detectdamage of the fuel pump canisters, inaccordance with Airbus Alert ServiceBulletin A300–28A6061, dated February 19,1999. Repeat the inspections thereafter atintervals not to exceed 1,500 flight cycles.Accomplishment of the initial inspectionsrequired by this paragraph constitutesterminating action for the requirements ofparagraph (a) of this AD.

(1) For airplanes that have accumulated11,000 or more total flight cycles as of theeffective date of this AD: Inspect within 300flight cycles after the effective date of thisAD.

(2) For airplanes that have accumulated8,500 or more total flight cycles, but fewerthan 11,000 total flight cycles, as of theeffective date of this AD: Inspect within 750flight cycles after the effective date of thisAD.

(3) For airplanes that have accumulatedfewer than 8,500 total flight cycles as of theeffective date of this AD: Inspect prior to theaccumulation of 7,000 flight cycles, or within1,500 flight cycles after the effective date ofthis AD, whichever occurs later.

(c) If any damage is detected during anyinspection required by this AD, prior tofurther flight, replace the damaged fuel pumpor fuel pump canister with a new orserviceable part in accordance with AirbusAlert Service Bulletin A300–28A6061, datedFebruary 19, 1999.

Alternative Methods of Compliance(d) An alternative method of compliance or



Special Flight Permits(e) Special flight permits may be issued in


Incorporation by Reference(f) The actions shall be done in accordance

with Airbus All Operators Telex (AOT) 28–09, dated November 28, 1998; and AirbusAlert Service Bulletin A300–28A6061, datedFebruary 19, 1999.

(1) The incorporation by reference ofAirbus Alert Service Bulletin A300–

28A6061, dated February 19, 1999, isapproved by the Director of the FederalRegister in accordance with 5 U.S.C. 552(a)and 1 CFR part 51.

(2) The incorporation by reference ofAirbus All Operators Telex (AOT) 28–09,dated November 28, 1998, was approvedpreviously by the Director of the FederalRegister as of December 28, 1998 (63 FR70639, December 22, 1998).

(3) Copies may be obtained from AirbusIndustrie, 1 Rond Point Maurice Bellonte,31707 Blagnac Cedex, France. Copies may beinspected at the FAA, Transport AirplaneDirectorate, 1601 Lind Avenue, SW., Renton,Washington; or at the Office of the FederalRegister, 800 North Capitol Street, NW., suite700, Washington, DC.

Note 4: The subject of this AD is addressedin French airworthiness directive 1999–149–280(B), dated April 7, 1999.

(g) This amendment becomes effective onFebruary 8, 2000.

Issued in Renton, Washington, onDecember 23, 1999.D.L. Riggin,Acting Manager, Transport AirplaneDirectorate, Aircraft Certification Service.[FR Doc. 00–6 Filed 1–3–00; 8:45 am]BILLING CODE 4910–13–U

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[TD 8854]

RIN 1545–AX70

Disclosures of Return Information toOfficers and Employees of theDepartment of Agriculture for CertainStatistical Purposes and RelatedActivities

AGENCY: Internal Revenue Service (IRS),Treasury.ACTION: Temporary regulation.

SUMMARY: This document provides atemporary regulation relating to thedisclosure of return information toofficers and employees of theDepartment of Agriculture for certainstatistical purposes and relatedactivities. The temporary regulationwould permit the IRS to disclose returninformation to the Department ofAgriculture to structure, prepare, andconduct the Census of Agriculture. Thetext of this temporary regulation alsoserves as the text of the proposedregulation set forth in the notice ofproposed rulemaking on this subject inthe Proposed Rules section of this issueof the Federal Register.DATES: Effective Date: This regulation iseffective January 4, 2000.

Applicability Date: For dates ofapplicability of this regulation, see,§ 301.6103(j)(5)–1T(d).FOR FURTHER INFORMATION CONTACT:Jennifer S. McGinty, (202) 622–4570(not a toll-free number).SUPPLEMENTARY INFORMATION:

BackgroundSection 6103(j) of the Internal

Revenue Code (Code) provides for thedisclosure of tax information forstatistical purposes. Prior to the Censusof Agriculture Act of 1997 (Pub. L. 105–113), the Bureau of Census hadresponsibility for preparing the Censusof Agriculture. Section 6103(j)(1)authorized the Bureau of Census toreceive tax information as prescribed inthe regulations in structuring censuses.Treasury regulations implemented suchauthority with respect to the Census ofAgriculture. The Census of AgricultureAct transferred responsibility for thatCensus from the Bureau of Census to theDepartment of Agriculture. In 1998, theTax and Trade Relief Extension Act of1998 (Pub. L. 105–277) added section6103(j)(5) to provide disclosureauthority for the Department ofAgriculture to receive tax information tostructure, prepare, and conduct theCensus of Agriculture. By letter datedMay 21, 1999, the Secretary ofAgriculture requested that theregulations be amended so that theDepartment of Agriculture can begin toreceive return information for purposesof the Census of Agriculture. Thisdocument contains a temporaryregulation which authorizes the IRS todisclose return information to theDepartment of Agriculture for purposesof the Census of Agriculture.

Explanation of ProvisionsThis temporary regulation will allow

the IRS to disclose return information tothe Department of Agriculture forpurposes of the Census of Agriculture.

The disclosure of the specific items ofreturn information identified in thisregulation is necessary in order for theDepartment of Agriculture to accuratelyidentify, locate, and classify, as well asproperly process, information fromagricultural businesses to be surveyedfor the statutorily mandated Census ofAgriculture.

Special AnalysesIt has been determined that this

Treasury decision is not a significantregulatory action as defined inExecutive Order 12866. Therefore, aregulatory assessment is not required. Ithas also been determined that section553(b) of the Administrative ProcedureAct (5 U.S.C. chapter 5) does not apply



to these regulations. For theapplicability of the RegulatoryFlexibility Act (5 U.S.C. chapter 6) referto the Special Analyses section of thepreamble to the cross reference notice ofproposed rulemaking published in theProposed Rules section in this issue ofthe Federal Register. Pursuant tosection 7805(f) of the Code, thistemporary regulation will be submittedto the Chief Counsel for Advocacy of theSmall Business Administration forcomment on its impact on smallbusinesses.

Drafting Information: The principalauthor of this regulation is Jennifer S.McGinty, Office of the Assistant ChiefCounsel (Disclosure Litigation), IRS.However, other personnel from the IRSand Treasury Department participatedin its development.


Employment taxes, Estate taxes,Excise taxes, Gift taxes, Income taxes,Penalties, Reporting and recordkeepingrequirements.

Adoption of Amendments to theRegulations

Accordingly, 26 CFR part 301 isamended as follows:

PART 301—PROCEDURE ANDADMINISTRATION

Paragraph 1. The authority citationfor part 301 is amended by adding anentry in numerical order to read in partas follows:

Authority: 26 U.S.C. 7805 * * *

Section 301.6103(j)(5)–1T also issuedunder 26 U.S.C. 6103(j)(5);* * *

Par. 2. Section 301.6103(j)(5)–1T isadded to read as follows:

§ 301.6103(j)(5)–1T Disclosures of returninformation to officers and employees ofthe Department of Agriculture for certainstatistical purposes and related activities(temporary).

(a) General rule. Pursuant to theprovisions of section 6103(j)(5) of theInternal Revenue Code (Code) andsubject to the requirements of paragraph(c) of this section, officers or employeesof the Internal Revenue Service (IRS)will disclose return information toofficers and employees of theDepartment of Agriculture to the extent,and for such purposes as may be,provided by paragraph (b) of thissection.

(b) Disclosure of return information toofficers and employees of theDepartment of Agriculture. (1) Officersor employees of the IRS will disclosethe return information in this paragraph(b) for individuals, partnerships, and

corporations with agricultural activity,as determined generally by industrycode classification or the filing ofreturns for such activity, to officers andemployees of the Department ofAgriculture for purposes of, but only tothe extent necessary in, structuring,preparing, and conducting, asauthorized by chapter 55 of title 7,United States Code, the Census ofAgriculture.

(2) From Form 1040/Schedule F—(i) Taxpayer Identity Information (as

defined in section 6103(b)(6) of theCode);

(ii) Spouse’s SSN;(iii) Annual Accounting Period;(iv) Principal Business Activity (PBA)

Code;(v) Sales of livestock and produce

raised;(vi) Taxable cooperative distributions;(vii) Income from custom hire and

machine work;(viii) Gross income;(ix) Master File Tax (MFT) Code;(x) Document Locator Number (DLN);(xi) Cycle Posted;(xii) Final return indicator; and(xiii) Part year return indicator.(3) From Form 943—(i) Taxpayer Identity Information;(ii) Annual Accounting Period;(iii) Total wages subject to Medicare

taxes;(iv) Master File Tax (MFT) Code;(v) Document Locator Number (DLN);(vi) Cycle Posted;(vii) Final return indicator; and(viii) Part year return indicator.(4) From Form 1120 series—(i) Taxpayer Identity Information;(ii) Annual Accounting Period;(iii) Gross receipts less returns and

allowances;(iv) PBA code;(v) Parent corporation Employer

Identification Number, and relatedName and PBA Code for entities withagricultural activity;

(vi) Master File Tax (MFT) Code;(vii) Document Locator Number

(DLN);(viii) Cycle posted;(ix) Final return indicator;(x) Part year return indicator; and(xi) Consolidated return indicator.(5) From Form 851—(i) Subsidiary Taxpayer Identity

Information;(ii) Annual Accounting Period;(iii) Subsidiary PBA Code;(iv) Parent Taxpayer Identity

Information;(v) Parent PBA Code;(vi) Master File Tax (MFT) Code;(vii) Document Locator Number

(DLN); and(viii) Cycle Posted.

(6) From Form 1065 series—(i) Taxpayer Identity Information;(ii) Annual Accounting Period;(iii) PBA Code;(iv) Gross receipts less returns and

allowances;(v) Net farm profit (loss);(vi) Master File Tax (MFT) Code;(vii) Document Locator Number

(DLN);(viii) Cycle Posted;(ix) Final return indicator; and(x) Part year return indicator.(c) Procedures and Restrictions. (1)

Disclosure of return information byofficers or employees of the IRS asprovided by paragraph (b) of this sectionwill be made only upon written requestdesignating, by name and title, theofficers and employees of theDepartment of Agriculture to whomsuch disclosure is authorized, to theCommissioner of Internal Revenue bythe Secretary of the Department ofAgriculture and describing—

(i) The particular return informationto be disclosed;

(ii) The taxable period or date towhich such return information relates;and

(iii) The particular purpose for whichthe return information is to be used.

(2) No such officer or employee towhom return information is disclosedpursuant to the provisions of paragraph(b) of this section shall disclose suchreturn information to any person, otherthan the taxpayer to whom such returninformation relates or other officers oremployees of the Department ofAgriculture whose duties orresponsibilities require such disclosurefor a purpose described in paragraph (b)of this section, except in a form thatcannot be associated with, or otherwiseidentify, directly or indirectly, aparticular taxpayer. If the IRSdetermines that the Department ofAgriculture, or any officer or employeethereof, has failed to, or does not, satisfythe requirements of section 6103(p)(4) ofthe Code or regulations or publishedprocedures thereunder, the IRS maytake such actions as are deemednecessary to ensure that suchrequirements are or will be satisfied,including suspension of disclosures ofreturn information otherwise authorizedby section 6103(j)(5) and paragraph (b)of this section, until the IRS determinesthat such requirements have been orwill be satisfied.



(d) Effective date. This section isapplicable from January 4, 2000,through January 3, 2003.Robert Wenzel,Acting Commissioner of Internal Revenue.

Approved: December 13, 1999.Jonathan Talisman,Acting Assistant Secretary of the Treasury(Tax Policy).[FR Doc. 00–54 Filed 1–3–00; 8:45 am]BILLING CODE 4830–01–U

DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Part 250

RIN 1010–AC55

Update of Documents Incorporated byReference

AGENCY: Minerals Management Service(MMS), Interior.ACTION: Final rule.

SUMMARY: MMS is updating onedocument incorporated by reference andadding a new document incorporated byreference in regulations governing oiland gas and sulphur operations in theOuter Continental Shelf (OCS). The neweditions of these documentsincorporated by reference will ensurethat lessees use the best available andsafest technologies while operating inthe OCS. The updated document, withErrata Change dated August 17, 1998, isthe Second Edition of the AmericanPetroleum Institute’s (API)Recommended Practice forClassification of Locations for ElectricalInstallations at Petroleum FacilitiesClassified as Class I, Division 1 andDivision 2 (API RP 500). The newdocument, with Errata Change datedAugust 17, 1998, is the First Edition ofthe API’s Recommended Practice forClassification of Locations for ElectricalInstallations at Petroleum FacilitiesClassified as Class I, Zone 0, Zone 1,and Zone 2 (API RP 505).DATES: This rule is effective February 3,2000. The incorporation by reference ofpublications listed in the regulation isapproved by the Director of the FederalRegister as of February 3, 2000.FOR FURTHER INFORMATION CONTACT: FredGray, Operations Analysis Branch, at(703) 787–1027.SUPPLEMENTARY INFORMATION: On March19, 1999, we published a Notice ofProposed Rulemaking (64 FR 13535),titled ‘‘Update of DocumentsIncorporated by Reference,’’ revising thetable in 30 CFR 250.101(e); 250.403(b);250.802(e)(4)(i); 250.803(b)(9)(i);

250.1628(b)(3) and (d)(4)(i); and250.1629(b)(4)(i). Our 90-day commentperiod closed on June 17, 1999. Wereceived four positive, supportivecomments. This final rule amends theseven foregoing regulations. Please notethat our final regulations revising 30CFR 250, subpart A, relocated§ 250.101(e) to 250.198(e) and§ 250.403(b) to 250.114(a). This finalrule reflects those changes.

We use standards, specifications, andrecommended practices developed bystandard-setting organizations and theoil and gas industry for establishingrequirements for activities in the OCS.This practice, known as incorporationby reference, allows us to incorporatethe provisions of technical standardsinto the regulations without increasingthe volume of the Code of FederalRegulations (CFR). The legal effect ofincorporation by reference is that thematerial is treated as if it werepublished in the Federal Register. Thismaterial, like any other properly issuedregulation, then has the force and effectof law. We hold operators/lesseesaccountable for complying with thedocuments incorporated by reference inour regulations. After the effective dateof this rule, 85 private sector consensusstandards will be incorporated byreference into the offshore operatingregulations.

The regulations found at 1 CFR part51 govern how we and other Federalagencies incorporate various documentsby reference. Agencies can onlyincorporate by reference throughpublication in the Federal Register.Agencies must also gain approval fromthe Director of the Federal Register foreach publication incorporated byreference. Incorporation by reference ofa document or publication is limited tothe specific edition or specific editionand supplement or addendum cited inthe regulations.

Comments on the RuleWe received comments from Noble

Drilling Services, Inc.; Shell OffshoreInc. on behalf of itself and otheraffiliates of Shell Oil Company; Mahl &Associates, Inc.; and the InternationalAssociation of Drilling Contractors. Allcommenters support the proposed ruleincorporating by reference the two APIdocuments.

Procedural MattersThis is a very simple rule. The rule’s

purpose is to update one document thatis currently incorporated by reference inthe regulations and to add oneadditional document incorporated byreference. The differences between thenewer document and the older

document are very minor. The minordifferences between the newer and olderdocument will not cause a significanteconomic effect on any entity (small orlarge). Similarly, the addition of the newdocument, API RP 505, will not have asignificant effect on any entity (small orlarge). Therefore, this regulation’simpact on the entire industry is minor.

Federalism (Executive Order (E.O.13132)

According to E.O. 13132, this ruledoes not have Federalism implications.This rule does not substantially anddirectly affect the relationship betweenthe Federal and State governments. Thisrule does not impose costs on States orlocalities. The rule simply addressesoffshore structure design methods forlessee/operator consideration.

Takings Implication Assessment (E.O.12630)

According to E.O. 12630, this ruledoes not have significant TakingsImplications. A Takings ImplicationAssessment is not required.

Regulatory Planning and Review (E.O.12866)

This document is not a significantrule and is not subject to review by theOffice of Management and Budget underE.O. 12866.

(1) This rule will not have an effect of$100 million or more on the economy.It will not adversely affect in a materialway the economy, productivity,competition, jobs, the environment,public health or safety, or State, local,or tribal governments or communities.

The rule would have no significanteconomic impact because thedocuments do not contain anysignificant revisions that will causelessees or operators to change theirbusiness practices. The documents willnot require the retrofitting of anyfacilities. The documents may lead tominor changes in operating practices,but the associated costs will be veryminor.

(2) This rule will not create a seriousinconsistency or otherwise interferewith an action taken or planned byanother agency. This rule simply grantslessee/operator additional flexibilitywhen designing an offshore structureand will not affect any action of anotheragency.

(3) This rule does not alter thebudgetary effects or entitlements, grants,user fees, or loan programs or the rightsor obligations of their recipients,because the documents do not addressor affect any of these programs, rights orobligations.



(4) This rule does not raise novel legalor policy issues. This is a very simplerule which only addresses ordinaryoperational decisions of the lessee/operator and does not affect legal orpolicy issues.

Civil Justice Reform (E.O. 12988)

According to E.O. 12988, the Office ofthe Solicitor has determined that thisrule does not unduly burden the judicialsystem and meets the requirements ofsections 3(a) and 3(b)(2) of the Order.

National Environmental Policy Act(NEPA) of 1969

This rule does not constitute a majorFederal action significantly affecting thequality of the human environment. Adetailed statement under the NEPA isnot required.

Paperwork Reduction Act of 1995

There are no information collectionrequirements associated with this rule.

Regulatory Flexibility Act

The Department certifies that thisdocument will not have a significanteconomic effect on a substantial numberof small entities under the RegulatoryFlexibility Act (5 U.S.C. 601 et seq.).The Small Business Administration(SBA) defines a small business ashaving:

• Annual revenues of $5 million orless for exploration service and fieldservice companies.

• Fewer than 500 employees fordrilling companies and for companiesthat extract oil, gas, or natural gasliquids.

We estimate that there is a total of1,380 firms that drill oil and gas wellsonshore and offshore under the SmallBusiness Administration’s StandardIndustrial Classification (SIC) 1381,Drilling Oil and Gas Wells. Of these,approximately 130 companies areoffshore lessees/operators, based oncurrent estimates. According to SBAestimates, 39 companies qualify as largefirms, leaving 91 companies qualified assmall firms with fewer than 500employees.

Incorporation of the new documentinto MMS regulations would allow theoffshore structure to be designed andbuilt using either offshore electricallocation classification method. Thus,incorporation of the new document willnot impose new cost on the offshore oiland gas industry and may providebeneficial flexibility. The Departmentalso determined that the indirect effectsof this rule on small entities thatprovide support for offshore activitiesare small (in effect zero).

Based on these reasons, this rule hasno significant economic impact on thesmall entities.

Your comments are important. TheSmall Business and AgricultureRegulatory Enforcement Ombudsmanand 10 Regional Fairness Boards wereestablished to receive comments fromsmall business about Federal agencyenforcement actions. The Ombudsmanwill annually evaluate the enforcementactivities and rate each agency’sresponsiveness to small business. If youwish to comment on the enforcementactions of MMS, call toll-free (888) 734–3247.

Small Business Regulatory EnforcementFairness Act (SBREFA)

This rule is not a major rule under 5U.S.C. 804(2), SBREFA. This rule:

(a) Does not have an annual effect onthe economy of $100 million or more.The final rule will not cause anysignificant costs to lessees or operators.The only costs will be the purchase ofthe new documents and minor revisionsto some operating procedures. Theminor revisions to operating proceduresmay result in some minor costs or mayactually result in minor costs savings.

(b) Will not cause a major increase incosts or prices for consumers,individual industries, Federal, State, orlocal government agencies, orgeographic regions. The costs associatedwith this rule are either minor or mayactually result in minor cost savings.

(c) Does not have significant adverseeffects on competition, employment,investment, productivity, innovation, orthe ability of U.S.-based enterprises tocompete with foreign-based enterprises.

This rule simply grants lessee/operatoradditional flexibility when designing anoffshore structure and will not have anyadverse effects.

Unfunded Mandates Reform Act(UMRA) of 1995

This rule does not impose anunfunded mandate on State, local, andtribal governments or the private sectorof more than $100 million per year. Therule does not have a significant orunique effect on State, local, or tribalgovernments or the private sector. Astatement containing the informationrequired by the UMRA (2 U.S.C. 1531 etseq.) is not required.


Continental shelf, Environmentalimpact statements, Environmentalprotection, Government contracts,Incorporation by reference,Investigations, Mineral royalties, Oiland gas development and production,Oil and gas exploration, Oil and gasreserves, Penalties, Pipelines, Publiclands—mineral resources, Publiclands—rights-of-way, Reporting andrecordkeeping requirements, Sulphurdevelopment and production, Sulphurexploration, Surety bonds.

Dated: November 22, 1999.Sylvia V. Baca,Acting Assistant Secretary, Land andMinerals Management.

For the reasons stated in thepreamble, MMS amends 30 CFR Part250 as follows:

PART 250—OIL AND GAS ANDSULPHUR OPERATIONS IN THEOUTER CONTINENTAL SHELF


Authority: 43 U.S.C. 1331.

2. In § 250.198, in the table inparagraph (e), the entry for ‘‘API RP500’’ is revised to read as follows:

§ 250.198 Documents incorporated byreference.

* * * * *(e) * * *

Title of document Incorporated by reference at

* * * * * *API RP 500, Recommended Practice for Classification of Locations for Electrical Installations at

Petroleum Facilities Classified as Class I, Division 1 and Division 2, Second Edition, Novem-ber 1997, API Stock No. C50002.

§ 250.114(a);§ 250.802(e)(4)(i);§ 250.803(b)(9)(i);§ 250.1628(b)(3); (d)(4)(i);§ 250.1629(b)(4)(i).

* * * * * *



3. In § 250.198, the followingdocument incorporated by reference isadded to the Table in paragraph (e) inalphanumerical order.

§ 250.198 Documents incorporated byreference.

* * * * *(e) * * *

Title of document Incorporated by reference at

* * * * * *API RP 505, Recommended Practice for Classification of Locations for Electrical Installations at

Petroleum Facilities Classified as Class I, Zone 0, Zone 1, and Zone 2, First Edition, Novem-ber 1997, API Stock No. C50501.

§ 250.114(a);§ 250.802(e)(4)(i);§ 250.803(b)(9)(i);§ 250.1628(b)(3); (d)(4)(i);§ 250.1629(b)(4)(i).

* * * * * *

4. In § 250.114, paragraph (a) isrevised to read as follows:

§ 250.114 How must I install and operateelectrical equipment?

* * * * *(a) You must classify all areas

according to API RP 500, RecommendedPractice for Classification of Locationsfor Electrical Installations at PetroleumFacilities Classified as Class I, Division1 and Division 2, or API RP 505,Recommended Practice forClassification of Locations for ElectricalInstallations at Petroleum FacilitiesClassified as Class I, Zone 0, Zone 1,and Zone 2.* * * * *

5. In § 250.802, paragraph (e)(4)(i)introductory text is revised to read asfollows:

§ 250.802 Design, installation, andoperation of surface production-safetysystems.

* * * * *(e) * * *(4) * * *(i) A plan for each platform deck

outlining all hazardous areas classifiedaccording to API RP 500, RecommendedPractice for Classification of Locationsfor Electrical Installations at PetroleumFacilities Classified as Class I, Division1 and Division 2, or API RP 505,Recommended Practice forClassification of Locations for ElectricalInstallations at Petroleum FacilitiesClassified as Class I, Zone 0, Zone 1,and Zone 2, and outlining areas inwhich potential ignition sources, otherthan electrical, are to be installed. Thearea outlined will include the followinginformation:* * * * *

6. In § 250.803, the last sentence ofparagraph (b)(9)(i) is revised to read asfollows:

§ 250.803 Additional production systemrequirements.

* * * * *

(b) * * *(9) * * *(i) * * * A classified area is any area

classified Class I, Group D, Division 1 or2, following the guidelines of API RP500, or any area classified Class I, Zone0, Zone 1, or Zone 2, following theguidelines of API RP 505.* * * * *

7. In § 250.1628, paragraphs (b)(3) and(d)(4)(i) are revised to read as follows:

§ 250.1628 Design, installation, andoperation of production systems.

* * * * *(b) * * *(3) Electrical system information

including a plan of each platform deck,outlining all hazardous areas classifiedaccording to API RP 500, RecommendedPractice for Classification of Locationsfor Electrical Installations at PetroleumFacilities Classified as Class I, Division1 and Division 2, or API RP 505,Recommended Practice forClassification of Locations for ElectricalInstallations at Petroleum FacilitiesClassified as Class I, Zone 0, Zone 1,and Zone 2, and outlining areas inwhich potential ignition sources are tobe installed;* * * * *

(d) * * *(4) * * *(i) A plan of each platform deck,

outlining all hazardous areas classifiedaccording to API RP 500, RecommendedPractice for Classification of Locationsfor Electrical Installations at PetroleumFacilities Classified as Class I, Division1 and Divisions 2, or API RP 505,Recommended Practice forClassification of Locations for ElectricalInstallations at Petroleum FacilitiesClassified as Class I, Zone 0, Zone 1,and Zone 2, and outlining areas inwhich potential ignition sources are tobe installed;* * * * *

8. In § 250.1629, the last sentence ofparagraph (b)(4)(i) is revised to read asfollows:

§ 250.1629 Additional production and fuelgas system requirements.

* * * * *(b) * * *(4) * * *(i) * * * A classified area is any area

classified Class I, Group D, Division 1 or2, following the guidelines of API RP500, or any area classified Class I, Zone0, Zone 1, or Zone 2, following theguidelines of API RP 505.* * * * *[FR Doc. 00–26 Filed 1–3–00; 8:45 am]BILLING CODE 4310–MR–P

FEDERAL COMMUNICATIONSCOMMISSION

47 CFR Part 73

[MM Docket No. 99–74; RM–9367 and RM–9715]

Radio Broadcasting Services; BaySprings and Sandersville, MS

AGENCY: Federal CommunicationsCommission.ACTION: Final rule.

SUMMARY: This document grants therequest of Blakeney Communications,Inc., licensee of Station WKZW(FM),Channel 232C2, Bay Springs,Mississippi, to reallot Channel 232C2 toSandersville, Mississippi and modify itsauthorization accordingly. The newallotment to Sandersville is preferredover the existing allotment at BaySprings because it will provide a firstlocal transmission service toSandersville. The transmitter site ofStation WKZW will be located atcoordinates 31–46–05 NL and 89–07–55WL. This document terminates theproceeding.EFFECTIVE DATE: January 24, 2000.



FOR FURTHER INFORMATION CONTACT: R.Barthen Gorman, Mass Media Bureau,(202) 418–2180.SUPPLEMENTARY INFORMATION: This is asynopsis of the Commission’s Reportand Order, MM Docket No. 99–74,adopted December 9, 1999, and releasedDecember 10, 1999. The full text of thisCommission decision is available forinspection and copying during normalbusiness hours in the FCC’s ReferenceInformation Center at Portals II, CY–A257, 445 12th Street, SW, Washington,DC. The complete text of this decisionmay also be purchased from theCommission’s copy contractors,International Transcription Service,Inc., (202) 857–3800, located at 123120th Street, NW., Washington, DC20036.


Radio broadcasting.

PART 73—[AMENDED]

1. The authority citation for Part 73continues to read as follows: 47 U.S.C.154, 303, 334, 336.

2. Section 73.202(b), the Table of FMAllotments under Mississippi, isamended by adding Sandersville,Channel 232C2, and removing Channel232C2 from Bay Springs.Federal Communications Commission.John A. Karousos,Chief, Allocations Branch, Policy and RulesDivision, Mass Media Bureau.[FR Doc. 00–89 Filed 1–3–00; 8:45 am]BILLING CODE 6712–01–P


47 CFR Part 73

[DA No. 99–2811; MM Docket No. 99–145;RM–9336]

Radio Broadcasting Services;Mishicot, WI and Gulliver, MI

AGENCY: Federal CommunicationsCommission.ACTION: Final rule.

SUMMARY: This document substitutesChannel 234C3 for Channel 234A atMishicot, Wisconsin, and modifies thelicense for Station WGBM accordinglyin response to a petition filed by Bay-Lakes-Valley Broadcasters, Inc. See 64FR 26720, May 17, 1999. Thecoordinates for Channel 234C3 atMishicot are 44–22–48 NL and 87–36–58 WL. Canadian concurrence has beenreceived for the allotment at Mishicot.To accommodate the upgrade atMishicot, we shall also substitute

Chanel 273C1 for Channel 234C1 atGulliver, Michigan and modify thelicense for Station WCMM–FM tospecify the new channel. Thecoordinates for Channel 273C1 atGulliver are 45–58–01 NL and 86–29–18WL. With this action, this proceeding isterminated.

DATES: Effective January 31, 2000.

FOR FURTHER INFORMATION CONTACT:Kathleen Scheuerle, Mass MediaBureau, (202) 418–2180.

SUPPLEMENTARY INFORMATION: This is asummary of the Commission’s Reportand Order, MM Docket No. 99–145,adopted December 8, 1999, and releasedDecember 17, 1999. The full text of thisCommission decision is available forinspection and copying during normalbusiness hours in the Commission’sReference Center, Twelfth Street, SW.,Washington, DC 20554. The completetext of this decision may also bepurchased from the Commission’s copycontractors, International TranscriptionServices, Inc., 1231 20th Street, NW.,Washington, DC 20036, (202) 857–3800,facsimile (202) 857–3805.


Radio broadcasting.

Part 73 of title 47 of the Code ofFederal Regulations is amended asfollows:

PART 73—[AMENDED]

1. The authority citation for Part 73continues to read as follows:

Authority: 47 U.S.C. 154, 303, 334 and 336.

§ 73.202 [Amended]

2. Section 73.202(b), the Table of FMAllotments under Michigan, is amendedby removing Channel 234C1 and addingChannel 273C1 at Gulliver.

3. Section 73.202(b), the Table of FMAllotments under Wisconsin, isamended by removing Channel 234Aand adding Channel 234C3 at Mishicot.

Federal Communications Commission.

John A. Karousos,Chief, Allocations Branch, Policy and RulesDivision, Mass Media Bureau.[FR Doc. 00–88 Filed 1–3–00; 8:45 am]

BILLING CODE 6712–01–P


Office of the Secretary

49 CFR Parts 1

[Docket No. OST–2000–6681]

Organization and Delegation of Powersand Duties; Delegation to theAdministrator, Federal Motor CarrierSafety Administration

AGENCY: Office of the Secretary, DOT.ACTION: Final rule.

SUMMARY: A new administration, theFederal Motor Carrier SafetyAdministration, was established withinthe United States Department ofTransportation pursuant to the MotorCarrier Safety Improvement Act of 1999[Public Law No. 106–159, 113 Stat. 1748(December 9, 1999)]. Pursuant to thestatute, the effective date of the newadministration is January 1, 2000.Accordingly, by this action, theSecretary delegates to theAdministrator, Federal Motor CarrierSafety Administration, functionsrequired for the operation of this newagency.EFFECTIVE DATE: This final rule iseffective on January 1, 2000.FOR FURTHER INFORMATION CONTACT: Mr.Neill L. Thomas, Office of Motor CarrierResearch and Standards, HMCS–10,(202) 366–4009, Federal Motor CarrierSafety Administration; or Mr. CharlesMedalen, Chief Counsel ServiceBusiness Unit, HCC–20, (202) 366–1354,Federal Highway Administration, U.S.Department of Transportation, 400Seventh Street, SW., Washington, DC20590.SUPPLEMENTARY INFORMATION:

Electronic AccessAn electronic copy of this document

may be downloaded by using acomputer, modem and suitablecommunications software from theGovernment Printing Office’s ElectronicBulletin Board Service at (202) 512–1661. Internet users may reach theOffice of the Federal Register’s homepage at: http://www.nara.gov/fedreg andthe Government Printing Office’sdatabase at: http://www.access.gpo.gov/nara.

BackgroundThe Motor Carrier Safety

Improvement Act of 1999 [Public LawNo. 106–159, 113 Stat. 1748 (December9, 1999)] amends title 49, United StatesCode, establishing the Federal MotorCarrier Safety Administration. There arecertain functions that each modaladministrator within the Department of



Transportation is responsible forcarrying out. This rule amends 49 CFRpart 1 to reflect the Secretary’sdelegation of authority to theAdministrator, Federal Motor CarrierSafety Administration. It should benoted, however, that section 101(f) ofthe Motor Carrier Safety ImprovementAct of 1999 gives the Secretarydiscretion to delegate the authority topromulgate safety standards forcommercial motor vehicles andequipment subsequent to initialmanufacture. The Secretary reserves thisauthority to himself until further notice.

The Administrator, Federal MotorCarrier Safety Administration, has theauthority to redelegate the functionsdescribed in this document if notinconsistent with statute, departmentalregulations, policies, and ordersgoverning delegation of functions.

As the rule relates to Departmentalorganization, procedure, and practice,notice and comment on it areunnecessary under 5 U.S.C. 553(b). Thisaction makes no substantive changes tothe motor carrier safety regulations. Itsimply amends 49 CFR Part 1 todelegate to the Federal Motor CarrierSafety Administrator authoritiesrelevant to motor carrier safety.Therefore, prior notice and opportunityto comment are unnecessary, and goodcause exists to dispense with the 30-daydelay in the effective date requirementso that the Federal Motor Carrier SafetyAdministration may operate pursuant tothe changes noted above beginningJanuary 1, 2000.

Ministerial amendments to a numberof other parts in title 49 of the Code ofFederal Regulations that pertain tofunctions of the new Administrationwill be issued in the near future.


Authority delegations (Governmentagencies), Organization and functions(Government agencies).

Issued this 29th day of December, 1999 atWashington, DC.Rodney E. Slater,Secretary of Transportation.

For the reasons set forth in thepreamble, the Department ofTransportation amends 49 CFR Part 1 asfollows:

PART 1—[AMENDED]

1. Revise the authority citation forPart 1 to read as follows:

Authority: 49 U.S.C. 322; 46 U.S.C.2104(a); 28 U.S.C. 2672; 31 U.S.C. 3711(a)(2);Pub. L. 101–552, 104 Stat. 2736; Pub. L. No.106–159, 113 Stat. 1748.

2. In § 1.2, add paragraph (k) to readas follows:

§ 1.2 Definitions.

* * * * *(k) The Federal Motor Carrier Safety

Administrator.3. In § 1.3(b), add paragraph (b)(11) to

read as follows:

§ 1.3 Organization of the Department.

* * * * *(b) * * *(11) The Federal Motor Carrier Safety

Administration, headed by theAdministrator.

4. In § 1.4, add paragraph (m) to readas follows:

§ 1.4 General Responsibilities.

* * * * *(b) * * *(m) The Federal Motor Carrier Safety

Administration. Is responsible for:(1) Managing program and regulatory

activities, including administering lawsand promulgating and enforcingregulations on safety matters relating tomotor carrier safety;

(2) Carrying out motor carrierregistration and authority to regulatehousehold goods transportation;

(3) Developing strategies forimproving commercial motor vehicle,operator, and carrier safety;

(4) Inspecting records and equipmentof commercial motor carriers, andinvestigating accidents and reportingviolations of motor carrier safetyregulations; and

(5) Carrying out research,development, and technology transferactivities to promote safety of operationand equipment of motor vehicles for themotor carrier transportation program.

5. In § 1.45(c)(1), amend paragraph(c)(1) (vii) by removing the word ‘‘and’’;amend paragraph (c)(1) (viii) byreplacing the period with ‘‘; and’’; andadd paragraph (c)(1) (ix) to read asfollows:

§ 1.45 Delegations to all Administrators.

* * * * *(c) * * *(1) * * *(ix) Federal Motor Carrier Safety

Administration.* * * * *

6. Amend 1.73 as follows:a. Revise the heading to read as set

forth below.b. Revise the introductory text to read

as set forth below.c. Amend paragraph (g) by adding

before the period ‘‘, except for theauthority to promulgate safety standardsfor commercial motor vehicles andequipment subsequent to initialmanufacture’’.

d. Amend paragraph (l) by addingbefore the period ‘‘, except for theauthority to promulgate safety standardsfor commercial motor vehicles andequipment subsequent to initialmanufacture’’.

e. Add paragraph (o) to read as setforth below.

§ 1.73 Delegation to the Administrator ofthe Federal Motor Carrier SafetyAdministration.

The Administrator of the FederalMotor Carrier Safety Admnistration isdelegated authority to:* * * * *

(o) Carry out the functions andexercise the authority vested in theSecretary by 23 U.S.C. 502(a)(1)(A).

[FR Doc. 99–34069 Filed 12–30–99; 11:45am]BILLING CODE 4910–62–P

DEPARTMENT OF COMMERCE

National Oceanic and AtmosphericAdministration


[Docket No. 991223347–9347–01; I.D.120299C]

RIN 0648–AM21

Magnuson-Stevens Act Provisions;Foreign Fishing; Fisheries off WestCoast States and in the WesternPacific; Pacific Coast GroundfishFishery; Annual Specifications andManagement Measures

AGENCY: National Marine FisheriesService (NMFS), National Oceanic andAtmospheric Administration (NOAA),Commerce.ACTION: Emergency rule; 2000groundfish fishery specifications andmanagement measures; request forcomments.

SUMMARY: NMFS announces the 2000fishery specifications and managementmeasures for groundfish taken in theU.S. exclusive economic zone (EEZ) andstate waters off the coasts ofWashington, Oregon, and California, asauthorized by the Pacific CoastGroundfish Fishery Management Plan(FMP). The specifications include thelevels of the acceptable biological catch(ABC) and optimum yields (OYs),including the distribution betweendomestic and foreign fishing operations.The commercial OYs (the OYs reducedby amounts expected to be taken intribal, recreational, and compensationfisheries) are allocated between thelimited entry and open access fisheries.



The management measures for 2000 aredesigned to keep landings within theOYs for those species for which thereare OYs and to achieve the goals andobjectives of the FMP, consistent withthe Magnuson Stevens FisheryConservation and Management Act(Magnuson-Stevens Act) and theimplementing national guidelinespublished in the Federal Register onMay 1, 1998. The intended effect ofthese actions is to prevent overfishingand rebuild Pacific Coast groundfishstocks that are overfished and, forhealthier stocks, to establish allowableharvest levels and implementmanagement measures designed toachieve as much of those harvest levelsas possible, while achieving theconservation requirements of theMagnuson-Stevens Act.DATES: Effective 0001 hours (local time)January 1, 2000, until the 2001 annualspecifications and managementmeasures are effective, unless modified,superseded, or rescinded. The 2001annual specifications and managementmeasures will be published in theFederal Register. The emergency ruleportion of this document is effectiveuntil July 3, 2000, and NMFS expects toextend it for an additional 180 days.Comments must be received no laterthan 5:00 p.m, local time, on February3, 2000.ADDRESSES: Written comments on theseactions must be mailed to Mr. WilliamStelle, Jr., Administrator, NorthwestRegion (Regional Administrator), NMFS,7600 Sand Point Way N.E., BIN C15700,Bldg. 1, Seattle, WA 98115–0070, orfaxed to 206–526–6736; or Mr. RodneyMcInnis, Acting Administrator,Southwest Region, NMFS, 501 WestOcean Blvd., Suite 4200, Long Beach,CA 90802–4213, or faxed to 562–980–4047. Comments will not be accepted if

submitted via e-mail or Internet.Information relevant to thesespecifications and managementmeasures, which include anenvironmental assessment (EA) and thestock assessment and fishery evaluation(SAFE) report, has been compiled inaggregate form and is available forpublic review during business hours atthe offices of the NMFS NorthwestRegional Administrator and the NMFSSouthwest Regional Administrator, ormay be obtained from the PacificFishery Management Council (Council),at 2130 SW Fifth Avenue, Suite 224,Portland, OR 97201, phone: 503–326–6352. Additional reports referred to inthis document may also be obtainedfrom the Council.FOR FURTHER INFORMATION CONTACT: Mr.William L. Robinson (Northwest Region,NMFS), phone: 206–526–6140; fax: 206–526–6736 and; e-mail:[email protected] or Mr. SveinFougner (Southwest Region, NMFS)phone: 562–980–4000; fax: 562–980–4047 and; e-mail:[email protected].

Electronic Access

This Federal Register rule also isaccessible via the Internet at the Officeof the Federal Register’s website athttp://www.access.gpo.gov/su—docs/aces/aces140.html.SUPPLEMENTARY INFORMATION: The FMPrequires that fishery specifications forgroundfish be evaluated each calendaryear, that OYs be specified for speciesor species groups in need of additionalprotection, and that managementmeasures designed to achieve the OYsbe published in the Federal Registerand made effective by January 1, thebeginning of the fishing year. TheMagnuson-Stevens Act and the FMPrequire that actions be implemented to

prevent overfishing and to rebuildoverfished stocks. This actionannounces and makes effective the final2000 fishery specifications and themanagement measures designed torebuild overfished stocks, preventoverfishing, and achieve as much of theOYs as practicable for healthiergroundfish stocks managed under theFMP. These final specifications andmanagement measures were consideredby the Council at two meetings andwere recommended to NMFS by theCouncil at its November 1999 meetingin Sacramento, CA. In addition to theannual specifications, this documentincorporates an emergency rule that isneeded to implement the first year ofrebuilding plans, to protect otherdepleted stocks, and to preventoverfishing, as authorized by section304(c) of the Magnuson-Stevens Act.

I. Final Specifications

The fishery specifications includeABCs, the designation of OYs, whichmay be represented by harvestguidelines (HGs) or quotas for speciesthat need individual management, theapportionment of the OYs betweendomestic and foreign fisheries, andallocation of the commercial OYsbetween the open access and limitedentry segments of the domestic fishery.As in the past, these specificationsinclude fish caught in state ocean waters(0–3 nautical miles (nm) offshore) aswell as fish caught in the EEZ (3–200nm offshore). The OYs and ABCsrecommended by the Council andannounced in this document areconsistent with the Magnuson-StevensAct, the groundfish FMP, as amended,and the rebuilding plans adopted by theCouncil to submit for NMFS approvalby March 2000.BILLING CODE 3510–22–P



BILLING CODE 3510–22–C



a U.S. Vancouver only, even if stock assessments included parts of Canadian waters.b Lingcod. The ABC is based on a 1997 assessment that covered the Vancouver and Columbia areas, and a 1999 assessment that

covered the Eureka, Monterey, and Conception areas. Lingcod is believed to be at 10 percent of its unfished biomass. The rebuildinganalysis calculates the probability that the northern (Vancouver-Columbia) stock would rebuild within 10 years, and is based ona 60% probability of doing so. The total catch OY of 378 mt is reduced by 215 mt estimated to be taken by the recreational fishery,resulting in a commercial OY of 163 mt. No discards are assumed.

c Other. These species are not common norimportant in the areas footnoted.Accordingly, for convenience, Pacific cod isincluded in the ‘‘other fish’’ category for theareas footnoted, and rockfish species areincluded in the ‘‘minor rockfish’’ category forthe areas footnoted only.

d Whiting. Whiting is believed to be at 37%of its unfished biomass. The US-Canadaaverage ABC of 310,000 mt for 1999–2000 isreduced to 290,000 mt following applicationof the 40–10 default harvest policy, and isbased on an MSY proxy of F40%. As in 1999,the total catch OY for whiting is 80% of theaverage US-Canada of 290,000 mt. Thecommercial OY for whiting is 199,500 mt(the 232,000-mt OY minus the 32,500-mttribal allocation), and is allocated 42 percentto the shore-based sector, 24 percent to themothership sector, and 34 percent to catcher/processors. A landed equivalent is notpresented. Discards of whiting are countedtoward the OY inseason based on observedamounts.

e Sablefish. North of 36° N. lat.—Sablefishis believed to be at 37% of its unfishedbiomass. The 9,692-mt ABC, based on F35%,is the same as in 1999. The total catch OYof 7,919 mt also is the same as in 1999, basedon F35% and application of the 40–10

default harvest policy. The 7,919-mt OY isreduced by 10 percent (791 mt) for estimatedtrip-limit induced discards, by another 10percent (713 mt) for the tribal set aside, andreduced by 29 mt as compensation for vesselsconducting resource surveys. The remainderis the 7,177 is the commercial OY. The openaccess allocation percentage of 9.4% isapplied to the commercial OY, to result in alanded catch open access allocation of 600mt, and a limited entry allocation of 5,785mt. The limited entry allocation is furtherallocated 58% (3,355 mt) for the trawl fisheryand 42% (2,430 mt) for the nontrawl fishery.The limited entry and open accessallocations for sablefish are in terms oflanded catch because the discard estimatewas subtracted ‘‘off the top’’ before theallocation percentages were applied; thisdiffers from all other limited entry and openaccess allocations that are expressed as totalcatch. South of 36° N. lat.—The ABC and OYare based on historical landings in theConception area of 425 mt. Ten percent (47mt) of the total catch of 472 mt is assumedto be discarded.

f Dover sole. The 1997 assessmentevaluated the resource north of 36 N. lat. asa unit, and provided an ABC for landed catchbased on the F35% harvest rate. The

Conception area ABC is at the levelestablished in the original FMP. The ABCs inTable 1a represent total catch, and wereconverted by estimating that 5 percent of thetotal catch is discarded. Therefore, thecoastwide ABC and OY for Dover sole of9,426 mt are for total catch, with a landedcatch equivalent of 8,955 mt. The OY isreduced by 21 mt as compensation for vesselsthat conducted resource surveys, resulting ina commercial OY of 9,405 mt.

g Petrale sole. Petrale sole is believed to beat 42% of its unfished level, and stock sizehas been increasing. The 1999 assessmentcalculates the ABC for the Vancouver andColumbia areas at 1,447 mt, which isrounded to 1,450 mt. The coastwide ABC of2,950 mt is the sum of the areas.

h Pacific ocean perch (POP). POP is at 13%of its unfished level and therefore isoverfished. The ABC in the Vancouver,Columbia, and Eureka areas is based on the1998 assessment for Vancouver andColumbia (695 mt) plus 18 mt for the Eurekaarea. The 270-mt OY is based on calculationsfor the first year of the rebuilding programthat is designed to rebuild POP to MSY levelswithin 34 years. It is assumed that 16 percentof the catch will be discarded; therefore, thetotal catch OY of 270 mt is reduced by 43 mt



of estimated discards, to derive the landedcatch equivalent of 227 mt.

i Shortbelly rockfish. Shortbelly rockfishremains a virtually unexploited stock and isdifficult to assess quantitatively. The 1989assessment provided 2 alterative yieldcalculations of 13,900 mt and 47,000 mt.NMFS surveys indicate poor recruitment inmost years since 1989, indicating low recentproductivity and a naturally decliningpopulation in spite of low fishing pressure.The ABC and OY therefore are reduced to13,900 mt, the low end of the range in theassessment.

j Widow rockfish. Widow rockfish isbelieved to be at 29% of its unfishedbiomass. The ABC of 5,750 mt, based on theF40% MSY proxy, is unchanged from 1999.The total catch OY of 4,333 mt is moreconservatively based on F45% and the 40–10harvest policy. The OY is reduced by 51 mtof estimated recreational catch to derive thecommercial OY of 4,282 mt. The open accessallocation (128 mt) is determined by applyingthe open access percentage to the commercialOY. The limited entry allocation (4,154 mt)is determined by subtracting the open accessallocation from the commercial OY. Thelimited entry allocation is further reduced by300 mt for anticipated bycatch in the offshorewhiting fishery, and the remainder (3,854 mt)is reduced by 16% (617 mt) to account fortrip limit induced discards, resulting in alanded catch equivalent for the limited entryfishery of 3,237 mt (excluding harvest in thewhiting fishery).

k Canary rockfish. Two canary rockfishassessments addressed the northern andsouthern portions of the stock. The combinedresults resulted in a biomass range estimatedto be between 7% of the unfished biomass inthe south to 20% of the unfished biomass inthe north. Canary rockfish therefore isoverfished. The coastwide ABC (287 mt) isbased on the upper end of each assessment,using the Fmsy proxy of F40%. Thecoastwide OY is 200 mt, based on thenorthern assessment. The OY is higher thanthe default harvest policy would indicate, inrecognition of small amounts of unavoidablebycatch, even with the managementmeasures implemented in 2000 that willdrastically reduce effort throughout thecontinental shelf. The OY is lower than ABCand therefore is not overfishing. Recreationalfisheries are expected to take 80 mt of the OYin 2000. The 1999 OY applied only to theVancouver and Columbia areas, but the OYfor 2000 is coastwide. Landings have beenabout 1,100 mt in recent years. A rebuildingplan will be required in 2001.

l Chilipepper. In 1999, the 3,724-mt ABCand OY included 43 mt for the Eureka area,which is moved to the northern ‘‘minorrockfish’’ category in 2000. The 2000 ABC of3,681 mt for the Monterey and Conceptionareas is based on the 1998 assessment andapplication of the F40% harvest rate. Thestock is estimated to be above 40% of itunfished biomass so the default OY normallywould equal ABC. However, the OY is set at2,000 mt, near the recent average landedcatch, to discourage effort on chilipepperwhich is known to have bycatch of bocaccio.The OY is reduced by 45 mt estimated to betaken in the recreational fishery, resulting in

a commercial OY of 1,955 mt. The openaccess percentage is applied to thecommercial OY to determine the open accessallocations of 915 mt. The open accessallocation then is subtracted from thecommercial OY to determine the limitedentry allocation. No discard amount isassumed.

m Bocaccio. Bocaccio is believed to be at2% of its unfished biomass and therefore isoverfished. The 164-mt ABC is based onF40% and the 100-mt OY is based on therebuilding analysis designed to rebuild thestock to MSY in 38 years. The OY is reducedby 55 mt for estimated recreational harvest toderive the 55-mt commercial OY. No discardsof bocaccio are assumed within this OY.

n Splitnose rockfish (often called‘‘rosefish’’). A separate OY of 868 mt wasestablished for the Eureka, Monterey, andConception area in 1999, equal to ABC. For2000, the southern ABC applies only to theConception and Monterey areas.Accordingly, the southern ABC of 830 mt isderived by subtracting 48 mt for the Eurekaarea, and the northern ABC is increased by48 mt. The northern ABC is 322 mt (from 274mt in 1999). The 615-mt OY for the southernarea reflects a 25% precautionary adjustmentbecause of the less rigorous assessment forthis stock. In the north, splitnose is includedin the minor rockfish OY.

o Yellowtail. The ABC of 3,539 mt appliesto the U.S. Vancouver, Columbia, and Eurekaareas. The stock is estimated to be at 39% ofits unfished biomass. The OY is based onF40% and application of the 40–10 harvestpolicy. The 3,539-mt OY is reduced by 90 mtestimated to be taken in the recreationalfishery, to derive a commercial OY of 3,449mt. The open access allocation is derived byapplying the open access percentage to thecommercial OY. The limited entry allocationis determined by subtracting the open accessallocation from the commercial OY. Thelanded catch equivalent of 2,057 mt for the3,163-mt limited entry allocation is derivedby subtracting 16% (506 mt) for discards and600 mt for expected catch in the at-seawhiting fishery.

p Thornyheads. The treaty tribes estimatethat 8,000–10,000 lb (about 3–4 mt ) ofthornyheads will be taken in 2000 under atribal trip limit of 300 lb per trip. This smallamount is not subtracted from either of thethornyhead HGs at this time.

q Shortspine thornyheads. Shortspinethornyhead is estimated to be at 32% of itsunfished level. The ABC (1,261 mt) for thearea north of 36° N. lat. (Vancouver throughMonterey areas) is the same as in 1999,calculated based on a synthesis of two stockassessments prepared in 1998 andapplication of the F35% harvest rate. The970-mt OY is based on F40% and the 40–10harvest policy. The 960-mt commercial OY isdetermined by subtracting 10 mt used ascompensation for vessels conductingresource surveys. The limited entryallocation of 957 mt is reduced by 30% (287mt) for estimated discards to derive thelanded catch equivalent of 670 mt. A separateABC and OY of 175 mt (based on historical)catch have been established for the part ofthe Conception area north of PointConception (34°27′ N. lat.). Assuming the

same 30% discard rate as the northern area,the landed equivalent for the southern OYwould be 122 mt. There is no ABC or OY forthe southern Conception area.

r Longspine thornyheads. The ABC (4,102mt) north of the Conception area is the sameas in 1999, based on the average of the 3-yearindividual ABCs at F35%. The stock isestimated to be above the 40% of its unfishedbiomass. The 4,099-mt commercial OY isdetermined by subtracting 3 mt used ascompensation for vessels conductingresource surveys. There are no separatelimited entry and open access allocations.The commercial OY is reduced by 9% 205mt) to derive the landed catch equivalent of3,894 mt. A separate ABC and OY (429 mt)(based on historical) catch have beenestablished for the part of the Conceptionarea north of Point Conception (34°27′ N.lat.). Assuming the same 9% discard rate asthe northern area, the landed equivalent forthe southern OY would be 390 mt.

s Cowcod. The 1999 assessment of theConception area indicates this stock isoverfished, with abundance below 10% forthe unfished biomass. The ABC in theConception area is 5 mt, based on theassessment, and 19 mt in Monterey, based onaverage landings from 1983–1997). The OYfor the Monterey and Conception areascombined is no more than 5 mt in 2000.

t Minor rockfish—north. This new categoryincludes the ‘‘remaining rockfish’’ and ‘‘otherrockfish’’ categories in the U.S. Vancouver,Columbia, and Eureka areas combined. Thespecies that are listed individually wouldhave been ‘‘remaining rockfish’’ whichgenerally includes species that have beenassessed by less rigorous methods than stockassessment, except for black rockfish. The‘‘other rockfish’’ category includes speciesthat do not have quantifiable assessments.The total catch OY is the sum of 75% of thelisted species (formerly ‘‘remainingrockfish’’) and 50% of the summed ABCs forother rockfish, with the following exceptions:the 43 mt ABC for northern chilipepper and700 mt of the black rockfish ABC are notreduced, and the remaining 500 mt of theblack rockfish OY is discounted by 50%. Thereductions in the contribution of the ABCstoward OY is intended to address uncertaintyin stock status due to limited information.

u Minor rockfish—south. This new categoryincludes the ‘‘remaining rockfish’’ and ‘‘otherrockfish’’ categories in the Monterey andConception areas combined. The species thatare listed individually would have been‘‘remaining rockfish’’ which generallyincludes species that have been assessed byless rigorous methods than stock assessment.The ABC is the sum of the individualspecies’ ABCs in the two areas. The totalcatch OY is the sum of 75% of the ABCs forthe listed species (formerly ‘‘remainingrockfish’’) and 50% of the ‘‘other rockfish’’ABC. The reductions in the contribution ofthe ABCs toward OY is intended to addressuncertainty in stock status due to limitedinformation.

v Black rockfish. The ABC includes 700 mtfor the assessment area plus 500 mt averagecatch in the unassessed area. This stockcontributes 950 mt towards the minorrockfish OY in the north—700 mt for the



assessed area, and half (250 mt) for theunassessed area. The 50% reduction isprecautionary, consistent with otherrecommendations.

w Blackgill rockfish. The 1998 stockassessment estimates the Conception areastock to be at about 51% of unfished biomasswith 365 mt as the ABC based on F40%. Anadditional 75 mt was added for the Montereyarea, for a total ABC of 440 mt. If annuallandings reach 300 mt, the Council willconsider the need for further managementand/or a stock assessment.

x Other rockfish. This group includesrockfish species listed in 50 CFR 660.302,including California scorpionfish. The ABCis based on the 1996 review of commercialSebastes landings and includes an estimate ofrecreational landings. These species havenever been quantifiably assessed.

y Other fish. This group includes sharks,skates, rays, ratfish, morids, grenadiers, andother groundfish species noted above in c/.

ABC Policy/OverfishingUnder the Magnuson-Stevens Act, the

FMP must prevent overfishing, which isdefined in the National StandardGuidelines (63 FR 24212, May 1, 1998)as exceeding the fishing mortality rateneeded to produce the maximumsustainable yield (Fmsy). In 2000 as in1999, the Council continued its use ofdefault exploitation rates as a proxy forFmsy (and thus for ABC). Therefore the2000 ABCs are set at the maximumsustainable yield (MSY) proxy. The OYsare set equal to or less than the ABCswhich is expected to preventoverfishing.

In 2000 as in 1999, in most cases, thedefault Fmsy proxy used for setting theABCs was F40% for most rockfish andF35% for other groundfish species. (Thethornyhead ABCs were based on F35%,although they are included as rockfish

in the definitions at 50 CFR 660.302.Further adjustments were made insetting the OYs for some species; the OYfor shortspine thornyhead was moreconservatively set using F40% and forwidow rockfish using F45%.) ‘‘F40%’’means the fishing mortality rate thatreduces the spawning potential perrecruit to 40 percent of the unfishedcondition. For faster growing stocks, orstocks with quicker recruitment, ahigher fishing mortality rate may beused, such as F35%, which reduces thespawning potential to 35 percent of theunfished condition, and therefore meanshigher catches than F40%. Under thispolicy, MSY is a constant fishingmortality rate (i.e., exploitation rate)that is a limit. In other words, a constantfraction of the stock may be harvestedeach year. The ABC for a speciesgenerally is derived by multiplying theexploitation rate (F40% or F35%) timesthe current biomass estimate.

Figure 1, in the following section ofthe preamble, on the default OY policyillustrates the relationship betweencurrent biomass levels andrecommended catch. The defaultexploitation rate (e.g., F35%, F40%) isrepresented by the line labeled ‘‘ABC.’’ABC is graphically determined by, first,finding the current biomass level on thehorizontal axis, second, finding thecorresponding point on the line labeledABC, and, third, reading thecorresponding catch off the vertical axis.

The 2000 ABCs, which are based onthe best available scientific information,represent the total fishing mortality (inmost cases synonymous with totalcatch). Stock assessment informationconsidered in determining the ABCs is

available from the Council and wasmade available to the public before theCouncil’s November 1999 meeting asstock assessment documents andreports, which are compiled into theCouncil’s SAFE document (seeADDRESSES). Additional information isfound in the EA prepared by theCouncil for this action, the SAFEdocument for the 2000 specifications,and in documents available at theSeptember and November 1999 Councilmeetings. ABCs are expressed as totalcatch (landings plus discards) and applyonly to U.S. waters even if theassessments included Canadian waters.

The Council’s Scientific andStatistical Committee will convene ameeting in early 2000 to reevaluate theappropriate Fmsy proxies for theindividual groundfish species. Anumber of stock assessment scientistshave independently concluded thatwest coast groundfish stocks are not asproductive or resilient to overfishing aspreviously thought to be, but thespecific new Fmsy rates for theindividual species have not yet beendetermined. It is likely that the Fmsyproxies and the resultant ABCs and OYswill be reduced for a number ofgroundfish species in 2001 based on thisscientific review. In the interim,transitional adjustments were made tothe OYs for shortspine thornyhead andwidow rockfish in 2000.

Default OY Policy

In 1999, the Council adopted a new,precautionary policy for establishingOY, which is intended to preventspecies from becoming overfished (SeeFigure 1).



According to this policy, if the stockbiomass is larger than the MSY biomass(Bmsy, i.e. B40% in Figure 1), the OYmay be set equal to or less than ABC.If the stock biomass is believed to beequal to or smaller than Bmsy, aprecautionary OY threshold isestablished at the MSY biomass size. Astock whose current biomass is between25 percent of the unfished level and theprecautionary threshold is said to be inthe ‘‘precautionary zone.’’ The Council’sdefault OY harvest policy (representedby the line labeled ‘‘40–10 default OY’’in Figure 1) reduces the exploitationrate when a stock is at or below itsprecautionary threshold. The farther thestock is below the precautionarythreshold, the greater the reduction inOY will be relative to the ABC, until, atB10 percent, the OY would be set atzero. This is, in effect, a defaultrebuilding policy that will foster quickerreturn to the Bmsy level than wouldfishing at the ABC level. However, theCouncil may recommend setting the OYhigher than the default OY harvestpolicy specifies, if justified and as longas the OY does not exceed the ABC(Fmsy) harvest rate and is consistentwith the requirements of the Magnuson-Stevens Act and the NOAA NationalStandard Guidelines. Additionalprecaution may be added on a case-by-case basis at any level of currentbiomass and may be warranted byuncertainty in the data or by higherrisks of being overfished.

If a stock falls below 25 percent of itsunfished biomass (B25 percent), it isconsidered overfished, and the Councilis required to develop a formal

rebuilding plan within the followingyear.

2000 ABCs and OYs

The species that had ABCs and OYsin 1999 continue to have ABCs and OYsin 2000. New ABCs were developed forcowcod and black rockfish; the canaryABC is applied coastwide (formerly itapplied only to the Vancouver andColumbia areas); the POP ABC isexpanded to include the Eureka area;and chilipepper was added to the minorrockfish category north of 40°10′ N. lat.

OYs for POP, bocaccio, and lingcodhave been set to be consistent with thefirst year of rebuilding plans for thosespecies, and canary and cowcod OYs areset at extremely low levels inanticipation of rebuilding plans thatwill be required in 2001. Thechilipepper OY is reduced almost inhalf to reduce associated harvest ofbocaccio, which is overfished. As aresult of the constraining managementmeasures imposed to protect andrebuild overfished species, a number ofthe OYs may not be achieved in 2000,particularly for those shelf rockfishspecies that are not overfished but thatare caught with species that areoverfished. There is no way to forecastwhat the actual catch of these relativelyhealthy species will be, and to lower theOYs for these species couldunnecessarily constrain the fishery,particularly when midwater trawlopportunities are available that result inlower bycatch of overfished species.

Three changes have been made to theABCs and OYs since 1999 thatincorporate the results of new stock

assessments and reorganize species forthe management purposes of betterprotecting depleted stocks andminimizing the chance of overfishing:(1) The assessment areas have beenmodified in 2000 such that the ABCsand OYs apply to areas north and southof 40°30′ N. lat. that are better alignedwith the trip limit areas (that applynorth and south of 40°10′ N. lat.). In1999, the ABCs and OYs were dividedinto northern and southern componentsat approximately 43°00′ N. lat. (theColumbia/Eureka area border), whereasthe trip limits differed north and southof 40°30′ N. lat. (approximately CapeMendocino, CA). (2) The rockfishspecies have been reorganized. The term‘‘Sebastes complex,’’ which onceapplied to rockfish species that werecaught together, no longer is applicableand so is not used in 2000. Instead,ABCs and OYs are calculatedindividually for each rockfish species,where possible. The remaining species,called ‘‘minor rockfish,’’ include the‘‘remaining rockfish’’ and ‘‘otherrockfish’’ species, formerly in theSebastes complex. The minor rockfishspecies, which have rudimentary or noassessments, are divided into nearshore,shelf, and slope categories, thatrepresent where they are predominantlycaught. (See Table 2.) Inseasonmanagement actions will be taken toachieve the harvest guidelines fornearshore, shelf, and slope minorrockfish species, north and south of40°10′ N. lat., so that disproportionateharvest of some species does not occur.(3) Jack mackerel (north of 39° N. lat.)was removed from the FMP by



Amendment 11 and will be managedunder the Coastal Pelagic SpeciesFishery Management Plan.

In 2000, as in 1999, unless otherwisespecified, OYs and allocations representtotal catch, and, where possible, theexpected landed catch equivalent iscalculated. This approach providesgreater management flexibility if newinformation becomes available inseasonbecause managers will then be able tomodify discard estimates andmanagement measures inseason.(Allowable harvest levels were called‘‘harvest guidelines’’ or ‘‘HGs’’ before1999, but, since 1999, most have beencalled ‘‘optimum yields’’ or ‘‘OYs.’’ Thenew minor rockfish assemblages ofnearshore, shelf, and slope are managedwith harvest guidelines, which are thedesired levels of harvest thatmanagement measures are designed toachieve.)

The derivation of the ABCs and OYsfor the individual groundfish species areexplained in detail in Councildocuments from their September 1999and November 1999 meetings, in theCouncil’s SAFE document (whichincludes the most recent stockassessments) and are summarized inthis document, in Table 1a. Derivationsof commercial OYs, limited entry andopen access allocations, and landedcatch equivalents appear in thefootnotes to Table 1a, listed at the endof Table 1b.

Determinations of Overfished,Approaching an Overfished Condition,and Overfishing

The status of the resource is evaluatedusing the standards in the Magnuson-Stevens Act, its national guidelines, andthe FMP. The following determinationssupersede those presented in theOctober 1999 report to Congress.

OverfishedA species is overfished if its current

biomass is less than 25 percent of theunfished biomass level. (Usually thebiomass is discussed in terms ofspawning potential.) The Magnuson-Stevens Act requires that a rebuildingplan be prepared within a year after theCouncil is notified that the species isoverfished. In March 1999, NMFSnotified the Council that three specieswere overfished—lingcod, POP, andbocaccio. NMFS has subsequentlydetermined that two additional speciesare overfished—canary rockfish andcowcod—and that rebuilding plans forthese two species must be preparedwithin a year of notification to theCouncil. The Council is being notifiedconcurrent with publication of thisdocument.

Approaching an Overfished Condition

This condition applies to thosespecies that currently are notoverfished, but are expected to beoverfished in 2 years. No additionalspecies are approaching an overfishedcondition in 2 years, based on stockassessments completed sinceAmendment 11 was approved in March1999.

Overfishing

None of the 2000 ABCs are knowinglyset higher than Fmsy or its proxy; noneof the OYs are set higher than thecorresponding ABCs; and themanagement measures announcedherein are designed to preventoverfishing by keeping harvest levelswithin the specified OYs.

After the 1998 fishing season wascompleted, NMFS determined thatoverfishing had occurred on fourspecies of rockfish: canary rockfish offCalifornia, darkblotched, silvergrey, andbank rockfish. Because of thisinformation, NMFS announced thatoverfishing could be occurring on thesespecies in 1999, even thoughmanagement measures had beenimplemented in 1999 with the intent ofreducing the possibility of overfishing.Preliminary data for 1999 indicate thatoverfishing did not occur on bankrockfish or canary rockfish in theEureka, Monterey, and Conceptionmanagement areas, but that overfishingdid occur on darkblotched, silvergrey,and yelloweye rockfish.

The commercial gear regulations,recreational bag limits, and othermanagement measures imposed on shelfrockfish should eliminate overfishing ofsilvergrey and yelloweye rockfish in2000. Similarly, the division of rockfishinto slope, shelf, and nearshorestrategies, with separate cumulativelimits for each strategy, will reducefishing opportunities on darkblotchedrockfish and should prevent overfishingof this species in 2000.

Overfishing is difficult to detectinseason for many rockfish, particularlyfor minor rockfish species, because mostare not individually identified onlanding. Species compositions, based onproportions encountered in samples oflandings, are applied during the year,but final results are not available untilthe end of the year. The determinationsmade herein may change as more databecome available later in the year.

Rebuilding Programs

On March 3, 1999, NMFS notified theCouncil that three species (lingcod,bocaccio, and Pacific ocean perch (POP)were overfished and the Council had

one year to submit rebuilding plans forthese species, as required under theMagnuson-Stevens Act.

The Council’s approved rebuildingplans for each of the 3 species and theABCs, OYs, and management actionsrecommended for 2000 are consistentwith the FMP and the first year ofrebuilding in these plans. The Councilhas informed NMFS, and NMFS hasagreed, that the rebuilding plans will besubmitted to NMFS for approval afterthe first of the year, and an FMPamendment will be submitted toprovide a framework process fordeveloping future rebuilding plans. Themultispecies exception at 50 CFR600.310(d)(6) that authorizes overfishingunder limited conditions is not beingused. The draft rebuilding plansendorsed by the Council aresummarized as follows:

Bocaccio

Areas: Monterey and Conception.Status of stock: 2.1 percent of

unfished biomass.Maximum allowable years to rebuild

to MSY: approximately 38 years,assuming median recruitment.

Probability of rebuilding to MSYbiomass in 38 years: 67 percent.

Expected time to rebuild: 34 years.Fmsy proxy: F40%.ABC in 2000: 164 mt.OY in 2000: 100 mt.Management measures for 2000:

Bottom trawl target opportunity for shelfrockfish is dramatically reduced. Nolandings of bocaccio are allowed withlarge footrope trawl gear (i.e. withrollers larger than 8 inches (20 cm) indiameter); small footrope bottom trawlgear may land small amounts thataccommodate unavoidable bycatch;midwater trawl gear, which would haveminimal bycatch of bocaccio isencouraged; the chilipepper OY isreduced almost in half due to potentialbycatch of bocaccio; the commercialnontrawl gear fishery is closed 2 of thefirst 4 months of the year, trip limits arereduced, and set net limits are reducedto the same level as other open accessnontrawl gear limits; recreationalclosures occur early in the year, baglimits are reduced from 15 to 10rockfish, and a new 10-inch (25.4 cm)size limit is added for bocaccio.Additionally, bocaccio has a 3-fishsublimit. Management of bocaccio isparticularly difficult because the largeyear class appearing in 1999 increasesthe need to curtail fishing effort, asbocaccio will be more available to thefishery in the next few years.

Lingcod

Areas: coastwide.



Status of stock: 10 percent of unfishedbiomass.

Maximum allowable years to rebuildto MSY: 10.

Probability of rebuilding to MSYbiomass in 10 years: 60 percent.

Expected time to rebuild: 10 years.Fmsy proxy: F35%.ABC in 2000: 700 mt.OY in 2000: 378 mt.Management measures: In 2000,

commercial landings of lingcod wouldbe prohibited 6 months of the year(November-April), while protectinglingcod during their spawning andnesting seasons. The trip limit duringthe open season is designed to achievethe limited entry and open accessallocations and is much lower for thelimited entry trawl fishery in 2000. Thesize limit for lingcod is increased forfixed gear and recreational fisheriessouth of 40°10′ N. lat. A maximum sizelimit is imposed in the recreationalfishery off Oregon, and a new 2-fish perday bag limit is imposed off California.The recreational fishery for lingcod isclosed 4 months off Washington,remains open in Oregon and Californianorth of 40°10′ N. lat., and is closed 2of the first 4 months of the year southof 40°10′ N. lat. The varying seasons,bag limits, and size limits for each statewere recommended to best fit the needsof the recreational fisheries of eachState, while meeting the requiredconservation burden. Lingcod are foundpredominantly on the continental shelf,and gear restrictions imposed to protectcontinental shelf rockfish would alsobenefit lingcod. Lingcod taken onboardwhile still living appear to have a goodchance of survival if returned quickly tosea.

Pacific ocean perch

Areas: Vancouver and Columbia.Status of stock: 13 percent of unfished

biomass.Maximum allowable years to rebuild

to MSY: 47 years.Probability of rebuilding to MSY

biomass in 47 years: 79 percent.Expected median time to rebuild: 43

years.Fmsy proxy: F40%.ABC in 2000: 713 mt.OY in 2000: 270 mt.Management measures: POP primarily

inhabit waters of the upper continentalslope and are found along the edge ofthe continental shelf. Therefore, POPalso would benefit from the trawl gearrestrictions adopted to protectcontinental shelf rockfish species.Relative to 1999 levels, the cumulativetrip limit for POP taken in the limitedentry fishery is reduced by 87 percentfrom May through October, and 63

percent the other 6 months. POP is notan important species for recreational ornontrawl commercial fisheries.

Bycatch and DiscardsStock assessments and inseason catch

monitoring are designed to account forall fishing mortality, including thatresulting from fish discarded at sea.Discards in the fishery for whiting arewell monitored and are accounted forinseason as they occur. In the otherfisheries, discards caused by trip limitshave not been monitored consistently,so discard estimates have beendeveloped to account for this extracatch. A discard level of 16 percent ofthe total catch, previously measured forwidow rockfish in a scientific study, isassumed for the commercial fisheries forwidow rockfish, yellowtail rockfish,canary rockfish, and POP. A discardestimate of 9 percent is used forlongspine thornyheads, 30 percent forshortspine thornyheads, 5 percent forDover sole, and 10 percent for sablefish.

Foreign and Joint Venture FisheriesFor those species that will not be fully

utilized by domestic processors orharvesters and that can be caughtwithout severely affecting species thatare fully utilized by domestic processorsor harvesters, foreign or joint ventureoperations may occur. A joint ventureoccurs when U.S. vessels deliver theircatch to foreign processing vessels inthe EEZ. A portion of the OYs for thesespecies may be apportioned to domesticannual harvest (DAH), which in turnmay be apportioned between domesticannual processing (DAP) and jointventure processing (JVP). The portion ofan OY not apportioned to DAH may beset aside as the total allowable level offoreign fishing (TALFF). In January2000, no surplus groundfish areavailable for joint venture or foreignfishing operations. Consequently, all theOYs in 2000 are designed entirely forDAH and DAP (which are the same inthis case); JVP and TALFF are set atzero.

II. Limited Entry and Open AccessFisheries

The FMP established a limited entryprogram that, on January 1, 1994,divided the commercial groundfishfishery into two components: Thelimited entry fishery and the openaccess fishery, each of which has itsown allocations and managementmeasures. The limited entry and openaccess allocations are calculatedaccording to a formula specified in theFMP, which takes into account therelative amounts of a species taken byeach component of the fishery during

the 1984–88 limited entry windowperiod.

The groundfish species that hadlimited entry and open accessallocations in 1999 continue to beallocated between the 2 sectors in 2000.As in 1999, the OYs are all expressed interms of total catch, and virtually all ofthe limited entry and open accessallocations are expressed in terms oftotal catch (except for sablefish, whichis explained here), and estimates ofdiscards will be applied separately tothe limited entry and open accessallocations as data become available.This means that in 2000, as in 1999,estimates of trip-limit induced discardsthat previously were taken ‘‘off the top’’before setting the limited entry andopen access allocations (and soproportionally reduced bothallocations), will instead be deductedonly from the limited entry allocationsfor purposes of estimating the landedcatch equivalents. Estimated bycatch ofyellowtail rockfish and widow rockfishin the offshore whiting fishery are alsodeducted from the limited entryallocations to determine the landedcatch equivalents for the target fisheriesfor widow and yellowtail rockfish. Thelanded catch equivalents are the harvestgoals used when adjusting trip limitsand other management measures duringthe season. Although this revisedprocess complicates the calculation ofthe landed catch equivalents for thelimited entry allocations, it is intendedto more appropriately apply the discardestimates to the fleet that is responsiblefor them. The one exception is thelimited entry sablefish fishery, whichcontinues to be allocated as in recentyears. The 10-percent discard estimatefor this fishery continues to be deductedfrom the OY before the limited entryand open access allocations arecalculated because both fisheries mayexperience discards and because theinitial allocation was based on thisprocess. Consequently, the open accessand limited entry sablefish allocationsare expressed in terms of landed catch.Discards in most open access fisheriesare believed to be small, and no discardestimates are applied to the open accessfishery at this time, but may be appliedduring the season if informationbecomes available.

Open Access AllocationsThe open access fishery is composed

of vessels that operate under the OYs,quotas, and other management measuresgoverning the open access fishery, using(1) exempt gear or (2) longline or pot(trap) gear fished from vessels that donot have limited entry permits endorsedfor use of that gear. Exempt gear means



all types of legal groundfish fishing gearexcept groundfish trawl, longline, andpots. (Exempt gear includes trawls usedto harvest pink shrimp, spot, orridgeback prawns (shrimp trawls) and,south of Pt. Arena, CA (38°57′30′′ N.lat.), California halibut or seacucumbers.)

The open access allocation is derivedby applying the open access allocationpercentage to the OY, or, if there is a set-aside for recreational, tribal, orcompensation for resource surveyfishing, the set-aside is first deductedand then the percentage is applied tothe commercial OY. (The commercialOY is the annual OY after subtractingany set-asides for recreational or tribalfishing or compensation for conductingresource surveys.) For those species inwhich the open access share wouldhave been less than 1 percent, no openaccess allocation is specified unlesssignificant open access effort isexpected.

Limited Entry Allocations

The limited entry fishery means thefishery composed of vessels usinglimited entry gear fished pursuant to theOYs, quotas, and other managementmeasures governing the limited entryfishery. Limited entry gear meanslongline, pot, or groundfish trawl gearused under the authority of a validlimited entry permit issued under theFMP, affixed with an endorsement forthat gear. (Groundfish trawl gearexcludes shrimp trawls used to harvestpink shrimp, spot prawns, or ridgebackprawns, and other trawls used to fish forCalifornia halibut or sea cucumberssouth of Pt. Arena, CA.) Beginning in1997, a sablefish endorsement is alsorequired to operate in the limited entrynon-trawl regular or mop-up seasons forsablefish.

The limited entry allocation (in totalcatch) is the OY reduced by (1) set-asides, if any, for treaty Indian fisheries,recreational fisheries, or compensationfishing for participation in resourcesurveys (which results in thecommercial OY or quota); and (2) theopen access allocation. (Allocations forWashington coastal tribal fisheries arediscussed in section V and, for whiting,at paragraph IV.B.(3).)

Following these procedures, theRegional Administrator calculated theamounts of the allocations that arepresented in Table 1a to this document.Unless otherwise specified, the limitedentry and open access allocations aretreated as OYs in 1999. There may beslight discrepancies from the Council’srecommendations due to rounding.

Harvest Guidelines for Minor RockfishSpecies

The two minor rockfish OYs (northand south of 40°10′ N. lat.) are allocatedbetween limited entry and open accessfisheries, based on the formula in theFMP and implementing regulations at50 CFR 660.332(b). However, theCouncil went a step further.Recognizing that group OYs may allowdisproportionate harvest of species inneed of additional protection, the minorrockfish OYs are subdivided intonearshore (shallowest), shelf, and slope(deepest) categories, according to theapproximate depths where those speciesare caught. This results in six separateharvest guidelines for minor rockfish,north and south of 40°10′ N. lat. Thisapproach is intended to enable theCouncil to better monitor and controlthe fishing strategies in these areas byassigning trip limits, size limits, gearlimits, recreational bag limits, and, ifnecessary, seasons to encourage fishersto operate in times and areas whereoverfished stocks are not commonlycaught and are much less likely to occuras bycatch. These new HGs areincorporated in Table 1a. The rockfishspecies in the nearshore, shelf, andslope categories are listed in paragraphIV.A.(20) and Table 2.

Differences in Limited Entry and OpenAccess Management in 2000

Although the above procedures werefollowed, there are major differences inmanagement of the limited entry andopen access fisheries in 2000 comparedto 1999. (1) The limited entry and openaccess percentages have beenrecalculated, and are in some casesdifferent than in 1999 for two reasons—updates in the data base, and shiftingthe Eureka area from the southern to thenorthern area for the purpose of settingABCs and OYs (See Attachment G.4.c.,September 1999, from the Council’sbriefing book for its Septembermeeting). (2) The new harvestguidelines for nearshore, shelf, andslope minor rockfish result in differentharvest opportunities than if rockfishremained aggregated. (3) Furthermore,the management measures designed torebuild overfished species, or to preventoverfishing or a species from becomingoverfished, may result in the inability toattain the OY or allocation for relativelyhealthy stocks whose harvest isrestricted because it may result inbycatch of overfished species.Consequently, OYs (and their associatedlimited entry and open accessallocations) may not be completelyavailable to the industry.

III. 2000 Management MeasuresThe major goal of management of the

groundfish fishery has been to preventoverfishing while achieving the OYs(sometimes called harvest guidelines)and to provide year-round fisheries forthe major species or species groups.However, it became apparent over thelast several years that the goal of a year-round fishery was no longer achievablefor a number of species. Lower OYs andgrowing awareness of reducedproductivity of the groundfish resource,has resulted in new managementstrategies. In 1999, the Councilrecommended management measuresthat staggered fishing opportunities inthe limited entry fishery, so thatopportunities to harvest some specieswould be higher when otheropportunities were lower. This strategy,although confounded to some extent bystormy weather in the winter, was moreacceptable to the industry than tying uptheir boats for extended periods of time(often called ‘‘time off the water’’),particularly when it meant not fishingfor other, healthier species that havegroundfish as bycatch. The Councilrecommended continuation ofcumulative trip limits for most of thefleet in 1999, but abandoned its prior60:40 policy, in which as much as 60percent of a 2-month cumulative limitcould be taken in either of the 2 months.The intent of the 60:40 policy had beento spread the catch over the 2-monthperiod, to minimize bycatch anddiscards, and to simplify compliance bynot adhering to a rigid, monthly limit.Instead, the Council adopted anindustry request to start 1999 with asingle 3-month cumulative limit,followed by 3 2-month cumulativelimits, and ending the year with 3 1-month cumulative limits; thecumulative limits could be taken anytime during the applicable period.

In developing management strategiesfor 2000, the Council was faced witheven more complicated decisions. Thenew legislative mandates under theMagnuson-Stevens Act (as amended bythe Sustainable Fisheries Act in 1996)gave highest priority to preventingoverfishing and rebuilding overfishedstocks to their MSY levels. The NationalStandard Guidelines at 50 CFR 600.310interpreted this as ‘‘weak stockmanagement,’’ which means thatharvest of healthier stocks must becurtailed if necessary to preventoverfishing or to rebuild overfishedstocks. Only under a rare exception,which is not being used in the Pacificgroundfish fishery, would overfishing ofminor species in a mixed stock fisherybe allowed to continue.



Three FMP species were declaredoverfished in March 1999 (POP, lingcod,and bocaccio), which requiredrebuilding plans to be submitted within1 year, and two more species are beingdeclared overfished concurrent withpublication of this notice (canaryrockfish and cowcod). Of the fivespecies, canary rockfish is the mostconstraining, as its OY was reducedfrom 1,045 mt in 1999 to 200 mt in2000, and it is found coastwide on thecontinental shelf. Consequently,preventing overfishing and rebuildingoverfished species will hinderachievement of the previous goal ofproviding a year-round fishery. Theprimary strategy the Council chose torebuild these overfished species is todivert effort off the sea floor of thecontinental shelf, where lingcod,bocaccio, canary rockfish, cowcod, and,to a lesser extent, POP occur. Themanagement strategy for 2000 attemptsto do this, while providing fishingopportunities for some, but not all,groundfish species throughout the year.

Normally, this annual notice in theFederal Register would review the prioryear’s OYs, management measures (triplimits), and relate that experience to thenext year’s managementrecommendations. This history is notincluded here because it is largelyinapplicable to the different type ofmanagement used in 2000. (The historyof management in 1999 is documentedin the Council’s SAFE document, andthe actual Federal Register notices areavailable from the Government PrintingOffice (GPO) or NMFS home pageslisted under Electronic Access.)

In establishing priorities formanagement in 2000, the followinggoals were used by the Council’sGroundfish Management Team(Supplemental GMT Report G.7.(3).,November 1999): (1) Preventoverfishing, especially of depleted andoverfished groundfish stocks; (2)manage consistent with rebuildingbocaccio, lingcod, and POP; (3)maximize harvest opportunities for non-depleted stocks while minimizing, tothe extent practicable, the discardmortality of species of concern; (4)provide equitable harvest opportunityfor both recreational and commercialsectors; and (5) maintain year-roundcommercial groundfish fishingopportunities to the extent possible.

A number of assumptions andconsiderations were involved indeveloping the managementrecommendations for 2000. Dover andpetrale sole move into deeper waterduring the winter and can be harvestedwith minimal bycatch of bocaccio,canary rockfish, and other shelf species

during those months. It is possible tocatch widow rockfish, or a mix ofwidow and yellowtail rockfish, withminimal bycatch of canary rockfish ifmidwater trawl gear is used. If a vesselfishes for widow or yellowtail rockfishwith bottom trawl gear (as specified at50 CFR 660.302 and 660.322 before anydistinction was made for footrope size),there will be greater incidental catch ofcanary rockfish. Therefore, it is neitherpossible to maintain a year-roundfishery with bottom trawl gear for allgroundfish species without anunacceptable level of bycatch, nor is itpossible to maintain a year-roundcommercial fishery if all (or even most)limited entry vessels participate all year.Similarly, recreational effort needsreduction to achieve a year-roundfishery. By promoting different fishingstrategies at different times of the year,some bycatch can be avoided, but toaccomplish this, trip limits, bag limits,size limits or gear restrictions for severaladditional species and/or species groupsare required in 2000. The Council alsoabandoned the January-March 3-monthcumulative trip limit period because itattracted additional effort on somespecies at the beginning of the year.Instead, it adopted 2-month and 1-month cumulative trip limit periods.The 2-month periods are intended toprovide a reasonable target opportunityfor healthier stocks, whereas the small,1-month cumulative trip limits areintended to provide for landings ofunavoidable incidental catch and/orincreased flexibility in changing limitsat the end of the year.

The lack of current discardinformation, which results from the lackof an at-sea monitoring program, makesit difficult to assess the success orfailure of the proposed managementmeasures. The Council is taking steps toimprove its ability to assess bycatch bydesigning an at-sea observer programthat can be implemented as soon asfunding becomes available. In themeantime, the Council must use the bestinformation available to it. As in pastyears, an estimate of discards (asdescribed above in Section I) issubtracted from applicable allocations(generally limited entry allocations),and inseason management is designedto achieve a landed-catch equivalentthat is lower than the allocation.

After hearing the GMT’s proposals,the advice of its advisory subpanels, andconsiderable public testimony at itsNovember 1999 meeting, the Councilrecommended the following actions formanagement in 2000.

Limited Entry Trawl

For the limited entry trawl fishery, theCouncil recommended a suite of season,gear and cumulative trip limits,designed to encourage fishing with gearin times and areas where bycatch ofoverfished or depleted species will beminimized. The Councilrecommendations introduce differentialtrip limits for limited entry trawlersoperating with different trawl gearconfigurations: bottom trawl withfootropes greater than 8 inches (20.5 cm)in diameter; bottom trawl with footropessmaller than 8 inches (20.5 cm) indiameter; and midwater or pelagictrawl. Trawling with footropes that haveroller gear or other large gear designedto bounce over tough rockpiles tends toallow those vessels greater access toareas where several of the overfishedspecies congregate. Therefore, landingsof shelf rockfish are prohibited if largefootrope trawls (roller gear) are used;small amounts of shelf rockfish bycatchmay be landed if small footrope trawlsare used; and, targeting healthy shelfrockfish stocks is encouraged only ifmidwater trawls are used. Fisherstestified at the November 1999 Councilmeeting that, for a vessel owner usingfootrope with rollers and bobbinsgreater than 8 inches (20.5 cm) indiameter, it would not be difficult orcostly to modify the gear to get anoverall footrope diameter smaller than 8inches (20.5 cm). The Council initiallydiscussed limiting the small footropediameter to 7 inches (18 cm) rather than8 inches (20 cm), but adopted 8 inches(20 cm) in recognition of the variabilityin producing 7-inch (18 cm) rollers andbobbins. However, because thistolerance is built in, there will be noexceptions to the 8-inch (20 cm)diameter requirement—the footropemust not exceed 8 inches (20 cm)anywhere along its length.

The Council also prohibited the use ofchafing gear on the body of smallfootrope trawls. Chafing gear protectsthe net from snagging when it dragsagainst rock piles or the sea floor. Theprohibition against chafing gear makesthe net more vulnerable to tears, and soencourages fishers to operate in lessdamaging areas.

Trawl vessels using large footropegear (with footropes greater than 8inches (20 cm) in diameter) areprohibited from landing nearshore andshelf rockfish and most flatfish speciesbecause their ability to fish in rockyareas would result in high incidentalcatch of species that are depleted or thatcannot withstand additional fishingeffort. Although vessels are notprohibited from using large footropes in



nearshore and continental shelf areas,they are not allowed to retain and sellmost of the fish they could catch there,which should act as a significantdisincentive to operate in those areas.Large footrope trawls may still be usedon deepwater species of the continentalshelf and slope, primarily Dover and rexsoles, thornyheads, sablefish, anddeepwater rockfish, because theyencounter fewer of the species needingprotection in these areas. Part of theyear, predominantly winter months,large footrope trawls may also be usedto harvest arrowtooth flounder andpetrale sole, but small footrope trawlsare required the rest of the year (Table3). In addition, new trip limits areimposed for arrowtooth flounder fromJanuary–April and from November–December to discourage targeting onPOP. The lingcod trawl fishery is closedduring those same months, January–April and November–December, withonly a bycatch level trip limit (400 lb(181 kg) per month) available fromMay–October, and an increased sizelimit (from 24 inches (61 cm) to 26inches (66 cm) south of 40°10′ N. lat.The lingcod closures in the winter willreduce the overall harvest and willprotect spawning fish and malesguarding their nests.

Another part of the strategy to allowharvest of relatively abundant stockswithout affecting depleted ones involvesthe use of midwater trawl gear, whichis effective at harvesting species abovethe ocean floor, with little or no bycatchof bottom-dwelling species such ascanary rockfish. The Council believesthe only way the widow rockfish OYmay be reached without affecting canaryrockfish is with midwater trawl gear.This gear may also be the best way toharvest chilipepper and yellowtailrockfish without catching canaryrockfish. Consequently, larger 2-monthcumulative trip limits are provided forvessels using midwater trawl gear toharvest widow, yellowtail, andchilipepper rockfish. If a fisher choosesto carry more than one type of trawl gearon board, the landing will be attributedto the gear on board with the mostrestrictive limit. To land the maximumamounts of widow, yellowtail andchilipepper rockfish, vessels will berequired to have only midwater trawlgear onboard.

The industry is forewarned that thereis no guarantee that these highermidwater trawl limits will be availablethroughout the year, or in future years,and cautions fishers to consider beforepurchasing new gear whether investingin new midwater trawl gear is costeffective. The review of groundfish

productivity is expected to indicatelower OYs in 2001 and beyond.

Limited Entry Fixed GearThe limited entry fixed gear fishery

starts the year with the same limits asthe limited entry trawl fishery whenthere is no distinction based on type oftrawl gear. It has the same limits as thesmall footrope trawl fishery when thereis a trawl gear distinction, except forshortspine thornyheads, sablefish andnearshore rockfish coastwide and shelfrockfish south of 40°10′ N. lat. In fact,the fixed gear cumulative trip limits forminor shelf rockfish, canary rockfish,yellowtail rockfish, and bocaccio are thesame as for the small footrope trawlfishery except for the closed periods forthe fixed gear fishery south of 40°10′ N.lat.

The higher midwater trawl limits arenot appropriate for fixed gear. Midwatertrawls can be used to selectively harvestrelatively large quantities of widow,yellowtail, and chilipepper rockfishesabove the sea floor, with minimalincidental catch of overfished speciesand at levels far exceeding recentlandings by most fixed gear. There areno comparable and enforceable ways tomodify fixed gear to keep it off thebottom and away from overfishedspecies on the continental shelf.

The fixed gear fishery for widowrockfish is provided with a cumulativetrip limit of 3,000 lb (1,361 kg) permonth in 2000, between the 30,000-lb(13,608 kg) 2-month midwater trawllimit and the 1,000-lb (454 kg) permonth small footrope trawl cumulativelimit, but the limit is higher than theactual amount landed by most fixed gearvessels in 1999. From January-July 1999,only 3 of 120 limited entry fixed gearvessels landed more than 1,000 lb (454kg) per month of widow rockfish, and sowere not constrained by the muchhigher cumulative trip limits.

The fixed gear limit for yellowtailrockfish in 2000 kept at the same levelas for small footrope trawl gear, 1,500 lb(680 kg) per month, with the intent thatthis limit will accommodate incidentalcatch rather than a target fishery. Thislimit will restrict the fixed gear fleetsomewhat. From January-July 1999, 8 of76 limited entry fixed gear vesselslanded more than 1,400 lb (635 kg) ofyellowtail rockfish in a month.

The 2000 chilipepper limit of 2,000 lb(907 kg) per month is maintained at alower level than trawl gear, consistentwith recent landings, because bocaccioare caught in fixed gear fisheries forchilipepper.

The fixed gear fishery for shortspinethornyheads is maintained at the same1,000 lb (454 kg) per month limit year

round, whereas the trawl fishery allowsfor higher catches in the winter(averaging 1,500 lb (680 kg) per month)when the deepwater Dover sole,sablefish, thornyhead fishery occurs,and smaller catch in the summer(averaging 500 lb (227 kg) per month)when the Dover sole fishery also iscurtailed. However, if the monthlyaverages are compared, both the fixedgear and trawl fisheries have the sameaverage cumulative trip limit amount of1,000 lb (454 kg) per month.

The fixed gear sablefish fishery ismanaged under regulations at 50 CFR660.323(a)(2) that provide for 2 seasons(the regular and mop-up seasons) duringwhich cumulative trip limits apply. Therest of the year is designated for the‘‘daily trip limit’’ (DTL) fishery, whichis restricted by the pounds of sablefishthat may be landed in each day (300 lb(136 kg) north of 36° N. lat., and 350 lb(159 kg) south of 36° N. lat.; daily triplimits may not be exceeded. However,they also are counted toward a 2-monthcumulative limit of 2,100 lb (953 kg). Anoption was added for the fishery southof 36° N. lat., in which a fisher couldopt to make one landing above 350 lb(159 kg) but no more than 1,050 lb (476kg) in a week. This option continues in2000, and a new option is also providedfor the fishery north of 36° N. lat., butonly through April 30, 2000. Instead oftaking 300 lb (136 kg) per day, not toexceed 2,100 lb (953 kg) per 2 months,a fisher may choose to make one landingabove 300 lb (136 kg) but less than 600lb (272 kg) per week, which will counttoward an 1,800 lb (816 kg) 2-monthcumulative limit. This northern optionwill end on April 30, 2000, and will bereevaluated but will not be reinstatedbefore July 1, 2000.

For commercial fisheries, directtargeting and opportunities to takeoverfished species as bycatch will beseverely curtailed. Nontrawl geargenerally has greater access than trawlgear to rockfish living on and aroundhigh relief rockpiles. To preventcommercial nontrawl gear vessels fromfishing on nearshore rockfish, shelfrockfish, and lingcod during periodswhen the recreational fisheries for thosespecies are closed, the Councilrecommended also closing commercialfixed gear fishing for those speciesduring the same areas and periods—alllimited entry fixed gear (pot andlongline) south of 40°10′ N. lat. will beprohibited from landing any nearshoreand shelf rockfish for 2 of the first 4months of the year (January-Februarysouth of 36° N. lat., and March-Aprilfrom 40°10′ N. lat. to 36° N. lat.).Concurrent closures are expected toachieve the conservation goals while



reducing the competitive hostility thatsometimes occurs when one gear type isallowed to fish while the other gear typeis not. The Council expects that thesecommercial closures will also reducethe chance that a commercial vesselcould take advantage of the recreationalclosure to target known rockfishhotspots available only to nontrawl gear.

Open Access (Hook-and-Line, Troll, Pot,Setnet, Trammel Net)

As in 1999, the open access fishery ismanaged separately from the limitedentry fixed gear fishery. As in the past,open access cumulative trip limitscontinue to be applied mostly to 1-month periods, and thornyheads maynot be taken and retained north of 36°N. lat. However, some significantchanges also occur in 2000. Nearshoreand shelf rockfish taken with nontrawlopen access gear (hook-and-line, troll,pot, setnet and trammel net) south of40°10′ N. lat., may not be possessed orlanded for 2 of the first 4 months of theyear (January-February south of 36° N.lat., and March-April from 40°10′ N. lat.to 36° N. lat.), concurrent with limitedentry fixed gear and recreationalrockfish closures in the same areas andfor the same reasons mentioned abovefor limited entry nontrawl fisheries.Similarly, the lingcod fishery for allopen access nontrawl gears is subject tothe same closure, size limits, andcumulative trip limits as limited entryfixed gear. A provision was designed foropen access vessels fishing for minornearshore rockfish north of 40°10′ N. lat.The Council wanted to provide acontinued opportunity to nearshorefishers to selectively harvest black andblue rockfish, while discouragingexcessive harvest of other nearshorespecies. This is intended to correct thetrend of increased effort on othernearshore rockfish in recent years.Consequently, the cumulative trip limitprovides for landings of 1,000 lb (454kg) per month of nearshore rockfish, ofwhich no more than 500 lb (227 kg) maybe species other than black or bluerockfish.

In 1998 and previous years, mostopen access limits were linked to (andcould not exceed) limited entry limits,so that the open access monthlycumulative limits for most species were50 percent of the limited entry 2-monthcumulative limits for those species.Since 1999, open access cumulativelimits are no longer linked to limitedentry cumulative limits. Open accesscumulative limits may exceed those forlimited entry. In 2000, NMFS clarifiesthat if a vessel with a limited entrypermit uses open access gear (includingexempted trawl gear) and the open

access cumulative limit is larger, thevessel will be constrained by thesmaller, limited entry cumulative limitfor the entire cumulative period.

Open Access Exempted Trawl GearOpen access exempted trawl gear

(used to harvest spot and ridgebackprawns, California halibut, seacucumbers, or pink shrimp) is managedwith both ‘‘per trip’’ limits andcumulative trip limits. These trip limitsare the same as in 1999, except there areno special sublimits for sablefish, andthe other open access limits apply butcannot exceed the overall groundfishlimits. The limits are 500 lb (227 kg) ofgroundfish per day, not to exceed 2,000lb (907 kg) per trip in the pink shrimpfishery, and 300 lb (136 kg) per trip bythe other exempted trawl gears. The triplimits for the pink shrimp fishery willbe reconsidered at the March or AprilCouncil meeting.

Recreational FisheryThe recreational fishery is also

restricted for conservation reasons,particularly for lingcod and bocacciothat have significant recreationalcatches. Washington, Oregon, andCalifornia each proposed, and theCouncil recommended, differentcombinations of seasons, bag limits andsize limits to best fit the needs of theirrecreational fisheries, while meeting therequired conservation burden.

For lingcod, Washington closed therecreational fishery for 5 months(January-March, November-December)and lowered the bag limit from two toone fish, while maintaining the 24-inch(61 cm) minimum size limit. Oregonmaintained its two lingcod bag limit and24-inch (61 cm) size limit, but added a34-inch (86 cm) maximum size limit.California also maintained its twolingcod bag limit, but increased theminimum size to 26 inches (66 cm) andclosed the lingcod season January-February south of 36° N. lat. and March-April from 40°10′ N. lat. to 36° N. lat.As recently as 1998, all three states hadthree lingcod bag limits and lackedclosed seasons for this species. Therecreational harvest off California isexpected to be reduced by 22 percent asa result of the higher minimum sizelimit for lingcod.

To prevent overfishing and rebuildoverfished rockfish, the states took anumber of additional actions.Washington maintained its 10 rockfishbag limit, but added that no more than2 could be canary rockfish and no morethan 2 could be yelloweye rockfish, aspecies on which overfishing occurredin 1999. (Yelloweye are not common intrawl catches.) Oregon reduced its 15

rockfish bag limit to 10, of which nomore than 3 may be canary rockfish.California reduced its rockfish bag limitfrom 15 to 10, maintained its canaryrockfish sublimit of 3 fish, and alsomaintained its bocaccio sublimit of 3fish, but imposed a new 10-inch (25 cm)minimum size limit for bocaccio, andlimited cowcod to one fish per landing,not to exceed two per boat. Californiaalso recommended a 3-hook per polelimit for rockfish and lingcod. Forbocaccio, the 10-inch (25 cm) minimumsize off California was adopted todiscourage the targeting of young fishoff piers and jetties. Bocaccio smallerthan 10 inches (25 cm) are particularlyavailable to this shallow water fisheryduring their first year of life, before theyhave had an opportunity to mature andspawn. The strong year class seen in1999 and expected in 2000 is ofparticular concern. However, fishcaught off piers and jetties do not sufferfrom decompression and are expected tohave high survival if returned quickly tosea.

To assist in species identification, theentire skin must remain on rockfishfilets. This requirement provides a moreeffective means of enforcing reductionsin bag limits for rockfish, in general, andfor bocaccio, cowcod, and canaryrockfish, in particular, because it isdifficult to accurately distinguish amongrockfish species unless the entire skin isattached.

Size limits are imposed on thefollowing three species that had notbeen individually managed under theFMP to protect young fish in nearshorewaters off California: cabezon, 14 inch(36 cm) size limit; kelp greenling, 12inch (30 cm) size limit; and Californiascorpionfish (also called ‘‘sculpin’’), 10inch (25 cm) size limit. The new, orincreased, recreational size limits applyto species that are of commercial andrecreational importance and for whichthere is a need for conservation.Furthermore, these species areharvested in waters that are shallowenough to ensure a high likelihood ofsurvival following capture and release.For cabezon, greenling, and Californiascorpionfish, the minimum size limitsare intended to provide at least 50percent of adult females of each specieswith an opportunity to spawn at leastonce. Identical commercial size limitswere adopted by the California in 1999for these three species.

Different season closures were chosenfor the Monterey and Conception areasin order to maximize benefits tobocaccio and canary rebuilding, whilelimiting disruption to the overallrecreational fishery to 2-month periods.Over 40 percent of annual recreational



landings of bocaccio in southernCalifornia occur during January andFebruary, so prohibiting rockfishlandings during those months has thehighest potential benefit for bocaccio. Inthe Monterey area, about 25 percent ofthe annual canary rockfish landingsoccur during March and April, which isa greater proportion than during anyother 2-month period. March–April alsoaccounts for a comparatively highproportion of the bocaccio catch in theMonterey area. Consequently, seasonclosures were chosen to correspondwith the 2-month periods of greatestbenefit for bocaccio and canary rockfishin the Conception and Monterey areas.Furthermore, season closures allow formodestly higher trip and bag limits thanotherwise would be possible under year-round fishing, which is expected toresult in fewer discards than otherwisewould occur. Concurrent seasons forrecreational and commercial nontrawlfisheries are more cost effective toenforce than staggered seasons andminimize conflicts between commercialnontrawl and recreational fishers thatfish for nearshore and shelf rockfish.

Other ProvisionsOther provisions for the 1999 fisheries

not explicitly addressed above remainin effect and are repeated in paragraphIV. of this document. For example, theoptional platooning system that wasinitiated in 1997 remains in effect thatenables the limited entry trawl fleet toprovide a more consistent supply of fishto processors. The choice of platoonapplies to the permit for the entirecalendar year, even if the permit is sold,leased, or otherwise transferred. Theplatoon system is experimental and,although it is continued in 2000, it maynot be continued in the future if theCouncil decides that the benefit doesnot outweigh technical andadministrative burdens.

Harvest rates and landings will bemonitored throughout the year andcumulative limits may be raised orlowered to provide access to the OYs,allocations, and harvest guidelines, butonly if consistent with the managementmeasures implemented to protect andrebuild overfished species.

The management measures for thelimited entry fishery are found inSection IV. Most cumulative trip limits,size limits, and seasons for the limitedentry fishery are explained in Tables 3and 4 of section IV. However, thelimited entry nontrawl sablefish fishery,the midwater trawl fishery for whiting,and the hook-and-line fishery for blackrockfish off Washington are managedseparately from the majority of thegroundfish species and are not fully

discussed in the tables. Their frameworkmanagement structure has not changedsince 1999, except for the level of triplimits for sablefish and whiting, and isdescribed in paragraphs IV.B.(2)–(4) ofsection IV.

Reducing BycatchThe Magnuson-Stevens Act defines

bycatch as ‘‘fish which are harvested ina fishery, which are not sold or kept forpersonal use, and include economicdiscards and regulatory discards.’’ In thePacific Coast groundfish fishery and inmany other fisheries, the term bycatchis commonly used to describenontargeted species that are landed andsold or used, and the term ‘‘discard’’ isused to describe those that are notlanded or used. Bycatch (as defined bythe Magnuson-Stevens Act) informationin the groundfish fishery is scarce.However, the groundfish managementmeasures include provisions to reducetrip limit induced bycatch and toaccount for that bycatch whenestablishing ABCs and monitoringharvest levels.

Based on limited studies in the mid-1980s and information on speciescompositions in landings, the Councilhas developed assumed discard rates forsablefish, longspine and shortspinethornyheads, widow rockfish, canaryrockfish, yellowtail rockfish, Dover sole,and lingcod (see I. Final Specifications).These discard rates are used to calculatean amount of assumed discard that issubtracted from the annual total catchOY to yield a landed catch equivalent.Although there is no exact measure ofbycatch amounts in most fisheries, theassumed amounts are taken into accountin this way to prevent total landingsfrom exceeding the ABC. Certain speciesare also managed within mixed-stockgroups, like the ‘‘DTS complex’’ ofDover sole, thornyheads, and sablefish.For groundfish multispeciesmanagement, trip limits are set to matchthe known species catch proportions,which may mean reducing trip limits onsome of the more abundant species toprevent bycatch of less abundantspecies, or setting trip limits at levelsthat vary throughout the year accordingto when particular stocks are mostaggregated. The cumulative trip limitsystem is designed to encourage fishersto direct effort on particular specieswhen those species are aggregated orwhen bycatch species are less available.Longer cumulative limit periods than in1998 when no more than 60 percent ofa 2-month cumulative limit could betaken in either of the months, coupledwith trip limits that recognize speciesdistribution throughout the fishing year,will also reduce the opportunities for

discarding groundfish in excess of triplimits. In addition, the new trawl-gearspecific trip limits discussed elsewherewill also reduce bycatch.

Fishing Communities and ImpactsThe Magnuson-Stevens Act requires

that actions taken to implement FMPsbe consistent with 10 nationalstandards, one of which requires thatconservation and management measures‘‘take into account the importance offishery resources to fishing communitiesin order to (A) provide for the sustainedparticipation of such communities, and(B) to the extent practicable, minimizeadverse economic impacts on suchcommunities.’’ Commercial andrecreational fisheries for Pacific coastgroundfish contribute to the economiesand shape the cultures of numerousfishing communities in Washington,Oregon, and California. In setting thisyear’s specifications and managementmeasures, the Council took several stepsto accommodate the needs of thosecommunities within the constraints ofrequirements to rebuild overfishedstocks and to prevent overfishing. Ingeneral, the Council allows the largestharvest possible, consistent withconservation needs of the fish stocks.

For two of the three overfishedspecies (lingcod and bocaccio), theCouncil could have prohibited alllandings of these species, despiteknowing that lingcod and bocaccio arecaught in mixed-stock fisheries and thatinterception and incidental mortalityare inevitable whether a retentionprohibition is in place or not. Instead,the Council looked for some minimumlevel of retention in both commercialand recreational fisheries that wouldallow fishery participants to land someof their incidental catch of lingcod andbocaccio. As it has done with POP foryears, the Council’s goal was to setretention at some minimal level thatwould discourage targeting, whileallowing fishers to land already-dead,incidentally caught fish. The retentionlevels allowed for each of these speciesare below the overfishing level andallow rebuilding, but do recognize thatsome unintentional catch will occur. Inaddition to these measures that cushionthe socio-economic impacts of necessarystock protection restrictions, theCouncil continued the year-roundfishery opportunity that is important tothe fishing and processing sectors, inorder to maintain a continuity ofemployment opportunity in fishingcommunities. The Council modified thecumulative trip limit system that hasbeen used in recent years to extend thefishing season throughout the year byproviding opportunities for at least



some groundfish species and byadopting trawl gear restrictions. Thesegear restrictions through operationaland economic incentives, will preventbottom trawl fishing with roller gear forsome species and encourage use ofmidwater trawl and small footropetrawls on the continental shelf wheremost overfished species occur. Thesestrategies were developed by a group ofindustry participants andrepresentatives in consultation with theGMT as to achieve conservation goalswhile minimizing impacts on theindustry and coastal communities.

Nonetheless, the impacts on somefishers and communities will be severe,particularly those without alternativeopportunities. New, lower harvest levelswill cause economic hardship in manyPacific Coast fishing communities.Depending on the base year(s) ofcomparison (1999 or 1995–97), theestimates of loss in ex-vessel revenuesfor the year 2000 range from somethinggreater than $3 million to at least $15million. Doubling these figures wouldprovide a reasonable approximation ofloss in income to fishing communities.A study sponsored by the Oregonsuggests that Oregon fishingcommunities will suffer a loss inincome of about 33 percent (about $20million) in the year 2000 compared totheir income in 1995. Although, theestimates assume that OYs of allmanaged species will be entirelyharvested, this is unlikely to occur. If allOYs are not fully harvested, the abovevalues probably underestimate theeconomic impact of the 2000management measures. Some amountsof healthy stocks will not be fullyharvested because their harvest will beconstrained by regulations designed toprotect co-occurring overfished species.Participation in the fishery may alsodecline in response to more restrictivemanagement measures, but we cannotpredict how participation might changeand how much harvest might bereduced by that change. Thedistribution of the economic impact willdepend on how well the user groups canadapt to the restrictions. In someinstances some user groups, particularlythose able to use midwater trawl gear,will have a greater opportunity toharvest in the year 2000 than in 1999,because the Council recommended newgear restrictions encouraging fishers touse gear that reduces incidental catch ofthe depleted rockfish. Other fishers willnot be able to maintain a viableoperation at the reduced harvest levels.The Council prepared a draftCommunity Impact Assessmentdocument which was available for

public review at the November Councilmeeting, and the EA/RIR prepared forthis action also discusses the economicand social effects on coastalcommunities (see ADDRESSES).

Designated Species B PermitsDesignated species B permits may be

issued if the limited entry fleet will notfully utilize the OY for Pacific whitingor shortbelly rockfish. Whiting is clearlyfully utilized by the limited entryfishery, and has been for years.Shortbelly rockfish and whiting aretaken predominantly with limited entrytrawl gear. The open access fishery isprohibited from using trawl gear totarget groundfish. Therefore thelikelihood of interest in, or issuance of,Designated Species B permits for anopen access fishery for whiting orshortbelly rockfish is remote. NMFS hasdetermined that the limited entry fleetintends to use the entire OY for Pacificwhiting and shortbelly rockfish, and,therefore, NMFS does not expect toissue Designated Species B permits in1999.

Summary of Management Changes in2000

Section IV below incorporates theregulatory text that applies to fishersoperating in the Pacific coast groundfishfishery in 2000. Many provisions are thesame as in 1999, but a number ofrevisions and format changes have beenmade. New cumulative trip limitperiods are announced at IV.A.(1)(c),that apply to both limited entry andopen access fisheries, as applicable.Explanations of size limit measurementsand conversions for sablefish andlingcod are moved into paragraphIV.A.(6), although the actual size limitsappear in Tables 3–5. Paragraph IV.A.(11) is revised to clarify how cumulativetrip limits are applied for a limited entryvessel operating in the open accessfishery if the open access limit is largerthan the limited entry limit. ParagraphIV.A.(13) is expanded to include a listof species that must be sorted. New gearrestrictions for the limited entry fisheryappear in paragraph IV.A.(14);cumulative trip limits differ for manyspecies depending on the type of trawlgear used. The first day of the majorcumulative limit periods, that establishwhen limited entry permit transfersmust be completed, is announced inparagraph IV.A.(15). Platooning datesfor the year 2000 are listed in paragraphIV.A.(16). The geographic coordinates inparagraph (19) are updated by addingthe new cumulative trip limitmanagement line (the ‘‘north/southline’’) at 40°10′ N. lat. Newclassifications of nearshore, shelf, and

slope rockfish are added at paragraphIV.A.(20), and minor rockfish speciesare listed in Table 2. The trip limitshave been converted from text intotables, with explanations in Section IV.However, the industry is cautioned notto rely on the tables alone. The text inSection IV. provides cumulative triplimit definitions and periods, size limitdefinitions and conversions, and otherinformation that cannot be readilyincluded in a table but must beunderstood in order to use the tablescorrectly. The sablefish allocations andnontrawl sablefish management, Pacificwhiting allocations and seasons, and‘‘per trip’’ limits for black rockfish offWashington State are still presented intext in paragraphs IV.B. Discussion oftrip limits for exempted trawl gear inthe open access fishery (paragraphIV.C.), recreational managementmeasures (paragraph IV.D.), and tribalallocations and management measures(paragraph V.) also still remain in text.

How to Use the Trip Limit Tables

Cumulative trip limits are appliedduring the time periods indicated inTables 3–5 of Section IV. Thecumulative trip limit may be taken atany time within the applicablecumulative trip limit period. Allcumulative trip limit periods start at0001 hours, local time, on the specifiedbeginning date, except for ‘‘B’’ platoontrawl vessels whose limits start on the16th of the month (see paragraphIV.A.(16).

Example 1: Line 2 of Table 3 for thelimited entry trawl fishery means—North of 40°10′ N. lat., the cumulativetrip limit for minor slope rockfish is3,000 lb (1,361 kg) per 2-month period;the 2-month periods are January 1–February 29 and March 1–April 30.

Example 2: The trip limits forbocaccio on Table 4 for limited entryfixed gear mean: From January 1through February 29, the trip limit forbocaccio between 40°10′ N. lat. and 36°N. lat. is 300 lb (136 kg) each month.However, the fishery for bocaccio isclosed from March 1–April 30, whichmeans bocaccio may not be taken,retained, possessed or landed between40°10′ N. lat. and 36° N. lat. during thattime period. The cumulative trip limitincreases to 500 lb (227 kg) per monthon May 1, but a fisher may not fishahead on that amount (see paragraphIV.A.(2)). Bocaccio taken and retainednorth of 40°10′ N. lat. are not explicitlymentioned in the table, which meansthey are included in the trip limit for‘‘minor shelf rockfish-north’’ (seefootnote 6 of Table 4).



Emergency Rule

In the past, annual managementmeasures have been primarily setthrough ‘‘routine’’ managementprocedures which consisted of adjustingcommercial trip limits and recreationalbag limits. For most species, the limitedentry commercial trip limit did not varywith the type of gear used. However,because of the drastic reductions inharvest limits for many species and themultispecies characteristic of thefishery, the existing routinemanagement measures will not producesufficient and appropriately targetedharvest reductions. Therefore, theemergency authority at section 305(c) ofthe Magnuson-Stevens Act must be usedto tailor the management measures tothe needs of the stocks, while allowingas much access to healthy stocks aspossible.

The emergency authority is beingused to implement and designate asroutine the following managementmeasures. The new routine measures forthe commercial fishery include limitedentry trip limits that may be differentbased on type of gear used and closedseasons for lingcod and rockfish. Thenew routine management measures forthe recreational fishery include sizelimits for canary rockfish, bocaccio,cabezon, kelp greenling, and sculpin;closures for rockfish and lingcod; boatlimits for cowcod; a requirement to keepthe skin on rockfish; a prohibition onfilleting cabezon; and hook limits. Thesenew measures will be used for the samepurposes as the existing routinemeasures set out at 50 CFR 660.323(b)and, in addition, for the purposesachieving the rebuilding plans, reducingbycatch, preventing overfishing,allowing the harvest of healthy stocks asmuch as possible while protecting andrebuilding overfished and depletedstocks, and equitably distributing theburdens of rebuilding among thesectors. The more specific reasonsbehind the specific managementmeasures are addressed elsewhere inthis notice. This emergency rule iseffective for 180 days, July 3, 2000.NMFS anticipates extending the rule foran additional 180 days in order for it tocover the entire 2000 fishing season.During 2000, NMFS plans to amend theexisting groundfish regulations in orderto implement rebuilding plans and toprovide the type of flexibility providedhere.

IV. NMFS Actions

For the reasons stated above, theAssistant Administrator for Fisheries,NOAA (Assistant Administrator),concurs with the Council’s

recommendations and announces thefollowing management actions for 2000,including those that are the same as in1999.

A. General Definitions and ProvisionsThe following definitions and

provisions apply to the 2000management measures, unless otherwisespecified in a subsequent notice:

(1) Trip limits. Trip limits are used inthe commercial fishery to specify theamount of fish that may legally be takenand retained, possessed, or landed, pervessel, per fishing trip, or cumulativelyper unit of time, or the number oflandings that may be made from a vesselin a given period of time, as follows:

(a) A trip limit is the total allowableamount of a groundfish species orspecies group, by weight, or bypercentage of weight of legal fish onboard, that may be taken and retained,possessed, or landed per vessel from asingle fishing trip.

(b) A daily trip limit is the maximumamount that may be taken and retained,possessed, or landed per vessel in 24consecutive hours, starting at 0001hours local time. Only one landing ofgroundfish may be made in that 24-hourperiod. Daily trip limits may not beaccumulated during multiple day trips.

(c) A cumulative trip limit is themaximum amount that may be takenand retained, possessed, or landed pervessel in a specified period of timewithout a limit on the number oflandings or trips, unless otherwisespecified. The cumulative trip limitperiods for limited entry and openaccess fisheries, which start at 0001hours and end at 2400 hours (localtime), are as follows, unless otherwisespecified:

(i) The 2-month periods are: January1–February 29, March 1–April 30, May1–June 30, July 1–August 31, September1–October 31, and, November 1–December 31.

(ii) One-month means the first daythrough the last day of the calendarmonth.

(iii) One week means 7 consecutivedays, Sunday through Saturday.

(2) Fishing ahead. Unless the fisheryis closed, a vessel that has landed itscumulative, or daily limit may continueto fish on the limit for the next legalperiod, so long as no fish (including, butnot limited to, groundfish with no triplimits, shrimp, prawns, or othernongroundfish species or shellfish) arelanded (offloaded) until the next legalperiod. As stated at 50 CFR 660.302 (inthe definition of ‘‘landing’’), once theoffloading of any species begins, all fishaboard the vessel are counted as part ofthe landing. Fishing ahead is not

allowed during or before a closed period(see paragraph IV.A.(7)).

(3) Weights. All weights are roundweights or round-weight equivalentsunless otherwise specified.

(4) Percentages. Percentages are basedon round weights, and, unless otherwisespecified, apply only to legal fish onboard.

(5) Legal fish. ‘‘Legal fish’’ means fishlegally taken and retained, possessed, orlanded in accordance with theprovisions of 50 CFR part 660, theMagnuson-Stevens Act, any noticeissued under part 660, and any otherregulation promulgated or permit issuedunder the Magnuson-Stevens Act.

(6) Size limits and lengthmeasurement. Unless otherwisespecified, size limits in the commercialand recreational groundfish fisheriesapply to the ‘‘total length’’ (TL), thelongest measurement of the fish withoutmutilation of the fish or the use of forceto extend the length of the fish. No fishwith a size limit may be retained if it isin such condition that its length hasbeen extended or cannot be determinedby these methods. For conversions notlisted here, contact the State where thefish will be landed.

(a) Whole fish. For a whole fish, totallength is measured from the tip of thesnout (mouth closed) to the tip of thetail in a natural, relaxed position.

(b) ‘‘Headed’’ fish. For a fish with thehead removed (‘‘headed’’), the length ismeasured from the origin of the firstdorsal fin (where the front dorsal finmeets the dorsal surface of the bodyclosest to the head) to the tip of theupper lobe of the tail; the dorsal fin andtail must be left intact.

(c) Sablefish size and weight limitconversions. The following conversionsapply to both the limited entry and openaccess fisheries when size and triplimits are effective for those fisheries.For headed and gutted (eviscerated)sablefish:

(i) The minimum size limit for headedsablefish, which corresponds to 22inches (56 cm) TL for whole fish, is 15.5inches (39 cm).

(ii) The conversion factor establishedby the state where the fish is or will belanded will be used to convert theprocessed weight to round weight forpurposes of applying the trip limit. (Theconversion factor currently is 1.6 inWashington, Oregon, and California.However, the state conversion factorsmay differ; fishermen should contactfishery enforcement officials in the statewhere the fish will be landed todetermine that state’s official conversionfactor.)

(d) Lingcod size and weightconversions. The following conversions



apply in both limited entry and openaccess fisheries.

(i) Size conversion. For lingcod withthe head removed, the minimum sizelimit is 19.5 inches (49.5 cm), whichcorresponds to 24 inches (61 cm) TL forwhole fish.

(ii) Weight conversion. Theconversion factor established by thestate where the fish is or will be landedwill be used to convert the processedweight to round weight for purposes ofapplying the trip limit. (The states’conversion factors may differ, andfishers should contact fisheryenforcement officials in the state wherethe fish will be landed to determine thatstate’s official conversion factor.) If astate does not have a conversion factorfor headed and gutted lingcod, orlingcod that is only gutted; thefollowing conversion factors will beused. To determine the round weight,multiply the processed weight times theconversion factor.

(A) Headed and gutted. Theconversion factor for headed and guttedlingcod is 1.5. (The State of Washingtoncurrently uses a conversion factor of1.5.)

(B) Gutted, with the head on. Theconversion factor for lingcod that hasonly been gutted is 1.1.

(7) Closure. ‘‘Closure,’’ when referringto closure of a fishery, means that takingand retaining, possessing, or landing theparticular species or species group isprohibited. (See 50 CFR 660.302.)Unless otherwise announced in theFederal Register, offloading must beginbefore the time the fishery closes. [Note:Special provisions are made for an at-sea closure at the end of the regularseason for the sablefish limited entryfishery. See 50 CFR 660.323(a)(2).] Theprovisions at paragraph IV.A.(2) forfishing ahead do not apply during aclosed period. It is unlawful to transitthrough a closed area with theprohibited species on board, no matterwhere that species was caught.

(8) Fishery management area. Thefishery management area for thesespecies is the EEZ off the coasts ofWashington, Oregon, and Californiabetween 3 and 200 nm offshore,bounded on the north by the ProvisionalInternational Boundary between theUnited States and Canada, and boundedon the south by the InternationalBoundary between the United Statesand Mexico. All groundfish possessedbetween 0–200 nm offshore, or landedin, Washington, Oregon, or Californiaare presumed to have been taken andretained from the EEZ, unless otherwisedemonstrated by the person inpossession of those fish.

(9) Routine and emergencymanagement measures.

(a) Routine management measures.Most trip and bag limits in thegroundfish fishery have been designated‘‘routine,’’ which means they may bechanged rapidly after a single Councilmeeting. (See 50 CFR 660.323(b).)

(b) Emergency regulations.Management measures not previouslydesignated routine under 50 CFR660.323(b) are implemented in this ruleand temporarily designated routine bythis emergency rule, for the reasonsspecified in 50 CFR 660.323(b) and forthe purpose of achieving the rebuildingplans, reducing bycatch, preventingoverfishing, allowing the harvest ofhealthy stocks as much as possiblewhile protecting overfished anddepleted stocks, and equitablydistributing the burdens of rebuildingamong the sectors. The new routinemeasures for the commercial fisheryinclude limited entry trip limits thatmay be different based on type of gearused and closed seasons for lingcod androckfish. The new routine managementmeasures for the recreational fisheryinclude size limits for canary rockfish,bocaccio, cabezon, kelp greenling,sculpin; closures for rockfish andlingcod; boat limits for cowcod; arequirement to keep the skin onrockfish; a prohibition on filletingcabezon; and hook limits.

(c) Inseason changes. Inseasonchanges to routine (includingemergency) management measures areannounced in the Federal Register.Information concerning changes toroutine management measures isavailable from the NMFS Northwest andSouthwest Regional Offices (seeADDRESSES). Changes to trip limits areeffective at the times stated in theFederal Register. Once a change iseffective, it is illegal to take and retain,possess, or land more fish than allowedunder the new trip limit. This means,unless otherwise announced in theFederal Register, offloading must beginbefore the time a fishery closes or amore restrictive trip limit takes effect.

(10) Limited entry limits. It isunlawful for any person to take andretain, possess, or land groundfish inexcess of the landing limit for the openaccess fishery without having a validlimited entry permit for the vesselaffixed with a gear endorsement for thegear used to catch the fish (50 CFR660.306(p)).

(11) Operating in both limited entryand open access fisheries. The openaccess trip limit applies to any fishingconducted with open access gear, evenif the vessel has a valid limited entrypermit with an endorsement for another

type of gear. A vessel that operates inboth the open access and limited entryfisheries is not entitled to two separatetrip limits for the same species. If avessel has a limited entry permit anduses open access gear, and the openaccess limit is smaller than the limitedentry limit, then the open access limitcannot be exceeded and counts towardthe limited entry limit. If a vessel has alimited entry limit and uses open accessgear, and the open access limit is largerthan the limited entry limit, the smallerlimited entry limit applies, even if takenentirely with open access gear. In short,a vessel with a limited entry permit thatuses both limited entry and open accessgear is constrained by the smaller of thetwo limits during the entire cumulativetrip limit period.

(12) Operating in areas with differenttrip limits. Trip limits for a species orspecies group may differ in differentgeographic areas along the coast. Thefollowing ‘‘crossover’’ provisions applyto vessels operating in differentgeographical areas that have differentcumulative or ‘‘per trip’’ trip limits forthe same species or species group. Suchcrossover provisions do not apply tospecies that are subject only to daily triplimits, or to the trip limits for blackrockfish off Washington (see 50 CFR660.323(a)(1)). In 2000, the cumulativetrip limit periods for the limited entryand open access fisheries are specifiedin paragraph IV.A(1)(c), but may bechanged during the year if announced inthe Federal Register.

(a) Going from a more restrictive to amore liberal area. If a vessel takes andretains any groundfish species orspecies group of groundfish in an areawhere a more restrictive trip limitapplies, before fishing in an area wherea more liberal trip limit (or no trip limit)applies, then that vessel is subject to themore restrictive trip limit for the entireperiod to which that trip limit applies,no matter where the fish are taken andretained, possessed, or landed.

(b) Going from a more liberal to amore restrictive area. If a vessel takesand retains a groundfish species orspecies group in an area where a highertrip limit or no trip limit applies, andtakes and retains, possesses or lands thesame species or species group in an areawhere a more restrictive trip limitapplies, then that vessel is subject to themore restrictive trip limit for that triplimit period.

(13) Sorting. It is unlawful for anyperson to ‘‘fail to sort, prior to the firstweighing after offloading, thosegroundfish species or species groups forwhich there is a trip limit, size limit,quota, or harvest guideline, if the vesselfished or landed in an area during a



time when such trip limit, size limit,harvest guideline, or quota applied.’’This provision applies to both thelimited entry and open access fisheries.(See 50 CFR 660.306(h), effective July27, 1998.) The following species mustbe sorted in 2000:

(a) For vessels with a limited entrypermit:

(i) Coastwide—widow rockfish,canary rockfish, minor nearshorerockfish, minor shelf rockfish, minorslope rockfish, shortspine and longspinethornyheads, Dover sole, arrowtoothflounder, lingcod, sablefish, and Pacificwhiting;

(ii) North of 40°10′ N. lat.—Pacificocean perch, yellowtail rockfish, and,for fixed gear, black rockfish and bluerockfish;

(iii) South of 40°10′ N. lat.—chilipepper rockfish, bocaccio rockfish,splitnose rockfish, cowcod.

(b) For open access vessels (vesselswithout a limited entry permit):

(i) Coastwide—widow rockfish,canary rockfish, minor nearshorerockfish, minor shelf rockfish, minorslope rockfish, arrowtooth flounder,other flatfish, lingcod, sablefish, andPacific whiting;

(ii) North of 40°10′ N. lat.—Blackrockfish, blue rockfish, Pacific oceanperch, yellowtail rockfish;

(iii) South of 40°10′ N. lat.—chilipepper rockfish, bocaccio rockfish,splitnose rockfish, cowcod;

(iv) South of Point Conception—thornyheads.

(14) New Limited Entry Trawl GearRestrictions in 2000. Limited entry triplimits may vary depending on the typeof trawl gear that is onboard a vesselduring a fishing trip: large footrope,small footrope, or midwater trawl gear.

(a) Types of trawl gear.(i) Large footrope trawl gear is bottom

trawl gear, as specified at 50 CFR660.302 and 660.322(b), with a footropediameter larger than 8 inches (20 cm)(including rollers, bobbins or othermaterial encircling or tied along thelength of the footrope).

(ii) Small footrope trawl gear isbottom trawl gear, as specified at 50CFR 660.302 and 660.322(b), with afootrope diameter 8 inches (20 cm) orsmaller (including rollers, bobbins orother material encircling or tied alongthe length of the footrope), exceptchafing gear may be used only on thelast 50 meshes of a small footrope trawl,running the length of the net from theterminal (closed) end of the codend.

(iii) Midwater trawl gear is pelagictrawl gear, as specified at 50 CFR660.302 and 660.322(b)(2). The footropeof midwater trawl gear may not be

enlarged by encircling it with chains orby any other means.

(b) Cumulative trip limits andprohibitions.

(i) Large footrope trawl. It is unlawfulto take and retain, possess or land thefollowing species from a fishing trip iflarge footrope gear is onboard and thetrip is conducted at least in part duringthe following periods: any species ofshelf or nearshore rockfish (defined atIV.A.(20) and Table 2 to Section IV),January 1–December 31; any species offlatfish (as listed at 50 CFR 660.302under the definition of groundfish),January 1–December 31, with thefollowing exceptions—large footropetrawl gear may be used to take andretain Dover sole and rex sole year-round, petrale sole from January 1–February 29 and November 1–December31, and arrowtooth flounder fromJanuary 1–April 30 and November 1–December 31, but these exceptionsapply only on a trip that is conductedentirely during the periods in which useof large footrope gear is authorized. (SeeTable 3). The presence of rollers orbobbins larger than 8 inches (20 cm) indiameter on board the vessel, even if notattached to a trawl, will be consideredto mean a large footrope trawl is onboard. Dates will be adjusted for the ‘‘B’’platoon.

(ii) Small footrope or midwater trawlgear. Cumulative trip limits for canaryrockfish, widow rockfish, yellowtailrockfish, bocaccio, chilipepper, minorshelf rockfish, minor nearshore rockfish,and lingcod, and the ‘‘per trip’’ limit forcowcod, as indicated in Table 3 toSection IV, are allowed only if smallfootrope gear or midwater trawl gear isused, and if that gear meets thespecifications in paragraphs IV.A.(14).

(iii) Midwater trawl gear. Highercumulative trip limits are available forlimited entry vessels using midwatertrawl gear to harvest widow, yellowtail,or chilipepper rockfish. Each landingthat contains widow, yellowtail, orchilipepper rockfish is attributed to thegear on board with the most restrictivetrip limit for those species. Landingsattributed to small footrope trawl mustnot exceed the small footrope limit, andlandings attributed to midwater trawlmust not exceed the midwater trawllimit. If a vessel has landings attributedto both types of trawls during acumulative trip limit period, landingsattributed to small footrope gear arecounted toward the cumulative limit formidwater trawl gear. [Example: Thecumulative trip limit for widow rockfishis 30,000 lb (13,608 kg) per 2 monthperiod, of which no more than 1,000 lb(454 kg) per month may be attributed tolandings by small footrope trawl gear.]

(iv) More than one type of trawl gearon board. The cumulative trip limits inTable 3 of section IV must not beexceeded. It is legal to have more thanone type of limited entry trawl gear onboard, but the most restrictive trip limitassociated with the gear on board willapply for that trip, and will counttoward the cumulative trip limit for thatgear. [Example: If a vessel has largefootrope gear on board, it cannot landchilipepper, even if the chilipepper iscaught with a small footrope trawl. If avessel has both small footrope trawl andmidwater trawl gear onboard, thelanding is attributed to the morerestrictive small footrope trawl limit,even if midwater trawl gear was used.]

(c) Measurement. The footrope will bemeasured in a straight line from theoutside edge to the opposite outsideedge at the widest part on anyindividual part, including anyindividual disk, roller, bobbin, or anyother device.

(d) State landing receipts.Washington, Oregon, and Californiahave indicated that they will require thetype of trawl gear on board with themost restrictive limit to be recorded onthe State landing receipt(s) for each trip,or an attachment to the State landingreceipt.

(e) Gear inspection. All trawl gear andtrawl gear components, includingunattached rollers or bobbins, must bereadily accessible and made availablefor inspection at the request of anauthorized officer. All footropes shall beuncovered and clearly visible exceptwhen in use for fishing.

(15) Permit transfers. Limited entrypermit transfers are to take effect onlyon the first day of a major cumulativelimit period (50 CFR 660.333(c)(1)),those days in 2000 are January 1, March1, May 1, July 1, September 1, andNovember 1, and are delayed by 15 days(starting on the 16th of a month) for the‘‘B’’ platoon.

(16) Platooning—limited entry trawlvessels. Limited entry trawl vessels areautomatically in the ‘‘A’’ platoon, unlessthe ‘‘B’’ platoon is indicated on thelimited entry permit. If a vessel is in the‘‘A’’ platoon, its cumulative trip limitperiods begin and end on the beginningand end of a calendar month as in thepast. If a limited entry trawl permit isauthorized for the ‘‘B’’ platoon, thencumulative trip limit periods will beginon the 16th of the month (generally 2weeks later than for the ‘‘A’’ platoon),unless otherwise specified.

(a) For a vessel in the ‘‘B’’ platoon,cumulative trip limit periods begin onthe 16th of the month at 0001 hours,local time, and end on the 15th of themonth. Therefore, the management



measures announced herein that areeffective on January 1, 2000, for the ‘‘A’’platoon will be effective on January 16,2000, for the ‘‘B’’ platoon. The effectivedate of any inseason changes to thecumulative trip limits also will bedelayed for 2 weeks for the ‘‘B’’ platoon,unless otherwise specified.

(b) A vessel authorized to operate inthe ‘‘B’’ platoon may take and retain, butmay not land, groundfish from January1, 2000, through January 15, 2000.

(c) Special provisions will be madefor ‘‘B’’ platoon vessels later in the yearso that the amount of fish madeavailable in 1999 to both ‘‘A’’ and ‘‘B’’vessels is the same. (For example, avessel in the ‘‘B’’ platoon could have thesame cumulative trip limit for the finalperiod as a vessel in the ‘‘A’’ platoon,but the final period may be 2 weeksshorter, so that both fishing periods endon December 31, 2000. Alternatively,the ‘‘B’’ platoon may have 6 weeks totake the cumulative limits from the final2 cumulative limit periods.)

(17) Exempted fisheries. U.S. vesselsoperating under an exempted (formerlyexperimental) fishing permit issuedunder 50 CFR part 600 also are subject

to these restrictions, unless otherwiseprovided in the permit.

(18) Paragraphs IV.B. and IV.C.pertain to the commercial groundfishfishery, but not to Washington coastaltribal fisheries, which are described inSection V. The provisions in paragraphsIV.B. and IV.C. that are not coveredunder the headings ‘‘limited entry’’ or‘‘open access’’ apply to all vessels in thecommercial fishery that take and retaingroundfish, unless otherwise stated.Paragraph IV.D. pertains to therecreational fishery.

(19) Commonly used geographiccoordinates.

(a) Cape Falcon, OR—45°46′ N. lat.(b) Cape Lookout, OR—45°20′15′′ N.

lat.(c) Cape Blanco, OR—42°50′ N. lat.(d) Cape Mendocino, CA—40°30′ N.

lat.(e) North/South management line—

40°10′ N. lat.(f) Point Arena, CA—38°57′30′′ N. lat.(g) Point Conception, CA—34°27′ N.

lat.(h) International North Pacific

Fisheries Commission (INPFC) subareas(for more precise coordinates for theCanadian and Mexican boundaries, see50 CFR 660.304):

(i) Vancouver—U.S.-Canada border to47°30′ N. lat.

(ii) Columbia—47°30′ to 43°00′ N. lat.(iii) Eureka—43°00′ to 40°30′ N. lat.(iv) Monterey—40°30′ to 36°00′ N. lat.(v) Conception—36°00′ N. lat. to the

U.S.-Mexico border.(20) New rockfish categories in 2000.

Rockfish (except thornyheads) aredivided into new categories north andsouth of 40°10′ N. lat., depending on thedepth where they most often are caught:nearshore, shelf, or slope. (The termSebastes complex no longer is used.Scientific names appear in Table 2.)New trip limits have been establishedfor ‘‘minor rockfish’’ species accordingto these categories (see Tables 2–5).

(a) Nearshore rockfish consistsentirely of the minor rockfish specieslisted in Table 2.

(b) Shelf rockfish consists ofshortbelly rockfish, widow rockfish(Sebastes entomelas), yellowtailrockfish, bocaccio, chilipepper, cowcod,and the minor shelf rockfish specieslisted in Table 2.

(c) Slope rockfish consists of Pacificocean perch, splitnose rockfish, and theminor slope rockfish species listed inTable 2.

TABLE 2.—MINOR ROCKFISH SPECIES (EXCLUDES THORNYHEADS)

(North of 40°10′ N. lat.) (South of 40°10′ N. lat.)

NEARSHORE

black, Sebastes melanops ........................................................................ black, Sebastes melanops.black and yellow, S. chrysolmelas ............................................................ black and yellow, S.blue, S. mystinus ...................................................................................... chrysolmelas.brown, S. auriculatus ................................................................................ blue, S. mystinus.calico, S. dalli ............................................................................................ brown, S. auriculatus.China, S. nebulosus .................................................................................. calico, S. dalli.copper, S. caurinus ................................................................................... California Scorpionfish.gopher, S. carnatus .................................................................................. Scorpaena guttata.grass, S. rastrelliger .................................................................................. China, S. nebulosus.kelp, S. atrovirens ..................................................................................... copper, S. caurinus.olive, S. serranoides ................................................................................. gopher, S. carnatus.quillback, S. maliger .................................................................................. grass, S. rastrelliger.treefish, S. serriceps ................................................................................. kelp, S. atrovirens.

olive, S. serranoides.quillback, S. maliger.treefish, S. serriceps.

SHELF

bronzespotted, S. gilli ............................................................................... bronzespotted, S. gilli.bocaccio, S. paucispinis ........................................................................... chameleon, S. phillipsi.chameleon, S. phillipsi .............................................................................. dwarf-red, S. rufinanus.chilipepper, S. goodei ............................................................................... flag, S. rubrivinctus.cowcod, S. levis ........................................................................................ freckled, S. lentiginosus.dwarf-red, S. rufinanus ............................................................................. greenblotched, S. rosenblatti.flag, S. rubrivinctus ................................................................................... greenspotted, S. chlorostictus.freckled, S. lentiginosus ............................................................................ greenstriped, S. elongatus.greenblotched, S. rosenblatti .................................................................... halfbanded, S. semicinctus.greenspotted, S. chlorostictus .................................................................. honeycomb, S. umbrosus.greenstriped, S. elongatus ........................................................................ Mexican, S. macdonaldi.halfbanded, S. semicinctus ....................................................................... pink, S. eos.honeycomb, S. umbrosus ......................................................................... pinkrose, S. simulator.Mexican, S. macdonaldi ............................................................................ pygmy, S. wilsoni.pink, S. eos ............................................................................................... redbanded, S. babcocki.pinkrose, S. simulator ............................................................................... redstriped, S. proriger.



TABLE 2.—MINOR ROCKFISH SPECIES (EXCLUDES THORNYHEADS)—Continued

(North of 40°10′ N. lat.) (South of 40°10′ N. lat.)

pygmy, S. wilsoni ...................................................................................... rosethorn, S. helvomaculatus.redbanded, S. babcocki ............................................................................ rosy, S. rosaceus.redstriped, S. proriger ............................................................................... silvergrey, S. brevispinis.rosethorn, S. helvomaculatus ................................................................... speckled, S. ovalis.rosy, S. rosaceus ...................................................................................... squarespot, S. hopkinsi.silvergrey, S. brevispinis ........................................................................... starry, S. constellatus.speckled, S. ovalis .................................................................................... stripetail, S. saxicola.squarespot, S. hopkinsi ............................................................................ swordspine, S. ensifer.starry, S. constellatus ............................................................................... tiger, S. nigrocinctus.

SLOPE

aurora, S. aurora ....................................................................................... aurora, S. aurora.bank, S. rufus ............................................................................................ bank, S. rufus.blackgill, S. melanostomus ....................................................................... blackgill, S. melanostomus.darkblotched, S. crameri ........................................................................... darkblotched, S. crameri.rougheye, S. aleutianus ............................................................................ Pacific ocean perch, S. alutus.sharpshin, S. zacentrus ............................................................................ rougheye, S. aleutianus.shortraker, S. borealis ............................................................................... sharpshin, S. zacentrus.splitnose, S. diploproa .............................................................................. shortraker, S. borealis.yellowmouth, S. reedi ............................................................................... yellowmouth, S. reedi.

B. Limited Entry Fishery

(1) General. Most species taken inlimited entry fisheries will be managedwith cumulative trip limits (seeparagraph IV.A.(1)(c), size limits (seeparagraph IV.A.(6)), and seasons (seeparagraph (IV.A.(7)), and the trawl

fishery has new gear requirements andtrip limits that differ by the type of trawlgear on board (see paragraph IV.A.(14)).Most of the management measures forthe limited entry fishery are listed aboveand in Tables 3 and 4, and may bechanged during the year byannouncement in the Federal Register.

However, the management regimes forseveral fisheries (nontrawl sablefish,Pacific whiting, and black rockfish) donot neatly fit into these tables and areaddressed immediately following Tables3 and 4.




(2) Sablefish. The limited entrysablefish allocation is further allocated58 percent to trawl gear and 42 percentto nontrawl gear. See footnote e/ ofTable 1a.

(a) Trawl trip and size limits.Management measures for the limitedentry trawl fishery for sablefish arelisted in Table 3.

(b) Nontrawl trip and size limits. Totake, retain, possess, or land sablefishduring the regular, or mop-up season forthe nontrawl limited entry sablefishfishery, the owner of a vessel must holda limited entry permit for that vessel,affixed with both a gear endorsement forlongline or trap (or pot) gear, and asablefish endorsement. See 50 CFR663.23(a)(2)(i). A sablefish endorsementis not required to participate in thelimited entry daily trip limit fishery.

(i) Regular and mop-up seasons.Starting and ending dates for the regularand mop-up seasons, and the size of thecumulative trip limits for the regularand mop-up seasons (see 50 CFR660.323(a)(2)) will be announced laterin the year.

(ii) Daily trip limit—The daily triplimit, which is listed in Table 4 andwhich applies to sablefish of any size,is in effect north of 36° N. lat. until theclosed periods before or after the regularseason as specified at 50 CFR660.323(a)(2), between the end of theregular season and the beginning of themop-up season, and after the mop-upseason. The daily trip limit for sablefishtaken and retained with nontrawl gearsouth of 36° N. lat. also is listed in Table4, and continues throughout the yearunless otherwise announced in theFederal Register because the regularand mop-up seasons do not apply southof 36° N. lat.

(iii) Limit on small fish. During the‘‘regular’’ and ‘‘mop-up’’ seasons, thereis a trip limit in effect for sablefishsmaller than 22 inches (56 cm) totallength, which may comprise no morethan 1,500 lb (680 kg) or 3 percent of alllegal sablefish 22 inches (56 cm) (totallength) or larger, whichever is greater.(See paragraph IV.A.(6) regarding lengthmeasurement.) This trip limit countstoward any other cumulative trip limitthat may be in effect. The size limit doesnot apply during the daily trip limit

fishery outside the regular and mop-upseasons north of 36° N. lat., nor does itapply at any time south of 36° N. lat.

(3) Whiting. Additional regulationsthat apply to the whiting fishery arefound at 50 CFR 660.306 and 50 CFR660.323(a)(3) and (a)(4).

(a) Allocations. The nontribalallocations are HGs, based onpercentages that are applied to thecommercial OY of 199,500 mt in 2000(see 50 CFR 660.323(a)(4)), as follows:

(i) Catcher/processor sector—67,830mt (34 percent);

(ii) Mothership sector—47,880 mt (24percent);

(iii) Shore-based sector—83,790 mt(42 percent). No more than 5 percent(4,190 mt) of the shore-based whitingallocation may be taken before theshore-based fishery begins north of 42°N. lat.

(iv) Tribal allocation—See paragraphV.

(b) Seasons. The 2000 primaryseasons for the whiting fishery start onthe same dates as in 1999, as follows(see 50 CFR 660.323(a)(3)):

(i) Catcher/processor sector—May 15;(ii) Mothership sector—May 15;(iii) Shore-based sector—June 15

north of 42° N. lat.; April 1 between42°–40°30′ N. lat.; April 15 south of40°30′ N. lat.

(c) Trip limits.(i) Before and after the regular season.

The ‘‘per trip’’ limit for whiting beforeand after the regular season for theshore-based sector is announced inTable 3, as authorized at 50 CFR660.323(a)(3) and (a)(4). This trip limitincludes any whiting caught shorewardof 100 fathoms (183 m) in the Eurekaarea.

(ii) Inside the Eureka 100-fm contour.No more than 10,000 lb (4,536 kg) ofwhiting may be taken and retained,possessed, or landed by a vessel that, atany time during a fishing trip, fished inthe fishery management area shorewardof the 100-fathom (183-m) contour (asshown on NOAA Charts 18580, 18600,and 18620) in the Eureka area.

(4) Black rockfish. The regulations at50 CFR 660.323(a)(1) state: ‘‘The triplimit for black rockfish (Sebastesmelanops) for commercial fishingvessels using hook-and-line gear

between the U.S.-Canada border andCape Alava (48°09′30′′ N. lat.) andbetween Destruction Island (47°40′00′′N. lat.) and Leadbetter Point (46°38′10′′N. lat.), is 100 lb (45 kg) or 30 percent,by weight of all fish on board,whichever is greater, per vessel perfishing trip.’’ These ‘‘per trip’’ limitsapply to limited entry and open accessfisheries, in conjunction with thecumulative trip limits and othermanagement measures listed in Tables 4and 5 of Section IV. The crossoverprovisions at paragraphs IV.A. (12) donot apply to the per trip limits.

C. Trip Limits in the Open AccessFishery

Open access gear is gear used to takeand retain groundfish from a vessel thatdoes not have a valid permit for thePacific coast groundfish fishery with anendorsement for the gear used to harvestthe groundfish. This includes longline,trap, pot, hook-and-line (fixed ormobile), set net (south of 38° N. lat.only), and exempted trawl gear (trawlsused to target non-groundfish species:pink shrimp or prawns, and, south of Pt.Arena, CA (38°57′30′′ N. lat.), Californiahalibut or sea cucumbers). Unlessotherwise specified, a vessel operatingin the open access fishery is subject to,and must not exceed any trip limit,frequency limit, and/or size limit for theopen access fishery. The application oftrip limits for vessels operating in bothlimited entry and open access fisherieshas been clarified (paragraph IV.A.(11)).The crossover provisions at paragraphIV.A.(12) that apply to the limited entryfishery apply to the open access fisheryas well. The cumulative limit periodsinitially are the same as for the limitedentry fishery (see paragraph IV.A.(1)(c))but may be changed during the year.

(1) All open access gear exceptexempt trawl gear. The trip limits, sizelimits, seasons, and other managementmeasures for open access groundfishgear, except exempted trawl gear, arelisted in Table 5. The trip limit at 50CFR 660.323(a)(i) for black rockfishcaught with hook-and-line gear alsoapplies. (The black rockfish limit isrepeated at paragraph IV.B.4.)BILLING CODE 3510–22–P



(2) Groundfish taken by exemptedtrawl gear (e.g., by vessels engaged infishing for spot and ridgeback prawns,California halibut, and sea cucumbers.

(a) Trip limits. No more than 300 lb(136 kg) of groundfish may be taken pervessel per fishing trip. Limits andclosures in Table 5 also apply and arecounted toward the 300 lb (136 kg)groundfish limit. In any landing by avessel engaged in fishing for spot andridgeback prawns, California halibut, orsea cucumbers with exempted trawlgear, the amount of groundfish landedmay not exceed the amount of the targetspecies landed, except that the amountof spiny dogfish (Squalas acanthias)landed may exceed the amount of targetspecies landed. Spiny dogfish arelimited by the 300 lb (136 kg) per tripoverall groundfish limit. The daily triplimits for sablefish and thornyheadssouth of Pt. Conception, and the overallgroundfish ‘‘per trip’’ limit may not bemultiplied by the number of days of thefishing trip.

(b) State law. These trip limits are notintended to supersede any morerestrictive state law relating to theretention of groundfish taken in shrimpor prawn pots or traps.

(c) Participation in the Californiahalibut fishery. A trawl vessel will beconsidered participating in theCalifornia halibut fishery if:

(i) It is not fishing under a validlimited entry permit issued under 50CFR part 660.333 for trawl gear;

(ii) All fishing on the trip takes placesouth of Pt. Arena; and

(iii) The landing includes Californiahalibut of a size required by CaliforniaFish and Game Code section 8392(a),which states: ‘‘No California halibutmay be taken, possessed or sold whichmeasures less than 22 inches (56 cm) intotal length, unless it weighs 4 poundsor more in the round, 3 and one-halfpounds or more dressed with the headon, or 3 pounds or more dressed withthe head off. Total length means theshortest distance between the tip of thejaw or snout, whichever extends farthestwhile the mouth is closed, and the tipof the longest lobe of the tail, measuredwhile the halibut is lying flat in naturalrepose, without resort to any force otherthan the swinging or fanning of thetail.’’

(d) Participation in the sea cucumberfishery. A trawl vessel will beconsidered to be participating in the seacucumber fishery if:

(i) It is not fishing under a validlimited entry permit issued under 50CFR part 660.333 for trawl gear;

(ii) All fishing on the trip takes placesouth of Pt. Arena; and

(iii) The landing includes seacucumbers taken in accordance withCalifornia Fish and Game Code section8396, which requires a permit issued bythe State of California.

(3) Groundfish taken with exemptedtrawl gear by vessels engaged in fishingfor pink shrimp. The trip limit for avessel engaged in fishing for pinkshrimp is 500 lb (227 kg) of groundfishper day, multiplied by the number ofdays of the fishing trip, but not toexceed 2,000 lb (907 kg) of groundfishper trip. In any landing by vesselsengaged in fishing for pink shrimp, theamount of groundfish landed may notexceed the amount of pink shrimplanded. Retention of thornyheads andlingcod is prohibited in months whenthe open access fishery for these speciesis closed. [This limit may be revisedbefore the pink shrimp fishery starts itsnext season in April 2000.]

D. Recreational Fishery(1) California. For each person

engaged in recreational fishing seawardof California, the following seasons andbag limits apply:

(a) Rockfish.(i) Seasons. South of Cape Mendocino

and north of 36° N. lat., recreationalfishing for rockfish is closed from March1 through April 30. South of 36° N. lat.,recreational fishing for rockfish isclosed from January 1 through February29.

(ii) Bag limits, boat limits, hook limits.In times and areas when the recreationalseason for rockfish is open, there is a 3-hook limit per fishing line, and the baglimit is 10 rockfish per day (excludingCalifornia scorpionfish), of which nomore than 3 may be bocaccio (Sebastespaucispinis), no more than 3 may becanary rockfish (S. pinniger), and nomore than 1 may be cowcod (S. levis).There is a per-boat limit of 2 cowcod.Multi-day limits are authorized by avalid permit issued by California andmust not exceed the daily limitmultiplied by the number of days in thefishing trip.

(iii) Size limits. The followingrockfish size limits apply: bocaccio maybe no smaller than 10 inches (25 cm),cabezon (Scorpaenichthys marmoratus)may be no smaller than 14 inches (36cm), kelp greenling (Hexagrammosdecagrammus) may be no smaller than12 inches (30 cm), and Californiascorpionfish (Scorpaena guttata) may beno smaller than 10 inches (25 cm).

(iv) Dressing/Fileting. Rockfish skinmay not be removed when fileting orotherwise dressing rockfish taken in therecreational fishery. Cabezon taken inthe recreational fishery may not befileted at sea.

(b) Lingcod. South of Cape Mendocinoand north of 36° N. lat., recreationalfishing for lingcod is closed from March1 through April 30. South of 36° N. lat.,recreational fishing for lingcod is closedfrom January 1 through February 29. Intimes and areas when the recreationalseason for lingcod is open, there is a 3-hook limit per fishing line, and the baglimit is 2 lingcod per day, which maybe no smaller than 26 inches (66 cm)TL. Multi-day limits are authorized bya valid permit issued by California andmust not exceed the daily limitmultiplied by the number of days in thefishing trip.

(2) Oregon. The bag limits for eachperson engaged in recreational fishingseaward of Oregon are: 1 lingcod perday, which may be no smaller than 24inches (61 cm) and no larger than 34′′(86 cm) TL; and 10 rockfish per day, ofwhich no more than 3 may be canaryrockfish.

(3) Washington. For each personengaged in recreational fishing seawardof Washington, the following seasonsand bag limits apply:

(a) Rockfish. There is a rockfish baglimit of no more than 10 rockfish perday, of which no more than 2 may becanary rockfish and no more than 2 maybe yelloweye rockfish (S. ruberrimus).

(b) Lingcod. Recreational fishing forlingcod is closed between January 1,2000 and March 31, 2000, and betweenNovember 1, 2000 and December 31,2000. When the recreational season forlingcod is open, there is a bag limit of1 lingcod per day, which may be nosmaller than 24 inches (61 cm) TL.

V. Washington Coastal Tribal FisheriesIn late 1994, the U.S. government

formally recognized that the fourWashington Coastal Tribes (Makah,Quileute, Hoh, and Quinault) havetreaty rights to fish for groundfish, andconcluded that, in general terms, thequantification of those rights is 50percent of the harvestable surplus ofgroundfish available in the tribes’ usualand accustomed (U and A) fishing areas(described at 50 CFR 660.324).

A tribal allocation is subtracted fromthe species OY before limited entry andopen access allocations are derived. Thetreaty tribal fisheries for sablefish, blackrockfish, and whiting are separatefisheries, not governed by the limitedentry or open access regulations orallocations. The tribes regulate thesefisheries so as not to exceed theirallocations.

The tribal allocation for black rockfishis the same in 2000 as in 1999. Thetribal allocation for sablefish remains at10 percent of the landed catch OY andis the same as in 1999 at 713 mt.



The tribal allocation for Pacificwhiting is 32,500 mt for the year 2000.Initially for 2000, the Makah proposed32,500 mt for the Makah tribe alone,which was based on a long-termproposal developed by the tribe in 1998,which had varying levels of Makahallocation based on the level of thewhiting OY. In addition, the Hoh tribeproposed 2,000 mt of whiting for a Hohfishery. In subsequent discussions witha representative of the Makah tribe, theMakah representative indicated that thetribe is not fully certain that it willharvest the entire 32,500 mt in 2000.This is because the Makah allocation in1999 was larger than the 1998 allocationand the tribe did not take the entireamount. In addition, because the Hohfishery is new, and questions have beenraised about it, it is uncertain how muchof the 2,000 mt requested wouldactually be harvested. Therefore, NMFSbelieves the 32,500 mt should beadequate for the two tribes in thetransitional year of 2000.

The Council recommended adopting a32,500 mt tribal whiting set aside, thesame amount as set aside in 1999. Somemembers of the industry continue tooppose a tribal whiting allocation, oroppose the level of allocation proposedby the tribes. NMFS, however, mustprovide an appropriate tribal whitingallocation.

NMFS believes that Washington coasttreaty tribes have treaty rights to harvesthalf of the harvestable surplus ofwhiting found in their respective usualand accustomed fishing areas, inaccordance with the legal principleselaborated in U.S. v. Washington. Underthe legal principles of that case, thequestion becomes one of attempting todetermine what amount of fishconstitutes half the harvestable surplusof Pacific whiting in the usual andaccustomed fishing areas, determinedaccording to the conservation necessityprinciple. The conservation necessityprinciple means that the determinationof the amount of fish available forharvest must be based solely onresource conservation needs. Thisdetermination is difficult because, withthe exception of a case regarding Pacifichalibut (Makah v. Brown, Civil No. C–85–1606R and U.S. v. Washington, CivilNo. 9213–Phase I, Subproceeding No.92–1 (W.D. Wash.)) most of the legaland technical precedents are based onthe biology, harvest, and conservationrequirements for Pacific salmon andshellfish, which are very different fromthose for Pacific whiting. Quantifyingthe tribal right to whiting is alsocomplicated by data limitations and bythe uncertainties of Pacific whitingbiology and conservation requirements.

In 1996 the Makah instituted asubproceeding in U.S. v. Washington,Civil No. 9213–Phase I, SubproceedingNo. 96–2, regarding their treaty right towhiting, including the issue of theappropriate quantification of that right.The quantification issue has not yetbeen resolved through litigation orsettlement. Taking into account theexisting case law in U.S. v. Washington,the proposal and supporting argumentsof the Makah tribe, the Hoh proposal,the comments from the Council and thepublic, and the existing uncertaintysurrounding the appropriatequantification described above, NMFS isallocating 32,500 mt again in 2000 to thecoastal tribes. NMFS anticipates that,based on the tribal proposals, the Hohtribe will harvest up to 2000 mt and theMakah tribe will harvest the remainderof the allocation. This 2000 amount of32,500 mt is not intended to set aprecedent regarding eitherquantification of the Makah or Hohtreaty rights or future allocations. NMFSwill continue to attempt to negotiate asettlement in U.S. v. Washingtonregarding the appropriate quantificationof the treaty right to whiting. If anappropriate methodology or allocationcannot be developed throughnegotiations, the allocation willultimately be resolved throughlitigation.

For some species on which the tribeshave a modest harvest, no specificallocation has been determined. Ratherthan try to reserve specific allocationsfor the tribes, which may not be neededby the tribes, NMFS is establishing triplimits recommended by the tribes andthe Council to accommodate modesttribal fisheries. For lingcod, all tribalfisheries will be restricted to 300 lb (126kg) per trip. Tribal fisheries are notexpected to take more than 2 mt oflingcod in 2000. For the Sebastescomplex and other rockfish species, the2000 tribal longline and trawl fisherieswill operate under trip and cumulativelimits. Tribal fisheries will operateunder 300 lb (136 kg) ‘‘per trip’’ limitseach for canary rockfish and forthornyheads, and under the same triplimits as the limited entry fisheries forall other rockfish. A 300 lb (136 kg)canary rockfish trip limit is expected toresult in landings of 10,000–15,000 lb(5–7 mt). A 300 lb (136 kg) thornyheadlimit is expected to result in landings of9,000–10,000 lb (4–5 mt). Because of thesmall expected tribal groundfish catch,it is not anticipated that tribal trip limitswill be reduced during the year unlessOY’s are achieved, or unless inseasoncatch statistics demonstrate that thetribes have taken half of the available

harvest in the tribal U and A fishingareas.

The Assistant Administrator (AA)announces the following tribalallocations for 2000, including thosethat are the same as in 1999. Trip limitsfor certain species were recommendedby the tribes and the Council and arespecified here with the tribalallocations:

A. Sablefish

The tribal allocation is 713 mt, 10percent of the OY.

B. Rockfish

(1) For the commercial harvest ofblack rockfish off Washington State, aHG of: 20,000 lb (9,072 kg) north ofCape Alava (48°09′30′′ N. lat.) and10,000 lb (4,536 kg) betweenDestruction Island (47°40′00′′ N. lat.)and Leadbetter Point (46°38′10′′ N. lat.).

(2) Thornyheads are subject to a 300lb (136 kg) trip limit.

(3) Canary rockfish are subject to a300 lb (136 kg) trip limited.

(4) As published in this notice. Thelimits will not change unless the triballimits are separately changed.

C. Lingcod

Lingcod are subject to a 300 lb (136kg) trip limit.

D. Pacific whiting

The tribal allocation is 32,500 mt.

Classification

The final specifications andmanagement measures for 2000 areissued under the authority of, and are inaccordance with, the Magnuson-StevensAct and 50 CFR parts 600 and 660subpart G (the regulations implementingthe FMP).

This package of specifications andmanagement measures is a delicatebalance designed to allow as muchharvest of healthy stocks as possible,while protecting overfished and otherdepressed stocks. Delay inimplementation of the measures couldupset that balance and cause harm tosome stocks and it could requireunnecessarily restrictive measures laterin the year to make up for the lateimplementation. Much of the datanecessary for these specifications andmanagement measures came from thecurrent fishing year. Because of thetiming of the receipt, development,review, and analysis of the fisheryinformation necessary for setting theinitial specifications and managementmeasures, and the need to have thesespecifications and managementmeasures in effect at the beginning ofthe 2000 fishing year, the AA has



determined that there is good causeunder 5 U.S.C. 553(b)(B) to waive priornotice and opportunity for publiccomment for the specifications andmanagement measures. Amendment 4 tothe FMP, implemented on January 1,1991, recognized these timelinessconsiderations and set up a system bywhich the interested public is notified,through Federal Register publicationand Council mailings, of meetings andof the development of these measuresand is provided the opportunity tocomment during the Council process.The public participated in GMT,Groundfish Advisory Subpanel,Scientific and Statistical Committee,and Council meetings in September andNovember 1999 where theserecommendations were formulated.Additional public comments on thespecifications and managementmeasures, including the emergency rulewill be accepted for 30 days afterpublication of this document in theFederal Register.

There is no time burden for the publicto come into compliance with theharvest specifications and mostmanagement measures designed toachieve those specifications that areannounced by this rule. Although somefishers may need to obtain some newgear components in order to accesssome species, other species are availableusing gear as currently configured. Inaddition, the Council was advised thatthe industry should be able to obtain thenecessary gear in a timely manner. Asdescribed above, the interested publichas participated in the Council processto formulate these regulations. TheCouncil has provided information to theindustry on the above managementmeasures and specifications through thenewsletters that it sends to fisheryparticipants, and NMFS has provided

notice through the U.S. Coast GuardNotice to Mariners, and Washington,Oregon, and California also disseminateinformation. Therefore, the AA finds,under 5 U.S.C. 553(d)(3), as applicable,that it would be unnecessary or contraryto the public interest to delay for 30days the effective date of thespecifications and managementmeasures.

The AA also finds that meetingrebuilding goals for overfished stocksconstitutes good cause to waive therequirement to provide prior notice andthe opportunity for public comment,pursuant to authority set forth at U.S.C.553(b)(B), as such procedures would beimpracticable. Similarly, the need toimplement the emergency regulationsportions of this document in a timelymanner to coincide with the start of the2000 fishing season on January 1,constitutes good cause under authoritycontained in 5 U.S.C. 553(d)(3), not todelay for 30 days the effective date ofthe emergency regulations.

This action has been determined to benot significant for purposes of E.O.12866.

Because prior notice and opportunityfor public comment are not required forthe annual specifications andmanagement measures, or for theemergency rule portion of this action by5 U.S.C. 553, or any other law, theanalytical requirements of theRegulatory Flexibility Act, 5 U.S.C. 601et seq., are not applicable.

NMFS issued Biological Opinions(BOs) under the Endangered Species Acton August 10, 1990, November 26, 1991,August 8, 1992, September 27, 1993,and May 14, 1996, and a new BO wasforwarded for signature along with thisaction, and was signed on December 15,1999. This action pertains to the effectsof the groundfish fishery on chinook

salmon (Puget Sound, Snake Riverspring/summer, Snake River fall, upperColumbia River, lower Columbia River,upper Willamette River, SacramentoRiver winter, Central Valley, Californiacoastal), chum salmon (Hood Canal,Columbia River), sockeye salmon (SnakeRiver, Ozette Lake), steelhead (upper,middle and lower Columbia River,Snake River Basin, upper WillametteRiver, central California, south-centralCalifornia, southern California), andUmpqua River cutthroat trout. The BOshave concluded that implementation ofthe FMP for the Pacific Coast groundfishfishery is not expected to jeopardize thecontinued existence of any endangeredor threatened species under thejurisdiction of NMFS, or result in thedestruction or adverse modification ofcritical habitat. This action is within thescope of these consultations.

An Environmental Impact Statement(EIS) was prepared for the FMP in 1982and Supplemental EISs were preparedfor Amendments 4 (1990) and 6 (1992)in accordance with the NationalEnvironmental Policy Act (NEPA). Thealternatives considered and theenvironmental impacts of the actions inthis notice are not significantly differentthan those considered in either the EISor SEISs for the FMP, and the actionsfall within the scope of these analyses.An environmental assessment (EA)prepared by the Council for the 2000annual specifications and managementmeasures was the basis for thisconclusion.

Dated: December 23, 1999.

Penelope D. Dalton,Assistant Administrator for Fisheries,National Marine Fisheries Service.[FR Doc. 99–33966 Filed 12–27–99; 4:10 pm]



This section of the FEDERAL REGISTERcontains notices to the public of the proposedissuance of rules and regulations. Thepurpose of these notices is to give interestedpersons an opportunity to participate in therule making prior to the adoption of the finalrules.

Proposed Rules Federal Register

250

Vol. 65, No. 2




14 CFR Part 39

[Docket No. 99–NM–346–AD]

RIN 2120–AA64

Airworthiness Directives; BoeingModel 777 Series Airplanes

AGENCY: Federal AviationAdministration, DOT.ACTION: Notice of proposed rulemaking(NPRM).

SUMMARY: This document proposes theadoption of a new airworthinessdirective (AD) that is applicable tocertain Boeing 777 series airplanes. Thisproposal would require a one-timeinspection to detect cracking of thefastener holes common to the upperwing skins and trailing edge panels ofboth wings, and corrective actions, ifnecessary. This proposal also wouldrequire coldwork of the fastener holesand installation of new or serviceablefasteners. This proposal is prompted bya report indicating that fatigue crackshave been found in the upper wing skinof both wings. The actions specified bythe proposed AD are intended toprevent fatigue cracking of the upperwing skin, which could result inreduced structural integrity of the wing.DATES: Comments must be received byFebruary 18, 2000.ADDRESSES: Submit comments intriplicate to the Federal AviationAdministration (FAA), TransportAirplane Directorate, ANM–114,Attention: Rules Docket No. 99–NM–346–AD, 1601 Lind Avenue, SW.,Renton, Washington 98055–4056.Comments may be inspected at thislocation between 9:00 a.m. and 3:00p.m., Monday through Friday, exceptFederal holidays.

The service information referenced inthe proposed rule may be obtained fromBoeing Commercial Airplane Group,P.O. Box 3707, Seattle, Washington98124–2207. This information may be

examined at the FAA, TransportAirplane Directorate, 1601 LindAvenue, SW., Renton, Washington.FOR FURTHER INFORMATION CONTACT: StanWood, Aerospace Engineer, AirframeBranch, ANM–120S, FAA, TransportAirplane Directorate, Seattle AircraftCertification Office, 1601 Lind Avenue,SW., Renton, Washington 98055–4056;telephone (425) 227–2772; fax (425)227–1181.SUPPLEMENTARY INFORMATION:

Comments Invited

Interested persons are invited toparticipate in the making of theproposed rule by submitting suchwritten data, views, or arguments asthey may desire. Communications shallidentify the Rules Docket number andbe submitted in triplicate to the addressspecified above. All communicationsreceived on or before the closing datefor comments, specified above, will beconsidered before taking action on theproposed rule. The proposals containedin this notice may be changed in lightof the comments received.

Comments are specifically invited onthe overall regulatory, economic,environmental, and energy aspects ofthe proposed rule. All commentssubmitted will be available, both beforeand after the closing date for comments,in the Rules Docket for examination byinterested persons. A reportsummarizing each FAA-public contactconcerned with the substance of thisproposal will be filed in the RulesDocket.

Commenters wishing the FAA toacknowledge receipt of their commentssubmitted in response to this noticemust submit a self-addressed, stampedpostcard on which the followingstatement is made: ‘‘Comments toDocket Number 99–NM–346–AD.’’ Thepostcard will be date stamped andreturned to the commenter.

Availability of NPRMs

Any person may obtain a copy of thisNPRM by submitting a request to theFAA, Transport Airplane Directorate,ANM–114, Attention: Rules Docket No.99–NM–346–AD, 1601 Lind Avenue,SW., Renton, Washington 98055–4056.

Discussion

The FAA has received a reportindicating that fatigue cracks have beenfound in the upper wing skin of both

wings on a Boeing Model 777 testairplane. During fatigue testing of theairplane, two cracks were detected at80,813 flight cycles. Both cracks weredetected at the tab out for the outboardsupport fitting of the main landing gearbeam. The crack found on the left upperwing skin was 1.5 inches in length, andthe crack found in the right upper wingskin was 5.1 inches in length.Examination of the cracked parts wasinconclusive as to when the cracks hadinitiated. Such fatigue cracking, if notdetected and corrected, could result inreduced structural integrity of the wing.


The FAA has reviewed and approvedBoeing Alert Service Bulletin 777–57A0022, dated August 26, 1999, whichdescribes procedures for a one-timeeddy current inspection to detectcracking of the fastener holes commonto the upper wing skins and trailingedge panels of both wings, andcorrective actions, if necessary. Thecorrective actions involve rework andre-inspection of the fastener hole.Additionally, for any fastener hole thatmay require rework and re-inspections,the corrective actions also involvemeasurement of the fastener holediameter and edge margin to ensurespecific limits are maintained. The alertservice bulletin also describesprocedures for coldwork of the fastenerholes and installation of new orserviceable fasteners. Accomplishmentof the actions specified in the alertservice bulletin is intended toadequately address the identified unsafecondition.

Explanation of Requirements ofProposed Rule

Since an unsafe condition has beenidentified that is likely to exist ordevelop on other products of this sametype design, the proposed AD wouldrequire accomplishment of the actionsspecified in the alert service bulletindescribed previously, except asdiscussed below.

Differences Between Proposed Rule andAlert Service Bulletin

Operators should note that, althoughthe alert service bulletin specifies thatthe manufacturer may be contacted fordisposition of certain conditions, thisproposal would require the repair ofthose conditions to be accomplished in

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251Federal Register / Vol. 65, No. 2 / Tuesday, January 4, 2000 / Proposed Rules

accordance with a method approved bythe FAA.

Cost Impact

There are approximately 82 airplanesof the affected design in the worldwidefleet. The FAA estimates that 33airplanes of U.S. registry would beaffected by this proposed AD, that itwould take approximately 13 workhours per airplane to accomplish theproposed actions, and that the averagelabor rate is $60 per work hour.Required parts would costapproximately $216 per airplane. Basedon these figures, the cost impact of theproposed AD on U.S. operators isestimated to be $32,868, or $996 perairplane.

The cost impact figure discussedabove is based on assumptions that nooperator has yet accomplished any ofthe proposed requirements of this ADaction, and that no operator wouldaccomplish those actions in the future ifthis AD were not adopted.

Regulatory Impact

The regulations proposed hereinwould not have substantial direct effectson the States, on the relationshipbetween the national government andthe States, or on the distribution ofpower and responsibilities among thevarious levels of government. Therefore,in accordance with Executive Order12612, it is determined that thisproposal would not have sufficientfederalism implications to warrant thepreparation of a Federalism Assessment.

For the reasons discussed above, Icertify that this proposed regulation (1)is not a ‘‘significant regulatory action’’under Executive Order 12866; (2) is nota ‘‘significant rule’’ under the DOTRegulatory Policies and Procedures (44FR 11034, February 26, 1979); and (3) ifpromulgated, will not have a significanteconomic impact, positive or negative,on a substantial number of small entitiesunder the criteria of the RegulatoryFlexibility Act. A copy of the draftregulatory evaluation prepared for thisaction is contained in the Rules Docket.A copy of it may be obtained bycontacting the Rules Docket at thelocation provided under the captionADDRESSES.


Air transportation, Aircraft, Aviationsafety, Safety.

The Proposed Amendment

Accordingly, pursuant to theauthority delegated to me by theAdministrator, the Federal AviationAdministration proposes to amend part

39 of the Federal Aviation Regulations(14 CFR part 39) as follows:



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


adding the following new airworthinessdirective:Boeing: Docket 99–NM–346–AD.

Applicability: Model 777 series airplaneshaving line numbers 1 through 119 inclusive,except line numbers 94, 102, 104, and 118,certificated in any category.

Note 1: This AD applies to each airplaneidentified in the preceding applicabilityprovision, regardless of whether it has beenmodified, altered, or repaired in the areasubject to the requirements of this AD. Forairplanes that have been modified, altered, orrepaired so that the performance of therequirements of this AD is affected, theowner/operator must request approval for analternative method of compliance inaccordance with paragraph (d) of this AD.The request should include an assessment ofthe effect of the modification, alteration, orrepair on the unsafe condition addressed bythis AD; and, if the unsafe condition has notbeen eliminated, the request should includespecific proposed actions to address it.


To prevent fatigue cracking of the upperwing skin, which could result in reducedstructural integrity of the wing, accomplishthe following:

Eddy Current Inspection of Fastener Holes

(a) Prior to the accumulation of 16,000 totalflight cycles or 40,000 total flight hours,whichever occurs earlier, perform a one-timeeddy current inspection to detect cracking ofthe fastener holes common to the upper wingskins and trailing edge panels of both wings,in accordance with Boeing Alert ServiceBulletin 777–57A0022, dated August 26,1999.

Rework and Re-Inspection of Fastener Hole

(b) If any cracking is detected during theinspection required by paragraph (a) of thisAD, prior to further flight, oversize thefastener hole and perform additional eddycurrent inspections to detect cracking of thefastener holes until all cracking is no longerdetectable by means of eddy currentinspection. Perform the actions in accordancewith Boeing Alert Service Bulletin 777–57A0022, dated August 26, 1999. Prior tofurther flight, oversize the fastener hole anadditional 1⁄32-inch minimum and measurethe starting hole diameter and edge margin ofthe fastener hole, in accordance with the alertservice bulletin.

(1) If the fastener hole diameter or the edgemargin of any fastener hole is not within thelimits specified in the alert service bulletin,prior to further flight, repair in accordance

with a method approved by the Manager,Seattle Aircraft Certification Office (ACO),FAA, Transport Airplane Directorate, or aBoeing Company Designated EngineeringRepresentative who has been authorized bythe FAA to make such findings. For a repairmethod to be approved by the Manager,Seattle ACO, as required by this paragraph,the Manager’s approval letter mustspecifically reference this AD.

(2) If the fastener hole diameter and edgemargin of all the fastener holes are within thelimits specified in the alert service bulletin,prior to further flight, accomplish therequirements of paragraph (c) of this AD.

Coldwork of Fastener Holes

(c) If no cracking is detected during theeddy current inspection required byparagraph (a), or the fastener hole diameterand edge margin of all the fastener holes arewithin the limits required by paragraph (b) ofthis AD, prior to further flight, coldwork thefastener holes and install new or serviceablefasteners, in accordance with Boeing AlertService Bulletin 777–57A0022, dated August26, 1999.


(d) An alternative method of compliance oradjustment of the compliance time thatprovides an acceptable level of safety may beused if approved by the Manager, SeattleACO. Operators shall submit their requeststhrough an appropriate FAA PrincipalMaintenance Inspector, who may addcomments and then send it to the Manager,Seattle ACO.

Note 2: Information concerning theexistence of approved alternative methods ofcompliance with this AD, if any, may beobtained from the Seattle ACO.


(e) Special flight permits may be issued inaccordance with sections 21.197 and 21.199of the Federal Aviation Regulations (14 CFR21.197 and 21.199) to operate the airplane toa location where the requirements of this ADcan be accomplished.




14 CFR Part 39


RIN 2120–AA64

Airworthiness Directives; FokkerModel F27 Mark 050, 200, 500, and 600Series Airplanes

AGENCY: Federal AviationAdministration, DOT.


252 Federal Register / Vol. 65, No. 2 / Tuesday, January 4, 2000 / Proposed Rules

ACTION: Notice of proposed rulemaking(NPRM).

SUMMARY: This document proposes theadoption of a new airworthinessdirective (AD) that is applicable tocertain Fokker Model F27 Mark 050,200, 500, and 600 series airplanes. Thisproposal would require installation ofcertain components, and revisions of theAirplane Flight Manual. This action isnecessary to prevent undetected failuresof the horizontal and vertical stabilizerde-icing system, which could result inreduced controllability of the airplane.This action is intended to address theidentified unsafe condition.DATES: Comments must be received byFebruary 3, 2000.ADDRESSES: Submit comments intriplicate to the Federal AviationAdministration (FAA), TransportAirplane Directorate, ANM–114,Attention: Rules Docket No. 98–NM–186–AD, 1601 Lind Avenue, SW.,Renton, Washington 98055–4056.Comments may be inspected at thislocation between 9:00 a.m. and 3:00p.m., Monday through Friday, exceptFederal holidays.

The service information referenced inthe proposed rule may be obtained fromFokker Services B.V., P.O. Box 231,2150 AE Nieuw-Vennep, theNetherlands. This information may beexamined at the FAA, TransportAirplane Directorate, 1601 LindAvenue, SW., Renton, Washington.FOR FURTHER INFORMATION CONTACT:Norman B. Martenson, Manager,International Branch, ANM–116, FAA,Transport Airplane Directorate, 1601Lind Avenue, SW., Renton, Washington98055–4056; telephone (425) 227–2110;fax (425) 227–1149.SUPPLEMENTARY INFORMATION:

Comments Invited

Interested persons are invited toparticipate in the making of theproposed rule by submitting suchwritten data, views, or arguments asthey may desire. Communications shallidentify the Rules Docket number andbe submitted in triplicate to the addressspecified above. All communicationsreceived on or before the closing datefor comments, specified above, will beconsidered before taking action on theproposed rule.

The proposals contained in this noticemay be changed in light of thecomments received.

Comments are specifically invited onthe overall regulatory, economic,environmental, and energy aspects ofthe proposed rule. All commentssubmitted will be available, both before

and after the closing date for comments,in the Rules Docket for examination byinterested persons. A reportsummarizing each FAA-public contactconcerned with the substance of thisproposal will be filed in the RulesDocket.


Availability of NPRMsAny person may obtain a copy of this

NPRM by submitting a request to theFAA, Transport Airplane Directorate,ANM–114, Attention: Rules Docket No.98–NM–186–AD, 1601 Lind Avenue,SW., Renton, Washington 98055–4056.

DiscussionThe Rijksluchtvaartdienst (RLD),

which is the airworthiness authority forthe Netherlands, notified the FAA thatan unsafe condition may exist on certainFokker Model F27 Mark 050, 200, 500,and 600 series airplanes. The RLDadvises that it has received reports ofmalfunctions of the tail de-icing system,in which one or more sections of the de-icing boots failed to inflate during icingconditions. The de-icing system did notprovide a monitoring capability thatwould advise the flight crew in theevent of a failure of the system. Later,following the installation of amonitoring function in the de-icingsystem on some airplanes, operatorshave reported occasional nuisancewarnings caused by failure of a pressureswitch in the monitoring system. Theseconditions, if not corrected, could resultin undetected failures of the horizontaland vertical stabilizer de-icing system,and consequent reduced controllabilityof the airplane.


Fokker has issued Service BulletinsF27/30–44, dated February 20, 1998 (forModel F27 Mark 200, 500, and 600series airplanes), and SBF50–30–025,Revision 2, dated October 21, 1998 (forModel F27 Mark 050 series airplanes).These service bulletins describeprocedures for installation of adedicated monitoring system for thehorizontal and vertical stabilizer de-icing system. Service Bulletin F27/30–44 references Fokker F27 ManualChange Notification (MCNO) F27–004,dated February 10, 1998, and ServiceBulletin SBF50–30–25, Revision 2,

references Fokker F50 MCNO F50–001,dated October 23, 1997. These MCNO’sdescribe Airplane Flight Manual (AFM)revisions to be accomplished followinginstallation of the monitoring system.The AFM revisions provide instructionsto the flight crew regarding operation ofthe airplane in the event of a failure ofthe de-icing system.

Fokker also has issued ServiceBulletins F27/30–45 (for Model F27Mark 200, 500, and 600 series airplanes)and SBF50–30–026 (for Model F27 Mark050 series airplanes), both dated August11, 1999. These service bulletinsdescribe procedures for installation of amodified pressure switch in themonitoring system for the horizontaland vertical stabilizer de-icing system.

Accomplishment of the actionsspecified in the service bulletins isintended to adequately address theidentified unsafe condition. The RLDclassified these service bulletins asmandatory and issued Dutchairworthiness directives 1998–019/2and 1997–113/3, both dated June 18,1999, in order to assure the continuedairworthiness of these airplanes in theNetherlands.

FAA’s Conclusions

These airplane models aremanufactured in the Netherlands andare type certificated for operation in theUnited States under the provisions ofsection 21.29 of the Federal AviationRegulations (14 CFR 21.29) and theapplicable bilateral airworthinessagreement. Pursuant to this bilateralairworthiness agreement, the RLD haskept the FAA informed of the situationdescribed above. The FAA hasexamined the findings of the RLD,reviewed all available information, anddetermined that AD action is necessaryfor products of this type design that arecertificated for operation in the UnitedStates.


Since an unsafe condition has beenidentified that is likely to exist ordevelop on other airplanes of the sametype design registered in the UnitedStates, the proposed AD would requireaccomplishment of the actions specifiedin the service information describedpreviously. The proposed AD alsowould require, for certain Model F27Mark 050 series airplanes, an AFMrevision for checks of the de-icingsystem prior to flights into known orforecast icing conditions.



Differences Between Proposed Rule andDutch Airworthiness Directives

The proposed AD would differ fromthe parallel Dutch airworthinessdirectives in that it would not require arevision to the Master MinimumEquipment List (MMEL) to allowdispatch with the monitoring system ofthe tail de-icing system deactivated, butwould require installation of themodified pressure switch within 18months after the effective date of theAD. Due to concerns of an insufficientquantity of modified pressure switches,the Dutch airworthiness directivesspecify amendment of the MMEL fordeactivation of the de-icing monitoringsystem if the existing pressure switchesfail, and specify installation of themodified switches ‘‘within 10 days afterthey become available.’’ However, afterfurther discussion with themanufacturer, the FAA has beenadvised that an adequate number ofmodified pressure switches will beavailable to support installation withinan 18-month compliance time. The FAAhas determined that requiring theconcurrent installation of the de-icingmonitoring system and the modifiedpressure switches is appropriate toaddress the identified unsafe condition.

Cost Impact

The FAA estimates that 37 airplanesof U.S. registry would be affected by thisproposed AD.

It would take approximately 1 workhour per airplane to accomplish theproposed AFM revision for operation ofthe airplane in the event of a failure ofthe de-icing system, at an average laborrate of $60 per work hour. Based onthese figures, the cost impact of thisproposed AFM revision on U.S.operators is estimated to be $2,220, or$60 per airplane.

It would take approximately 125 workhours per airplane to accomplish theproposed installations, at an averagelabor rate of $60 per work hour.Required parts would costapproximately $11,000 per airplane.Based on these figures, the cost impactof the proposed installations on U.S.operators is estimated to be $684,500, or$18,500 per airplane.

The cost impact figures discussedabove are based on assumptions that nooperator has yet accomplished any ofthe proposed requirements of this ADaction, and that no operator wouldaccomplish those actions in the future ifthis AD were not adopted.

None of the Model F27 Mark 050series airplanes affected by this actionare on the U.S. Register. Should anaffected airplane be imported and

placed on the U.S. Register in the future,it would take approximately 1 workhour per airplane to accomplish theproposed AFM revision for checks ofthe de-icing system, at an average laborrate of $60 per work hour. Based onthese figures, the cost impact of thisproposed AFM revision on U.S.operators is estimated to be $60 perairplane.

Regulatory Impact

The regulations proposed hereinwould not have a substantial directeffect on the States, on the relationshipbetween the national Government andthe States, or on the distribution ofpower and responsibilities among thevarious levels of government. Therefore,it is determined that this proposalwould not have federalism implicationsunder Executive Order 13132.

For the reasons discussed above, Icertify that this proposed regulation (1)is not a ‘‘significant regulatory action’’under Executive Order 12866; (2) is nota ‘‘significant rule’’ under the DOTRegulatory Policies and Procedures (44FR 11034, February 26, 1979); and (3) ifpromulgated, will not have a significanteconomic impact, positive or negative,on a substantial number of small entitiesunder the criteria of the RegulatoryFlexibility Act. A copy of the draftregulatory evaluation prepared for thisaction is contained in the Rules Docket.A copy of it may be obtained bycontacting the Rules Docket at thelocation provided under the captionADDRESSES.


Air transportation, Aircraft, Aviationsafety, Safety.

The Proposed Amendment

Accordingly, pursuant to theauthority delegated to me by theAdministrator, the Federal AviationAdministration proposes to amend part39 of the Federal Aviation Regulations(14 CFR part 39) as follows:



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

§ 39.13 [Amended]

2. Section 39.13 is amended byadding the following new airworthinessdirective:Fokker Services B.V: Docket 98–NM–186–

AD.Applicability: Model F27 Mark 050 series

airplanes as listed in Fokker Service BulletinSBF50–30–025, Revision 2, dated October 21,

1998; and Model F27 Mark 200, 500, and 600series airplanes, serial numbers 10603through 10692 inclusive; certificated in anycategory.

Note 1: This AD applies to each airplaneidentified in the preceding applicabilityprovision, regardless of whether it has beenmodified, altered, or repaired in the areasubject to the requirements of this AD. Forairplanes that have been modified, altered, orrepaired so that the performance of therequirements of this AD is affected, theowner/operator must request approval for analternative method of compliance inaccordance with paragraph (d) of this AD.The request should include an assessment ofthe effect of the modification, alteration, orrepair on the unsafe condition addressed bythis AD; and, if the unsafe condition has notbeen eliminated, the request should includespecific proposed actions to address it.


To prevent undetected failures of thehorizontal and vertical stabilizer de-icingsystem, which could result in reducedcontrollability of the airplane, accomplishthe following:

AFM Revision (Mark 050 Airplanes)

(a) For Model F27 Mark 050 seriesairplanes on which a de-icing distributorvalve heating system has not been installed(Reference Fokker Service Bulletin SBF50–30–024): Within 10 days after the effectivedate of this AD, revise the Limitations andNormal Procedures Sections of the FAA-approved Airplane Flight Manual (AFM) toinclude the following information. This maybe accomplished by inserting a copy of thisAD into the AFM.

‘‘PRE-FLIGHT INSPECTION PROCEDUREFOR FLIGHTS INTO KNOWN ORFORECAST ICING CONDITIONS

• Cycle the airframe de-icing system twicethrough the Manual 1 and 2 position duringground operation.

• Visually check the tailplane leading edgede-icing boots for inflation.’’

Installations and AFM Revision (Mark 050Airplanes)

(b) For Model F27 Mark 050 seriesairplanes: Within 18 months after theeffective date of this AD, accomplish therequirements of paragraphs (b)(1) and (b)(2)of this AD.

(1) Install a monitoring system for thehorizontal and vertical stabilizer de-icingsystem in accordance with Fokker ServiceBulletin SBF50–30–025, Revision 2, datedOctober 21, 1998. Prior to further flightthereafter, revise the FAA-approved AFM toincorporate the flight manual changesdescribed in Fokker Manual ChangeNotification (MCNO) F50–001, dated October23, 1997. Following accomplishment of theinstallation, the AFM revision required byparagraph (a) of this AD may be removedfrom the AFM.

(2) Install a modified pressure switch inthe monitoring system in accordance withFokker Service Bulletin SBF50–30–026,dated August 11, 1999.



Installations and AFM Revision (Mark 200,500, 600 Airplanes)

(c) For Model F27 Mark 200, 500, and 600series airplanes: Within 18 months after theeffective date of this AD, accomplish therequirements of paragraphs (c)(1) and (c)(2)of this AD.

(1) Install a monitoring system for thehorizontal and vertical stabilizer de-icingsystem in accordance with Fokker ServiceBulletin F27/30–44, dated February 20, 1998.Prior to further flight thereafter, revise theFAA-approved AFM to incorporate the flightmanual changes described in Fokker MCNOF27–004, dated February 10, 1998.

(2) Install a modified pressure switch inthe monitoring system in accordance withFokker Service Bulletin F27/30–45, datedAugust 11, 1999.

Alternative Methods of Compliance(d) An alternative method of compliance or





Note 3: The subject of this AD is addressedin Dutch airworthiness directives 1998–019/2, and 1997–113/3, both dated June 18, 1999.




14 CFR Part 39


RIN 2120–AA64

Airworthiness Directives; Airbus ModelA300, A310, and A300–600 SeriesAirplanes

AGENCY: Federal AviationAdministration, DOT.ACTION: Notice of proposed rulemaking(NPRM).

SUMMARY: This document proposes theadoption of a new airworthinessdirective (AD) that is applicable tocertain Airbus Model A300, A310, andA300–600 series airplanes. Thisproposal would require repetitive eddycurrent inspections to detect crackingon the door edge frames of the fuselagebulk cargo compartment, and repair, ifnecessary. This proposal is prompted byissuance of mandatory continuingairworthiness information by a foreigncivil airworthiness authority. Theactions specified by the proposed ADare intended to detect and correct cracksin the door edge frames of the fuselagebulk cargo compartment, which couldresult in reduced structural integrity ofthe airframe.DATES: Comments must be received byFebruary 3, 2000.ADDRESSES: Submit comments intriplicate to the Federal AviationAdministration (FAA), TransportAirplane Directorate, ANM–114,Attention: Rules Docket No. 98–NM–211–AD, 1601 Lind Avenue, SW.,Renton, Washington 98055–4056.Comments may be inspected at thislocation between 9 a.m. and 3 p.m.,Monday through Friday, except Federalholidays.

The service information referenced inthe proposed rule may be obtained fromAirbus Industrie, 1 Rond Point MauriceBellonte, 31707 Blagnac Cedex, France.This information may be examined atthe FAA, Transport AirplaneDirectorate, 1601 Lind Avenue, SW.,Renton, Washington.FOR FURTHER INFORMATION CONTACT:Norman B. Martenson, Manager,International Branch, ANM–116, FAA,Transport Airplane Directorate, 1601Lind Avenue, SW., Renton, Washington98055–4056; telephone (425) 227–2110;fax (425) 227–1149.SUPPLEMENTARY INFORMATION:

Comments InvitedInterested persons are invited to

participate in the making of theproposed rule by submitting suchwritten data, views, or arguments asthey may desire. Communications shallidentify the Rules Docket number andbe submitted in triplicate to the addressspecified above. All communicationsreceived on or before the closing datefor comments, specified above, will beconsidered before taking action on theproposed rule. The proposals containedin this notice may be changed in lightof the comments received.

Comments are specifically invited onthe overall regulatory, economic,environmental, and energy aspects ofthe proposed rule. All comments

submitted will be available, both beforeand after the closing date for comments,in the Rules Docket for examination byinterested persons. A reportsummarizing each FAA-public contactconcerned with the substance of thisproposal will be filed in the RulesDocket.


Availability of NPRMsAny person may obtain a copy of this

NPRM by submitting a request to theFAA, Transport Airplane Directorate,ANM–114, Attention: Rules Docket No.98–NM–211–AD, 1601 Lind Avenue,SW., Renton, Washington 98055–4056.

DiscussionThe Direction Generale de l’Aviation

Civile (DGAC), which is theairworthiness authority for France,notified the FAA that an unsafecondition may exist on certain AirbusModel A300, A310, and A300–600series airplanes. The DGAC advises that,during routine maintenance on a ModelA300 series airplane, stress corrosioninduced cracks were found in door edgeframes FR67 and FR69 of the bulk cargocompartment between stringers 33 and48 (right-hand side). This condition, ifnot corrected, could result in reducedstructural integrity of the airframe.

The subject door edge frames onAirbus Model A310 and A300–600series airplanes are identical to those onthe affected Airbus Model A300 seriesairplanes. Therefore, all of theseairplanes may be subject to the sameunsafe condition.


Airbus has issued Service BulletinsA300–53–0339, Revision 1, dated July28, 1998, including Appendix 01 (forModel A300 series airplanes); A310–53–2106 (for Model A310 series airplanes),dated October 2, 1997, includingAppendix 01; and A300–53–6114, datedOctober 2, 1997, including Appendix 01(for Model A300–600 series airplanes).These service bulletins describeprocedures for a one-time eddy currentinspection to detect cracks in the dooredge frames of the bulk cargocompartment, and repair of the dooredge frame, if necessary. The servicebulletins also describe procedures forreporting the results of the inspection to

VerDate 15-DEC-99 16:42 Jan 03, 2000 Jkt 190000 PO 00000 Frm 00005 Fmt 4702 Sfmt 4702 E:\FR\FM\04JAP1.XXX pfrm01 PsN: 04JAP1


Airbus. The DGAC classified theseservice bulletins as mandatory andissued French airworthiness directive98–123–245(B), dated March 11, 1998,in order to assure the continuedairworthiness of these airplanes inFrance.

FAA’s ConclusionsThese airplane models are

manufactured in France and are typecertificated for operation in the UnitedStates under the provisions of section21.29 of the Federal AviationRegulations (14 CFR 21.29) and theapplicable bilateral airworthinessagreement. Pursuant to this bilateralairworthiness agreement, the DGAC haskept the FAA informed of the situationdescribed above. The FAA hasexamined the findings of the DGAC,reviewed all available information, anddetermined that AD action is necessaryfor products of this type design that arecertificated for operation in the UnitedStates.


Since an unsafe condition has beenidentified that is likely to exist ordevelop on other airplanes of the sametype design registered in the UnitedStates, the proposed AD would requireaccomplishment of the actions specifiedin the service bulletins describedpreviously, except as discussed below.This proposed AD also would providefor optional terminating action for therepetitive inspections.

The FAA has determined that therepetitive inspections proposed by thisAD can be allowed to continue in lieuof accomplishment of a terminatingaction. In making this determination,the FAA considers that, in the case ofthis proposed AD, long-term continuedoperational safety will be adequatelyassured by accomplishing the repetitiveinspections to detect cracking before itrepresents a hazard to the airplane.

Differences Between Proposed Rule andForeign Airworthiness Directive

The proposed AD would differ fromthe parallel French airworthinessdirective in that it would require theeddy current inspection to be repeatedat intervals not to exceed 5 years. TheFAA has determined that, because of theunpredictable nature of stress corrosioninduced crack propagation, repetitiveinspections are necessary. In addition,the DGAC has informed the FAA that itmay consider revising its airworthinessdirective to also require repetitive eddycurrent inspections.

Operators also should note that,unlike the parallel French airworthiness

directive, this proposed AD would notpermit further flight if cracks aredetected in the door edge frames. TheFAA has determined that, because of thesafety implications and consequencesassociated with such cracking, anysubject door edge frame that is found tobe cracked must be repaired prior tofurther flight.

Interim ActionThis is considered to be interim

action. The inspection reports that arerequired by this proposed AD willenable the manufacturer to obtain betterinsight into the nature, cause, andextent of the cracking, and eventually todevelop final action to address theunsafe condition. Once final action hasbeen identified, the FAA may considerfurther rulemaking.


of U.S. registry would be affected by thisproposed AD, that it would takeapproximately 2 work hours perairplane to accomplish the proposedinspection, and that the average laborrate is $60 per work hour. Based onthese figures, the cost impact of theproposed AD on U.S. operators isestimated to be $15,120, or $120 perairplane, per inspection cycle.

The cost impact figure discussedabove is based on assumptions that nooperator has yet accomplished any ofthe proposed requirements of this ADaction, and that no operator wouldaccomplish those actions in the future ifthis AD were not adopted.

Regulatory ImpactThe regulations proposed herein

would not have substantial direct effectson the States, on the relationshipbetween the national government andthe States, or on the distribution ofpower and responsibilities among thevarious levels of government. Therefore,in accordance with Executive Order12612, it is determined that thisproposal would not have sufficientfederalism implications to warrant thepreparation of a Federalism Assessment.

For the reasons discussed above, Icertify that this proposed regulation (1)is not a ‘‘significant regulatory action’’under Executive Order 12866; (2) is nota ‘‘significant rule’’ under the DOTRegulatory Policies and Procedures (44FR 11034, February 26, 1979); and (3) ifpromulgated, will not have a significanteconomic impact, positive or negative,on a substantial number of small entitiesunder the criteria of the RegulatoryFlexibility Act. A copy of the draftregulatory evaluation prepared for thisaction is contained in the Rules Docket.

A copy of it may be obtained bycontacting the Rules Docket at thelocation provided under the captionADDRESSES.

List of Subjects in 14 CFR Part 39Air transportation, Aircraft, Aviation

safety, Safety.

The Proposed AmendmentAccordingly, pursuant to the

authority delegated to me by theAdministrator, the Federal AviationAdministration proposes to amend part39 of the Federal Aviation Regulations(14 CFR part 39) as follows:



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


adding the following new airworthinessdirective:Airbus Industrie: Docket 98–NM–211–AD.

Applicability: Model A300 series airplaneson which Airbus Modification 2140(reference Airbus Service Bulletin A300–53–109) has been accomplished; and ModelA310 and A300–600 series airplanes, exceptthose airplanes on which AirbusModification 5438 was accomplished duringproduction; certificated in any category.

Note 1: This AD applies to each airplaneidentified in the preceding applicabilityprovision, regardless of whether it has beenotherwise modified, altered, or repaired inthe area subject to the requirements of thisAD. For airplanes that have been modified,altered, or repaired so that the performanceof the requirements of this AD is affected, theowner/operator must request approval for analternative method of compliance inaccordance with paragraph (d) of this AD.The request should include an assessment ofthe effect of the modification, alteration, orrepair on the unsafe condition addressed bythis AD; and, if the unsafe condition has notbeen eliminated, the request should includespecific proposed actions to address it.


To detect and correct cracks in the dooredge frames of the bulk cargo compartment,which could result in reduced structuralintegrity of the airframe, accomplish thefollowing:

Repetitive Inspections

(a) Perform an eddy current inspection todetect cracking in the inner and outer flangeson the door edge frames of the fuselage bulkcargo compartment, in accordance withAirbus Service Bulletins A300–53–0339,Revision 1, dated July 28, 1998, includingAppendix 01 (for Model A300 seriesairplanes); A310–53–2106, dated October 2,1997, including Appendix 01 (for ModelA310 series airplanes); or A300–53–6114,



dated October 2, 1997, including Appendix01 (for Model A300–600 series airplanes); asapplicable; at the applicable time specified inparagraph (a)(1) or (a)(2) of this AD.Thereafter, repeat the inspection at intervalsnot to exceed 5 years.

(1) For airplanes with less than 15 yearssince date of manufacture as of the effectivedate of this AD: Inspect within 10 years sincedate of manufacture, or within 12 monthsafter the effective date of this AD, whicheveroccurs later.

(2) For airplanes with 15 or more yearssince date of manufacture as of the effectivedate of this AD: Inspect within 6 months afterthe effective date of this AD.

Note 2: For Model A300 series airplanes,accomplishment of an eddy currentinspection prior to the effective date of thisAD in accordance with Airbus ServiceBulletin A300–53–0339, dated October 2,1997, is considered acceptable forcompliance with the initial eddy currentinspection required by paragraph (a) of thisAD.

Corrective Actions

(b) If any crack is detected during anyinspection required by paragraph (a) of thisAD, prior to further flight, repair the dooredge frame in accordance with AirbusService Bulletins A300–53–0339, Revision 1,dated July 28, 1998 (for Model A300 seriesairplanes); A310–53–2106 (for Model A310series airplanes), dated October 2, 1997; orA300–53–6114 (for Model A300–600 seriesairplanes), dated October 2, 1997; asapplicable. Complete replacement of a dooredge frame with a new door frame inaccordance with the service bulletinconstitutes terminating action for therepetitive inspections required by this AD forthat door frame only.

Report Requirements

(c) Submit a report of the inspection results(both positive and negative findings) toAirbus Industrie, Customer ServicesDirectorate, 1 Rond Point Maurice Bellonte,31707 Blagnac Cedex, France, at theapplicable time specified in paragraph (e)(1)or (e)(2) of this AD. Information collectionrequirements contained in this regulationhave been approved by the Office ofManagement and Budget (OMB) under theprovisions of the Paperwork Reduction Act of1980 (44 U.S.C. 3501 et seq.) and have beenassigned OMB Control Number 2120–0056.

(1) For airplanes on which any inspectionis accomplished after the effective date ofthis AD: Submit the report within 30 daysafter performing any inspection required byparagraph (a) or (b) of this AD.

(2) For airplanes on which the inspectionhas been accomplished prior to the effectivedate of this AD: Submit the report within 10days after the effective date of this AD.


(d) An alternative method of compliance oradjustment of the compliance time thatprovides an acceptable level of safety may beused if approved by the Manager,International Branch, ANM–116, FAA,Transport Airplane Directorate. Operatorsshall submit their requests through an

appropriate FAA Principal MaintenanceInspector, who may add comments and thensend it to the Manager, International Branch,ANM–116.




Note 4: The subject of this AD is addressedin French airworthiness directive 98–123–245(B), dated March 11, 1998.


DEPARTMENT OF HEALTH ANDHUMAN SERVICES

Food and Drug Administration

21 CFR Part 216

[Docket No. 99N–4490]

Additions to the List of Drug ProductsThat Have Been Withdrawn orRemoved From the Market for Reasonsof Safety or Effectiveness

AGENCY: Food and Drug Administration,HHS.ACTION: Proposed rule.

SUMMARY: The Food and DrugAdministration (FDA) is proposing toamend its regulations to add two drugproducts to the list of drug products thatmay not be used for pharmacycompounding under the exemptionsprovided by the Federal Food, Drug, andCosmetic Act (the act) because theyhave had their approval withdrawn orwere removed from the market becausethe drug product or its components havebeen found to be unsafe or not effective.DATES: Written comments must bereceived on or before March 20, 2000.ADDRESSES: Submit written commentsto the Dockets Management Branch(HFA–305), Food and DrugAdministration, 5630 Fishers Lane, rm.1061, Rockville, MD 20852.FOR FURTHER INFORMATION CONTACT:Wayne H. Mitchell, Center for DrugEvaluation and Research (HFD–7), Foodand Drug Administration, 5600 FishersLane, Rockville, MD 20857, 301–594–2041.

SUPPLEMENTARY INFORMATION:

I. BackgroundPresident Clinton signed the Food and

Drug Administration Modernization Act(Public Law 105–115) into law onNovember 21, 1997. One of the issuesaddressed in the legislation is theapplicability of the act to the practice ofpharmacy compounding. Compoundinginvolves a process whereby apharmacist or physician combines,mixes, or alters ingredients to create acustomized medication for anindividual patient. Section 127 of theModernization Act, which adds section503A to the act (21 U.S.C. 353a),describes the circumstances underwhich compounded drugs qualify forexemptions from certain adulteration,misbranding, and new drug provisionsof the act (i.e., sections 501(a)(2)(B),502(f)(1), and 505 of the act (21 U.S.C.351(a)(2)(B), 352(f)(1), and 355)).

Section 503A of the act containsseveral conditions that must be satisfiedfor pharmacy compounding to qualifyfor the exemptions. One of theconditions is that the licensedpharmacist or licensed physician doesnot ‘‘compound a drug product thatappears on a list published by theSecretary in the Federal Register of drugproducts that have been withdrawn orremoved from the market because suchdrug products or components of suchdrug products have been found to beunsafe or not effective.’’

II. Rulemaking to Establish the ListIn the Federal Register of October 8,

1998 (63 FR 54082), we proposed theoriginal list of drug products that havehad their approval withdrawn or wereremoved from the market because thedrug product or its components havebeen found to be unsafe or not effective.We published the original list as a finalrule in the Federal Register of March 8,1999 (64 FR 10944). You may wish toread these documents for additionalinformation about the list. The twoFederal Register documents may befound on the Center for Drug Evaluationand Research’s website at http://www.fda.gov/cder/pharmcomp/default.htm or the Government PrintingOffice’s website at http://www.access.gpo.gov/suldocs/aces/aces140.html.

The list was codified as § 216.24 ofTitle 21 in the Code of FederalRegulations (CFR) (21 CFR 216.24). Thisis the first time we have proposed toamend the list.

III. Description of this Proposed RuleWe are proposing that the drug

products described below be added to



the list of drug products that have hadtheir approval withdrawn or wereremoved from the market because thedrug product or its components havebeen found to be unsafe or not effective.Compounding a drug product thatappears on the list is not covered by theexemption provided in section 503A(a)of the act, and it may be subject toenforcement action under sections501(a)(2)(B), 502(f)(1), and 505 (amongother applicable provisions) of the act.

Aminopyrine: All drug productscontaining aminopyrine. Drug productscontaining aminopyrine were used as ananalgesic and an antipyretic.Aminopyrine caused agranulocytosis, acondition characterized by a decrease inthe number of certain white blood cellsand lesions on the mucous membraneand skin. Some of the cases ofagranulocytosis were fatal. In 1964, wedeclared drug products containingaminopyrine to be new drugs. Weinvited new drug applications (NDA’s)for these drug products, but only for useas an antipyretic in serious situationswhere other safer drugs could not beused (see 21 CFR 201.311 (42 FR 53954,October 4, 1977)). We received noNDA’s for drug products containingaminopyrine, and those unapproveddrug products were removed from themarket by their manufacturers (see 42FR 53954).

Astemizole: All drug productscontaining astemizole. Astemizoletablets were marketed under the tradename Hismanal and were indicated forthe relief of symptoms associated withseasonal allergic rhinitis and chronicidiopathic urticaria. We approved theNDA for astemizole tablets in December1988. Within a few years of theapproval, it was learned that low-leveloverdosages of astemizole wereresulting in life-threatening heartarrhythmias. Patients with liverdysfunction or who were taking otherdrugs that interfered with themetabolization of astemizole were alsofound to be at risk of serious cardiacadverse events while taking astemizole.The manufacturer of astemizole tablets,the only astemizole drug product,removed the product from the market onJune 18, 1999. We published a notice inthe Federal Register of August 23, 1999(64 FR 45973), announcing ourdetermination that astemizole tabletswere withdrawn from the market forsafety reasons.

IV. Environmental ImpactThe agency has determined under 21

CFR 25.30(h) that this action is of a typethat does not individually orcumulatively have a significant effect onthe human environment. Therefore,

neither an environmental assessmentnor an environmental impact statementis required.

V. Analysis of ImpactsWe have examined the impacts of the

proposed rule under Executive Order12866, the Regulatory Flexibility Act (5U.S.C 601–612), and the UnfundedMandates Reform Act of 1995 (PublicLaw 104–4). Executive Order 12866directs agencies to assess all costs andbenefits of available regulatoryalternatives and, when regulation isnecessary, to select regulatoryapproaches that maximize net benefits(including potential economic,environmental, public health and safety,and other advantages; distributiveimpacts; and equity). Executive Order12866 classifies a rule as significant ifit meets any one of a number ofspecified conditions, including havingan annual effect on the economy of $100million or adversely affecting in amaterial way a sector of the economy,competition, or jobs, or if it raises novellegal or policy issues. As discussedbelow, the agency believes that thisproposed rule is consistent with theregulatory philosophy and principlesidentified in the Executive Order. Inaddition, the proposed rule is not asignificant regulatory action as definedby the Executive Order and so is notsubject to review under the ExecutiveOrder.

The agency has not estimated anycompliance costs or loss of sales due tothis proposed rule because it prohibitspharmacy compounding of only thosedrug products that have already beenwithdrawn or removed from the market.Although the agency is not aware of anyroutine use of these drug products inpharmacy compounding, the agencyinvites the submission of comments onthis issue and solicits currentcompounding usage data for these drugproducts.

Unless an agency certifies that a rulewill not have a significant economicimpact on a substantial number of smallentities, the Regulatory Flexibility Actrequires agencies to analyze regulatoryoptions to minimize any significanteconomic impact of a regulation onsmall entities. The agency is taking thisaction to comply with section 503A ofthe act. This provision specificallydirects us to develop a list of drugproducts that have been withdrawn orremoved from the market because suchproducts or components have beenfound to be unsafe or not effective. Anydrug product on this list will not qualifyfor the pharmacy compoundingexemptions under section 503A of theact.

The drug products that are proposedto be added to the this list weremanufactured by several differentpharmaceutical firms, some of whichmay have qualified under the SmallBusiness Administration (SBA)regulations (those with less than 750employees) as small businesses.However, since the list only includesdrug products that have already beenwithdrawn or removed from the marketfor safety or efficacy concerns, thisproposal will not negatively impactthese small businesses. Moreover, nocompliance costs are estimated for anyof these small pharmaceutical firmsbecause they are not the subject of thisrule and are not expected to realize anyfurther loss of sales due to this proposal.Further, the SBA guidelines limit thedefinition of small drug stores orpharmacies to those that have less than$5.0 million in sales. Again, thepharmacies that qualify as smallbusinesses are not expected to incur anycompliance costs or loss of sales due tothis regulation because the productshave already been withdrawn orremoved from the market, and theagency believes that these drugs wouldbe compounded only very rarely, if ever.Therefore, we certify that this rule willnot have a significant economic impacton a substantial number of smallentities.

Section 202 of the UnfundedMandates Reform Act requires thatagencies prepare an assessment ofanticipated costs and benefits beforeproposing any expenditure by State,local, and tribal governments, in theaggregate, or by the private sector of$100 million (adjusted annually forinflation) in any one year. Thepublication of the list of productswithdrawn or removed from the marketbecause they were found to be unsafe orineffective will not result inexpenditures of funds by State, local,and tribal governments or the privatesector in excess of $100 millionannually. Because the agency does notestimate any annual expenditures due tothe proposed rule, we are not requiredto perform a cost/benefit analysisaccording to the Unfunded MandatesReform Act.

VI. Paperwork Reduction Act of 1995We tentatively conclude that this

proposed rule contains no collections ofinformation. Therefore, clearance by theOffice of Management and Budget underthe Paperwork Reduction Act of 1995 isnot required.

VII. Request for CommentsInterested persons may, on or before

March 20, 2000, submit to the Dockets



Management Branch (address above)written comments regarding thisproposal. Two copies of any commentsare to be submitted, except thatindividuals may submit one copy.Comments are to be identified with thedocket number found in brackets in theheading of this document. Receivedcomments may be seen in the officeabove between 9 a.m. and 4 p.m.,Monday through Friday.


Drugs, Pharmacy compounding,Prescription drugs.

Therefore, under the Federal Food,Drug, and Cosmetic Act and underauthority delegated to the Commissionerof Food and Drugs, it is proposed that21 CFR part 216 be amended as follows:

PART 216—PHARMACYCOMPOUNDING

1. The authority citation for 21 CFRpart 216 continues to read as follows:

Authority: 21 U.S.C. 351, 352, 353a, 355,and 371.

2. Amend § 216.24 by addingalphabetically to the list of drugproducts ‘‘Aminopyrine’’ and‘‘Astemizole’’ to read as follows:

§ 216.24 Drug products withdrawn orremoved from the market for reasons ofsafety or effectiveness.

* * * * *Aminopyrine: All drug products

containing aminopyrine.Astemizole: All drug products

containing astemizole.* * * * *

Dated: December 10, 1999.Margaret M. Dotzel,Acting Associate Commissioner for Policy.[FR Doc. 00–76 Filed 1–3–00; 8:45 am]BILLING CODE 4160–01–F



26 CFR Part 1

[REG–105606–99]

RIN 1545–AX05

Credit for Increasing ResearchActivities

AGENCY: Internal Revenue Service (IRS),Treasury.ACTION: Notice of proposed rulemakingand notice of public hearing.

SUMMARY: This document containsproposed regulations relating to thecomputation of the credit for increasing

research activities (the research credit)for members of a controlled group andthe allocation of the credit under section41(f) of the Internal Revenue Code.These proposed regulations areintended to provide guidance on theproper method for computing theresearch credit for members of acontrolled group and the proper methodfor allocating the group credit tomembers of the group. These proposedregulations reflect changes to section 41made by the Revenue Reconciliation Actof 1989 (the 1989 Act). This documentalso provides notice of a public hearingon these regulations.DATES: Written or electronic commentsmust be received no later than April 5,2000. Outlines of topics to be discussedat the public hearing scheduled forApril 26, 2000 at 10 a.m. must bereceived by April 5, 2000.ADDRESSES: Send submissions to:CC:DOM:CORP:R (REG–105606–99),room 5226, Internal Revenue Service,POB 7604, Ben Franklin Station,Washington, DC 20044. Submissionsmay be hand delivered Monday throughFriday between the hours of 8 a.m. and5 p.m. to: CC:DOM:CORP:R (REG–105606–99), Courier’s Desk, InternalRevenue Service, 1111 ConstitutionAvenue NW., Washington, DC.Alternatively, taxpayers may submitcomments electronically via the Internetby selecting the ‘‘Tax Regs’’ option ofthe IRS Home Page, or by submittingcomments directly to the IRS Internetsite at: http://www.irs.gov/prod/taxregs/regslist.html. The public hearing will beheld in room 2615, Internal RevenueBuilding, 1111 Constitution Avenue,NW., Washington, DC.FOR FURTHER INFORMATION CONTACT:Concerning the proposed regulations,Lisa J. Shuman at (202) 622–3120 (nota toll-free number); concerningsubmission of comments, the hearing,and/or to be placed on the buildingaccess list to attend the hearing, La NitaVan Dyke at (202) 622–7190 (not a toll-free number).SUPPLEMENTARY INFORMATION:

Paperwork Reduction ActThe collection of information

contained in this notice of proposedrulemaking has been submitted to theOffice of Management and Budget forreview in accordance with thePaperwork Reduction Act of 1995 (44U.S.C. 3507(d)). Comments on thecollection of information should be sentto the Office of Management andBudget, Attn: Desk Officer for theDepartment of the Treasury, Office ofInformation and Regulatory Affairs,Washington, DC 20503, with copies to

the Internal Revenue Service, Attn: IRSReports Clearance Officer, OP:FS:FP,Washington, DC 20224. Comments onthe collection of information should bereceived by March 6, 2000. Commentsare specifically requested concerning:

Whether the proposed collection ofinformation is necessary for the properperformance of the functions of the IRS,including whether the information willhave practical utility;

The accuracy of the estimated burdenassociated with the proposed collectionof information (see below);

How the quality, utility, and clarity ofthe information to be collected may beenhanced;

How the burden of complying withthe proposed collection of informationmay be minimized, including throughthe application of automated collectiontechniques or other forms of informationtechnology; and

Estimates of capital or start-up costsand costs of operation, maintenance,and purchase of services to provideinformation.

The collection of information in thisproposed regulation is contained in thepreamble under the heading ‘‘ProposedEffective Date.’’ The information isrequired by the IRS to ensure thatmembers of a controlled group filingclaims for refund based on a change inmethod of allocating the research creditto members of the group do not togetherclaim in excess of 100% of the creditwith respect to prior taxable years.

Estimated total annual reportingburden: 200 hours.

Estimated average annual burdenhours per respondent: 20 hours.

Estimated number of respondents: 10.Estimated frequency of responses: On

occasion.An agency may not conduct or

sponsor, and a person is not required torespond to, a collection of informationunless it displays a valid controlnumber assigned by the Office ofManagement and Budget.

Books or records relating to acollection of information must beretained as long as their contents maybecome material in the administrationof any internal revenue law. Generally,tax returns and tax return informationare confidential, as required by 26U.S.C. 6103.

Background

The research credit provisionsoriginally appeared in section 44F of theInternal Revenue Code of 1954 (the 1954Code), as added to the 1954 Code bysection 221 of the Economic RecoveryTax Act of 1981. Section 471(c) of theTax Reform Act of 1984 redesignatedsection 44F as section 30. Section 231



of the Tax Reform Act of 1986 (the 1986Act) redesignated section 30 as section41 and substantially modified theresearch credit provisions. The 1989 Actsubstantially revised the computation ofthe research credit.

On May 17, 1989, the IRS publishedin the Federal Register (54 FR 21203)final regulations under section 41. The1989 final regulations generally do notreflect the amendments to section 41made by the 1986 Act, the 1989 Act, andother subsequent legislative revisions tothe research credit.

The amendments proposed by thisdocument contain proposed rulesrelating to the computation of theresearch credit for members of acontrolled group and the allocation ofthe credit under section 41(f). Theseproposed regulations reflect changes tothe research credit rules made by the1989 Act and Small Business JobProtection Act of 1996, whichintroduced the alternative incrementalresearch credit.

Pre-1990 Rules for Computing theResearch Credit for Members of aControlled Group and Allocating theCredit among Members of the Group

Prior to the enactment of the 1989Act, the research credit was computedby multiplying the credit rate by theexcess of the taxpayer’s current yearqualified research expenses over theaverage of the taxpayer’s qualifiedresearch expenses for the precedingthree years.

Before amendment by the 1989 Act,section 41(f)(1) provided rules forcomputing the research credit formembers of a controlled group(generally a group of corporations orunincorporated businesses linked bycommon ownership of more than 50percent). Section 41(f)(1) treated allmembers of a controlled group as asingle taxpayer for purposes ofcomputing the credit and allocated thecredit to the members of the groupbased on the member’s proportionateshare of the increase in qualifiedresearch expenses giving rise to thecredit.

The legislative history to the 1981 Actindicates that the research creditaggregation rules were enacted to ensurethat the research credit would beallowed only for actual increases inresearch expenditures. The aggregationrules were intended to prevent artificialincreases in research expenditures byshifting expenditures among commonlycontrolled or otherwise related persons.H. Rep. No. 97–201, 1981–3 C.B. (Vol.2) 364 and Sen. Rep. 97–144, 1981–3C.B. (Vol. 2) 442.

An example that appears in both§ 1.41–8(a)(4) of the 1989 regulationsand the legislative history to the 1981Act illustrates the computation andallocation of the research credit undersection 41(f)(1) before the 1989 Actamendments to the research creditcomputation. In the example, theallowable group research credit isallocated among the membersexperiencing an increase in qualifiedresearch expenses over their base periodresearch expenses. The memberallocation is based on the ratio that eachmember’s increase in its qualifiedresearch expenses over its base periodresearch expenses bears to the sum ofthe group’s increases in qualifiedresearch expenses.

Post-1989 Rules for Computing theResearch Credit for Members of aControlled Group and Allocating theRegular Research Credit amongMembers of the Group

In the 1989 Act, Congress revised thecomputation of the research credit.Congress retained the incrementalstructure of the credit but altered thecomputation to focus on whether andthe extent to which a taxpayer increasesthe proportion of its qualified researchexpenses relative to its gross receipts.

Under section 41, as amended in1989, the research credit is computed bymultiplying the credit rate by the excessof the taxpayer’s current year qualifiedresearch expenses over a ‘‘baseamount.’’ The base amount is defined insection 41(c) as the greater of: (1) Fiftypercent of the taxpayer’s credit yearqualified research expenses (theminimum base amount); or, (2) thetaxpayer’s ‘‘fixed-base percentage’’times the taxpayer’s average annualgross receipts for the four taxable yearspreceding the taxable year for which thecredit is being determined.

In general, a taxpayer’s fixed-basepercentage is defined in section41(c)(3)(A) as the ratio that thetaxpayer’s aggregate qualified researchexpenses for its taxable years beginningafter December 31, 1983, and beforeJanuary 1, 1989 bear to its aggregategross receipts for the same period.Section 41(c)(3)(B) provides rules forcomputing the fixed-base percentage forstart-up companies. Section 41(c)(3)(C)provides that the maximum fixed-basepercentage is 16%.

Section 41(f)(1), as amended by the1989 Act, continues to provide rules forcomputing the research credit formembers of a controlled group. Asunder prior law, all members of acontrolled group are treated as a singletaxpayer for purposes of computing thecredit. However, the allocation rule was

amended to eliminate any reference toan ‘‘increase’’ in qualified researchexpenses. Under the amended allocationrule, the group credit is allocated amongthe members of the group based on eachmember’s ‘‘proportionate share of thequalified research expenses and basicresearch payments giving rise to thecredit.’’

In explaining the 1989 Act revisionsto the research credit, the House Reportsimply states that the rules relating tothe aggregation of related persons andchanges in ownership are the same asunder present law with the modificationthat when a business changes hands,qualified research expenses and grossreceipts for periods prior to the changeof ownership are treated as transferredwith the trade or business which gaverise to those expenditures and receiptsfor purposes of recomputing ataxpayer’s fixed-base percentage. H.Rep. No. 101–247 at 1202. Thelegislative history to the 1989 Act doesnot refer to the elimination of the word‘‘increase’’ from the allocation rule.

In the light of the statutory changesenacted in 1989, taxpayers havequestioned the proper method forcomputing the research credit formembers of a controlled group and theproper method for allocating the groupcredit to members of the group underthe new rules.

The proposed regulations providethat, for purposes of computing thegroup credit, all of the computationalrules of section 41 are applied on anaggregate basis. This is consistent withthe statutory prescription that thecontrolled group be treated as a singletaxpayer and is necessary to precludetaxpayers from creating artificialincreases in the credit by shiftingqualified research expenses and grossreceipts among commonly controlled orotherwise related persons.

In proposing rules for the allocation ofthe credit, Treasury and the IRSconsidered, but were not persuaded by,certain taxpayers’ argument that theelimination of the word ‘‘increase’’ fromthe allocation rule in the statute requiresthat the credit be allocated on the basisof the gross amount of qualified researchexpenses incurred by the variousmembers of the controlled group.Treasury and the IRS believe thatelimination of the word ‘‘increase’’ wasnecessitated by the 1989 statutoryamendments to the computation of theresearch credit, which afford a credit incertain circumstances even where thetaxpayer (or each member of acontrolled group) is decreasing its grossamount of qualified research expenses(e.g., because the taxpayer’s grossreceipts also are decreasing). However,



there is no indication that theelimination of the word ‘‘increase’’ wasintended to suggest that the credit beallocated without regard to itsincremental nature. To the contrary, thestatutory prescription that the credit beallocated according to each member’sproportionate share of the qualifiedresearch expenses ‘‘giving rise to’’ thecredit supports a rule that allocates thecredit to those members whose share ofcurrent year qualified research expensesexceeds their share of the base amount.Thus, the proposed regulation providesthat the group research credit isallocated to each member based on theratio that the member’s increase in itsqualified research expenses over its baseamount bears to the sum of eachmember’s increase in qualified researchexpenses over its base amount. Themember’s base amount is computed bymultiplying the group fixed-basepercentage by the member’s averageannual gross receipts for the fourpreceding tax years.

In order to prevent manipulation ofthe amount of credit allocated to aconsolidated group of corporations thatis a member of a controlled group withother taxpayers, Treasury and the IRSconsidered a special rule for allocatingthe research credit that would treat allmembers of a consolidated group as asingle taxpayer for purposes ofallocating the research credit amongmembers of the controlled group.Treasury and the IRS request commentson special rules for allocating theresearch credit among members of acontrolled group that contains aconsolidated group of corporations.

Allocation of the Credit for BasicResearch Payments and the AlternativeIncremental Research Credit

The proposed regulations also addressthe computation and allocation of thegroup credit for basic research payments(certain amounts paid to qualifiedorganizations for basic research) and forthe alternative incremental researchcredit (an elective alternative method ofcomputing the research credit, underwhich taxpayers are assigned a lowerthree-tiered fixed base percentage, andthe credit rate is reduced).

As in the case of the regular credit forqualified research expenses, theproposed regulations provide that allcomputations with respect to the groupcredit for basic research payments andthe alternative incremental researchgroup credit are undertaken on anaggregate basis. Similarly, these groupcredits are allocated to the variousgroup members on an incremental basis.

Proposed Effective Date

The regulations generally areproposed to be applicable for taxableyears ending on or after the dateproposed regulations are filed with theFederal Register, but are also proposedto be retroactive in certain limitedcircumstances to prevent abuse. Toprevent taxpayers that are members of acontrolled group from together claimingin excess of 100% of the credit withrespect to prior taxable years, the rulesfor allocating the group credit wouldapply to any taxable year beginning afterDecember 31, 1989, in which, as a resultof inconsistent methods of allocation,the members of a controlled group as awhole claimed more than 100% of theallowable group credit. In the case of agroup whose members have differenttaxable years and whose members usedinconsistent methods of allocation, themembers of the group as a whole shallbe deemed to have claimed more than100% of the allowable group credit.

No claim for refund (1) Attributable toa change in method of allocation; (2)Pertaining to a taxable year endingbefore the date the proposed regulationsare filed with the Federal Register; and(3) Filed after the date these proposedregulations are filed with the FederalRegister will be allowed unless thetaxpayer submits a statement identifyingall members of the controlled group forthe taxable year at issue. The statementmust contain a declaration signed by thetaxpayer under penalties of perjury thatstates: ‘‘To the best of my knowledgeand belief, taking into account priorclaims, this amended claim and anyrelated adjustments, no more than thetotal amount of the group credit will beallocated to the members of thecontrolled group.’’

Special Analyses

It has been determined that this noticeof proposed rulemaking is not asignificant regulatory action as definedin Executive Order 12866. Therefore, aregulatory assessment is not required. Italso has been determined that section553(b) of the Administrative ProcedureAct (5 U.S.C. chapter 5) does not applyto these regulations. It is herebycertified that the collection ofinformation contained in theseregulations will not have a significanteconomic impact on a substantialnumber of small entities. Thiscertification is based on the expectationthat few, if any, small entities will fileclaims for refund attributable to achange in method of allocating theresearch credit among members of itscontrolled group. Accordingly, aRegulatory Flexibility Analysis under

the Regulatory Flexibility Act (5 U.S.C.chapter 6) is not required. Pursuant tosection 7805(f) of the Internal RevenueCode, this notice of proposedrulemaking will be submitted to theChief Counsel for Advocacy of the SmallBusiness Administration for commenton its impact on small business.

Comments and Public Hearing

Before these proposed regulations areadopted as final regulations,consideration will be given to anywritten comments (preferably a signedoriginal and eight (8) copies) orelectronic comments are submittedtimely to the IRS. Treasury and the IRSrequest comments on the clarity of theproposed regulations and how they maybe made easier to understand. Allcomments will be available for publicinspection and copying.

A public hearing has been scheduledfor April 26, 2000 at 10 a.m. in room2615, Internal Revenue Building, 1111Constitution Avenue, NW., Washington,DC. Due to building securityprocedures, visitors must enter at the10th Street entrance, located betweenConstitution and PennsylvaniaAvenues, NW. In addition, all visitorsmust present photo identification toenter the building. Because of accessrestrictions, visitors will not beadmitted beyond the immediateentrance area more than 15 minutesbefore the hearing starts. Forinformation about having your nameplaced on the building access list toattend the hearing, see the FOR FURTHERINFORMATION CONTACT section of thispreamble.

The rules of 26 CFR 601.601(a)(3)apply to the hearing. Persons who wishto present oral comments at the hearingmust submit written or electroniccomments and an outline of the topicsto be discussed and the time to bedevoted to each topic (preferably asigned original and eight (8) copies byApril 5, 2000). A period of 10 minuteswill be allotted to each person makingcomments.

An agenda showing the scheduling ofthe speakers will be prepared after thedeadline for receiving outlines haspassed. Copies of the agenda will beavailable free of charge at the hearing.

Drafting Information

The principal author of theseproposed regulations is Lisa J. Shumanof the Office of the Assistant ChiefCounsel (Passthroughs and SpecialIndustries). However, personnel fromother offices of the IRS and the TreasuryDepartment participated in theirdevelopment.




Income taxes, Reporting andrecordkeeping requirements.

Proposed Amendments to theRegulations

Accordingly, 26 CFR part 1 isproposed to be amended as follows:

PART 1—INCOME TAXES

Paragraph 1. The authority citationfor part 1 continues to read in part asfollows:

Authority: 26 U.S.C. 7805 * * *

Par. 2. In § 1.41–0, the table ofcontents is amended by revising theentries for § 1.41–8(a), (a)(1), (a)(4), and(b) and adding entries for § 1.41–8(a)(5)and (a)(6) to read as follows:

§ 1.41–0 Table of contents.

* * * * *1.41–8 Aggregation of expenditures.(a) Controlled group of corporations; trades

or businesses under common control.(1) In general.

* * * * *(4) Allocation of credit for basic research

payments.(5) Allocation of alternative incremental

research credit.(6) Examples.(b) For taxable years beginning before

January 1, 1990.

* * * * *Par. 3. In § 1.41–8, paragraphs (a)(1),

(a)(4), (b), and (c)(1) are revised andparagraphs (a)(5) and (a)(6) are added toread as follows:

§ 1.41–8 Aggregation of expenditures.

(a) Controlled group of corporations;trades or businesses under commoncontrol—(1) In general. In determiningthe amount of the credit for increasingresearch activities allowed with respectto a trade or business that at the end ofits taxable year is a member of acontrolled group of corporations or amember of a group of trades orbusinesses under common control, allmembers of the group are treated as asingle taxpayer. Thus, for purposes ofdetermining the amount of the credit, allof the rules in section 41, including, forexample, the rules in section 41(c)(2)(pertaining to the minimum baseamount), section 41(c)(3)(B) (pertainingto the fixed-base percentage for start-upcompanies), and section 41(c)(3)(C)(pertaining to maximum base amount)are applied only to the aggregatecomputation of the base amount. Thecredit (if any) allowed to any member isdetermined on the basis of the ratio thatits increase (if any) in its qualifiedresearch expenses over its base amountbears to the aggregate increases inqualified research expenses over thebase amount of all members of thegroup. For purposes of the precedingsentence, a member computes its baseamount by multiplying the group fixed-base percentage by the member’saverage annual gross receipts for thefour preceding tax years.* * * * *

(4) Allocation of credit for basicresearch payments. The credit (if any)attributable to basic research paymentsallowed to a member is determined on

the basis of the ratio that its excess (ifany) of basic research payments over itsqualified organization base periodamount bears to the aggregate excess ofbasic research payments over thequalified organization base periodamount of all members in the group. Forpurposes of the preceding sentence, amember computes its qualifiedorganization base period amount usingsimilar principles to those used inparagraph (a)(1) to determine themember’s base amount.

(5) Allocation of alternativeincremental research credit. If the creditis computed under the alternativeincremental research credit rules, thecredit (if any) allowed to the member isdetermined on the basis of the ratio thatits excess (if any) of qualified researchexpenses over 1% of its average annualgross receipts for the four taxable yearspreceding the taxable year for which thecredit is being determined bears to theaggregate excess of qualified researchexpenses over 1% of the average annualgross receipts of all members of thegroup for the four taxable yearspreceding the taxable year for which thecredit is being determined.

(6) Examples. The following examplesillustrate the provisions of thisparagraph (a):

Example 1. (i) Facts. A controlled group ofthree corporations (all of which are calendar-year taxpayers) had qualified researchexpenses for the credit year 1999, qualifiedresearch expenses for the period 1984through 1988, gross receipts for the period1984 through 1988, and average annual grossreceipts for the four years preceding thecredit year as follows:

A B C Total

Credit year qualified research expenses ................................................................................. $200x ....... $20x ......... $110x ....... $330x1984–1988 qualified research expenses ................................................................................. 40x ......... 10x ......... 100x ....... 150x1984–1988 gross receipts ....................................................................................................... 1,000x .... 350x ....... 150x ....... 1500xAverage annual gross receipts for 4 years preceding credit year .......................................... 1,200x .... 200x ....... 300x ....... 1700x

(ii) Computation of the group credit. (A) The group research credit is computed as if the three corporations are one taxpayer.The research credit is equal to 20 percent of the excess of the group’s aggregate credit year qualified research expenses over thegroup’s base amount.

(B) The group’s base amount equals the greater of fifty percent of the group’s credit year qualified research expenses (the minimumbase amount); or, the group’s fixed-base percentage times the group’s average annual gross receipts for the four taxable years precedingthe credit year. The group’s fixed-base percentage is the ratio that the group’s aggregate qualified research expenses for the taxableyears beginning after December 31, 1983, and before January 1, 1989 bear to its aggregate gross receipts for the same period. Therefore,the group’s fixed-base percentage is 150x/1500x or 10% and the group’s base amount is $170x, the greater of 50% of $330 or 10%of $1,700x.

(C) The group’s research credit is equal to 20 percent of the excess of the group’s aggregate credit year qualified research expensesover the group’s base amount. That is 20% of ($330x—$170x) or $32x.

(iii) Allocation of the group credit. The group research credit of $32x is allocated to the members of the group based on theratio that the member’s increase in its qualified research expenses over the member’s base amount bears to the sum of the memberincreases in qualified research expenses over their base amounts. The member’s base amount is computed by multiplying the groupfixed-base percentage of 10% by the member’s average annual gross receipts for the four preceding tax years. The $32x credit isallocated as follows:

MemberCredit year quali-

fied researchexpenses

Member baseamount Increase Ratio Credit

A .......................................................... $200x ................... $120x ................... $80x ..................... 80/160 .................. $16x



MemberCredit year

qualified researchexpenses


B .......................................................... 20x ..................... 20x ..................... .............................. 0.C .......................................................... 110x ................... 30x ..................... 80x ..................... 80/160 ................ 16x

Example 2. (i) Facts. The facts are the same as in Example 1 except that A had no qualified research expenses during thecredit year. The following table shows the group’s qualified research expenses for the credit year, qualified research expenses forthe period 1984 through 1988, gross receipts for the period 1984 through 1988, and average annual gross receipts for the four yearspreceding the credit year:

A B C Total

Credit year qualified research expenses ................................................................................. 0 ............... $20x ......... $110x ....... $130x1984–1988 qualified research expenses ................................................................................. $40x ......... 10x ......... 100x ....... 150x1984–1988 gross receipts ....................................................................................................... 1,000x .... 350x ....... 150x ....... 1500xAverage annual gross receipts for 4 years preceding credit year .......................................... 1,200x .... 200x ....... 300x ....... 1700x

(ii) Computation of the group credit. Under these facts, the controlled group’s credit year qualified research expenses are lessthan the group’s base amount of $170x, and no credit is allowed to the group unless the group elects to use the alternative incrementalresearch credit under section 41(c)(4). If the group elects to use the alternative incremental credit under section 41(c)(4), the groupis allowed a credit equal to .0165($25.5x¥$17x) + .022($34x¥$25.5x) + .0275($130x¥$34x) or $2.96725x.

(iii) Allocation of the group credit. Assuming that the group elects to use the alternative incremental research credit under section41(c)(4), the group research credit of $2.96725x is allocated to the members of the group based on the ratio that the member’squalified research expenses over one percent of the member’s average annual gross receipts for the four preceding years bears tothe sum of the member increases in qualified research expenses over one percent of their average annual gross receipts for thefour preceding years. The $2.96725x credit is allocated as follows:

MemberCredit year


1 percent ofmember average

annual grossreceipts for 4preceding tax

years

Increase Ratio Credit

A .......................................................... 0 ........................... $12x ..................... 0 ........................... 0.B .......................................................... $20x ..................... 2x ....................... $18x ..................... 18/125 .................. .427284xC .......................................................... 110x ................... 3x ....................... 107x ................... 107/125 ................ 2.539966x

Example 3. (i) Facts. A controlled group of three corporations (all of which are calendar-year taxpayers) had qualified researchexpenses for the credit year 1999, qualified research expenses for the period 1984 through 1988, gross receipts for the period 1984through 1988, and average annual gross receipts for the four years preceding the credit year as follows:

A B C 1 Total

Credit year qualified research expenses ................................................................................. $200x ....... $20x ......... $50x ......... $270x1984–1988 qualified research expenses ................................................................................. 55x ......... 15x ......... 0 ............ 70x1984–1988 gross receipts ....................................................................................................... 1000x ..... 400x ....... 0 ............. 1400xAverage annual gross receipts for 4 years preceding credit year .......................................... 1200x ..... 200x ....... 0 ............ 1400x

1 C began business in 1999.


(B) The group’s base amount equals the greater of: fifty percent of the group’s credit year qualified research expenses (the minimumbase amount), or, the group’s fixed-base percentage times the group’s average annual gross receipts for the four taxable years precedingthe credit year. The group’s fixed-base percentage is the ratio that the group’s aggregate qualified research expenses for the taxableyears beginning after December 31, 1983, and before January 1, 1989 bear to its aggregate gross receipts for the same period. Therefore,the group’s fixed-base percentage is 70x/1400x or 5% and the group’s base amount is $135x, the greater of 50% of $270x or 5%of $1,400x.

(C) The group’s research credit is equal to 20 percent of the excess of the group’s aggregate credit year qualified research expensesover the group’s base amount. That is 20% of ($270x–$135x) or $27x.


MemberCredit year



A .......................................................... $200x ................... $60x ..................... $140x ................... 14/20 .................... $18.9xB .......................................................... 20x ..................... 10x ..................... 10x ..................... 1/20 ...................... 1.35xC .......................................................... 50x ..................... 0 ......................... 50x ..................... 5/20 ...................... 6.75x



Example 4. (i) Facts. The facts are the same as in Example 3 except that C began business in 1989. A, B, and C had qualifiedresearch expenses for the credit year 1999, qualified research expenses for the period 1984 through 1988, gross receipts for the period1984 through 1988, and average annual gross receipts for the four years preceding the credit year as follows:

A B C Total

Credit year qualified research expenses ................................................................................. $200x ....... $20x ......... $50x ......... $270x1984–1988 qualified research expenses ................................................................................. 55x ......... 15x ......... 0 ............ 70x1984–1988 gross receipts ....................................................................................................... 1,000x .... 400x ....... 0 ............ 1,400xAverage annual gross receipts for 4 years preceding credit year .......................................... 1,200x .... 200x ....... 1,000x .... 2,400x


(B) The group’s base amount equals the greater of: fifty percent of the group’s credit year qualified research expenses (the minimumbase amount), or, the group’s fixed-base percentage times the group’s average annual gross receipts for the four taxable years precedingthe credit year. The group’s fixed-base percentage is the ratio that the group’s aggregate qualified research expenses for the taxableyears beginning after December 31, 1983, and before January 1, 1989 bear to its aggregate gross receipts for the same period. Therefore,the group’s fixed-base percentage is 70x/1400x or 5% and the group’s base amount is $135x, the greater of 50% of $270x or 5%of $2,400x.

(C) The group’s research credit is equal to 20 percent of the excess of the group’s aggregate credit year qualified research expensesover the group’s base amount. That is 20% of ($270x–$135x) or $27x.


MemberCredit year


Member baseamount Change Ratio Credit

A .......................................................... $200x ................... $60x ..................... $140x ................... 14/15 .................... $25.2xB .......................................................... 20x ..................... 10x ..................... 10x ..................... 1/15 ...................... 1.8xC .......................................................... 50x ..................... 50x ..................... 0 ......................... 0 ......................... 0

(b) For taxable years beginning before January 1, 1990. For taxable years beginning before January 1, 1990, see§ 1.41–8 in effect prior to December 29, 1999 as contained in 26 CFR part 1 revised April 1, 1999.

(c) Tax accounting periods used—(1) In general. The credit allowable to a member of a controlled group of corporationsor of a group of trades or businesses under common control is that member’s share of the aggregate credit computedas of the end of such member’s taxable year. In computing the aggregate credit in the case of a group whose membershave different taxable years, a member shall generally treat the taxable year of another member that ends with orwithin the credit year of the computing member as the credit year of that other member. In computing the aggregatebase amount, the gross receipts taken into account with respect to another member shall include that other member’sgross receipts for the four taxable years of that other member preceding the credit year of that other member.

* * * * *

John M. Dalrymple,Acting Deputy Commissioner of InternalRevenue.[FR Doc. 99–33815 Filed 12–29–99; 2:06 pm]BILLING CODE 4830–01–U



26 CFR Part 301

[REG–116704–99]

RIN 1545–AX69

Disclosures of Return Information toOfficers and Employees of theDepartment of Agriculture for CertainStatistical Purposes and RelatedActivities

AGENCY: Internal Revenue Service (IRS),Treasury.

ACTION: Notice of proposed rulemakingby cross-reference to temporaryregulations.

SUMMARY: This document provides aproposed regulation relating to thedisclosure of return information toofficers and employees of theDepartment of Agriculture for certainstatistical purposes and relatedactivities. The proposed regulationwould permit the IRS to disclose returninformation to the Department ofAgriculture to structure, prepare, andconduct the Census of Agriculture. Thetext of the temporary regulationpublished in the Rules and Regulationssection of this issue of the FederalRegister also serves as the text of thisproposed regulation.

DATES: Written and electronic commentsand requests for a public hearing mustbe received by April 3, 2000.

ADDRESSES: Send submissions to:CC:DOM:CORP:R (REG–116704–99),room 5226, Internal Revenue Service,POB 7604, Ben Franklin Station,Washington, DC 20044. Submissionsmay be hand delivered Monday throughFriday between the hours of 8 a.m. and5 p.m. to: CC:DOM:CORP:R (REG–116704–99), Courier’s Desk, InternalRevenue Service, 1111 ConstitutionAvenue, NW., Washington, DC.Alternatively, taxpayers may submitcomments electronically via the Internetby selecting the ‘‘Tax Regs’’ option onthe IRS Home Page, or by submittingcomments directly to the IRS Internetsite: http://www.irs.gov/taxlregs/regslist.html.

FOR FURTHER INFORMATION CONTACT:Concerning the proposed regulations,



Jennifer S. McGinty, (202) 622–4570;concerning submissions of comments,Guy Traynor (202) 622–7180 (not toll-free numbers).SUPPLEMENTARY INFORMATION:

Background

Temporary regulations in the Rulesand Regulations section of this issue ofthe Federal Register amend theProcedure and AdministrationRegulations (26 CFR Part 301) relating tosection 6103(j)(5). The temporaryregulations contain rules relating to thedisclosure of return information toofficers and employees of theDepartment of Agriculture for certainstatistical purposes and relatedactivities.

The text of the temporary regulationsalso serves as the text of these proposedregulations. The preamble to thetemporary regulations explains thetemporary regulations and theseproposed regulations.

Special Analyses

It has been determined that this noticeof proposed rulemaking is not asignificant regulatory action as definedin Executive Order 12866. Therefore, aregulatory assessment is not required. Ithas also been determined that section553(b) of the Administrative ProcedureAct (5 U.S.C. chapter 5) does not applyto this regulation, and because thisregulation does not impose a collectionof information on small entities, theRegulatory Flexibility Act (5 U.S.C.chapter 6) does not apply. Pursuant tosection 7805(f) of the Code, thisproposed regulation will be submittedto the Chief Counsel for Advocacy of theSmall Business Administration forcomment on its impact on smallbusinesses.

Comments and Requests for a PublicHearing

Before this proposed regulation isadopted as a final regulation,consideration will be given to anyelectronic and written comments (asigned original and eight (8) copies) thatare submitted timely to the IRS.Additionally, the IRS and TreasuryDepartment specifically requestcomments on the clarity of the proposedregulation and how it can be madeeasier to understand. All comments willbe available for public inspection andcopying. A public hearing may bescheduled if requested in writing by aperson that timely submits comments. Ifa public hearing is scheduled, notice ofthe date, time, and place for the hearingwill be published in the FederalRegister.

Drafting Information: The principalauthor of this regulation is Jennifer S.McGinty, Office of the Assistant ChiefCounsel (Disclosure Litigation), IRS.However, other personnel from the IRSand Treasury Department participatedin its development.


Employment taxes, Estate taxes,Excise taxes, Gift taxes, Income taxes,Penalties, Reporting and recordkeepingrequirements.

Proposed Amendments to theRegulations

Accordingly, 26 CFR part 301 isproposed to be amended as follows:

PART 301—PROCEDURE ANDADMINISTRATION

Paragraph 1. The authority citationfor part 301 is amended by adding anentry in numerical order to read in partas follows:

Authority: 26 U.S.C. 7805 * * *

Section 301.6103(j)(5)–1 also issuedunder 26 U.S.C. 6103(j)(5); * * *

Par. 2. Section 301.6103(j)(5)–1 isadded to read as follows:

§ 301.6103(j)(5)–1 Disclosures of returninformation to officers and employees ofthe Department of Agriculture for certainstatistical purposes and related activities.

[The text of this proposed section isthe same as the text of § 301.6103(j)(5)–1T published elsewhere in this issue ofthe Federal Register].Robert E. Wenzel,Acting Commissioner of Internal Revenue.[FR Doc. 00–55 Filed 1–3–00; 8:45 am]BILLING CODE 4830–01–U

POSTAL SERVICE

39 CFR Part 111

Preparation Changes for PalletizedStandard Mail (A) and Bound PrintedMatter and for Standard Mail (A) andStandard Mail (B) Claimed at DBMCRates

AGENCY: Postal Service, USPS.ACTION: Proposed rule.

SUMMARY: The USPS proposes changesto the Domestic Mail Manual (DMM)that would require mailers to utilize oneLabeling List (L605) for Standard Mail(A) packages of flats, letter trays, andsacks prepared on pallets, regardless ofwhether the mail is prepared for entryat destination bulk mail center (DBMC)rates; to require mailers to utilizeLabeling List L605 for Standard Mail (A)

and Standard Mail (B) machinableparcels prepared in sacks or on palletswhen mail for auxiliary service facility(ASF) service areas is prepared for andclaimed at DBMC rates; to implementpackage reallocation between ASFs andBMCs for Standard Mail (A) packages offlats placed on pallets; and to utilizeLabeling List L605 for the preparation ofall Standard Mail (B) when mail for ASFservice areas is prepared for andclaimed at DBMC rates and for BoundPrinted Matter other than machinableparcels prepared on pallets.DATES: Comments must be received onor before February 3, 2000.ADDRESSES: Mail or deliver writtencomments to the Manager, MailPreparation and Standards, USPSHeadquarters, 475 L’Enfant Plaza SW,Room 6800, Washington DC 20260–2405. Copies of all written commentswill be available for inspection andphotocopying between 9 a.m. and 4p.m., Monday through Friday at USPSHeadquarters Library, 475 L’ EnfantPlaza SW, 11th Floor N, Washington,DC.FOR FURTHER INFORMATION CONTACT:Karen A. Magazino, (202) 268–3854 orBarry Elliott, (202) 268–2731.SUPPLEMENTARY INFORMATION: Twolabeling lists currently are used bymailers to prepare Standard Mail (A)machinable parcels and all StandardMail (A) placed on pallets. Generally,when a mailing is being prepared, eitherDMM Labeling List L601 or LabelingList L602 is used to sort the mail,depending on whether or not the maileris planning to claim DBMC rates.Regardless of which list is used, theoverall result is less than optimalbecause L601 does not include the ASFsas a separate sort level and L602 doesnot include ZIP Codes for offshoredestinations. L601 also is used to sortStandard Mail (B) machinable parcels.ASFs are not included on L601 becausethe Postal Service wants to directmachinable parcels to BMCs, wherethey are processed on parcel sortingmachines. Consequently, whenStandard Mail (A) flats, letter trays, andsacks are not being prepared for dropshipment at DBMC rates and LabelingList L601 is used, the beneficial ASFpallets are not prepared, even whenthere is sufficient volume (e.g., 500pounds) to prepare such pallets.Consequently, the mail for the ASFservice area is placed on a BMC servicearea pallet and must be processed by theparent BMC.

Labeling List L602 is used to defineDBMC rate eligibility for Standard Mail.Because mail for offshore destinations isnot entitled to DBMC rates, these ZIP



Codes are not included in L602 andmail for such destinations cannotcurrently be placed on DBMC palletsprepared using this list. The 3-digitservice areas that are consideredoffshore destinations are 006–009, 967–969, and 995–999. As a result, when amailer sorts an address file for entry atDBMC rates using this labeling list, theoffshore mail is generally entered atorigin and must be processed at theorigin BMC and transported through thepostal network to the destination BMCserving the offshore destination. Thismail is frequently placed in sacksbecause it cannot be placed on DBMCpallets and it is not permissible toprepare packages of flats on mixed BMCpallets. Ultimately, the preparation andentry point of the offshore mail isdetermined by which labeling list isused to prepare the mailing.

Proposal To Use One Labeling List(L605) for Standard Mail (A) Flats,Letter Trays and Sacks Prepared onPallets

The Mailers’ Technical AdvisoryCommittee (MTAC) approved a workgroup, the Presort Optimization WorkGroup, comprised of representatives ofthe Postal Service, presort softwarevendors, mail owners, and printers, toidentify opportunities to improve theoverall presort of mailings. This groupidentified the two anomalies discussedabove. They indicated that the mostviable solution for the offshore mail isto allow it to ride along on DBMCpallets (or in sacks if machinableparcels) that may be drop shipped todestination BMCs.

Based on the input of the MTAC WorkGroup, the Postal Service proposes toaddress these anomalies by requiringmailers to use a single Labeling List,L605, for all Standard Mail (A) flats,letter trays, and sacks prepared onpallets, regardless of where the mail isdeposited or what rates are claimed.L605 delineates the ASF service areasand also includes the ZIP Codes for theoffshore destinations within theirrespective BMC service areas. With thischange, the offshore mail will ‘‘ridealong’’ with the DBMC mail but will notbe eligible for the DBMC discount. Thebenefit is that the handling of offshoremail at the origin BMC will be bypassedand service to the offshore mail shouldimprove. The three BMCs (New Jersey,San Francisco, and Seattle) thatpresently service offshore destinations

are already receiving BMC service areapallets and sacks that contain offshoremail prepared using Labeling List L601.Therefore, the addition of offshore mailto these DBMC containers should haveno negative impact.

Requiring the use of Labeling ListL605 for all Standard Mail (A) flats,letter trays, and sacks prepared onpallets will also ensure that the eightASFs are always included in the presortlogic hierarchy and that ASF pallets areprepared when the volume warrants.

Labeling List L601 will be retainedand will continue to be applicable forStandard Mail (A) and Standard Mail(B) machinable parcels, except whenmail for ASF service areas is preparedfor and claimed at DBMC rates.

Current Labeling List L602, whichcontains the ZIP Code ranges for DBMCrate eligibility will be deleted from theDomestic Mail Manual. Thisinformation will appear, instead, inDMM Module E. This revision will notchange current standards for DBMC rateeligibility.

Package Reallocation of Packages ofStandard Mail (A) Flats To Protect theBMC Pallet

To ensure that the creation of an ASFpallet is not detrimental to a BMCpallet, the Postal Service also proposesto allow protection of the BMC palletthrough the optional use of packagereallocation between a ‘‘child’’ ASF andthe ‘‘parent’’ BMC pallet. Packagereallocation for protecting a BMC palletis similar to the option implemented onJuly 29, 1999, for protecting the SCFpallet. In protecting a BMC pallet, anyamount of mail necessary to achieve theminimum BMC pallet weight could bereallocated from one ASF pallet and theASF pallet could be eliminated ifnecessary. Mailers who choose to utilizepackage reallocation to protect the BMCpallet must use Presort AccuracyValidation and Evaluation (PAVE)certified presort software.

Utilization of DMM Labeling Lists L601and L605 for Preparation of StandardMail (B)

The proposed elimination of L602also affects Parcel Post (Parcel Select)claimed at DBMC rates because that listis currently used to define eligibilityand preparation for all mail claimed atthose rates. Accordingly, the PostalService proposes that all Standard Mail(B) entered at BMCs or ASFs for DBMC

rates be prepared using L605 and DBMCrate eligibility, which would not change,will be determined based on an exhibitin DMM E652. In addition, palletizedBound Printed Matter (other thanmachinable parcels) will be preparedusing L605 for sortation to ASF/BMCpallets. L605 will also remain applicablefor BMC Presort and OBMC presort ofnonmachinable Parcel Post. L601 willcontinue to be used for machinableparcels except when mail for ASFservice areas is prepared for andclaimed at DBMC rates.

The proposed implementation datefor all of the changes contained in thisproposed rule is July 13, 2000.

Although exempt from the notice andcomment requirements of theAdministrative Procedure Act (5 U.S.C.553(b), (c), regarding proposedrulemaking by 39 U.S.C. 410(a), thePostal Service invites comments on thefollowing revisions of the Domestic MailManual (DMM), incorporated byreference in the Code of FederalRegulations. See 39 CFR part 111.


Administrative practice andprocedure, Postal Service.

PART 111—[AMENDED]

1. The authority citation for 39 CFRPart 111 continues to read as follows:

Authority: 5 U.S.C. 552(a); 39 U.S.C. 101,401, 403, 404, 414, 3001–3011, 3201–3219,3403–3406, 3621, 3626, 5001.

2. Revise the following sections of theDomestic Mail Manual (DMM) as setforth below:

Domestic Mail Manual (DMM)

E. Eligibility

* * * * *

E651 Regular, Nonprofit, andEnhanced Carrier Route Standard Mail

* * * * *

5.0 DBMC DISCOUNT

[Amend 5.1 by replacing ‘‘L602’’ with‘‘Exhibit 5.1’’ to read as follows.]

5.1 Definition

For this standard, destination bulkmail center (DBMC) includes all bulkmail centers (BMCs) and auxiliaryservice facilities (ASFs) as shown inExhibit 5.1.[Add new Exhibit 5.1.]

EXHIBIT 5.1.—BMC/ASF—DBMC RATES

Eligible destination ZIP codes Entry BMC/ASF

005, 068–079, 085–098, 100–119, 124–127, 340 ......................................................................... BMC NEW JERSEY NJ 00102.



EXHIBIT 5.1.—BMC/ASF—DBMC RATES—Continued


010–067, 120–123, 128, 129 .......................................................................................................... BMC SPRINGFIELD MA 05500.130–136, 140–149 .......................................................................................................................... ASF BUFFALO NY 140.150–168, 260–266, 439–447 .......................................................................................................... BMC PITTSBURGH PA 15195.080–084, 137–139, 169–199 .......................................................................................................... BMC PHILADELPHIA PA 19205.200–212, 214–239, 244, 254, 267, 268 ......................................................................................... BMC WASHINGTON DC 20499.240–243, 245–249, 270–297, 376 .................................................................................................. BMC GREENSBORO NC 27075.298, 300–312, 317–319, 350–352, 354–368, 373, 374, 377–379, 399 ......................................... BMC ATLANTA GA 31195.299, 313–316, 320–339, 341, 342, 344, 346, 347, 349 ................................................................. BMC JACKSONVILLE FL 32099.369–372, 375, 380–397, 700, 701, 703–705, 707, 708, 713, 714, 716, 717, 719–729 ................ BMC MEMPHIS TN 38999.250–253, 255–259, 400–418, 421, 422, 425–427, 430–433, 437, 438, 448–462, 469–474 ........ BMC CINCINNATI OH 45900.434–436, 465–468, 480–497 .......................................................................................................... BMC DETROIT MI 48399.500–516, 520–528, 612, 680, 681, 683–689 ................................................................................. BMC DES MOINES IA 50999.498, 499, 540–551, 553–564, 566 .................................................................................................. BMC MPLS/ST PAUL MN 55202.570–577 .......................................................................................................................................... ASF SIOUX FALLS SD 570.565, 567, 580–588. ......................................................................................................................... ASF FARGO ND 580.590–599, 821 .................................................................................................................................. ASF BILLINGS MT 590.463, 464, 530–532, 534, 535, 537–539, 600–611, 613 ................................................................. BMC CHICAGO IL 60808.420, 423, 424, 475–479, 614–620, 622–631, 633–639 ................................................................. BMC ST LOUIS MO 63299.640, 641, 644–658, 660–662, 664–679, 739 ................................................................................. BMC KANSAS CITY KS 64399.730, 731, 734–738, 740, 741, 743–746, 748, 749 ......................................................................... ASF OKLAHOMA CITY OK 730.706, 710–712, 718, 733, 747, 750–799, 885 ................................................................................. BMC DALLAS TX 75199.690–693, 800–816, 820, 822–831 .................................................................................................. BMC DENVER CO 80088.832–834, 836, 837, 840–847, 893, 898, 979 ................................................................................. ASF SALT LAKE CTY UT 840850, 852, 853, 855–857, 859, 860, 863, 864 ................................................................................. ASF PHOENIX AZ 852.865, 870–875, 877–884 .................................................................................................................. ASF ALBUQUERQUE NM 870.889–891, 900–908, 910–928, 930–935 .......................................................................................... BMC LOS ANGELES CA 90901.894, 895, 897, 936–966 .................................................................................................................. BMC SAN FRANCISCO CA 94850.835, 838, 970–978, 980–986, 988–994 .......................................................................................... BMC SEATTLE WA 98000.

5.2 Eligibility

[Amend 5.2 by replacing ‘‘BMC or ASF’’with ‘‘DBMC’’ to read as follows:]

Pieces in a mailing that meet thestandards in 1.0 through 5.0 are eligiblefor the DBMC rate when deposited at aBMC or ASF, addressed for deliverywithin that facility’s service area (ZIPCode range), and placed in a tray, sack,or pallet (subject to the standards for therate claimed) that is labeled to that BMCor ASF or to a postal facility within itsservice area. With the exception ofpieces for 3-digit service areas that arenot listed in Exhibit 5.1, all pieces in anADC or AADC sack or tray are eligiblefor the DBMC discount if the ADC orAADC facility ZIP Code (as shown onLine 1 of the corresponding containerlabel) is within the service area of theBMC or ASF at which the sack or trayis deposited. With the exception ofpieces for 3-digit service areas that arenot listed in Exhibit 5.1, all pieces in apalletized ADC package are eligible forthe DBMC discount if the ADC facilitythat is the destination of the package(determined by using the label to ZIPCode in Column B of L004) is within the

service area of the BMC or ASF at whichit is deposited. DBMC rate mail mayalso be eligible for a presort orautomation discount, subject to thecorresponding standards.* * * * *

E652 Parcel Post

1.0 BASIC STANDARDS

* * * * *

1.2 General[Revise 1.2 to read as follows:]

For Parcel Post mailings claimed atDBMC, DSCF, and DDU rates, piecesmust meet the applicable standards in1.0 through 6.0 and meet the followingcriteria:

a. May be bedloaded, on pallets, inpallet boxes on pallets, in sacks, or inother authorized containers as specifiedin 2.0 through 6.0, depending on thefacility at which the pieces aredeposited.

b. May not be plant-loaded.c. Be part of a single mailing of 50 or

more pieces that are eligible for andclaimed at any Parcel Post rate or rates.

d. Be deposited at a destination BMC(DBMC) or auxiliary service facility or

other equivalent facility; destinationsectional center (DSCF); or destinationdelivery unit (DDU) as applicable for therate claimed and as specified by theUSPS.

e. Be addressed for delivery withinthe ZIP Code ranges that the applicableentry facility serves.

[Revise 1.3 to read as follows:]

1.3 DBMC Rates

For DBMC rates, pieces must meet theapplicable standards in 1.0 through 6.0.In addition, pieces must be part of aParcel Post mailing that is deposited ata BMC or ASF under L605, the piecesdeposited at each BMC or ASF must beaddressed for delivery within the ZIPCode range of that facility, must bewithin a ZIP Code eligible for DBMCrates under Exhibit 1.3, and must beprepared in accordance with M041 andM045 or M630. Mail meeting theadditional criteria in 5.0 may bedeposited at a designated facility otherthan the BMC or ASF where the DBMCparcels would otherwise be deposited.[Add new Exhibit 1.3]

EXHIBIT 1.3.—BMC/ASF—DBMC RATES


005, 068–079, 085–098, 100–119, 124–127, 340 ......................................................................... BMC NEW JERSEY NJ 00102.010–067, 120–123, 128, 129 .......................................................................................................... BMC SPRINGFIELD MA 05500.



EXHIBIT 1.3.—BMC/ASF—DBMC RATES—Continued


130–136, 140–149 .......................................................................................................................... ASF BUFFALO NY 140.150–168, 260–266, 439–447 .......................................................................................................... BMC PITTSBURGH PA 15195.080–084, 137–139, 169–199 .......................................................................................................... BMC PHILADELPHIA PA 19205.200–212, 214–239, 244, 254, 267, 268 ......................................................................................... BMC WASHINGTON DC 20499.240–243, 245–249, 270–297, 376 .................................................................................................. BMC GREENSBORO NC 27075.298, 300–312, 317–319, 350–352, 354–368, 373, 374, 377–379, 399 ......................................... BMC ATLANTA GA 31195.299, 313–316, 320–339, 341, 342, 344, 346, 347, 349 ................................................................. BMC JACKSONVILLE FL 32099.369–372, 375, 380–397, 700, 701, 703–705, 707, 708, 713, 714, 716, 717, 719–729 ................ BMC MEMPHIS TN 38999.250–253, 255–259, 400–418, 421, 422, 425–427, 430–433, 437, 438, 448–462, 469–474 ........ BMC CINCINNATI OH 45900.434–436, 465–468, 480–497 .......................................................................................................... BMC DETROIT MI 48399.500–516, 520–528, 612, 680, 681, 683–689 ................................................................................. BMC DES MOINES IA 50999.498, 499, 540–551, 553–564, 566 .................................................................................................. BMC MPLS/ST PAUL MN 55202.570–577 .......................................................................................................................................... ASF SIOUX FALLS SD 570.565, 567, 580–588 .......................................................................................................................... ASF FARGO ND 580.590–599, 821 .................................................................................................................................. ASF BILLINGS MT 590.463, 464, 530–532, 534, 535, 537–539, 600–611, 613 ................................................................. BMC CHICAGO IL 60808.420, 423, 424, 475–479, 614–620, 622–631, 633–639 ................................................................. BMC ST LOUIS MO 63299.640, 641, 644–658, 660–662, 664–679, 739 ................................................................................. BMC KANSAS CITY KS 64399.730, 731, 734–738, 740, 741, 743–746, 748, 749 ......................................................................... ASF OKLAHOMA CITY OK 730.706, 710–712, 718, 733, 747, 750–799, 885 ................................................................................. BMC DALLAS TX 75199.690–693, 800–816, 820, 822–831 .................................................................................................. BMC DENVER CO 80088.832–834, 836, 837, 840–847, 893, 898, 979 ................................................................................. ASF SALT LAKE CTY UT 840.850, 852, 853, 855–857, 859, 860, 863, 864 ................................................................................. ASF PHOENIX AZ 852.865, 870–875, 877–884 .................................................................................................................. ASF ALBUQUERQUE NM 870.889–891, 900–908, 910–928, 930–935 .......................................................................................... BMC LOS ANGELES CA 90901.894, 895, 897, 936–966 .................................................................................................................. BMC SAN FRANCISCO CA 94850.835, 838, 970–978, 980–986, 988–994 .......................................................................................... BMC SEATTLE WA 98000.

[Redesignate 1.4 through 1.5 as 1.5through 1.6 and insert new number 1.4to read as follows:

1.4 DSCF and DDU Rates

For DSCF and DDU rates, pieces mustmeet the applicable standards in 1.0through 1.6 and meet the followingcriteria:[Move former 1.3 (e) and (f) to newsection as 1.4 (a) and (b).]* * * * *

L Labeling Lists

* * * * *

L600 Standard Mail

[Amend the heading of Labeling List601 by removing ‘‘Machinable Parcels’’to read as follows:]

L601 BMCs

[Revise introductory paragraph to readas follows:]

Use this list for:(a) Standard Mail (A) machinable

parcels if ASF mail is not prepared forand claimed at DBMC rates,

(b) Bound Printed Matter machinableparcels,

(c) Parcel Post if ASF mail is notprepared for and claimed at DBMC ratesexcept non-machinable BMC Presortand OBMC Presort, and

(d) Presorted Special Standard Mailand Presorted Library Mail to BMCdestinations.* * * * *

[Remove Labeling List 602, BMCs/ASFs-DBMC Rates.]* * * * *[Revise the heading of Labeling List 605to read as follows:]

L605 BMCs/ASFs[Revise introductory paragraph to readas follows:]

Use this list for:(a) Standard Mail (A) pallets of

packages of flats, letter trays, and/orsacks,

(b) Standard Mail (A) machinableparcels when mail for ASF service areasis prepared for and claimed at DBMCrates,

(c) Parcel Post when mail for ASFservice areas is prepared for andclaimed at DBMC rates,

(d) Parcel Post nonmachinable parcelsclaimed at BMC Presort and OBMCPresort rates, and

(e) Bound Printed Matter packagesand/or sacks on pallets.* * * * *

M MAIL PREPARATION ANDSORTATION

M010 Mailpieces

M011 Basic Standards

1.0 TERMS AND CONDITIONS

* * * * *

1.2 Presort Levels[Amend 1.2 by revising 1.2n to read asfollows:]

Terms used for presort levels aredefined as follows:* * * * *

n. ASF/BMC: all pieces are addressedfor delivery in the service area of thesame auxiliary service facility (ASF) orbulk mail center (BMC) (see L601 orL605, as applicable).* * * * *

M040 PALLETS

M041 General Standards

* * * * *

5.0 PREPARATION

* * * * *

5.1 Presort

[Amend 5.1 by revising the last twosentences to read as follows:]

* * * The standards for packagereallocation to protect the SCF or BMCpallet (M045.5.0 and 6.0) are optionalmethods of pallet preparation designedto retain as much mail as possible at theSCF or BMC level. These standards mayresult in some packages of Periodicalsflats and irregular parcels and StandardMail (A) flats, and irregular parcels thatare part of a mailing job prepared in partas palletized flats at automation rates,not being placed on the finest level ofpallet possible. Mailers must use PAVE-certified presort software to preparemailings using package reallocation(package reallocation is optional, but, if



performed, must be done for thecomplete mailing job).

5.2 Required Preparation[Amend 5.2 by revising 5.2a to read asfollows:]

These standards apply to:a. Periodicals, Standard Mail (A) and

Parcel Post (other than BMC Presort,OBMC Presort, DSCF, and DDU ratemail). For mail that is prepared onpallets, a pallet must be prepared to arequired sortation level when there are500 pounds of Periodicals or StandardMail packages, sacks, or parcels, or sixlayers of Periodicals or Standard Mail(A) letter trays. For packages ofPeriodicals flats and irregular parcelsand Standard Mail (A) packages of flatson pallets prepared under the standardsfor package reallocation (M045.5.0), notall mail for a required 5-digitdestination is required to be on a 5-digitpallet or optional 5-digit scheme pallet.For packages of Standard Mail (A) flatson pallets prepared under the standardsfor package reallocation to protect theBMC pallet (M045.6.0), not all mail fora required ASF pallet is required to beon an ASF pallet. Mixed pallets ofsacks, trays, or machinable parcels mustbe labeled to the BMC or ADC (asappropriate) serving the post officewhere mailings are entered into themailstream. The processing anddistribution manager of that facility mayissue a written authorization to themailer to label mixed BMC or mixedADC pallets to the post office orprocessing and distribution centerserving the post office where mailingsare entered. These pallets contain allmail remaining after required andoptional pallets are prepared to finersortation levels under M045, asappropriate.* * * * *

6.0 COPALLETIZED COMBINED ORMIXED-RATE LEVEL MAILINGS OFFLAT-SIZE PIECES

* * * * *

6.4 Standard Mail (A)[Amend 6.4 by revising the firstsentence to read as follows:]

To copalletize different Standard Mail(A) flat-size mailings, the mailer mustconsolidate on pallets all independentlysorted packages from each mailing toachieve the finest presort level for themailing, except that a copalletizedmailing prepared under M045.5.0 or 6.0,using package reallocation, may notalways result in all packages beingplaced on the finest pallet levelpossible.* * ** * * * *

M045 Palletized Mailings

* * * * *

4.0 PALLET PRESORT ANDLABELING

4.1 Packages, Bundles, Sacks or Trayson Pallets

[Amend 4.1 by revising 4.1e to read asfollows:]

Preparation and Line 1 labeling:* * * * *

e. As appropriate:(1) Periodicals: ADC: required; for

Line 1, use L004.(2) Standard Mail: BMC/ASF:

required; for Line 1, use L605. Ifpackage reallocation to protect the BMCpallet is used and the BMC palletcontains mail for the ASF service area,for Line 1, use L601.* * * * *

4.2 Machinable Parcels-Standard Mail

[Amend 4.2 by revising 4.2b and 4.2c toread as follow:]

Preparation sequence and Line 1labeling:* * * * *

b. ASF: allowed and required onlywhen mail for ASF service areas isprepared for and claimed at DBMCrates; for Line 1, use L605. DBMC rateeligibility is determined by ExhibitE651.5.1 and Exhibit E652.1.3.

c. Destination BMC: required; for Line1, use L601 (L605 when mail for ASFservice areas is prepared for andclaimed at DBMC rates). DBMC rateeligibility is determined by ExhibitE651.5.1 and Exhibit E652.1.3.* * * * *

[Revise heading of 5.0 to read asfollows:]

5.0 PACKAGE REALLOCATION TOPROTECT SCF PALLET FORPERIODICALS FLATS ANDIRREGULAR PARCELS ANDSTANDARD MAIL (A) FLATS ONPALLETS

5.1 Basic Standards

[Amend 5.1 by revising the firstsentence to read as follows:]

Package reallocation to protect theSCF pallet is an optional preparationmethod (if performed, packagereallocation must be done for thecomplete mailing job); only PAVE-certified presort software may be used tocreate pallets under the standards in 5.2through 5.5 * * ** * * * *[Redesignate 6.0 through 14.0 as 7.0through 15.0, respectively, and insertnew number 6.0 to read as follows:]

6.0 PACKAGE REALLOCATION TOPROTECT BMC PALLET FORSTANDARD MAIL (A) FLATS ONPALLETS

6.1 Basic Standards

Package reallocation to protect theBMC pallet level is an optionalpreparation method (if performed,package reallocation to protect the BMCpallet must be done for the completemailing job); only PAVE-certifiedpresort software may be used to createpallets under the standards in 6.2through 6.4. The software willdetermine if mail for a BMC service areawould fall beyond the BMC level whenASF pallets are prepared. Reallocationis performed only when there is mail forthe BMC service area that would fallbeyond the BMC pallet level. Theamount of mail required to bring themail that would fall beyond the BMCpallet level back to a BMC level is theminimum volume that would bereallocated from an ASF pallet, wherepossible. The following ‘‘parent’’ BMCscan be protected with packagereallocation by using mail from the ASF‘‘child’’ pallets indicated in Exhibit 6.1.

EXHIBIT 6.1.—‘‘PARENT’’ BMC/‘‘CHILD’’ ASF

‘‘Parent’’ BMC: service areas ‘‘Child’’ ASF: ZIP Code areas served

Pittsburgh BMC ................................................... Buffalo ASF: 130–136; 140–149.Denver BMC ....................................................... Albuquerque ASF: 865, 870–875, 877–884.

Phoenix ASF: 850, 852, 853, 855–857, 859, 860, 863, 864.Salt Lake City ASF: 832–834, 836, 837, 840–847, 893, 898, 979.Billings ASF: 590–599, 821.

Dallas BMC ......................................................... Oklahoma City ASF: 730, 731, 734–738, 740, 741, 743–746, 748, 749.Des Moines BMC ................................................ Sioux Falls ASF: 570–577Minneapolis BMC ................................................ Fargo ASF: 565, 567, 580–588.



6.2 General Reallocation Rules

Reallocation rules:a. The reallocation process does not

affect package preparation. Reallocateonly complete packages and only theminimum number of packages necessaryto create a BMC pallet meeting theminimum pallet weight. Based on theweight of individual pieces within apackage and packaging parameters, theweight of mail that is reallocated may beslightly more than the minimum volumerequired to create a BMC pallet.

b. Using the parent BMC/child ASFtable provided in Exhibit 6.1, reallocatepackages from the ASF pallet to createa BMC pallet. The ASF pallet can beeliminated if necessary to protect theBMC pallet.

c. When reallocating mail to create aBMC pallet, reallocate mail only fromthe ASF pallet. Package reallocation isonly to be used between the ‘‘parent’’BMC and the ‘‘child’’ ASF. Mail fromfiner levels of pallets (e.g., SCF pallet)may not be reallocated to protect BMCpallets.

d. Mailers may use any minimumpallet weight(s) permitted by DMMstandards and may use differentminimum weights for different palletlevels in conjunction with packagereallocation.

6.3 Reallocation of Packages FromASF Pallets

When reallocating packages from ASFpallets:

a. Using the parent BMC/child ASFtable provided in Exhibit 6.1, attempt toidentify an ASF pallet of adequateweight that can support reallocation ofone or more packages to bring the mailthat has fallen through the BMC levelback to the BMC level withouteliminating the ASF pallet. A sufficientamount of mail must remain on the ASFpallet after reallocation to meet the ASFpallet weight minimum. If an ASF palletof adequate weight is available, create aBMC pallet by combining thereallocated mail from the ASF palletwith the mail that would fall beyond theBMC pallet level.

b. If no single ASF pallet within theBMC service area contains an adequatevolume of mail to allow reallocation ofthe portion of the mail on a pallet asdescribed in the previous step, theneliminate one ASF pallet and reallocateall of the mail to create a BMC pallet bycombining it with the mail that wouldfall beyond the BMC pallet level. As aresult, the software will not prepare oneASF pallet for the ASF service area if itis detrimental to the BMC pallet.

6.4 DocumentationMailings must be supported by

documentation produced by PAVE-certified software meeting the standardsin P012.* * * * *

M073 COMBINED MAILINGS OFSTANDARD (A) AND STANDARD (B)PARCELS

1.0 COMBINED MACHINABLEPARCELS—RATES OTHER THANPARCEL POST OBMC PRESORT, BMCPRESORT, DSCF, AND DDU

* * * * *

1.6 Sack Preparation[Amend 1.6 by revising 1.6a(2) and1.6a(3) to read as follows:]

The requirements for sack preparationare as follows:

a. Sack size, preparation sequence,and Line 1 labeling:* * * * *

(2) Destination ASF: allowed andrequired only when mail for ASFservice areas is prepared for andclaimed at DBMC rates (minimum of 10pieces/20 pounds/1,000 cubic inches,smaller volume not permitted); for Line1, use L605. DBMC rate eligibility isdetermined by Exhibit E651.5.1 andExhibit E652.1.3.

(3) Destination BMC: required(minimum of 10 pieces/20 pounds/1.000 cubic inches, smaller volume notpermitted); for Line 1, use L601 (L605when mail for ASF service areas isprepared for and claimed at DBMCrates). DBMC rate eligibility isdetermined by Exhibit E651.5.1 andExhibit E652.1.3.* * * * *

M610 Presorted Standard Mail (A)

* * * * *

5.0 MACHINABLE PARCELS

* * * * *

5.2 Sack Preparation[Amend 5.2 by revising 5.2(b) and 5.2(c)to read as follows:]

Sack size, preparation sequence, andLine 1 labeling:* * * * *

b. Destination ASF: allowed andrequired only when mail for ASFservice areas is prepared for andclaimed at DBMC rates (10 poundminimum, smaller volume notpermitted); for Line 1 use L605. DBMCrate eligibility is determined by ExhibitE651.5.1.

c. Destination BMC: required (10pound minimum, smaller volume notpermitted); for Line 1, use L601 (L605when mail for ASF service areas is

prepared for and claimed at DBMCrates). DBMC rate eligibility isdetermined by Exhibit E651.5.1.* * * * *

M630 Standard Mail (B)

* * * * *

6.0 MACHINABLE PARCELS

* * * * *

6.2 Sack Preparation

[Amend 6.2 by revising 6.2b and 6.2c toread as follows:]

Sack size, preparation sequence, andLine 1 labeling:* * * * *

b. ASF: allowed and required onlywhen mail for ASF service areas isprepared for and claimed at DBMC rates(minimum of 10 pieces/20 pounds/1,000 cubic inches, smaller volume notpermitted); for Line 1, use L605. DBMCrate eligibility is determined by ExhibitE652.1.3.

c. Destination BMC: required(minimum of 10 pieces/20 pounds/1,000 cubic inches, smaller volume notpermitted); for Line 1, use L601 (L605when mail for ASF service areas isprepared for and claimed at DBMCrates). DBMC rate eligibility isdetermined by Exhibit E652.1.3.* * * * *

P POSTAGE AND PAYMENTMETHODS

P000 Basic information

P010 General Standards

* * * * *

P012 DOCUMENTATION

* * * * *

2.0 STANDARDIZEDDOCUMENTATION—FIRST-CLASSMAIL, PERIODICALS, ANDSTANDARD MAIL (A)

2.2 Format and Content

[Amend 2.2 by replacing last twosentences of 2.2d (4) to read as follows:]

For First-Class Mail, Periodicals, andStandard Mail (A), standardizeddocumentation includes:* * * * *

(4) * * * Document SCF or BMCpallets created as a result of packagereallocation under M045.5.0 or 6.0 onthe USPS Qualification Report bydesignating the protected pallet with anidentifier of ‘‘PSCF’’ (for an SCF pallet)or ‘‘PBMC’’ (for a BMC pallet). Theseidentifiers are required to appear onlyon the USPS Qualification Report; theyare not required to appear on pallet



labels or in any other mailingdocumentation.* * * * *

2.4 Sortation Level

[Amend 2.4 by inserting new sortationlevel and abbreviation immediatelybelow SCF pallets (created from packagereallocation) to read as follows:]

The actual sortation level (orcorresponding abbreviation) is used forthe package, tray, sack, or pallet levelsrequired by 2.2 and shown below.

Sortation level Abbreviation

* * * * *BMC [pallets created from

package reallocation].PBMC

* * * * *An appropriate amendment to 39 CFR

11.3 to reflect these changes will bepublished if the proposal is adopted.Stanley F. Mires,Chief Counsel, Legislative.[FR Doc. 00–25 Filed 1–3–00; 8:45 am]BILLING CODE 7710–12–P


47 CFR Part 73

[DA 99–2843, MM Docket No. 99–362, RM–9730]

Radio Broadcasting Services; Cantonand Morristown, NY

AGENCY: Federal CommunicationsCommission.ACTION: Proposed rule.

SUMMARY: The Commission requestscomments on a petition filed jointly byCartier Communications Inc., licensee ofStation WVNC, Channel 244A, Canton,NY, and Waters Communications, Inc.,licensee of Station WNCQ–FM, Channel275A, Morristown, NY, seeking thesubstitution of Channel 275C3 forChannel 244A at Canton and thesubstitution of Channel 244C3 forChannel 275A at Morristown, and themodification of their respective licensesto specify operation on the higherpowered channels. Comment isrequested on whether the proposalshould be considered as anincompatible channel swap pursuant toSection 1.420(g)(3) of the Commission’sRules, as requested by Cartier andWaters, since a second Class C3channel, Channel 244C3, is available forallotment at Canton, with a siterestriction of 20.8 kilometers (12.9miles) west, at coordinates 44–33–26

NL; 75–25–48 WL. This allotmentwould be short-spaced to Channel 243Aat Buckingham, Quebec, and to StationCKOI–FM, Channel 245C1, Verdun,Quebec, Canada. Channel 275C3 can beallotted to Canton in compliance withthe Commission’s minimum distanceseparation requirements, with respect todomestic allotments, with a siterestriction of 12 kilometers (7.4 miles)north, at coordinates 44–41–51 NL; 75–07–35 WL, to accommodate Cartier’sdesired transmitter site. Channel 275C3at Canton will be short-spaced to 276Aat Valleyfield, Quebec, Canada. Channel244C3 can be allotted to Morristown incompliance with the Commission’sminimum distance separationrequirements, with respect to domesticallotments, with a site restriction of 12kilometers east, at coordinates 44–36–00NL; 75–30–00 WL, to accommodateWaters’ desired transmitter site.Channel 244C3 at Morristown will beshort-spaced to Channel 243A atBuckingham, Quebec, Canada. Sinceboth communities are located within320 kilometers of the U.S.-Canadianborder and the proposed allotments willresult in short-spacings to Canadianallotments, concurrence by theCanadian Government in theseallotments, as specially negotiated,short-spaced allotments, must beobtained.DATES: Comments must be filed on orbefore February 7, 2000, and replycomments on or before February 22,2000.ADDRESSES: Federal CommunicationsCommission, 445 12th Street, SW, RoomTW–A325, Washington, DC 20554. Inaddition to filing comments with theFCC, interested parties should serve thepetitioner, or its counsel or consultant,as follows: David G. O’Neil, Rini, Coran& Lancellotta, P.C., 1350 ConnecticutAvenue, NW, Suite 900, Washington,DC 20036–1701 (Counsel to petitioners).FOR FURTHER INFORMATION CONTACT:Leslie K. Shapiro, Mass Media Bureau,(202) 418–2180.SUPPLEMENTARY INFORMATION: This is asynopsis of the Commission’s Notice ofProposed Rule Making, MM Docket No.99–362, adopted December 8, 1999, andreleased December 17, 1999. The fulltext of this Commission decision isavailable for inspection and copyingduring normal business hours in theFCC Reference Center, 445 12th Street,SW, Washington, DC. The complete textof this decision may also be purchasedfrom the Commission’s copy contractor,International Transcription Services,Inc., (202) 857–3800, 1231 20th Street,NW, Washington, DC 20036.

Provisions of the RegulatoryFlexibility Act of 1980 do not apply tothis proceeding.

Members of the public should notethat from the time a Notice of ProposedRule Making is issued until the matteris no longer subject to Commissionconsideration or court review, all exparte contacts are prohibited inCommission proceedings, such as thisone, which involve channel allotments.See 47 CFR 1.1204(b) for rulesgoverning permissible ex parte contacts.

For information regarding properfiling procedures for comments, see 47CFR 1.415 and 1.420.

List of Subjects in 47 CFR Part 73Radio broadcasting.

Federal Communications Commission.John A. Karousos,Chief, Allocations Branch, Policy and RulesDivision, Mass Media Bureau.[FR Doc. 00–90 Filed 1–3–00; 8:45 am]BILLING CODE 6712–01–P




[Docket No. 990901242–9242–01;I.D.072099E]

North Atlantic Whale Protection

AGENCY: National Marine FisheriesService (NMFS), National Oceanic andAtmospheric Administration (NOAA),Commerce.ACTION: Advance notice of proposedrulemaking.

SUMMARY: NMFS publishes an advancenotice of proposed rulemaking (ANPR)in response to a request by the WhaleWatch Advisory Group (WWAG) thatNMFS solicit comments on theappropriateness of codifying, throughrulemaking, operational procedures forvessels engaged in whale watching inNMFS Northeast Region (Virginia toMaine).

The scope of this ANPR encompassesthe activity of any vessel (commercial orprivate) that is engaged in whalewatching. NMFS is requestingcomments on whether existing whaleprotection measures are adequate toaddress the potential threat of injury ormortality by vessels engaged in whalewatching (commercial and private) tolarge whales, (primarily humpback, fin,and minke whales), and, if not, whatwhale protection measures are needed.DATES: Comments must be received atthe appropriate address or fax number



(see ADDRESSES) no later than 5 p.m.eastern standard time, on March 6,2000.ADDRESSES: Comments on this AdvanceNotice of Proposed Rulemaking (ANPR)should be addressed to Chief, PermitsDivision, Office of Protected Resources,National Marine Fisheries Service, 1315East-West Highway, Silver Spring, MD20910, or fax to 301–713–0376.FOR FURTHER INFORMATION CONTACT: AnnTerbush, Office of Protected Resources,301–713–2289; or Doug Beach,Northeast Region, 978–281–9254.SUPPLEMENTARY INFORMATION:

Background

Whale watching is a popularrecreational activity in the StellwagenBank National Marine Sanctuary(SBNMS) and throughout the NortheastRegion. Whale watch vessel operatorsseek out areas where whales congregate.This has led to large numbers of vesselsgathering around groups of whales,which has increased the potential forharassment, injury or even the death ofthese animals. NMFS has receivedcomplaints from the public chargingthat marine mammals are beingharassed and injured by commercialwhale watching, fishing, and pleasurecraft vessels. In 1998, whale watchvessels struck two whales whilereturning to their home port. In 1997,there was a report from a private citizenwhile aboard a whale watch excursionthat the vessel had hit a whale. Therewere no reported ship strikes of whalesby vessels engaged in whale watching in1999; however, there were three reportsof harassment in 1999 which are allcurrently under investigation.

NMFS Northeast Region hasattempted to address the impacts ofwhale watching through a combinationof enforcing the Marine MammalProtection Act (MMPA) and EndangeredSpecies Act (ESA) prohibitions againstthe taking of listed species, and issuingoperational guidelines to give vesseloperators guidance on how to approachlarge whales without causingharassment. In addition, to minimizethe detrimental effects of directed vesselinteractions with northern right whales,NMFS issued an interim final ruleprohibiting the approach of a rightwhale within 500 yards on February 13,1997. Although this rule providescertain exemptions, it generallyprohibits vessels and aircraft fromapproaching a right whale within 500yards, and is believed to provideadequate protection to this species fromwhale watching vessels.

The Recovery Plan for the NorthernHumpback Whale (NMFS, 1991) places

high priority on reducing anydetrimental effects of directed vesselinteractions with that species,specifically in regard to collisions withships or boats. The NortheastImplementation Team, established byNMFS to implement the ESA RightWhale and Humpback Whale RecoveryPlans, set up the WWAG under its ShipStrike Sub-Committee to look intoappropriate measures to address what isbelieved to be an increasing threat towhales, as evidenced by the whalewatch vessel strikes in 1998 and recentreports of harassment. The WWAG ismade up of representatives from thewhale watch industry, conservationorganizations, and state and Federalagencies.

In March, 1999, the WWAGrecommended that NMFS revise its1985 whale watch guidelines to helpaddress the issue, and prepare an ANPRto solicit comments on theappropriateness of codifying, throughrulemaking, operational procedures forvessels engaged in whale watching inthe Northeast Region. NMFS revised theguidelines as requested by the WWAGon June 1, 1999 (64 FR 29270). Theguidelines were revised to providespecific vessel speed recommendations,decrease the number of vessels in closeproximity to whales, recommend theuse of lookouts when entering ordeparting known whale aggregationareas, and increase the circular WhaleAwareness Zone.

The U.S. Coast Guard (USCG), inperforming its maritime lawenforcement role under the ESA, hasmonitored whale watch operations atvarious times. The USCG established aprogram utilizing the Coast GuardAuxiliary to monitor whale watchingactivities in the Stellwagen BankNational Marine Sanctuary (SBNMS)and elsewhere in NER waters during the1999 season. Observations areconducted from USCG vessels andaircraft, and by placing uniformed,specially trained Auxiliary observers inthe wheel houses of whale watchvessels. However, it should be notedthat the USCG Auxiliary has noenforcement authority.

USCG Auxiliary observers providewritten reports of their observations toNOAA. NMFS and SBNMS intend toreview all comments andrecommendations received, as well asinformation received on observedcompliance with the revised guidelines,in the course of determining whether topropose a rule.

Request for CommentsNMFS is requesting comments on (1)

whether existing whale protection

measures are adequate to address thepotential threat of injury or mortality byvessels engaged in whale watching(commercial and private) to largewhales, (primarily humpback, fin, andminke whales), and, if not, (2) whatwhale protection measures are needed.NMFS offers the following as possibleoptions:

Further revisions of the existing whalewatch guidelines - The revisedguidelines include several measuresintended to decrease the likelihood ofadverse interactions with whales, suchas collisions. The revised guidelines,which cover an area two miles from anyobserved whale: (1) establish certainspeed levels as a vessel approaches ordeparts from observed whales at twomiles (13 knots), one mile (10 knots),and one-half mile (7 knots); (2) providemore specific instructions for multi-vessel approaches within 600 feet and amaximum number of vessels (three)within that area; and (3) recommend theposting of a dedicated lookout whenvessels are within two miles of observedwhales to keep track of all whales in thevicinity. The guidelines could be furtherrevised to increase or decrease theserequirements or establish new ones,such as minimum approach distances orgeneral speed restrictions in specificwhale high use areas.

Codify the whale watch guidelines -Codifying the whale watch guidelines asregulations would make themrequirements rather than justrecommendations, and would providefor enforcement of these provisions andpenalties for violations.

Minimum approach rules - Similar tothe right whale minimum approachrule, some limit could be established byregulation to accommodate a reasonablelevel of whale watching opportunitywhile providing space for individualanimals to avoid harassment andpossible injury. This could beaccomplished independently of anyrevision or codification of the whalewatch guidelines.

Operator Permit or CertificationProgram - Requiring operators of vesselsengaged in whale watching to obtain apermit or certification. Issuance of apermit or certification would be basedon the operator demonstratingknowledge of whale behavior andproper whale watch vessel operation.Sanctions, up to and including loss ofpermit or certification fornonconformance with applicableregulations, would be possible.



Dated: December 28, 1999.Penelope D. Dalton,Assistant Administrator for Fisheries,National Marine Fisheries Service.[FR Doc. 00–87 Filed 1–3–00; 8:45 am]BILLING CODE 3510–22–F



50 CFR Part 300

[Docket No. 991220343–9343–01; I.D.120999D]

RIN 0648–AM52

Pacific Halibut Fisheries; CatchSharing Plan

AGENCY: National Marine FisheriesService (NMFS), National Oceanic andAtmospheric Administration (NOAA),Commerce.ACTION: Proposed changes to catchsharing plan and the sport fishingregulations; availability of draftenvironmental assessment andregulatory impact review.

SUMMARY: NMFS proposes, underauthority of the Northern Pacific HalibutAct (Halibut Act), to approve andimplement changes to the Area 2APacific Halibut Catch Sharing Plan(Plan) to accommodate, in the Plan, acourt-ordered change in the allocationof Pacific halibut between treaty Indianand non-treaty fisheries and to adjustmanagement of the halibut sportfisheries off Washington and Oregon.NMFS also proposes changes to thesport fisheries regulations to implementthe Plan in 2000. Finally, NMFSannounces the availability for publiccomment of a draft environmentalassessment and regulatory impactreview (EA/RIR) for this action.DATES: Comments on the proposedchanges to the Plan must be received byJanuary 7, 2000; comments on theproposed changes to the sport fisheryregulations must be received byFebruary 11, 2000.ADDRESSES: Send comments or requestsfor a copy of the Plan and/or the EA/RIRto William Stelle, Jr., RegionalAdministrator, Northwest Region,NMFS, 7600 Sand Point Way, Seattle,WA 98115. Electronic copies of thePlan, including proposed changes for2000, and of the draft EA/RIR are alsoavailable at the NMFS Northwest Regionwebsite: http://www.nwr.noaa.gov,under ‘‘Halibut Management.’’Comments also may be sent viafacsimile (fax) to 206–526–6736.

Comments will not be accepted ifsubmitted via e-mail or Internet.FOR FURTHER INFORMATION CONTACT:Yvonne deReynier, 206-526-6140.SUPPLEMENTARY INFORMATION: TheHalibut Act, at 16 U.S.C. 773c, gives theSecretary of Commerce (Secretary)general responsibility for carrying outthe Halibut Convention between theUnited States and Canada and requiresthe Secretary to adopt such regulationsas may be necessary to carry out thepurposes and objectives of theConvention and the Halibut Act. Section773c(c) of the Halibut Act authorizes theregional fishery management councils todevelop regulations that are not inconflict with regulations adopted by theInternational Pacific HalibutCommission (IPHC) to govern thePacific halibut catch that occurs in eachcouncil’s region. Each year since 1988the Pacific Fishery Management Council(Council) has developed a catch sharingplan in accordance with the Halibut Actto allocate the total allowable catch(TAC) of Pacific halibut between treatyIndian and non-treaty harvesters andamong non-treaty commercial and sportfisheries in IPHC statistical Area 2A (offWashington, Oregon, and California).

In 1995, upon recommendation of theCouncil, NMFS implemented the Plan(60 FR 14651, March 20, 1995). In eachof the intervening years between 1995and the present, minor revisions to thePlan have been made to adjust for thechanging needs of the fisheries. ThePlan allocates 35 percent of the Area 2ATAC to Washington treaty Indian tribesin Subarea 2A–1 and 65 percent to non-Indian fisheries in Area 2A. Theallocation to non-Indian fisheries isdivided into three shares, with theWashington sport fishery (north of theColumbia River) receiving 36.6 percent,the Oregon/California sport fisheryreceiving 31.7 percent, and thecommercial fishery receiving 31.7percent. The commercial fishery isfurther divided into a directedcommercial fishery that is allocated 85percent of the commercial allocationand an incidental catch in the salmontroll fishery that is allocated 15 percentof the commercial allocation. Thedirected commercial fishery in Area 2Ais confined to southern Washington(south of 46°53’18’’ N. lat.), Oregon, andCalifornia. The Plan also divides thesport fisheries into seven geographicsubareas, each with separate allocations,seasons, and bag limits.

Council Recommended Changes to thePlan

At its September 1999 public meeting,the Council adopted for public comment

the following changes to the Plan: (1)incorporation into the Plan of a court-ordered change in the Pacific halibutallocation to settle the claims of treatytribes for an equitable adjustment tocurrent halibut allocation that wouldcompensate for halibut not allocated tothe tribes from 1989 through 1993; (2)allowing commercial halibut fishers toalso use their vessels for private (not forhire) recreational fishing; (3) a revisionof the boundary between theWashington sport fishery in PugetSound (Inside Waters) and North Coastsub-areas; (4) allowing the opening ofthe closed ‘‘hot spot’’ in the Washingtonsport fishery South Coast sub-areathrough an accelerated inseasonprocess; and (5) combining the sub-quotas for Oregon’s inside 30–fathomsport fisheries in the North Central andSouth Central Coast subareas.

At its November 1999 public meeting,the Council considered the results ofState-sponsored workshops on theproposed changes to the Plan and publiccomments and made finalrecommendations for four modificationsto the Plan as follows:

(1) Revise the Plan to bring it intocompliance with an allocation changeagreed to by the states, tribes andFederal government that is contained ina July 7, 1999 stipulation, and orderedby the court in United States v.Washington, No. 9213 Phase I,Subproceeding No. 92–1 (W.D. Wash.).This stipulation settles the Tribes’ claimfor an equitable adjustment arising fromallocations in the Pacific halibut fisheryfrom 1989 through 1993. In 1993, thecourt declared that the regulatoryscheme for the allocation of halibutbetween treaty and non-treaty fisheriesin 1989 through 1993 had violatedtreaty rights. The parties to thestipulation (the halibut treaty tribes, theStates of Washington and Oregon, andthe Federal government) agreed that25,000 lb (11.3 mt) dressed weight ofhalibut would be transferred from thenon-treaty Area 2A halibut allocation tothe treaty Indian allocation in Area 2A–1 each year for 8 years beginning in theyear 2000 and ending in the year 2007,for a total transfer of 200,000 lb (90.7mt). To accelerate the total transfer,more than 25,000 lb (11.3 mt) could betransferred in any year upon priorwritten agreement of the parties to thestipulation.

(2) Modify the boundary between thePuget Sound and Washington NorthCoast sport fishery subareas by movingit eastward from the Bonilla-Tatooshline to the mouth of the Sekiu River.Additionally, modify the quotaallocations to the two sport fishery



subareas to increase the portion of theWashington sport quota allocated to theNorth Coast subarea from 57.7 percentof the first 130,845 lb (59.4 mt), to 62.2percent of the first 130,845 lb (59.4 mt).Correspondingly, reduce the quotaallocated to the Puget Sound subareafrom 28 percent of the first 130,845 lb(59.4 mt), to 23.5 percent of the first130,845 lb (59.4 mt). This modificationwould simplify management whilekeeping the amount of halibut availableto different ports roughly the same as inpast years.

(3) Revise the management structurefor the Washington South Coast subareasport fishery to allow the opening of theSouth Coast subarea closed ‘‘hot spot’’inseason, effective via announcement onthe NMFS halibut hotline. NMFS, theWashington Department of Fish andWildlife (WDFW), and IPHC wouldconsult via conference call shortly afterthe opening of the South Coast subareaseason to on the need for eithermaintaining the ‘‘hot spot’’ as a closedarea or for opening the ‘‘hot spot’’ tofishing, as indicated by the effect ofocean and fishery conditions on meetingthe season structuring objectives for thissubarea.

(4) Revise the sport fishery structurefor the Oregon North Central and SouthCentral subareas to combine the sub-quotas for the inside 30–fathomfisheries from these two sub-areas.There would be a single sub-quota andseason for the fisheries inside 30–fathoms from Cape Falcon to HumbugMountain.

Proposed Changes to the Catch SharingPlan

NMFS is proposing to approve theCouncil recommendations and to makethe following changes to the Plan:

Restructure section (b) of the Plan,Allocations, as two sub-paragraphs(b)(1) and (b)(2), with the current mainparagraph (b) re-designated as (b)(1) andthe first sentence of that paragraphrevised to read as follows ‘‘Except asprovided in section (b)(2), this Planallocates 35 percent of the Area 2A TACto U.S. treaty Indian tribes in the Stateof Washington in subarea 2A–1, and 65percent to non-Indian fisheries in Area2A.’’ and a new subparagraph (b)(2)added to read as follows:

‘‘To meet the requirements of U.S.District Court Stipulation and Order(United States v. Washington, No. 9213,Phase I, Subproceeding No. 92–1 (W.D.Wash.) (Stipulation and Order, July 7,1999)) 25,000 lb (11.3 mt) dressedweight of halibut will be transferredfrom the non-treaty Area 2A halibutallocation to the treaty allocation inArea 2A–1 each year for 8 years,

commencing in the year 2000 andending in the year 2007, for a totaltransfer of 200,000 lb (90.7 mt). Toaccelerate the total transfer, more than25,000 lb (11.3 mt) may be transferredin any year upon prior writtenagreement of the parties to thestipulation.’’

In section (f), Sport Fisheries, revisethe first two sentences of paragraph(1)(i) to read as follows:

‘‘This sport fishery subarea isallocated 23.5 percent of the first130,845 lb (59.4 mt) allocated to theWashington sport fishery, and 32percent of the Washington sportallocation between 130,845 lb (59.4 mt)and 224,110 lb (101.7 mt) (except asprovided in section (e)(3) of this Plan.)This sub-area is defined as all waterseast of the mouth of the Sekiu River, asdefined by a line extending from48°17’30’’ N. lat., 124°23’70’’ W. long.north to 48°24’10’’ N. lat., 124°23’70’’W. long., including Puget Sound.’’

In section (f), Sport Fisheries, revisethe first two sentences of paragraph(1)(ii) to read as follows:

‘‘This sport fishery subarea isallocated 62.2 percent of the first130,845 lb (59.4 mt) allocated to theWashington sport fishery, and 32percent of the Washington sportallocation between 130,845 lb (59.4 mt)and 224,110 lb (101.7 mt) (except asprovided in section (e)(3) of this Plan.)This sub-area is defined as all waterswest of the mouth of the Sekiu River, asdefined above in paragraph (f)(1)(i), andnorth of the Queets River (47°31’42’’ N.lat.).’’

In section (f), Sport Fisheries, add asentence to the end of paragraph (1)(iii)to read as follows:

‘‘If a decision is made inseason toopen this closed area to sport fishing forhalibut, that decision will becomeeffective upon announcement on theNMFS halibut hotline, at (206) 526–6667 or (800) 662–9825.’’

In section (f), Sport Fisheries, changethe heading of paragraph (1)(v) toOregon north central coast subarea, andrevise the first sentence of paragraph(1)(v)(A) to read as follows:

‘‘The first season opens on May 1,only in waters inside the 30–fathom (55m) curve, and continues daily until thecombined subquotas for the northcentral and south central inside 30–fathom fisheries (7 percent of the northcentral subarea quota plus 20 percent ofthe south central subarea quota) aretaken, or until September 30, whicheveris earlier.’’

In section (f), Sport Fisheries, changethe heading of paragraph (1)(vi) toOregon south central coast subarea, and

revise the first sentence of paragraph(1)(vi)(A) to read as follows:

‘‘The first season opens on May 1,only in waters inside the 30–fathom (55m) curve, and continues daily until thecombined subquotas for the northcentral and south central inside 30–fathom fisheries (7 percent of the northcentral subarea quota plus 20 percent ofthe south central subarea quota) aretaken, or until September 30, whicheveris earlier.’’

In section (f), Sport Fisheries, reviseparagraph (2) to read as follows:

‘‘Port of landing management. Allsport fishing in Area 2A will bemanaged on a ‘‘port of landing’’ basis,whereby any halibut landed into a portwill count toward the quota for thesubarea in which that port is located,and the regulations governing thesubarea of landing apply, regardless ofthe specific area of catch.’’

In section (f), Sport Fisheries, reviseparagraph (5)(iv)(A) to read as follows:

‘‘Inseason actions will be effective onthe date specified in notification in theFederal Register or at the time that theaction is filed for public inspection withthe Office of the Federal Register,whichever is later, except that anypartial or complete inseason opening ofthe Washington South Coast sportfishery closed area (designated above at(f)(1)(iii)) may be made effective uponannouncement on the NMFS halibuthotline.’’

Proposed 2000 Sport FisheryManagement Measures

NMFS is proposing changes to thesport fishery regulations that arenecessary to implement the Plan in2000. The 2000 TAC is unknown at thistime, but information available from theIPHC indicates that the TAC may besimilar to or somewhat lower than theTAC in 1999. The final TAC will bedetermined by the IPHC at its annualmeeting January 10–13, 2000. Theproposed 2000 sport fishery regulationsbased on the 1999 Area 2A TAC of760,000 lb (344.7 mt) are as follows:

Washington Inside Waters SubareaPuget Sound and Straits

This subarea would be allocated43,808 lb (19.9 mt) at an Area 2A TACof 760,000 lb (344.7 mt) in accordancewith the Plan. WDFW, NMFS and IPHCare currently discussing how to estimateseason durations for the Puget Soundand North Coast subareas under theproposed changes to subarea sizes andquota allocations. According to the Plan,the structuring objective for this subareais to provide a stable sport fishingopportunity and maximize the seasonlength, with the fishery opening in May



and continuing at least through July 4.In 1999, the fishery in this subarea was35 days long, from May 27 through July12, held for 5 days per week (Thursdaythrough Monday.) For the 2000 fishingseason, the dates of the fishery in thissubarea would be set to meet thestructuring objectives described in thePlan, hopefully providing fishingopportunity at least from the MemorialDay weekend through the July 4thweekend. The final determination of theseason dates would be based on theallowable harvest level, projected 2000catch rates, and recommendationsdeveloped in a public workshopsponsored by WDFW after the 2000 TACis set by the IPHC. The daily bag limitwould be one halibut of any size per dayper person.

Washington North Coast Subarea (Northof the Queets River)

This subarea would be allocated94,445 lb (42.8 mt) at an Area 2A TACof 760,000 lb (344.7 mt) in accordancewith the Plan. WDFW, NMFS and IPHCare currently discussing how to estimateseason durations for the Puget Soundand North Coast subareas under theproposed changes to subarea sizes andquota allocations. According to the Plan,the structuring objective for this subareais to maximize the season length forviable fishing opportunity and, ifpossible, stagger the seasons to spreadout this opportunity to anglers who usethese remote grounds. The fishery openson May 2, and continues for 5 days perweek (Tuesday through Saturday). Thehighest priority is for the season to lastthrough the end of May. If sufficientquota remains, the second priority is toestablish a fishery that will be open July1, through at least July 4. In 1999, thefishery in this subarea was 50 days long,from May 1 through July 9, held for 5days per week (Tuesday throughSaturday.) For the 2000 fishing season,the dates of the fishery in this subareawould be set to meet the structuringobjectives described in the Plan. Thefinal determination of the season dateswould be based on the allowable harvestlevel, projected 2000 catch rates, andrecommendations developed in a publicworkshop sponsored by WDFW after the2000 TAC is set by the IPHC. The dailybag limit would be one halibut of anysize per day per person. A portion ofthis subarea located about 19 nm (35km) southwest of Cape Flattery wouldbe closed to sport fishing for halibut.The size of this closed area is describedin the Plan, but may be modifiedpreseason by NMFS to maximize theseason length.

Washington South Coast Subarea

This subarea would be allocated29,153 lb (13.2 mt) at an Area 2A TACof 760,000 lb (344.7 mt) in accordancewith the Plan. The fishery would openon May 2 (Sunday) and continue for 5days per week (Sunday throughThursday) until 1,000 lb (0.45 mt) areprojected to remain in the quota. Thefishery would be open Sunday throughThursday in all areas, except whereprohibited, and Friday and Saturdayonly in the area from the Queets Riversouth to 47°00’00’’ N. lat. and east of124°40’00’’ W. long. When 1,000 lb(0.45 mt) are projected to remain in thequota, fishing would be allowed 7 daysper week in the area from the QueetsRiver south to 47°00’00’’ N. lat. and eastof 124°40’00’’ W. long. The daily baglimit would be one halibut of any sizeper day per person. A portion of thisarea would be closed to sport fishing forhalibut. The closed area is a rectanglewith the following dimensions:47°19’00’’ N. lat., 124°53’00’’ W. long.;47°19’00’’ N. lat., 124°48’00’’ W. long.;47°16’00’’ N. lat., 124°53’00’’ W. long.;and 47°16’00’’ N. lat.,124°48’00’’ W.long. This closed area could be openedby NMFS inseason after consultationwith WDFW, NMFS, and IPHC.

Columbia River Subarea

This subarea would be allocated 4,249lb (1.9 mt) at an Area 2A TAC of760,000 lb (344.7 mt) in accordancewith the Plan. The fishery would openon May 1 and continue for 7 days perweek until the quota is reached orSeptember 30, whichever occurs first.The daily bag limit would be the firsthalibut taken, per person, of 32 inches(81.3 cm) or greater in length.

Oregon North Central Coast Subarea

This subarea would be allocated130,877 lb (59.4 mt) at an Area 2A TACof 760,000 lb (344.7 mt) in accordancewith the Plan. The May all-depth seasonwould be allocated 88,996 lb (40.4 mt).Based on an observed catch per daytrend in this fishery, an estimated20,000 lb (9.1 mt) would be caught perday in 2000, resulting in a 4-day fixedseason. In accordance with the Plan, theseason dates would be May 12, 13, 19,and 20. If the quota is not taken, anappropriate number of fishing dayswould be scheduled for late May orearly June. The restricted depth fisheryinside 30 fathoms, which would becombined in 2000 and beyond with therestricted depth fishery in the Oregonsouth central coast subarea, would beallocated 11,234 lb (5.1 mt) and wouldbe open starting May 1 throughSeptember 30 or until the TAC is

attained, whichever occurs first. TheAugust coastwide all-depth fishery(Cape Falcon to Humbug Mountain)would be allocated 32,719 lb (14.8 mt),which may be sufficient for a 1 dayopening on August 4, based on theexpected catch per day. If sufficientquota remains after this season foradditional days of fishing, the dates foran all-depth fishery would be in mid-August. The final determination of theseason dates will be based on theallowable harvest level, projected catchrates, and recommendations developedin a public workshop sponsored byODFW after the 2000 TAC is set by theIPHC. The daily bag limit would be thefirst halibut taken, per person, of 32inches (81.3 cm) or greater in length.

Oregon South Central Coast SubareaThis subarea would be allocated

10,363 lb (4.7 mt) at an Area 2A TACof 760,000 lb (344.7 mt) in accordancewith the Plan. The May all-depth seasonwould be allocated 8,290 lb (3.8 mt)and, based on observed catch per daytrend in this fishery, an estimated 2,200lb (1.0 mt) would be caught per day in2000, resulting in a 3– to 4-day fixedseason. In accordance with the Plan, theseason dates would be May 11, 12, 13,19, and 20. If the quota is not taken, anappropriate number of fishing dayswould be scheduled for late May orearly June. The restricted depth fisheryinside 30 fathoms, which would becombined in 2000 and beyond with therestricted depth fishery in the Oregonsouth central coast subarea, would beallocated 11,234 lb (5.1 mt) and wouldbe open starting May 1 throughSeptember 30 or until the TAC isattained, whichever occurs first. TheAugust coastwide all-depth fishery(Cape Falcon to Humbug Mountain)may open for 1-day on August 4, ifsufficient quota is available. If sufficientquota remains for additional fishingdays after this season, the dates for anall-depth fishery would be in mid-August. The final determination of theseason dates would be based on theallowable harvest level, projected catchrates, and recommendations developedin an ODFW-sponsored publicworkshop after the IPHC sets the 2000TAC. The daily bag limit would be thefirst halibut taken, per person, of 32inches (81.3 cm) or greater in length.

Humbug Mountain, OR, throughCalifornia Subarea

This subarea would be allocated 4,460lb (2.0 mt) at an Area 2A TAC of760,000 lb (344.7 mt) in accordancewith the Plan. The proposed 2000 sportseason for this subarea would be thesame as last year, with a May 1 opening



and continuing for 7 days per weekuntil September 30. The daily bag limitwould be the first halibut taken, perperson, of 32 inches (81.3 cm) or greaterin length.

NMFS requests public comments onthe Council’s recommendedmodifications to the Plan and theproposed changes to the sport fishingregulations. The Area 2A TAC will beset by the IPHC at its annual meeting onJanuary 10–13, 2000, in Lynnwood, WA.NMFS requests comments on theproposed changes to the Plan by January7, 2000. NMFS requests comments onthe proposed changes to the sportfishing regulations by February 11,2000, after the IPHC annual meeting, sothat the public will have theopportunity to consider the final Area2A TAC before submitting comments onthe proposed sport fishing regulations.The States of Washington and Oregonwill conduct public workshops shortlyafter the IPHC meeting to obtain inputon the sport season dates. After the Area2A TAC is known, and after NMFSreviews public comments andcomments from the States, NMFS willissue final rules for the Area 2A Pacifichalibut sport fishery concurrent withthe IPHC regulations for the 2000 Pacifichalibut fisheries.

ClassificationNMFS has prepared a draft EA/RIR on

the proposed changes to the Plan.Copies of the ‘‘Draft EnvironmentalAssessment and Regulatory ImpactReview of Changes to the Catch SharingPlan for Pacific Halibut in Area 2A’’ areavailable from NMFS (see ADDRESSES).Comments on the EA/RIR are requestedby January 19, 2000.

The Chief Counsel for Regulation ofthe Department of Commerce certifiedto the Chief Counsel for Advocacy of theSmall Business Administration that thechanges to the Plan would not have asignificant economic impact on asubstantial number of small entities asfollows:

The proposed action to move theborderline between the Washington sportfishery Puget Sound and North Coastsubareas is expected to result in either nochange or in a positive change in halibutfishing opportunity for individual halibutanglers. This proposed change will reclassifyhalibut landings made in the area from theSekiu River west to Neah Bay as North Coastsubarea landings, rather than as Puget Soundsubarea landings. Sport fishing for halibut inthis western Strait of Juan de Fuca area ismore similar in character (fast-paced, highlandings) to the North Coast fishery than tothe rest of the Puget Sound fishery. Forhalibut anglers who remain in the PugetSound subarea fishery, the overall seasonlength may increase as a result of reduced

competition with their more aggressivewestern straits counterparts. For halibutanglers in the new, larger North Coastsubarea, the quota has been increased toaccount for the addition of new waters andanglers, so season length is not expected tobe affected by the proposed changes.

The proposed action to bring the Plan intocompliance with the court-ordered allocationof halibut between treaty and non-treatyfisheries would result in the reallocation ofapproximately 3.3% of the Area 2A TAC. Forallocations between non-treaty fisheries, theCouncil has recommended retaining thecurrent allocation scheme. Thus, the effect ofthe reduction in the non-treaty allocationwill be proportionately shared by all non-treaty fisheries, with the deepest cuts inhalibut poundage occurring in the largestfisheries. For most fisheries, the change inavailable halibut poundage will not benoticeable. However, for the directedcommercial fishery, for the WashingtonNorth Coast subarea sport fishery, and for theOregon North Central Coast subarea sportfishery, the change in halibut poundage mayhave some effect on fishery durations.

Although the directed commercial fisheryfor halibut is one of the larger non-treatyhalibut fisheries by weight, the duration andaverage halibut harvest per licensed vessel isprimarily affected by the number ofparticipants in the fishery. Over the 1997through 1999 period, the average amount ofhalibut taken per licensed vessel hasincreased, because the number of licensedvessels has decreased while the overallcommercial quota has remained fairlyconstant. Although the overall amount ofhalibut available to the directed commercialfishery would decrease under the allocationshift from non-treaty to treaty fisheries, thechange is not enough to have a greater effecton the average amount of halibut taken perlicensed participant than the effect of thenumber of participants in the fishery on theaverage amount of halibut taken per licensedvessel.

In the non-treaty sport fisheries, theWashington North Coast subarea and OregonNorth Central Coast subarea take the largesthalibut allocations, and will likely be mostaffected by the allocation shift from non-treaty to treaty fisheries. In the WashingtonNorth Coast subarea, assuming a catch ratesimilar to 1999 of 1,766 lb (0.8 mt) per day,the season could be reduced from 50 to 47fishing days as a result of the approximately4,700 lb (2.1 mt) shift in allocation from non-treaty to treaty fisheries. For this particularsubarea, the effects of the allocation shift maybe mitigated by the proposed changes toWashington sport fishery subareamanagement that shift the borderline andquota between the Puget Sound and NorthCoast subareas.

In the Oregon North Central Coast subarea,assuming a catch rate for the all-depth fisherysimilar to 1999 of 19,270 lb (8.7 mt) per day,the season could be reduced from 7 to 6fishing days as a result of the approximately7,000 lb (3.2 mt) shift in allocation from non-treaty to treaty fisheries. The reduction in thequota available to the Oregon all-depthfishery could alternatively result in aninseason quota shift from the nearshore sportfisheries to the all-depth sport fisheries.

The proposed actions to bring the Plan intocompliance with the court-ordered allocationof halibut between treaty and non-treatyfisheries, and the restructuring of theWashington sport fisheries in the PugetSound and North Coast subareas will notaffect sport fishing opportunity forbottomfish, salmon, and other species thataccount for a much greater proportion of thesport fishing opportunity in Washington andOregon. In addition to these two changes tothe Plan, the Council has recommendedchanges to: (1) the inseason managementstructure for the Washington South Coastsubarea ‘‘hot spot,’’ and (2) the subarea quotastructuring for the Oregon North Central andSouth Central fisheries inside 30 fathoms.These additional proposed changes to thePlan have far less effect on small entities thaneither of the proposed changes discussedabove, and are expected to result in either noimpact at all, or a modest increase in fisheryand regulatory convenience. Consequently,changes to the Plan are not expected to havea significant economic effect on a substantialnumber of small entities. The proposed sportmanagement measures for 2000 merelyimplement the Plan at the appropriate levelof TAC; their impacts are within the scopeof the impacts analyzed for the Plan.

Therefore, a regulatory flexibilityanalysis was not prepared.

This action has been determined to benot significant for purposes of E.O.12866.




50 CFR Part 648

[Docket No. 991228355–9355–01; I.D.110999C]

RIN 0648–AM50

Fisheries of the Northeastern UnitedStates; Proposed 2000 Fishing Quotasfor Atlantic Surf Clams, OceanQuahogs, and Maine MahoganyQuahogs

AGENCY: National Marine FisheriesService (NMFS), National Oceanic andAtmospheric Administration (NOAA),Commerce.ACTION: Proposed 2000 fishing quotasfor Atlantic surf clams, ocean quahogs,and Maine mahogany quahogs; requestfor comments.

SUMMARY: NMFS issues proposed quotasfor the Atlantic surf clam, ocean quahog,and Maine mahogany quahog fisheries



for 2000. Regulations governing thesefisheries require NMFS to propose forpublic comment specifications for the2000 fishing year. The intent of thisaction is to propose allowable harvestlevels of Atlantic surf clams and oceanquahogs from the exclusive economiczone and an allowable harvest level ofMaine mahogany quahogs from thewaters north of 43°50’N. lat. in 2000.DATES: Comments must be received atthe appropriate address or fax number(see ADDRESSES) no later than 5:00 p.m.,eastern standard time, on February 2,2000.ADDRESSES: Copies of supportingdocuments, including theEnvironmental Assessment, RegulatoryImpact Review, Initial RegulatoryFlexibility Analysis (EA/RIR/IRFA), andthe Essential Fish Habitat Assessment,are available from: Patricia A. Kurkul,Regional Administrator, NortheastRegion, National Marine FisheriesService, One Blackburn Drive,Gloucester, MA 01930–2298. The EA/RIR/IRFA is accessible via the Internetat http:/www.nero.gov/ro/doc/nr.htm.

Written comments on the proposedspecifications should be sent to: PatriciaA. Kurkul, Regional Administrator,Northeast Region, NMFS, OneBlackburn Drive, Gloucester, MA01930–2298. Mark on the outside of theenvelope, ‘‘Comments—2000 Clam andQuahog Specifications.’’ Comments mayalso be sent via facsimile (fax) to(978)281–9371. Comments will not beaccepted if submitted via e-mail or theInternet.FOR FURTHER INFORMATION CONTACT:Myles Raizin, Fishery Policy Analyst,978-281-9104.

SUPPLEMENTARY INFORMATION: TheFishery Management Plan for theAtlantic Surf Clam and Ocean QuahogFisheries (FMP) directs NMFS, inconsultation with the Mid-AtlanticFishery Management Council (Council),to specify quotas for surf clams andocean quahogs on an annual basis froma range that represents the optimumyield (OY) for each fishery. It is thepolicy of the Council that the levelsselected allow fishing to continue at thatlevel for at least 10 years for surf clamsand 30 years for ocean quahogs. Whilestaying within this constraint, theCouncil policy is to also consider theeconomic benefits of the quotas.Regulations implementing Amendment10 to the FMP published on May 19,1998 (63 FR 27481), added Mainemahogany quahogs to the managementunit and provides that a small artisanalfishery for that species in the watersnorth of 43°50’ N. lat. will have anannual quota with an initial amount of100,000 Maine bu (35,240 hectoliters(hL)) within a range of 17,000 to 100,000Maine bu (5,991 hL to 35,240 hL). Asspecified in Amendment 10, the Mainemahogany quahog quota is in additionto the quota specified for the oceanquahog fishery. The fishing quotas mustbe in compliance with overfishingdefinitions for each species. Theoverfishing definition for ocean quahogsis based on a control rule, whichrequires biomass target = 1⁄2 virginbiomass or 2 billion lb (907,200 mt) ofmeats (200 million bu), fishing mortalityrate (F) target = F0.1 = 0.02, biomassthreshold = 1⁄2 biomass target or 1billion lb (453,600 mt) of meats (100million bu), and fishing mortality

threshold of F25≠ = 0.042. The currentbiomass is estimated to be 3 billion lb(1,360,800 mt) of meats (300 million bu)or 3/4 virgin biomass and current F isestimated to be 0.021. NMFS approvedthe overfishing definition for oceanquahogs contained in Amendment 12 tothe FMP, but disapproved the proposedoverfishing definition for surf clamsbecause it was based only on surf clamsfrom the Northern New Jersey area anddid not take into account the broadrange of the resource. Therefore, theCouncil used the existing overfishingdefinition for surf clams, which is afishing mortality rate of F20≠ = 0.180 inestablishing the 2000 specifications.Current F for surf clams is estimated tobe 0.0180 for the entire fishery and0.041 for the Northern New Jersey Area,where the heaviest exploitation occurs.The Council has been advised that anFMP amendment is required to reviseoverfishing definitions consistent withthe requirements of the SustainableFisheries Act.

In proposing these quotas, the Councilconsidered the available stockassessments, data reported by harvestersand processors, and other relevantinformation concerning exploitablebiomass and spawning biomass, fishingmortality rates, stock recruitment,projected effort and catches, and areasclosed to fishing. This information waspresented in a written report preparedby the Council staff. The proposedquotas for the 2000 Atlantic surf clam,ocean quahog, and Maine mahoganyquahog fisheries are shown here. Allthree quotas would be unchanged fromthe 1999 level.

PROPOSED 2000 SURF CLAM/OCEAN QUAHOG QUOTAS

Fishery 2000 finalquotas (bu)

2000 finalquotas (hL)

Surf clam1 2,565,000 1,366,000Ocean quahog2 4,500,000 2,396,000Maine mahogany quahog2 100,000 35,240

1 1 bushel = 1.88 cubic ft. = 53.24 liters2 1 bushel = 1.2445 cubic ft. = 35.24 liters

Surf Clams

The Council recommended a 2000quota of 2.565 million bu (1.366 millionhL) for surf clams, a level unchangedsince 1995. This level of quota wasestimated as corresponding to the F thatwould be required to harvest the annualsurplus production for Northern NewJersey. The vast majority of the catch(greater than 80 percent) is currentlyderived from the Northern New Jerseyarea, which contains about 36 percent of

the coast-wide resource. Sufficientrecruitment is evident and the agestructure of the population is such thatthis level of quota will not harm thelong-term sustainability of the resource.The F in 1997 associated with a quotaof 2.565 million bu (1.366 million hL)was approximately 0.04 for the NorthernNew Jersey area.

The proposed quota takes intoaccount analysis of surf clam abundancethat was part of the 26th NortheastRegional Stock Assessment Workshop

(SAW 26). SAW 26 utilized data fromthe 1997 surf clam survey, whichincluded work to estimate dredgeefficiency. Although SAW 26 showed asignificant increase in surf clambiomass, the Council chose not torecommend a quota increase for 2000because of three major factors: (1) Thevast majority of the catch (greater than80 percent) continues to be derived fromthe Northern New Jersey area, and thenet productivity of that area appears tobe at an equilibrium with the current



catches; (2) the 1998 Federal surf clamlandings were 8 percent less than the1998 quota and preliminary data for1999 also indicate that landings will bebelow the 1999 quota level; and (3)SAW 26 utilized a host of newtechniques and methodologies, keyamong them being a new dredgeefficiency estimate that resulted in asharp increase in the estimate of surfclam biomass. The differences inmethodology relative to prior workresult in this assessment effectivelyrepresenting a single point estimate intime; hence, it is prudent to take a risk-averse approach to setting the annualquota until more data from differentyears are available using the new dredgeefficiency estimate. A new clam surveyof the continental shelf between CapeHatteras and Georges Bank wasconducted in the summer of 1999, anda stock assessment is to be developedand reviewed at the NMFS-sponsoredStock Assessment Review Committee inDecember 1999. Therefore, the Councildecided to maintain current quotas untilthese additional data are available tocorroborate SAW 26 results.

The Council continues to assume thatnone of the Georges Bank resource(approximately one quarter of the totalresource) will be available during thenext 10 years for harvesting because ofparalytic shellfish poisoning. This areahas been closed to the harvest of clamsand other shellfish since 1989, and theCouncil and NMFS have no reason tobelieve that it will reopen in the nearfuture.

Ocean QuahogsThe Council recommended a 2000

quota of 4.5 million bu (2.396 millionhL) for ocean quahogs. This quotawould be identical to that adopted for1999, but an increase of 13 percent fromthe 1998 quota level. The FMP specifiesthat the quota level must comply withthe ocean quahog overfishing definition.

The 1997 quota yielded an F ofapproximately 0.02 compared to the Fthreshold of 0.04 contained in theoverfishing definition. The specific Fassociated with the 2000 quota will becalculated when the new assessment iscomplete, but is expected to be close tothe F in 1997, because a similarproportion of the biomass remainsunexploited compared to 1997.

The Atlantic surf clam and oceanquahog quotas are specified in standardbushels of 53.24 liters per bushel, whilethe Maine mahogany quahog quota isspecified in ‘‘Maine’’ bushels of 35.24liters per bushel. Because Mainemahogany quahogs are the same speciesas ocean quahogs, both fisheries arecombined and share the same ocean

quahog overfishing definition. When thetwo quota amounts are added, the totalallowable harvest is still lower than thelevel that would result in overfishing forthe entire stock, as previously definedin the ocean quahog overfishingdefinition.

The Council proposed a 2000 oceanquahog quota based on the analysis ofabundance for that species found in the27th Northeast Regional StockAssessment Workshop (SAW 27)concluded in 1998. Similar to surfclams, SAW 27 included work toestimate dredge efficiency and showeda significant increase in the estimate ofocean quahog biomass. Although 30percent of the resource is located onGeorges Bank, SAW 27 did not questionwhether Georges Bank would ever bereopened. However, SAW 27 showedthat using the entire resource, with aharvest level of only 4 million bu (2.130million hL), would produce a supply-year harvest equivalent to 76 years. Thisestimate is significantly longer than theperiod specified in the Council’s policyof at least 30 years. The resource is ofsufficient size overall that theproportion of ocean quahogs that existson Georges Bank is not necessary tomeet the Council’s 30-year supplypolicy.

Although SAW 27 showed that theocean quahog quota could have beenincreased beyond the 1999 quota level,the Council did not recommend anychange for 2000 because of four majorfactors: (1) The 1998 quota was notconstraining to industry; (2) mostindustry members supported the 4.5million bushel (2.396 million hL)harvest level; (3) repeated concern wasexpressed by industry over thecontinued lack of apparent oceanquahog recruitment south of GeorgesBank; and (4) as with surf clams,although SAW 27 utilized newmethodologies and a new dredgeefficiency estimate to derive a sharpincrease in ocean quahog biomass, thisassessment represents only one point intime. As with surf clams, the Councildecided to take no further action on thequota until the additional data areavailable.

The Council recommended that theMaine mahogany quahog quota remainunchanged from the 1999 quota level at100,000 Maine bu (35,240 hL) for 2000.Because management measures for thisfishery have only been in place sinceMay 19, 1998, data from the federallymanaged fishery is just beginning to becompiled. There has been no attemptyet to develop and conduct a scientificsurvey of the extent of the resource.From the information currentlyavailable, maintaining the quota at its

current level for another year will notconstrain the fishery or endanger theresource, because the total quota wasnot harvested and catch-per-unit-of-effort has not changed substantially.

ClassificationThis action is authorized by 50 CFR

part 648 and has been determined to benot significant for purposes of E.O.12866.

The Council prepared an InitialRegulatory Flexibility Analysis insection 5.0 of the RIR that describes theeconomic impacts this proposed rule, ifadopted, would have on small entities.A description of the action, why it isbeing considered, and the legal basis forthis action are contained at thebeginning of this section of thepreamble and in the SUMMARY sectionof the preamble. A summary of thatanalysis follows:

VesselsIn 1998, a total of 47 vessels reported

harvesting surf clams or ocean quahogsfrom Federal waters under an IndividualTransferable Quota (ITQ) system.Average 1998 gross income for surf clamharvests was $650,919 per vessel, and$685,573 per vessel for ocean quahogharvests. In the small artisanal fisheryfor ocean quahogs in Maine, 39 vesselsreported harvests in the clam logbooks,with an average value of $48,629 perboat. All of these vessels readily fallwithin the definition of a smallbusiness. The Council recommends nochange in the 2000 quotas for surfclams, ocean quahogs, or mahoganyquahogs from their present 1999 quotasof 2.656, 4.500, and 0.100 millionbushels, respectively. Since 1998harvest levels of 2.365, 3.897, 0.082million bushels, for surf clams, oceanquahogs, and mahogany quahogs,respectively, are below the 2000proposed quotas and the Councilassumes no changes in fishing effort oryield-to-effort will take place in 1999,the Council believes that the 2000proposed quotas will yield a surplusquota available to vessels participatingin all three fisheries. In the case of asurplus quota, vessels would not beconstrained from harvesting additionalproduct, thus, increasing revenues. Thisassumes that the demand for theseshellfish is price elastic and vesselswould equally share in increases ordecreases to total revenues earned bythe fishery.

The Council analyzed 4 ocean quahogquota alternatives, in addition to thepreferred, for including 4.000, 4.250,4.750, and 6.000 million bushels. Theminimum allowable quota specified inthe current OY range is 4.0 million



bushels of ocean quahogs. Adoption ofthis quota would represent a 12%decrease from the current 4.5 millionbushel quota, and, assuming the entirequota is harvested, a 2.6-percentincrease in harvest from the 1998harvest level of 3.897 million bushels.This alternative would take the mostconservative approach to managing thefishery that is currently available to theCouncil. Adopting the maximumallowable quota of 6.000 million bushelsfor ocean quahogs would represent a 33-percent increase in allowable harvestand a 54% increase in landings from1998 assuming all the quota is taken.The industry does not have a marketavailable to absorb such a massiveincrease in landings and may not havethe vessel capacity necessary to harvesta quota this large. (Two of the mostproductive ocean quahog vessels sank inJanuary 1999, and have not beenreplaced). Since all alternatives wouldyield increases, the same result as in thecase of preferred alternative, namelyincreased revenues, would be likely tooccur.

The Council identified 4 surf clamquota alternatives in addition to thepreferred alternative including 1.850,2.365, 2.700, 3.400. The minimumallowable quota specified in the currentOY range is 1.850 million bushels ofsurf clams. Adoption of this quotawould represent a 28-percent decreasefrom the current 2.565 million bushelquota, and a 22-percent decrease fromthe 1998 harvest level of 2.365 millionbushels. Assuming that demand is priceelastic, a reduction in quota of thismagnitude would have a substantiallynegative impact on overall exvesselrevenues. Adoption of the 2.365 million

bushel quota would most likely have noimpact on small entities since it isidentical to 1998 base year landings of2.365 million bushels. Adopting themaximum allowable quota of 3.40million bushels for surf clams wouldallow for a 33-percent increase inharvest. Other alternatives could yieldincreases in revenues, but are not likely,because the quota has not been reachedover the last few years. In summation,the Council determined that the onlyalternative that would negatively impactrevenues to vessels is the 1.850–million-bushel alternative for surf clams. Allother alternatives including thepreferred, would have a positive impacton revenues.

The quota for mahogany quahogs isspecified at 100,000 bushels and theFMP specifies that adjustments to thequota would require a stock assessmentof the mahogany quahog resource. Sincenone has been done, the Council did notlook at alternative quotas for thisfishery. However, in general, any quotathe Council would have specified belowthe 1998 landing level of 72,466 bushelswould most likely cause a decrease inrevenues to individual vessels while aquota greater than that level could causean increase. However, this is unlikely,given recent landings values for thisfishery.

ProcessorsNine to twelve processors participate

in the surf clam and ocean quahogfisheries. However, 3 firms areresponsible for the vast majority ofpurchases in the exvessel market andsale of processed clam products inappropriate wholesale markets. Impactsto surf clams and ocean quahogprocessors would most likely mirror the

impacts of the various quotas to vesselsas discussed here. Revenues earned byprocessors would be derived from thewholesale market for clam products,and since a large number of substituteproducts (i.e., other food products) areavailable, the demand for processedclam products is likely to be priceelastic and revenues would increase ordecrease with changes in price.

Allocation Holders

In 1999, surf clam allocation holderstotaled 107 while 64 firms orindividuals held ocean quahogallocation. If the recommended quotasare accepted, i.e., no change from 1999,it is likely that impacts to allocationholders or buyers will be minimal.Theoretically, increases in quota wouldmost likely benefit those who mustpurchase quota through lower prices(values) and negatively impact sellers ofquota because it would reduce in value.Decreases in quota would most likelyhave an opposite effect.

Reporting and RecordkeepingRequirements

This proposed rule would not imposeany new reporting, recordkeeping, orother compliance requirements.Therefore, the costs of compliancewould remain unchanged.

The RIR/IRFA is available from NMFS(see ADDRESSES).

Authority: 16 U.S.C. 1801 et. seq.



This section of the FEDERAL REGISTERcontains documents other than rules orproposed rules that are applicable to thepublic. Notices of hearings and investigations,committee meetings, agency decisions andrulings, delegations of authority, filing ofpetitions and applications and agencystatements of organization and functions areexamples of documents appearing in thissection.

Notices Federal Register

279

Vol. 65, No. 2


COMMISSION ON CIVIL RIGHTS

Agenda and Notice of Public Meetingof the South Carolina AdvisoryCommittee

Notice is hereby given, pursuant tothe provisions of the rules andregulations of the U.S. Commission onCivil Rights, that a meeting of the SouthCarolina Advisory Committee to theCommission will convene at 1:00 p.m.and adjourn at 5:00 p.m. on January 19,2000, at the Adam’s Mark Hotel, 1200Hampton Street, Columbia, SouthCarolina 29201. The purpose of themeeting is to discuss with the StateSuperintendent of Schools or herrepresentative, the progress of theimplementation of the South CarolinaEducation Accountability Act of 1998.

Persons desiring additionalinformation, or planning a presentationto the Committee, should contact BobbyD. Doctor, Director of the SouthernRegional Office, 404–562–7000 (TDD404–562–7004). Hearing-impairedpersons who will attend the meetingand require the services of a signlanguage interpreter should contact theRegional Office at least ten (10) workingdays before the scheduled date of themeeting.

The meeting will be conductedpursuant to the provisions of the rulesand regulations of the Commission.

Dated at Washington, DC, December 27,1999.

Ruby G. Moy,Staff Director.[FR Doc. 99–34020 Filed 12–27–99; 4:50 pm]

BILLING CODE 6335–01–U


International Trade Administration

[A–122–601]

Notice of Amended Final Results ofAntidumping Duty AdministrativeReview: Brass Sheet and Strip FromCanada

AGENCY: Import Administration,International Trade Administration,Department of Commerce.ACTION: Notice of Amended FinalResults of Antidumping DutyAdministrative Review.

EFFECTIVE DATE: January 4, 2000.FOR FURTHER INFORMATION CONTACT:Paige Rivas or James Terpstra, Office ofAntidumping/Countervailing DutyEnforcement, Office Four, Group II,Import Administration, InternationalTrade Administration, U.S. Departmentof Commerce, 14th Street andConstitution Avenue, NW., Washington,DC 20230; telephone: (202) 482–0651 or482–3965, respectively.

Applicable Statute and RegulationsUnless otherwise stated, all citations

to the Tariff Act of 1930, as amended(the Act) are references to the provisionseffective January 1, 1995, the effectivedate of the amendments made to the Actby the Uruguay Round Agreements Act(URAA). In addition, unless otherwiseindicated, all references to theDepartment’s regulations are to 19 CFRpart 351 (1998).

Amendment to Final ResultsOn August 9, 1999, the Department

determined that sales of brass sheet andstrip from Canada were made at lessthan normal value during the 1997period of review. This review coversone respondent, Wolverine Tube Inc.(Wolverine). See Brass Sheet and Stripfrom Canada: Final Results ofAntidumping Duty AdministrativeReview and Notice of Intent Not ToRevoke Order in Part, 64 FR 46344(August 25, 1999).

On August 18, 1999, the petitioners,(Hussey Copper, Ltd.; The MillerCompany; Olin Corporation; RevereCopper Products, Inc.; InternationalAssociation of Machinists andAerospace Workers; InternationalUnion-Allied Industrial Workers ofAmerica (AFL–CIO); MechanicsEducational Society of America (Local

56), and United Steelworkers ofAmerica), timely filed an allegation thatthe Department had made severalclerical errors in the final margincomputer program. Petitionersrequested that we correct the errors andpublish a notice of amended finaldetermination in the Federal Register.See 19 CFR 351.224(e). Petitioners’submission alleges the following errors:

• The Department overstated thereduction to Wolverine’s cost ofmanufacture to eliminate potentialdouble-counting of Wolverine’swarranty expense. This reduction toWolverine’s cost of manufactureoccurred when the Department agreedwith Wolverine’s claim that ‘‘a portionof the warranty expenses associatedwith the manufacturing costs of re-working defective merchandise isalready included in the reported COPand that the inclusion of such costs inwarranty expenses would result indouble-counting.’’ See Final ResultsAnalysis Memo, EleventhAdministrative Review 1/1/97–12/31/97(‘‘Analysis Memo’’) at 4. As a result, theDepartment reduced ‘‘the reported COPexpenses to account for these costs’’ to‘‘avoid double counting.’’ Id. Accordingto petitioners, the overstatement of thereduction to Wolverine’s cost ofmanufacture occurred because theDepartment calculated an adjustmentfactor by dividing Wolverine’s totalvariable warranty expense byWolverine’s total labor and overheadcosts (excluding the cost of materials),and applied this adjustment factor toWolverine’s total cost of manufacture(including cost of materials). Theadjustment factor derived fromWolverine’s labor and overhead costsshould have been applied only toWolverine’s total labor and overheadcosts to yield the correct amount of theadjustment to Wolverine’s total cost ofmanufacture. Instead, the Departmentapplied the adjustment factor to the sumof fabrication cost and metal cost in itsfinal margin calculation program andoverstated the reduction to Wolverine’scost of manufacture.

• The Department failed to correct awidth for one of Wolverine’s U.S. salesthat the Department acknowledged in itsFinal Results of Review to be incorrect.See 64 FR at 46345 (Comment 2).

• The Department failed to include inits final margin program the exchangelosses associated with its accounts

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280 Federal Register / Vol. 65, No. 2 / Tuesday, January 4, 2000 / Notices

payable and reported in the newcomputer field EXCHNG provided byWolverine to the Department on March25, 1999. Petitioner states that theDepartment should add the computerfield EXCHNG to the revised cost ofproduction (RCOP). Wolverine added anew computer field EXCHNG to its COPand CV databases for exchange lossesassociated with its accounts payable toinclude additional costs that were notreported in the original computer fieldTOTCOM. Wolverine did include theseadditional costs in the computer fieldfor revised TOTCOM (RTOTCOM).However, because the Departmentstarted its cost calculations using theoriginal computer field TOTCOM, theadditional costs included in EXCHNGwere not included in the Department’sfinal margin analysis.

Wolverine did not comment on theclerical error allegations.

After reviewing the petitioners’allegations, we have determined, inaccordance with 19 CFR 351.224, thatthe final results includes the above-mentioned clerical errors. Therefore, inaccordance with 19 CFR 351.224(e), weare amending the final results of theantidumping duty review of brass sheetand strip from Canada. The reviseddumping margin is listed below.

Exporter/producer Marginpercentage

Wolverine ................................ 0.83

In addition, we note that theassessment instructions in the originalfinal results of review misstated the wayin which the assessment rates werecalculated. Therefore, this amendedfinal results of review provides thecorrected formulation given below.

The Department shall determine, andthe U.S. Customs Service (Customs)shall assess, antidumping duties on allappropriate entries. We will issueimporter-specific appraisementinstructions to Customs. For assessmentpurposes, we have calculated importer-specific ad valorem duty assessmentrates for the merchandise based on theratio of the total amount of dumpingduties calculated for the examined salesto the entered value of sales used tocalculate those duties. This noticeserves as a final reminder to importersof their responsibility under 19 CFR351.402(f) to file a certificate regardingthe reimbursement of antidumpingduties prior to liquidation of therelevant entries during this reviewperiod. Failure to comply with thisrequirement could result in theSecretary’s presumption thatreimbursement of antidumping duties

occurred and the subsequent assessmentof doubled antidumping duties.

We are issuing and publishing thisdetermination in accordance withsection 751(a)(1) of the Act (19 U.S.C.1675(a)(1)), 19 CFR 351.213, and 19 CFR351.221(b)(5).

Dated: December 27, 1999.Holly A. Kuga,Acting Assistant Secretary for ImportAdministration.[FR Doc. 00–28 Filed 1–3–00; 8:45 am]BILLING CODE 3510–DS–P



[A–122–047]

Elemental Sulphur From Canada:Extension of Time Limit for FinalResults of the Antidumping DutyAdministrative Review

AGENCY: Import Administration,International Trade Administration,Department of Commerce.ACTION: Notice of extension of time limitfor final results of antidumping dutyadministrative review.

SUMMARY: The Department of Commerce(‘‘the Department’’) is extending thetime limit for the final results of thereview of elemental sulphur fromCanada. This review covers the periodDecember 1, 1997 through November30, 1998.DATE EFFECTIVE: January 4, 2000.FOR FURTHER INFORMATION CONTACT: RickJohnson at (202) 482–3818; Office ofAD/CVD Enforcement, Group III, Office9, Import Administration, InternationalTrade Administration, U.S. Departmentof Commerce, 14th Street andConstitution Avenue, NW, Washington,DC 20230.

The Applicable Statute

Unless otherwise indicated, allcitations to the statute are references tothe provisions effective January 1, 1995,the effective date of the amendmentmade to the Tariff Act of 1930 (the Act)by the Uruguay Round Agreements Act(URAA).

Postponement of Final Results

The Department has determined thatit is not practicable to issue its finalresults of the administrative reviewwithin the original time limit ofDecember 31, 1999. See DecisionMemorandum from Joseph A. Spetrini,Deputy Assistant Secretary,Enforcement Group III to RobertLaRussa, Assistant Secretary for Import

Administration. Therefore, theDepartment is extending the time limitfor completion of the final results untilJanuary 21, 2000, in accordance withSection 751(a)(3)(A) of the Act.

Dated: December 22, 1999.Richard O. Weible,Acting Deputy Assistant Secretary for AD/CVD Enforcement Group III.[FR Doc. 00–29 Filed 1–3–00; 8:45 am]BILLING CODE 3570–DS–P



[A–580–825]

Oil Country Tubular Goods FromKorea: Notice of Recission ofAntidumping Duty AdministrativeReview

AGENCY: Import Administration,International Trade Administration,Department of Commerce.ACTION: Notice of Recission ofAntidumping Duty AdministrativeReview.

SUMMARY: In response to a request fromrespondents, the Department ofCommerce (‘‘the Department’’) initiatedan administrative review of SeAH SteelCorporation, Ltd. (‘‘SeAH’’), on October1, 1999. The review covered onemanufacturer/exporter of the subjectmerchandise to the United States, SeAHand its U.S. sales subsidiaries (PusanPipe America, Inc. and State Pipe &Supply Co.). The period of review isAugust 1, 1998 through July 31, 1999.The Department received a request forwithdrawal on December 3, 1999 fromrespondent. In accordance with 19 CFR351.213(d)(1), the Department is nowterminating this review because therespondent has withdrawn its requestfor review and no other interestedparties have requested a review.EFFECTIVE DATE: January 4, 2000.FOR FURTHER INFORMATION CONTACT:Jonathan Lyons, Import Administration,International Trade Administration,U.S. Department of Commerce, 14thStreet and Constitution Avenue, N.W.,Washington, D.C. 20230; telephone(202) 482–0374.SUPPLEMENTARY INFORMATION:

The Applicable Statute and Regulations

Unless otherwise indicated, allcitations to the statute are references tothe provisions of the Tariff Act of 1930,as amended by the Uruguay RoundAgreements Act (URAA) effectiveJanuary 1, 1995 (the Act). In addition,unless otherwise indicated, all citations

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281Federal Register / Vol. 65, No. 2 / Tuesday, January 4, 2000 / Notices

to the Department’s regulations are tothe current regulations as codified at 19CFR part 351 (1998).

Background

On August 11, 1995, the Departmentpublished in the Federal Register (60FR 41058) the antidumping duty orderon oil country tubular goods fromKorea. The Department of Commercepublished in the Federal Register anotice of ‘‘Opportunity To RequestAdministrative Review’’ of theantidumping duty order for the 1998–1999 review period on August 11, 1999(64 FR 43649). On August 31, 1999,SeAH requested an administrativereview for its entries during the 1998–1999 period of review. No otherinterested party requested review of thisantidumping duty order. On October 1,1999, in accordance with Section 751 ofthe Act, the Department initiated thereview (64 FR 53318). On December 3,1999 respondent withdrew its requestfor review.

Section 19 CFR 351.213(d)(1) of theDepartment’s regulations stipulates thatthe Secretary may permit a party thatrequests a review to withdraw therequest not later than 90 days after thedate of publication of the notice ofinitiation of the requested review. Inthis case, respondent has withdrawn itsrequest for review within the 90-dayperiod. No other interested partyrequested a review and we havereceived no other submissions regardingrespondent’s withdrawal of its requestfor review. Therefore, we areterminating this review of theantidumping duty order on oil countrytubular goods from Korea.

This notice is published inaccordance with section 751 of the Actand section 19 CFR 351.213(d)(1) of theDepartment’s regulations.

Dated: December 28, 1999.Richard O. Weible,Acting Deputy Assistant Secretary for ImportAdministration.[FR Doc. 00–97 Filed 1–3–00; 8:45 am]BILLING CODE 3510–DS–P



[A–201–504]

Final Results of Full Sunset Review:Porcelain-on-Steel Cooking Ware FromMexico

AGENCY: Import Administration,International Trade Administration,U.S. Department of Commerce.

ACTION: Notice of Final Results of FullSunset Review: Porcelain-on-SteelCooking Ware from Mexico.

SUMMARY: On August 26, 1999, theDepartment of Commerce (‘‘theDepartment’’) published a notice ofpreliminary results of the full sunsetreview of the antidumping duty orderon porcelain-on-steel cooking ware fromMexico pursuant to section 751(c) of theTariff Act of 1930, as amended (‘‘theAct’’). We provided interested parties anopportunity to comment on ourpreliminary results. We receivedcomments from both domestic andrespondent interested parties. As aresult of this review, the Departmentfinds that revocation of this order wouldbe likely to lead to continuation orrecurrence of dumping at the levelsindicated in the Final Results of Reviewsection of this notice.FOR FURTHER INFORMATION CONTACT:Martha V. Douthit or Melissa G.Skinner, Office of Policy for ImportAdministration, International TradeAdministration, U.S. Department ofCommerce, 14th Street and ConstitutionAvenue, NW, Washington, D.C., 20230,telephone: (202) 482–5050 or (202) 482–1560, respectively.EFFECTIVE DATE: January 4, 2000.

Statute and RegulationsThis review was conducted pursuant

to sections 751(c) and 752 of the Act.The Department’s procedures for theconduct of sunset reviews are set forthin Procedures for Conducting Five-year(‘‘Sunset’’) Reviews of Antidumping andCountervailing Duty Orders, 63 FR13516 (March 20, 1998) and 19 CFR Part351 (1999) in general. Guidance onmethodological or analytical issuesrelevant to the Department’s conduct ofsunset reviews is set forth in theDepartment’s Policy Bulletin 98:3—Policies Regarding the Conduct of Five-year (‘‘Sunset’’) Reviews ofAntidumping and Countervailing DutyOrders: Policy Bulletin, 63 FR 18871(April 16, 1998) (‘‘Sunset PolicyBulletin’’).

ScopeThe merchandise subject to this

antidumping duty order is porcelain-on-steel cooking ware (‘‘POS cookingware’’) from Mexico, which includes teakettles, that do not have self-containedelectric heating elements. All of theforegoing are constructed of steel andare enameled or glazed with vitreousglasses. This merchandise is currentlyclassifiable under Harmonized TariffSchedule of the United States(‘‘HTSUS’’) subheading 7323.94.00.Kitchenware currently entering under

HTSUS subheading 7323.94.00.30 is notsubject to the order. Although theHTSUS subheadings are provided forconvenience and customs purposes, ourwritten description of the scope of theorder remains dispositive.

BackgroundOn August 26, 1999, the Department

published in the Federal Register (64FR 46651) the Preliminary Results ofFull Sunset Review: Porcelain-on-SteelCooking Ware from Mexico,(‘‘Preliminary Results’’). In thePreliminary Results, we found thatrevocation of the order would likelyresult in the continuation or recurrenceof dumping. In addition, wepreliminarily determined that themagnitude of the margin of dumpinglikely to prevail if the order wererevoked was 42.71 percent for Cinsa,S.A. (‘‘Cinsa’’), 129.40 percent forEsmaltaciones de Norte America, S.A.de C.V. (‘‘ENASA’’), and 29.52 percentfor ‘‘all others.’’

On October 12, 1999, within thedeadline specified in 19 CFR351.309(c)(1)(i), we received commentson behalf of Cinsa and ENASA(collectively, ‘‘the respondents’’). OnOctober 12, 1999, within the deadlinespecified in 19 CFR 351.309(d)(1), wereceived rebuttal comments fromColumbian Home Products (‘‘CHP’’), thedomestic interested party in this review.We have addressed the commentsreceived below.

CommentsComment 1: The respondents assert

that, in the amended final results of theeleventh administrative review, theDepartment’s presumption that dutieswere being absorbed fails to meet therequirement that the Department carryout a meaningful analysis of whetherantidumping duties are absorbed. Therespondents assert that if in dutyabsorption inquiries the Departmentneed not actually analyze absorptionbut, rather, may simply presume it fromthe existence of dumping alone, thestatute’s duty absorption provisions arerendered superfluous. Additionally, therespondents assert that the Department’spresumption is, in effect, impossible torebut. Therefore, the respondents arguethat application of the duty absorptionmethodology to calculate Cinsa’s andENASA’s likely margins if the orderwere revoked is contrary to law.

In its rebuttal comments CHP arguesthat Cinsa and ENASA did notchallenge the Department’s dutyabsorption determination in either theircase brief on the Department’spreliminary results of the eleventhadministrative review nor in their



appeal of the final results of that reviewto a binational panel. Therefore, CHPargues that the Department’s dutyabsorption determination in theeleventh administrative review is finaland cannot be disturbed. CHP arguesthat this argument is untimely andshould be rejected because theDepartment does not have the authorityto make duty absorption determinationsin a sunset review. Additionally, CHPargues that the respondent’s challengeto the Department’s use of a rebuttablepresumption in making a determinationof duty absorption is without merit.CHP argues that the Department haspreviously considered exactly this sameargument, in the course ofadministrative reviews where it hasproperly been raised, and has rejected it.Further, CHP asserts that given that theduty absorption provision was enactedlong before the beginning of theeleventh administrative review, therespondents had ample opportunity toaddress the issue of duty absorption andto develop evidence demonstrating thatduty absorption was not occurring. Inconclusion, CHP argues that theDepartment’s duty absorptiondetermination in the eleventh review isfinal and cannot be changed in thesunset review. Further, under thestatute, the Department must report theduty absorption determination to theCommission.

DOC Position: We agree with CHP thatduty absorption determinations aremade in the context of administrativereviews. Additionally, we agree withCHP that the appropriate forum forchallenging the duty absorptiondetermination made in the course of theeleventh administrative review wouldhave been in case briefs and/ or post-final challenges with respect to theadministrative review. As we explainedin the Sunset Policy Bulletin, theDepartment will provide to theCommission, on a company-specificbasis, its findings regarding dutyabsorption (see section II.B.3.a).Therefore, in this final results of fullsunset review we are reporting to theCommission the affirmative findings ofduty absorption made by theDepartment in the amended reviewresults of the eleventh administrativereview.

Comment 2: The respondents arguethat even if the Department’s dutyabsorption methodology is lawful, itsapplication is not appropriate in thiscase. Rather, for the purposes of thefinal results of this sunset review, theDepartment should report margins inaccordance with its normalmethodology—using margins found inthe original investigation. The

respondents elaborate that in theeleventh review, Cinsa’s and ENASA’smargins were calculated inclusive of anadjustment to account for allegedreimbursement of antidumping duties, adetermination which they are currentlychallenging. They assert that in the finalresults of the eleventh administrativereview the Department determined thatreimbursement of antidumping dutiesowed by the affiliated U.S. importertook place, and the Department adjustedCinsa’s and ENASA’s EP and CEP toeffectively double the antidumping dutyliability of the U.S. importer. Therefore,they argue that an additional adjustmentto these margins—which have alreadybeen doubled due to reimbursement toaccount for duty absorption—result inimpermissible double counting. Therespondents argue that, in order to avoidthe effects of impermissible doublecounting, the Department may reporteither (1) the margins calculated in theoriginal investigation or (2) the marginscalculated in the final results of theeleventh administrative reviewunadjusted for the allegedreimbursement of antidumping duties,but subject to the duty absorptionmethodology.

CHP, in its rebuttal comments, cites tothe Sunset Policy Bulletin, and arguesthat because the Department made anaffirmative determination of dutyabsorption in the administrative reviewof this order that was initiated in 1998,Department correctly applied its policyin the preliminary results of this sunsetreview. Additionally, CHP argues thatthe Department should reject therespondents’ argument because therespondents inappropriately equate theDepartment’s reimbursement regulationwith the duty absorption provision ofthe statute with respect to both thepurposes of the different provisions andthe means of achieving the purposes.Specifically, CHP asserts that thereimbursement regulation is intended toaddress the relationship between theexporter and its U.S. importer (affiliatedor unaffiliated) and provide a remedywhen there is evidence that the exporterhas reimbursed the U.S. importer forantidumping duties. The dutyabsorption provision, in contrast, isintended to address the relationshipbetween an affiliated U.S. importer andits unaffiliated customers in the UnitedStates. CHP further asserts that dutyreimbursement and duty absorption areseparate problems with separateremedies. With respect toreimbursement, the exporter wouldcease transfers of funds to the importerto pay the antidumping duties, and theimporter would demonstrate that it can

satisfy its antidumping obligationswithout such assistance. Whereas, withrespect to duty absorption, the affiliatedU.S. importer would demonstrate that itpassed the cost of antidumping dutiesthrough to its unaffiliated U.S.customers. Additionally, citing to theStatement of Administrative Action(‘‘the SAA’’) H.R. Doc. No. 103–316,Vol. 1 (1994), at 885–886, CHP arguesthat the SAA explicitly recognizes thedifferent and mutually exclusivepurposes of the duty absorption andreimbursement provisions. Arguing thatreimbursement and duty absorption canoccur independently of one another,CHP states that the respondentsprovided no reason why there could notbe reimbursement of antidumpingduties and duty absorption with respectto the same sales and, absent suchevidence, the Department mustconclude that both did occur. CHPargues that, if the Departmentdetermines that it may not adjust thefinal margins from the eleventh reviewto account for duty absorption under thetheory that these margins have alreadybeen adjusted to reflect duty absorption,in the alternative, the Departmentshould report the margins from theeleventh administrative review as themargins likely to prevail should theorder be revoked.

DOC Position: In the Sunset PolicyBulletin the Department explained that,where duty absorption had been foundin an administrative review initiated in1998 (for transition orders), theDepartment normally will determinethat a company’s current dumpingmargin is not indicative of the marginlikely to prevail if the order is revokedand will provide to the Commission thehigher of the margin that theDepartment otherwise would havereported to the Commission or the mostrecent margin for that company adjustedto account for findings on dutyabsorption. The Department cited to theSAA at 885, and the House Report, H.R.Rep. No. 103–826, pt. 1 (1994), at 60,which provide that duty absorption is astrong indicator that the currentdumping margins calculated by theDepartment in reviews may not beindicative of the margins that wouldexist in the absence of an order. Afterthe revocation of an order, an importercould achieve the same pre-revocationreturn on its sales by lowering its pricesin the United States in the amount ofthe duty that previously was beingabsorbed. Additionally, the SenateReport, S. Rep. No. 103–412 (1994), at50, suggests that the Department’snotification to the Commission of itsfindings on duty absorption should



1 See Porcelain-on-Steel Cookware From Mexico:Preliminary Results of Antidumping DutyAdministrative Review, 64 FR 1592 (January 11,1999), Porcelain-on-Steel Cookware From Mexico:Final Results of Antidumping Duty AdministrativeReview, 64 FR 26934 (May 18, 1999), and Porcelain-on-Steel Cookware From Mexico: Amended FinalResults of Antidumping Duty AdministrativeReview, 64 FR 29262 (June 1, 1999).

include, to the extent practicable, someindication of the magnitude of theabsorption.

Based on our analysis of theweighted-average dumping marginsdetermined in the investigation andsubsequent reviews and the volume ofimports of the subject merchandise forthe period before and the period afterthe issuance of the order, wepreliminarily determined that we wouldnormally determine that the marginscalculated in the original investigationbest reflect the behavior of producers/exporters without the discipline of theorder (64 FR 46651). However, we notedthat consistent with the Sunset PolicyBulletin, we were adjusting the mostrecent margin to account for dutyabsorption findings and, because theadjusted margins for Cinsa and ENASAare higher than the rates from theoriginal investigation, we would reportthe adjusted rates as the margins likelyto prevail were the order revoked. Id.

In light of the comments received, wehave reconsidered our preliminarydetermination with respect to themagnitude of the margin likely toprevail should the order be revoked.While we agree with CHP that dutyreimbursement and duty absorption areseparate problems with separateremedies, we also agree with therespondents that, in this case, our statedpolicy of adjusting the margin to takeinto account the findings on dutyabsorption may result in anoverestimation of the margin likely toprevail were the order revoked.Specifically, having determined dutyreimbursement, for the purpose ofcalculating the export price and theconstructed export price in the eleventhreview, the Department deducted fromthe starting price the amount ofantidumping duties reimbursed to CICby Cinsa and ENASA.1 This deductionfor reimbursed duties had the effect ofincreasing the weighted-average marginsfound during the administrative review.The Department also found that bothCinsa and ENASA made all of theirsales of the subject merchandise to theUnited States through an importer thatis affiliated within the meaning ofsection 751(a)(4) of the Act. Because wedetermined that there was a dumpingmargin on 68.03 percent of Cinsa’s U.S.sales during the period of review and on

98.52 percent of ENASA’s sales duringthe period of review, we found thatantidumping duties had been absorbedby the respondents on those percent ofsales, respectively. Id. As noted above,although we agree that reimbursementand absorption may occur with respectto the same sales, because of the effectof consideration of reimbursement onthe margin, we do not agree that theentire margin is absorbed such that weshould double the margins calculatedinclusive of reimbursement. We agreewith CHP that it is not appropriate torecalculate margins from the eleventhadministrative review in order toeliminate the effect of reimbursement.Rather, we believe that the calculationin the eleventh administrative reviewfor reimbursement effectivelyapproximates the calculation we wouldmake to account for duty absorption.Therefore, consistent with the SunsetPolicy Bulletin, for purposes ofdetermining the magnitude of themargin likely to prevail, we consideredthe margins from the originalinvestigation (i.e., the margins wewould otherwise report to theCommission) and the margins from theeleventh review. As provided in sectionII.B.3.b, where we have found dutyabsorption, we normally will report tothe Commission the higher of themargin that the Department otherwisewould have reported to the Commissionor the most recent margin for thatcompany adjusted to account forfindings on duty absorption. Becausethe margins as calculated in theeleventh review are higher than thosefrom the original investigation, we arereporting those as the magnitude of themargin likely to prevail were the orderrevoked.

Final Results of Review

As a result of this review, theDepartment finds that revocation of theantidumping duty order would be likelyto lead to continuation or recurrence ofdumping for the reasons set forth in thePreliminary Results. Additionally, asdiscussed in the Preliminary Resultsand above, we find that during theadministrative review covering theperiod December 1, 1986 throughNovember 20, 1997, antidumping dutieswere absorbed by Cinsa on 68.03percent of its U.S. sales of subjectmerchandise and by ENASA on 98.52percent of its U.S. sales of subjectmerchandise. Furthermore, for thereasons set forth in the PreliminaryResults and as discussed above, we findthat the magnitude of the margins likelyto prevail if the order were revoked areas follows: 25.42 percent for Cinsa,

65.28 percent for ENASA, and 29.52percent for ‘‘all others.’’

This notice serves as the onlyreminder to parties subject toadministrative protective order (‘‘APO’’)of their responsibility concerning thedisposition of proprietary informationdisclosed under APO in accordancewith 19 CFR 351.305 of theDepartment’s regulations. Timelynotification of return/destruction ofAPO materials or conversion to judicialprotective order is hereby requested.Failure to comply with the regulationsand the terms of an APO is asanctionable violation.

This five-year (‘‘sunset’’) review andnotice are in accordance with section751(c), 752, and 777(i)(1) of the Act.

Dated: December 28, 1999.Holly Kuga,Acting Assistant Secretary for ImportAdministration.[FR Doc. 00–98 Filed 1–3–00; 8:45 am]BILLING CODE 3510–DS–P



[A–570–832]

Pure Magnesium From the People’sRepublic of China: Recission ofAntidumping Duty AdministrativeReview

AGENCY: Import Administration,International Trade Administration,Department of Commerce.ACTION: Notice of Rescission ofAntidumping Duty AdministrativeReview

SUMMARY: On June 30, 1999, theDepartment of Commerce published inthe Federal Register a noticeannouncing the initiation of anadministrative review of theantidumping duty order on puremagnesium from the People’s Republicof China for one producer/exporter ofpure magnesium from People’s Republicof China, Taiyuan East-UnitedMagnesium Company Ltd., covering theperiod May 1, 1998, through April 30,1999. The Department of Commercereceived a request for withdrawal of thisreview from RossboroughManufacturing Company, a U.S.importer of subject merchandise, whorequested the review. In accordancewith 19 CFR 351.213(d)(1), theDepartment of Commerce is nowterminating this review because theimporter has withdrawn its request forreview and no other interested partieshave requested a review.EFFECTIVE DATE: January 4, 2000.



FOR FURTHER INFORMATION CONTACT:David J. Goldberger Office 2, AD/CVDEnforcement Group I, ImportAdministration, International TradeAdministration, U.S. Department ofCommerce, 14th and ConstitutionAvenue, N.W., Washington, D.C. 20230;telephone: (202) 482–4136.SUPPLEMENTARY INFORMATION:

Applicable Statute and RegulationsUnless otherwise indicated, all

citations to the Tariff Act of 1930, asamended, are to the provisions effectiveJanuary 1, 1995, the effective date of theamendments made to the Tariff Act bythe Uruguay Round Agreements Act(URAA). In addition, unless otherwiseindicated, all citations to theDepartment of Commerce’s (theDepartment’s) regulations are to 19 CFRPart 351 (1998).

BackgroundThe Department published in the

Federal Register on May 19, 1999, a‘‘Notice of Opportunity to RequestAdministrative Review’’ of theantidumping duty order on puremagnesium from the People’s Republicof China (‘‘PRC’’). On May 28, 1999,Rossborough Manufacturing CompanyL.P. (‘‘Rossborough’’), a U.S. importer,requested that the Department conductan administrative review of theantidumping duty order on puremagnesium from the PRC produced/exported by Taiyuan East-UnitedMagnesium Company Ltd. for the periodMay 1, 1998, through April 30, 1999.

On June 30, 1999, the Departmentinitiated an administrative review (64FR 35124). On August 5, 1999, theDepartment sent a questionnaire to thePRC Department of Treaty and Law,Ministry of Foreign Trade and EconomicCooperation to be transmitted toTaiyuan East-United MagnesiumCompany Ltd. On December 22, 1999,Rossborough withdrew its request for areview.

Section 19 CFR 351.213(d)(1) of theDepartment’s regulations provides thatthe Secretary may permit a party thatrequests a review to withdraw therequest within 90 days after the date ofpublication of the notice of initiation ofthe requested review. The regulationalso states that the Secretary may extendthis time limit if the Secretary decidesthat it is reasonable to do so. In thiscase, although the importer haswithdrawn its request for a review morethan 90 days from the date of initiation,because the Department has not yetdevoted considerable time andresources to this proceeding, theDepartment has determined that it isreasonable to extend the time limit for

Rossborough’s withdrawal of its requestfor a review. Moreover, no otherinterested party requested a review andwe have received no commentsregarding Rossborough’s withdrawal ofits request for a review. Therefore, weare terminating this review of theantidumping duty order on puremagnesium from the PRC. This notice ispublished in accordance with section751 of the Act and section 19 CFR351.213(d)(1) of the Department’sregulations.

Dated: December 23, 1999.Richard W. Moreland,Acting Assistant Secretary for ImportAdministration.[FR Doc. 00–27 Filed 1–3–00; 8:45 am]BILLING CODE 3510–DS–P



Application for Duty-Free Entry ofScientific Instrument

Pursuant to Section 6(c) of theEducational, Scientific and CulturalMaterials Importation Act of 1966 (Pub.L. 89–651; 80 Stat. 897; 15 CFR part301), we invite comments on thequestion of an instrument of equivalentscientific value, for the purposes forwhich the instrument shown below isintended to be used, is beingmanufactured in the United States.

Comments must comply with 15 CFR301.5(a)(3) and (4) of the regulations andbe filed within 20 days with theStatutory Import Programs Staff, U.S.Department of Commerce, Washington,D.C. 20230. Application may beexamined between 8:30 A.M. and 5:00P.M. in Room 4211, U.S. Department ofCommerce, 14th Street and ConstitutionAvenue, N.W., Washington, D.C.

Docket Number: 99–033. Applicant:Ames Laboratory, U.S. Department ofEnergy, 211 TASF, Iowa StateUniversity, Ames, IA 50011–3020.Instrument: UHV Surface AnalysisSystem, Model Multiprobe S.Manufacturer: Omicron Vakuum PhysikGmbH, Germany. Intended Use: Theinstrument is intended to be used forthe characterization and fundamentalsurface structural studies of a class ofintermetallic materials known asquasicrystals. The objectives of theresearch will include the following: (1)To determine the near-atomic levelstructure of the clean surfaces of avariety of quasicrystalline materials as afunction of surface preparation, (2) Toascertain if any of the surfacepreparation methods affect single phasesamples to such a degree that they

become multiphase, (3) To determinemetal film growth characteristics whendeposited on quasicrystalline substratesand (4) To determine the effect oftypical environmental gases on surfacestructure. Application accepted byCommissioner of Customs: December14, 1999.Frank W. Creel,Director, Statutory Import Programs Staff.[FR Doc. 00–99 Filed 1–3–00; 8:45 am]BILLING CODE 3510–DS–P



[C–201–505]

Final Results of Full Sunset Reviewand Revocation of Countervailing DutyOrder: Porcelain-on-Steel CookingWare From Mexico

AGENCY: Import Administration,International Trade Administration,Department of Commerce.ACTION: Notice of Final Results of FullSunset Review and Revocation ofCountervailing Duty Order: Porcelain-on-Steel Cooking Ware from Mexico.

SUMMARY: On August 26, 1999, theDepartment of Commerce (‘‘theDepartment’’) published a notice ofpreliminary results of the full sunsetreview of the countervailing duty orderon porcelain-on-steel cooking ware fromMexico (64 FR 46651) pursuant tosection 751(c) of the Tariff Act of 1930,as amended (‘‘the Act’’). We providedinterested parties an opportunity tocomment on our preliminary results. Wedid not receive comments from anyinterested party. As a result of thisreview, the Department finds thatrevocation of the countervailing dutyorder would not be likely to lead tocontinuation or recurrence ofcountervailable subsidy. Therefore, weare revoking this countervailing dutyorder effective January 1, 2000.FOR FURTHER INFORMATION CONTACT:Martha V. Douthit or Melissa G.Skinner, Office of Policy for ImportAdministration, International TradeAdministration, U.S. Department ofCommerce, 14th Street and ConstitutionAvenue, NW, Washington, D.C. 20230;telephone: (202) 482–6397 or (202) 482–1560, respectively.EFFECTIVE DATE: January 1, 2000.

Statute and Regulations

This review was conducted pursuantto sections 751(c) and 752 of the Act.The Department’s procedures for theconduct of sunset reviews are set forth



in Procedures for Conducting Five-year(‘‘Sunset’’) Reviews of Antidumping andCountervailing Duty Orders, 63 FR13516 (March 20, 1998) (‘‘SunsetRegulations’’) and in 19 CFR Part 351(1999) in general. Guidance onmethodological or analytical issuesrelevant to the Department’s conduct ofsunset reviews is set forth in theDepartment’s Policy Bulletin 98:3—Policies Regarding the Conduct of Five-year (‘‘Sunset’’) Reviews ofAntidumping and Countervailing DutyOrders; Policy Bulletin, 63 FR 18871(April 16, 1998) (‘‘Sunset PolicyBulletin’’).

ScopeImports covered by this order are

shipments of porcelain-on-steel cookingware from Mexico, except teakettles,which do not have self-containedelectric heating elements. All of theforegoing are constructed of steel, andare enameled or glazed with vitreousglasses. This merchandise is classifiableunder item number 7323.94.0020 of theHarmonized Tariff Schedule(‘‘HTSUS’’). The HTSUS item number isprovided for convenience and customspurposes. The written descriptionremains dispositive.

BackgroundOn August 26, 1999, the Department

issued the Preliminary Results of FullSunset Review: Porcelain-on-SteelCooking Ware from Mexico (64 FR46646 ) (‘‘Preliminary Results’’). In ourPreliminary Results, we found thatrevocation of the countervailing dutyorder would not be likely to result inrecurrence of a countervailable subsidy.We provided all interested parties theopportunity to respond to ourpreliminary determination. W receivedno comments from any interested party.

Final Results of ReviewAs described in more detail in the

Preliminary Results, in our analysis oflikelihood of continuation or recurrenceof a countervailable subsidy, we reliedon factual information from theinvestigation and administrativereviews of this order. Because theDepartment conducted verificationduring the investigation andadministrative reviews, we consider thatthe provisions of 19 CFR351.307(b)(1)(iii) have been met.

As a result of this review, we find thatrevocation of the countervailing dutyorder on porcelain-on steel cookingware from Mexico would not be likelyto lead to continuation or recurrence ofa countervailable subsidy for the

reasons set forth in our PreliminaryResults of review.

As a result of this determination bythe Department that revocation of thecountervailing duty order on porcelain-on steel cooking ware from Mexicowould not be likely to lead tocontinuation or recurrence of acountervailable subsidy, theDepartment, pursuant to section751(d)(2) of the Act, is revoking thecountervailing duty order. Pursuant to751(c)(6)(A)(iv) of the Act, thisrevocation is effective January 1, 2000.The Department will complete anypending administrative reviews of thiscountervailing duty order and willconduct administrative reviews ofsubject merchandise entered prior to theeffective date of revocation in responseto appropriately filed requests forreview.

This notice serves as the onlyreminder to parties subject toadministrative protective order (‘‘APO’’)of their responsibility concerning thedisposition of proprietary informationdisclosed under APO in accordancewith 19 CFR 351.305 of theDepartment’s regulations.

Timely notification of return/destruction of APO materials orconversion to judicial protective order ishereby requested. Failure to complywith the regulations and the terms of anAPO is a sanctionable violation.

Dated: December 23, 1999.Richard W. Moreland,Acting Assistant Secretary for ImportAdministration.[FR Doc. 00–30 Filed 1–3–00; 8:45 am]BILLING CODE 3510–DS–P


National Institute of Standards andTechnology

[Notice 2]

National Fire Codes: Request forProposals for Revision of Codes andStandards

AGENCY: National Institute of Standardsand Technology, Commerce.ACTION: Notice.

SUMMARY: The National Institute ofStandards and Technology (NIST) ispublishing this notice for the NationalFire Protection Association (NFPA) as apublic service. NIST does notnecessarily endorse, approve, orrecommend any of the standardsreferenced in the notice.

The National Fire ProtectionAssociation (NFPA) proposes to revisesome of its fire safety codes andstandards and requests proposals fromthe public to amend existing NFPA firesafety codes and standards. The purposeof this request is to increase publicparticipation in the system used by theNFPA to develop its codes andstandards.DATES: Interested persons may submitproposals on or before the dates listedwith the standards.ADDRESSES: Casey C. Grant, Secretary,Standards Council, NFPA, 1Batterymarch Park, Quincy,Massachusetts 02269–9101.FOR FURTHER INFORMATION CONTACT:Casey C. Grant, Secretary, StandardsCouncil, at the above address, (617)770–3000.SUPPLEMENTARY INFORMATION:

Background

The NFPA develops fire safety codesand standards which are knowncollectively as the ‘‘National FireCodes.’’ Federal agencies frequently usethese codes and standards as the basisfor developing Federal regulationsconcerning fire safety. Often, the Officeof the Federal Register approves theincorporation by reference of thesestandards under 5 U.S.C. 552(a) and 1CFR part 51.

Requests for Proposals

Interested parties may submitamendments, supported by written date,views, or arguments to Casey C. Grant,Secretary, Council, NFPA, at the aboveaddress. Proposals should be submittedon forms available from the sameaddress.

Each person must include his or hername and address, identify thedocument and give reasons for theproposal. Proposals received before orby 5:00 PM local time on the closingdate indicated will be acted on by theCommittee. The NFPA will consider anyproposal that it receives on or before thedate listed with the code or standard.

At a later date, each NFPA TechnicalCommittee will issue a report whichwill include a copy of written proposalsthat the Committee has received and anaccount of their disposition by theCommittee. Each person who hassubmitted a written proposal willreceive a copy of the report.

Authority: 15 U.S.G. 272.Dated: December 27, 1999.

Raymond G. Kammer,Director.



NFPA No. Proposal title Closing date

NFPA 10–1998 ......................................... Portable Fire Extinguishers .................................................................................... 6/30/00NFPA 15–1996 ......................................... Water Spray Fixed Systems for Fire Protection ..................................................... 1/7/2000NFPA 17–1998 ......................................... Dry Chemical Extinguishing Systems ..................................................................... 1/5/2001NFPA 17A–1998 ...................................... Wet Chemical Extinguishing Systems .................................................................... 1/5/2001NFPA 25–1998 ......................................... Water-Based Fire Protection Systems ................................................................... 6/30/2000NFPA 40–1997 ......................................... Cellulose Nitrate Motion Picture Film ..................................................................... 1/7/2000NFPA 51–1997 ......................................... Oxygen-Fuel Gas Systems for Welding, Cutting, and Allied Processes ............... 6/30/2000NFPA 51B–1999 ...................................... Fire Prevention During Welding, Cutting, and Other Hot Work ............................. 12/28/2001NFPA 55–1998 ......................................... Storage, Use, and Handling of Compressed and Liquefied Gases in Portable

Cylinders.7/6/2001

NFPA 61–1999 ......................................... Fires and Dust Explosions in Agricultural and Food Products Facilities ............... 1/5/2001NFPA 72–1999 ......................................... National Fire Alarm Code ....................................................................................... 1/5/2001NFPA 75–1999 ......................................... Electronic Computer/Data Processing Equipment ................................................. 6/30/2000NFPA 79–1997 ......................................... Electrical Standard for Industrial Machinery ........................................................... 1/5/2001NFPA 80–1999 ......................................... Fire Doors and Fire Windows ................................................................................. 6/30/2000NFPA 80A–1996 ...................................... Protection of Buildings from Exterior Fire exposures ............................................. 1/7/2000NFPA 96–1998 ......................................... Ventilation Control and Fire Protection of Commercial Cooking Operations ......... 1/7/2000NFPA 101B–1999 .................................... Code for Means of Egress for Buildings and Structures ....................................... 6/30/2000NFPA 204–1998 ....................................... Smoke and Heat Venting ....................................................................................... 6/30/2000NFPA 252–1999 ....................................... Fire Tests of Door Assemblies ............................................................................... 12/28/2001NFPA 260–1998 ....................................... Cigarette Ignition Resistance of Components of Upholstered Furniture ............... 1/5/2001NFPA 261–1998 ....................................... Mock-Up Upholstered Furniture Material Assemblies to Ignition by Smoldering

Cigarettes.12/28/2001

NFPA 262–1999 ....................................... Flame Travel and Smoke of Wires and Cables for Use in Air-Handling Spaces .. 7/6/2001NFPA 265–1998 ....................................... Evaluating Room Fire Growth Contribution of Textile Wall Coverings .................. 1/5/2001NFPA 266–1998 ....................................... Fire Characteristics of Upholstered Furniture Exposed to Flaming Ignition

Source.6/30/2000

NFPA 267–1998 ....................................... Fire Characteristics of Mattresses and Bedding Assemblies Exposed to FlamingIgnition Source.

6/30/2000

NFPA 268–1996 ....................................... Ignitability of Exterior Wall Assemblies Using a Radiant Heat Energy Source ..... 1/7/2000NFPA 270–1998 ....................................... Measurement of Smoke Obscuration Using a Conical Radiant Source in a Sin-

gle Closed Chamber.6/30/2000

NFPA 271–1998 ....................................... Heat and Visible Smoke Release Rates for Materials and Products Using anOxygen Consumption Calorimeter.

1/7/2000

NFPA 272–1999 ....................................... Heat and Visible Smoke Release Rates for Upholstered Furniture Componentsor Composites and Mattresses Using and Oxygen Consumption Calorimeter.

7/6/2001

NFPA 285–1998 ....................................... Evaluation of Flammability Characteristics of Exterior Non-Load Bearing WallAssemblies Containing Combustible Components Using the Intermediate-Scale Multistory Test Apparatus.

12/28/2001

NFPA 288–P * .......................................... Fire Tests of Floor Door Assemblies ...................................................................... 1/7/2000NFPA 301–1998 ....................................... Safety to Life from Fire on Merchant Vessels ........................................................ 1/7/2000NFPA 306–1997 ....................................... Control of Gas Hazards of Vessels ........................................................................ 1/7/2000NFPA 402–1996 ....................................... Aircraft Rescue and Fire Fighting Operations ........................................................ 1/7/2000NFPA 407–1996 ....................................... Aircraft Fuel Servicing ............................................................................................ 1/7/2000NFPA 424–1996 ....................................... Airport/Community Emergency Planning ................................................................ 1/7/2000NFPA 432–1997 ....................................... Organic Peroxide Formulations .............................................................................. 1/7/2000NFPA 471–1997 ....................................... Responding to Hazardous Materials Incidents ....................................................... 6/30/2000NFPA 472–1997 ....................................... Professional Competence of Responders to Hazardous Materials Incidents ........ 6/30/2000NFPA 473–1997 ....................................... EMS Personnel Responding to Hazardous Materials Incidents ............................ 6/30/2000NFPA 482–1996 ....................................... Zirconium ................................................................................................................ 1/7/2000NFPA 502–1998 ....................................... Road Tunnels, Bridges, and Other Limited Access Highways .............................. 1/7/2000NFPA 505–1999 ....................................... Powered Industrial Trucks Including Type Designations, Areas of Use, Conver-

sions, Maintenance, and Operation.1/5/2001

NFPA 513–1998 ....................................... Motor Freight Terminals ......................................................................................... 1/7/2000NFPA 560–1995 ....................................... Storage, Handling, and Use of Ethylene Oxide for Sterilization and Fumigation .. 1/7/2000NFPA 664–1998 ....................................... Wood Processing and Woodworking Facilities ...................................................... 1/7/2000NFPA 704–1996 ....................................... Identification of the Hazards of Materials for Emergency Response ..................... 1/7/2000NFPA 705–1997 ....................................... Field Flame Test for Textiles and Films ................................................................. 1/5/2001NFPA 902–1997 ....................................... Fire Reporting Field Incident Guide ....................................................................... 6/30/2000NFPA 903–1996 ....................................... Fire Reporting Property Survey Guide ................................................................... 6/30/2000NFPA 904–1996 ....................................... Incident Follow-up Report Guide ............................................................................ 6/30/2000NFPA 1041–1996 ..................................... Fire Service Instructor Professional Qualifications ................................................. 6/30/2000NFPA 1051–1995 ..................................... Wildland Fire Fighter Professional Qualifications ................................................... 6/30/2000NFPA 1061–1996 ..................................... Professional Qualifications for Public Safety Telecommunicator ........................... 6/30/2000NFPA 1081–P * ........................................ Industrial Fire Brigade Member Professional Qualifications .................................. 1/7/2000NFPA 1124–1998 ..................................... Manufacture, Transportation, and Storage of Fireworks and Pyrotechnic Articles 1/7/2000NFPA 1127–1998 ..................................... High Power Rocketry .............................................................................................. 1/7/2000NFPA 1142–1999 ..................................... Water Supplies for Suburban and Rural Fire Fighting ........................................... 1/7/2000NFPA 1192–1999 ..................................... Recreational Vehicles ............................................................................................. 6/30/2000NFPA 1194–1999 ..................................... Recreational Vehicle Parks and Campgrounds ..................................................... 6/30/2000NFPA 1500–1997 ..................................... Fire Department Occupational Safety and Health Program .................................. 6/30/2000NFPA 1521–1997 ..................................... Fire Department Safety Officer ............................................................................... 6/30/2000



NFPA No. Proposal title Closing date

NFPA 1710–P * ........................................ Organization and Deployment of Fire Suppression Emergency Medical Oper-ations, and Special Operations Provided to the Public by Career Fire Depart-ments.

1/7/2000

NFPA 1720–P * ........................................ Volunteer Fire Service Deployment ........................................................................ 1/7/2000NFPA 1981–1997 ..................................... Open-Circuit Self-Contained Breathing Apparatus for the Fire Service ................ 6/30/2000NFPA 1982–1998 ..................................... Personal Alert Safety Systems (PASS) .................................................................. 6/30/2000NFPA 1999–1997 ..................................... Protective Clothing for Emergency Medical Operations ........................................ 1/5/2001NFPA 2112–P * ........................................ Flash Fire Protective Garments for Industrial Personnel ....................................... 1/7/2000NFPA 2113–P * ........................................ Selection, Care, Use, and Maintenance of Flash Fire Protective Garments ......... 1/7/2000

* P Proposed New drafts are available from the NFPA Codes and Standards Administration, 1 Batterymarch Park, Quincy, MA 02269.

[FR Doc. 00–80 Filed 1–3–00; 8:45 am]BILLING CODE 3510–03–M


National Institute of Standards andTechnology

[Notice 1]

National Fire Codes: Request forComments on NFPA TechnicalCommittee Reports

AGENCY: National Institute of Standardsand Technology, Commerce.ACTION: Notice.

SUMMARY: The National Institute ofStandards and Technology (NIST) ispublishing this notice for the NationalFire Protection Association (NFPA) as apublic service. NIST does notnecessarily endorse, approve, orrecommend any of the standardsreferenced in the notice.

The NFPA revises existing standardsand adopts new standards twice a year.At its November meeting or its Maymeeting, the NFPA acts onrecommendations made by its technicalcommittees. The purpose of this noticeis to request comments on technicalcommittee reports which will bepresented at NFPA’s 2000 NovemberMeeting.DATES: Thirty-eight reports appear in the‘‘2000 November Meeting Report onProposals’’ which becomes available onJanuary 21, 2000. Comments received

on or before March 31, 2000, will beconsidered by the respective NFPAcommittees before final action is takenon the proposals.

ADDRESSES: The ‘‘2000 NovemberMeeting Report on Proposals’’ isavailable from NFPA, FulfillmentCenter, 11 Tracy Drive, Avon, MA02322. Comments on the technicalcommittee reports should be submittedby Casey C. Grant, Secretary, StandardsCouncil, NFPA, Batterymarch Park, P.O.Box 9101, Quincy, Massachusetts02269–9101.

FOR FURTHER INFORMATION CONTACT:Casey C. Grant, Secretary, StandardsCouncil, NFPA, at the above address,(617) 770–3000.


Background

Standards developed by NFPAtechnical committees have been used byvarious federal agencies as the basis forFederal regulations concerning firesafety. The NFPA codes and standardare known collectively as the ‘‘NationalFire Codes.’’ Often, the Office of theFederal Register approves theincorporation by reference of thesestandards under 5 U.S.C. 52(a) and 1CFR Part 51.

Revisions of existing standards andadoption of new standards are reportedby NFPA technical committees at theNFPA November meeting or at the Maymeeting each year. The NFPA invitespublic comments on its technical

committee reports contained in the‘‘2000 November Report on Proposals.’’

Request for Comments

Interested persons may participate inthese revisions by submitting writtendata, views, or arguments to Casey C.Grant, Secretary, Standards Council,NFPA, 1 Batterymarch Park, Quincy,Massachusetts 02269–9101.Commenters may use the formsprovided for comments in the ‘‘2000November Meeting Report onProposals.’’ Each person submitting acomment should include his or hername and address, identify the noticeand give reasons for anyrecommendations. Comments receivedon or before March 31, 2000 will beconsidered by the NFPA before finalaction is taken on the proposals.

Copies of all written commentsreceived and the disposition of thosecomments by the NFPA committees willbe published as the ‘‘2000 NovemberMeeting Report on Comments’’ bySeptember 22, 2000, prior to theNovember meeting. A copy of thisreport will be sent automatically to eachcommenter. Action on the reports of theNFPA technical committees (adoptionor rejection) will be taken by NFPAmembers at the November meeting,November 11–15, 2000, in Orlando,Florida.

Authority: 15 U.S.C. 272.Dated: December 27, 1999.

Raymond G. Kammer,Director.

2000 NOVEMBER MEETING; REPORT ON PROPOSALS

[P=Partial revision; W=Withdrawal; R=Reconfirmation; N=New; C=Complete Revision]

Doc No. Title Action

31 .................................. Standard for the Installation of Oil-Burning Equipment ........................................................................................ C36 .................................. Standard for Solvent Extraction Plants ................................................................................................................. P50 .................................. Standard for Bulk Oxygen Systems at Consumer Sites ....................................................................................... P51A ................................ Standard for Acetylene Cylinder Charging Plants ................................................................................................ P58 .................................. Liquefied Petroleum Gas Code ............................................................................................................................. C59 .................................. Standard for the Storage and Handling of Liquefied Petroleum Gases at Utility Gas Plants .............................. C59A ................................ Standard for the Production, Storage, and Handling of Liquefied Natural Gas (LNG) ........................................ C85 .................................. Combustion Systems Hazards Code .................................................................................................................... C101A .............................. Guide on Alternative Approaches to Life Safety ................................................................................................... P105 ................................ Recommended Practice for the Installation of Smoke-Control Door Assemblies ................................................ C



2000 NOVEMBER MEETING; REPORT ON PROPOSALS—Continued[P=Partial revision; W=Withdrawal; R=Reconfirmation; N=New; C=Complete Revision]

Doc No. Title Action

111 ................................ Standard on Stored Electrical Energy Emergency and Standby Power Systems ............................................... P121 ................................ Standard on Fire Protection for Self-Propelled and Mobile Surface Mining Equipment ...................................... P160 ................................ Standard for Flame Effects Before an Audience .................................................................................................. P258 ................................ Standard Research Test Method for Determining Smoke Generation of Solid Materials .................................... C287 ................................ Standard Methods of Test for Measurement of Material Flammability Using a Fire Propagation Apparatus

(FPA).N

418 ................................ Standard for Heliports ........................................................................................................................................... P803 ................................ Standard for Fire Protection for Light Water Nuclear Power Plants ..................................................................... W804 ................................ Standard for Fire Protection for Advanced Light Water Reactor Electric Generating Plants ............................... P805 ................................ Standard on Performance-Based Fire Protection for Light Water Reactor Electric Generation Plants ............... N901 ................................ Standard Classifications for Incident Reporting and Fire Protection Data ........................................................... C909 ................................ Standard for the Protection of Cultural Resources, Including Museums, Libraries, Places of Worship, and His-

toric Properties.P

914 ................................ Recommended Practice for Fire Protection in Historic Structures ....................................................................... C921 ................................ Guide for Fire and Explosion Investigations ......................................................................................................... P1126 .............................. Standard for the Use of Pyrotechnics before a Proximate Audience ................................................................... P1401 .............................. Recommended Practice for Fire Service Training Reports and Records ............................................................ P1405 .............................. Guide for Land-Based Fire Fighters Who Respond to Marine Vessel Fires ........................................................ P1851 .............................. Standard on Selection, Care, and Maintenance of Structural Fire Fighting Protective Ensemble Elements ...... N1906 .............................. Standard for Wildland Fire Apparatus ................................................................................................................... C1912 .............................. Standard on Refurbishing Fire Apparatus ............................................................................................................. N1951 .............................. Standard on Protective Ensemble for Urban Technical Rescue Incidents ........................................................... N1983 .............................. Standard on Fire Service Life Safety Rope and System Components ................................................................ C1994 .............................. Standard on Protective Ensembles for Chemical or Biological Terrorism Incidents ............................................ N8501 .............................. Standard for Single Burner Boiler Operation ........................................................................................................ W8502 .............................. Standard for Prevention of Furnace Explosions/Implosions in Multiple Burner Boilers ....................................... W8503 .............................. Standard for Pulverized Fuel Systems .................................................................................................................. W8504 .............................. Standard on Atmospheric Fluidized-Bed Boiler Operation ................................................................................... W8505 .............................. Standard for Stoker Operation .............................................................................................................................. W8506 .............................. Standard on Heat Recovery Steam Generator Systems ...................................................................................... W

NFPA No. Title Proposal closingdate

NFPA 10–1998 ........................................ Portable Fire Extinguishers ..................................................................................... 6/30/2000NFPA 15–1996 ........................................ Water Spray Fixed Systems for Fire Protection ...................................................... 1/7/2000NFPA 17–1998 ........................................ Dry Chemical Extinguishing Systems ...................................................................... 1/5/2001NFPA 17A–1998 ..................................... Wet Chemical Extinguishing Systems ..................................................................... 1/5/2001NFPA 25–1998 ........................................ Water-Based Fire Protection Systems .................................................................... 6/30/2000NFPA 40–1997 ........................................ Cellulose Nitrate Motion Picture Film ...................................................................... 1/7/2000NFPA 51–1997 ........................................ Oxygen-Fuel Gas Systems for Welding, Cutting, and Allied Processes ................ 6/30/2000NFPA 51B–1999 ..................................... Fire Prevention During Welding, Cutting, and Other Hot Work .............................. 12/28/2001NFPA 55–1998 ........................................ Storage, Use, and Handling of Compressed and Liquefied Gases in Portable

Cylinders.7/6/2001

NFPA 61–1999 ........................................ Fires and Dust Explosions in Agricultural and Food Products Facilities ................ 1/5/2001NFPA 72–1999 ........................................ National Fire Alarm Code ........................................................................................ 1/5/2001NFPA 75–1999 ........................................ Electronic Computer/Data Processing Equipment .................................................. 6/30/2000NFPA 79–1997 ........................................ Electrical Standard for Industrial Machinery ............................................................ 1/5/2001NFPA 80–1999 ........................................ Fire Doors and Fire Windows .................................................................................. 6/30/2000NFPA 80A–1996 ..................................... Protection of Buildings from Exterior Fire Exposures ............................................. 1/7/2000NFPA 96–1998 ........................................ Ventilation Control and Fire Protection of Commercial Cooking Operations .......... 1/7/2000NFPA 101B–1999 ................................... Code for Means of Egress for Buildings and Structures ........................................ 6/30/2000NFPA 204–1998 ...................................... Smoke and Heat Venting ........................................................................................ 6/30/2000NFPA 252–1999 ...................................... Fire Tests of Door Assemblies ................................................................................ 12/28/2001NFPA 260–1998 ...................................... Cigarette Ignition Resistance of Components of Upholstered Furniture ................ 1/5/2001NFPA 261–1998 ...................................... Mock-Up Upholstered Furniture Material Assemblies to Ignition by Smoldering

Cigarettes.12/28/2001

NFPA 262–1999 ...................................... Flame Travel and Smoke of Wires and Cables for Use in Air-Handling Spaces ... 7/6/2001NFPA 265–1998 ...................................... Evaluating Room Fire Growth Contribution of Textile Wall Coverings ................... 1/5/2001NFPA 266–1998 ...................................... Fire Characteristics of Upholstered Furniture Exposed to Flaming Ignition Source 6/30/2000NFPA 267–1998 ...................................... Fire Characteristics of Mattresses and Bedding Assemblies Exposed to Flaming

Ignition Source.6/30/2000

NFPA 268–1996 ...................................... Ignitibility of Exterior Wall Assemblies Using a Radiant Heat Energy Source ....... 1/7/2000NFPA 270–1998 ...................................... Measurement of Smoke Obscuration Using a Conical Radiant Source in a Single

Closed Chamber.6/30/2000

NFPA 271–1998 ...................................... Heat and Visible Smoke Release Rates for Materials and Products Using an Ox-ygen Consumption Calorimeter.

1/7/2000

NFPA 272–1999 ...................................... Heat and Visible Smoke Release Rates for Upholstered Furniture Componentsor Composites and Mattresses Using an Oxygen Consumption Calorimeter.

7/6/2001



NFPA No. Title Proposal closingdate

NFPA 285–1998 ...................................... Evaluation of Flammability Characteristics of Exterior Non-Load Bearing Wall As-semblies Containing Combustible Components Using the Intermediate-ScaleMultistory Test Apparatus.

12/28/2001

NFPA 288–P * ......................................... Fire Tests of Floor Door Assemblies ....................................................................... 1/7/2000NFPA 301–1998 ...................................... Safety to Life from Fire on Merchant Vessels ......................................................... 1/7/2000NFPA 306–1997 ...................................... Control of Gas Hazards on Vessels ........................................................................ 1/7/2000NFPA 402–1996 ...................................... Aircraft Rescue and Fire Fighting Operations ......................................................... 1/7/2000NFPA 407–1996 ...................................... Aircraft Fuel Servicing ............................................................................................. 1/7/2000NFPA 424–1996 ...................................... Airport/Community Emergency Planning ................................................................. 1/7/2000NFPA 432–1997 ...................................... Organic Peroxide Formulations ............................................................................... 1/7/2000NFPA 471–1997 ...................................... Responding to Hazardous Materials Incidents ........................................................ 6/30/2000NFPA 472–1997 ...................................... Professional Competence of Responders to Hazardous Materials Incidents ......... 6/30/2000NFPA 473–1997 ...................................... EMS Personnel Responding to Hazardous Materials Incidents ............................. 6/30/2000NFPA 482–1996 ...................................... Zirconium ................................................................................................................. 1/7/2000NFPA 502–1998 ...................................... Road Tunnels, Bridges, and Other Limited Access Highways ............................... 1/7/2000NFPA 505–1999 ...................................... Powered Industrial Trucks Including Type Designations, Areas of Use, Conver-

sions, Maintenance, and Operation.1/5/2001

NFPA 513–1998 ...................................... Motor Freight Terminals .......................................................................................... 1/7/2000NFPA 560–1995 ...................................... Storage, Handling, and Use of Ethylene Oxide for Sterilization and Fumigation ... 1/7/2000NFPA 664–1998 ...................................... Wood Processing and Woodworking Facilities ....................................................... 1/7/2000NFPA 704–1996 ...................................... Identification of the Hazards of Materials for Emergency Response ...................... 1/7/2000NFPA 705–1997 ...................................... Field Flame Test for Textiles and Films .................................................................. 1/5/2001NFPA 902–1997 ...................................... Fire Reporting Field Incident Guide ........................................................................ 6/30/2000NFPA 903–1996 ...................................... Fire Reporting Property Survey Guide .................................................................... 6/30/2000NFPA 904–1996 ...................................... Incident Follow-up Report Guide ............................................................................. 6/30/2000NFPA 1041–1996 .................................... Fire Service Instructor Professional Qualifications .................................................. 6/30/2000NFPA 1051–1995 .................................... Wildland Fire Fighter Professional Qualifications .................................................... 6/30/2000NFPA 1061–1996 .................................... Professional Qualifications for Public Safety Telecommunicator ............................ 6/30/2000NFPA 1081–P * ....................................... Industrial Fire Brigade Member Professional Qualifications ................................... 1/7/2000NFPA 1124–1998 .................................... Manufacture, Transportation, and Storage of Fireworks and Pyrotechnic Articles 1/7/2000NFPA 1127–1998 .................................... High Power Rocketry ............................................................................................... 1/7/2000NFPA 1142–1999 .................................... Water Supplies for Suburban and Rural Fire Fighting ............................................ 1/7/2000NFPA 1192–1999 .................................... Recreational Vehicles .............................................................................................. 6/30/2000NFPA 1194–1999 .................................... Recreational Vehicle Parks and Campgrounds ...................................................... 6/30/2000NFPA 1500–1997 .................................... Fire Department Occupational Safety and Health Program ................................... 6/30/2000NFPA 1521–1997 .................................... Fire Department Safety Officer ................................................................................ 6/30/2000NFPA 1710–P * ....................................... Organization and Deployment of Fire Suppression Emergency Medical Oper-

ations, and Special Operations Provided to the Public by Career Fire Depart-ments.

1/7/2000

NFPA 1720–P * ....................................... Volunteer Fire Service Deployment ......................................................................... 1/7/2000NFPA 1981–1997 .................................... Open-Circuit Self-Contained Breathing Apparatus for the Fire Service ................. 6/30/2000NFPA 1982–1998 .................................... Personal Alert Safety Systems (PASS) ................................................................... 6/30/2000NFPA 1999–1997 .................................... Protective Clothing for Emergency medical Operations ......................................... 1/5/2001NFPA 2112–P * ....................................... Flash Fire Protective Garments for Industrial Personnel ........................................ 1/7/2000NFPA 2113–P * ....................................... Selection, Care, Use, and Maintenance of Flash Fire Protective Garments .......... 1/7/2000

* P Proposed NEW drafts are available from the NFPA Codes and Standards Administration, 1 Batterymarch Park, Quincy, MA 02269.

[FR Doc. 00–79 Filed 1–3–00; 8:45 am]BILLING CODE 3510–03–M



[I.D. 121799B]

Marine Mammals

AGENCY: National Marine FisheriesService (NMFS), National Oceanic andAtmospheric Administration (NOAA),Commerce.ACTION: Issuance of permit amendment.

SUMMARY: Notice is hereby given thatthe Southwest Fisheries Science Center,Honolulu Laboratory, NMFS, 2570 DoleStreet, Honolulu, Hawaii 96822–2396,

has been issued an amendment toscientific research Permit No. 848–1335.

ADDRESSES: The amendment and relateddocuments are available for reviewupon written request or by appointmentin the following offices:

Permits Division, Office of ProtectedResources, NMFS,

1315 East-West Highway, Room13130, Silver Spring, MD 20910 (301/713–2289);

Regional Administrator, SouthwestRegion, NMFS, 501 West OceanBoulevard, Suite 4200, Long Beach, CA90802–4213 (310/980–4001); and

Protected Species Program Manager,Pacific Islands Area Office, SouthwestRegion, NMFS, 1601 KapiolaniBoulevard, Suite 1110, Honolulu, HI(808/973–2937).

SUPPLEMENTARY INFORMATION: On August30, 1999, notice was published in theFederal Register (64 FR 47172) that anamendment of Permit No. 848–1335,issued June 10, 1997 (62 FR 32586), hadbeen requested by the above-namedorganization. The requested amendmenthas been issued under the authority ofthe Marine Mammal Protection Act of1972, as amended (16 U.S.C. 1361 etseq.), the Regulations Governing theTaking and Importing of MarineMammals (50 CFR Part 216), theEndangered Species Act (ESA) of 1973,as amended (16 U.S.C. 1531 et seq.), andthe Regulations Governing the Taking,Importing, and Exporting of EndangeredFish and Wildlife (50 CFR part 222).The amendment authorizes: an increasethe number of animals authorized to betaken (i.e., harassed) during pelagic



ecology studies from 30 to 100 sealsannually for the duration of the permit,and to: (1) allow retrieval of time-depthrecorders (TDRs) from Hawaiian monkseals; (2) provide additional take byinstrumentation (including sonic tags)to support continued research into theforaging ecology of Hawaiian monkseals; and (3) allow an additionalprocedure, isotopic water dilution, toestimate the body composition as anindication of foraging success andcondition of study subjects. For thisamendment, some of these seals may betaken up to three times: Once to applya VHF transmitter, a second time toapply a TDR or satellite-linked time-depth recorder (SLTDR), and a thirdtime to retrieve the TDR/SLTDR.

Issuance of this amendment, asrequired by the ESA, was based on afinding that such permit: (1) Wasapplied for in good faith; (2) will notoperate to the disadvantage of theendangered species which is the subjectof this permit; and (3) is consistent withthe purposes and policies set forth insection 2 of the ESA.

Dated: dECEMBER 27, 1999.Ann D. Terbush,Chief, Permits and Documentation Division,Office of Protected Resources, NationalMarine Fisheries Service.[FR Doc. 00–85 Filed 1–3–00; 8:45 am]BILLING CODE 3510–22–F

CONSUMER PRODUCT SAFETYCOMMISSION

Collection of Information; ProposedExtension of Approval; CommentRequest—Follow-Up Activities forProduct-Related Injuries

AGENCY: Consumer Product SafetyCommission.ACTION: Notice.

SUMMARY: As required by the PaperworkReduction Act of 1995 (44 U.S.C.Chapter 35), the Consumer ProductSafety Commission requests commentson a proposed extension of approval ofa collection of information from personswho have been involved in or havewitnessed incidents associated withconsumer products. The Commissionwill consider all comments received inresponse to this notice before requestingan extension of approval of thiscollection of information from the Officeof Management and Budget.DATES: The Office of the Secretary mustreceive comments not later than March6, 2000.ADDRESSES: Written comments shouldbe captioned ‘‘Product-Related Injuries’’

and mailed to the Office of theSecretary, Consumer Product SafetyCommission, Washington, D.C. 20207,or delivered to that office, Room 502,4330 East-West Highway, Bethesda,Maryland 20814. Written commentsmay also be sent to the Office of theSecretary by facsimile at (301) 504–0127or by e-mail at [email protected].

FOR FURTHER INFORMATION CONTACT: Forinformation about the proposedextension of approval of the collectionof information, or to obtain a copy ofany of the interview guides or formsused for this collection of information,contact Linda L. Glatz, Office ofPlanning and Evaluation, ConsumerProduct Safety Commission,Washington, D.C. 20207; telephone(301) 504–0416, extension 2226; [email protected].


A. Background

Section 5(a) of the Consumer ProductSafety Act, 15 U.S.C. 2054(a), requiresthe Commission to collect informationrelated to the causes and prevention ofdeath, injury, and illness associatedwith consumer products. Thatlegislation also requires the Commissionto conduct continuing studies andinvestigations of deaths, injuries,diseases, other health impairments, andeconomic losses resulting fromaccidents involving consumer products.The Commission uses this informationto support development andimprovement of voluntary standards,rulemaking proceedings, informationand education campaigns, andadministrative and judicial proceedings.These safety efforts are vitally importantto help make consumer products saferand to remove unsafe products from thechannels of distribution and fromconsumers’ homes.

Persons who have sustained injuriesor who have witnessed safety-relatedincidents associated with consumerproducts are an important source ofsafety information. From consumercomplaints, newspaper accounts, deathcertificates, hospital emergency roomreports, and other sources, theCommission investigates a limitednumber of incidents. Theseinvestigations may involve face-to-faceor telephone interviews with accidentvictims or witnesses. The Commissionalso receives information about product-related injuries from persons whoprovide written information by usingforms displayed on the Commission’sinternet web site or printed in theProduct Safety Review and otherCommission publications.

The Office of Management and Budget(OMB) approved the collection ofinformation concerning product-relatedinjuries under control number 3041–0029. OMB’s most recent extension ofapproval will expire on May 31, 2000.The Commission now proposes torequest an extension of approval withchanges of this collection ofinformation. As explained below, thechanges consist of a net reduction of 752burden hours.

B. Estimated BurdenEach year, the Commission staff

obtains information about incidentsinvolving consumer products fromapproximately 8,500 persons. The staffconducts face-to-face interviews atincident sites with approximately 400persons each year (down from the 700persons estimated in 1997). On average,an on-site interview takesapproximately 5 hours. The staff willalso conduct approximately 1,600 in-depth investigations by telephone(down from the 2,200 estimated in1997). Each in-depth telephoneinvestigation requires approximately 20minutes. Additionally, theCommission’s hotline staff interviewsapproximately 4000 persons each yearabout incidents involving selectedconsumer products (up from 1997’sestimate of 160). These interviews takean average of 10 minutes each (up from1997’s estimate of 1.5 minutes each).Each year, the Commission also receivesinformation from about 2,500 persons(up from 1997’s estimated 1000) whocomplete forms requesting informationabout product-related incidents orinjuries. These forms appear on theCommission’s internet web site and areprinted in the Product Safety Reviewand other Commission publications.The staff estimates that completion ofthe form takes about 12 minutes.

The Commission staff estimates thatthis collection of information imposes atotal annual hourly burden of 3,700hours on all respondents: 2,000 hoursfor face-to-face interviews; 533 hours forin-depth telephone interviews; 500hours for completion of written forms;and 667 hours for responses to Hotlinetelephone questionnaires.

The Commission staff estimates thevalue of the time of respondents to thiscollection of information at $13.50 anhour. This is based on the averagehourly wage for all workers in theUnited States reported by the U.S.Bureau of the Census in the 1999edition of the Statistical Abstract of theUnited States. At this valuation, theestimated annual cost to the public ofthis information collection will be about$50,000.



C. Request for Comments

The Commission solicits writtencomments from all interested personsabout the proposed collection ofinformation. The Commissionspecifically solicits information relevantto the following topics:

• Whether the collection ofinformation described above isnecessary for the proper performance ofthe Commission’s functions, includingwhether the information would havepractical utility;

• Whether the estimated burden ofthe proposed collection of informationis accurate;

• Whether the quality, utility, andclarity of the information to be collectedcould be enhanced; and

• Whether the burden imposed by thecollection of information could beminimized by use of automated,electronic or other technologicalcollection techniques, or other forms ofinformation technology.

Dated: December 29, 1999.Sadye E. Dunn,Secretary, Consumer Product SafetyCommission.[FR Doc. 00–107 Filed 1–3–00; 8:45 am]BILLING CODE 6355–01–P

DEPARTMENT OF DEFENSE

Office of the Secretary

Joint Advisory Committee on NuclearWeapons Surety; Meeting.

ACTION: Notice of Advisory CommitteeMeetingSUMMARY: The Joint AdvisoryCommittee on Nuclear Weapons Suretywill conduct a closed session on January14, 2000 at Science ApplicationsInternational Corporation, San Diego,California.

The Joint Advisory Committee ischarged with advising the Secretaries ofDefense and Energy, and the JointNuclear Weapons Council on nuclearweapons surety matters. At this meetingthe Joint Advisory Committee willreceive classified briefings on nuclearweapons production and surety status.

In accordance with the FederalAdvisory Committee Act (Public Law92–463, as amended, Title 5, U.S.C.App. II, (1988)), this meeting concernsmatters sensitive to the interests ofnational security, listed in 5 U.S.C.Section 552b(c)(1) and accordingly thismeeting will be closed to the public.

Dated: December 28, 1999.L.M. Bynum,Alternate OSD Federal Register LiaisonOfficer, Department of Defense.[FR Doc. 00–51 Filed 1–3–00; 8:45 am]BILLING CODE 5001–10–M

DEPARTMENT OF DEFENSE

U.S. Marine Corps

Privacy Act of 1974; System ofRecords

AGENCY: U.S. Marine Corps, DoD.ACTION: Amend Records Systems

SUMMARY: The U.S. Marine Corpsproposes to amend eight systems ofrecords notices in its inventory of recordsystems subject to the Privacy Act of1974 (5 U.S.C. 552a), as amended.DATES: This action will be effectivewithout further notice on February 3,2000 unless comments are receivedwhich result in a contrarydetermination.ADDRESSES: Send comments to theHead, FOIA and Privacy Act Section,Headquarters, U.S. Marine Corps, 2Navy Annex, Washington, DC 20380–1775.FOR FURTHER INFORMATION CONTACT: Ms.B. L. Thompson at (703) 614–4008 orDSN 224–4008.SUPPLEMENTARY INFORMATION: The U.S.Marine Corps record system notices forrecords systems subject to the PrivacyAct of 1974 (5 U.S.C. 552a), as amended,have been published in the FederalRegister and are available from theaddress above.

The proposed actions are not withinthe purview of subsection (r) of thePrivacy Act (5 U.S.C. 552a), asamended, which would require thesubmission of a new or altered systemreport for each system. The specificchanges to the records systems beingamended are set forth below followedby the notices, as amended, publishedin their entirety.


L. M. Bynum,Alternate OSD Federal Register LiaisonOfficer, Department of Defense

MMN00021

SYSTEM NAME:Weapons Registration (February 22,

1993, 58 FR 10630).

CHANGES:* * * * *

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:Delete entry and replace with ‘5

U.S.C. 301, Departmental Regulations;

10 U.S.C. 5013, Secretary of the Navy;10 U.S.C. 5041, Headquarters, MarineCorps; and E.O. 9397 (SSN).’* * * * *

RETENTION AND DISPOSAL:Delete entry and replace with ‘Record

destroyed when member departscommand.’* * * * *

MMN00021

SYSTEM NAME:Weapons Registration.

SYSTEM LOCATION:Organizational elements of the U.S.

Marine Corps. U.S. Marine Corpsofficial mailing addresses areincorporated into the Department of theNavy’s address directory, published asan appendix to the Navy’s compilationof systems of records notices.

CATEGORIES OF INDIVIDUALS COVERED BY THESYSTEM:

All individuals, military or civilian,registered firearms or other weaponswith Provost Marshal.

All individuals who purchase afirearm or weapon at authorizedexchange activities.

Any individual who resides ingovernment quarters who possessesprivately owned firearms.

CATEGORIES OF RECORDS IN THE SYSTEM:Weapon registration cards, weapon

permit cards, notification tocommanding officers of failure toregister a firearm purchased atauthorized exchanges, exchangenotification or firearm purchase. Suchrecords showing name, rank, SocialSecurity Number, organization, physicallocation of subject weapon, weapondescription and such other identifiableitems required to comply with allfederal, state, and local weaponsregistration ordinances.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:5 U.S.C. 301, Departmental

Regulations; 10 U.S.C. 5013, Secretaryof the Navy; 10 U.S.C. 5041,Headquarters, Marine Corps; and E.O.9397 (SSN).

PURPOSE(S):To provide a record of weapons

registered to individuals on base toensure proper control of firearms/weapons and to monitor purchase anddisposition of firearms/weapons.

ROUTINE USES OF RECORDS MAINTAINED IN THESYSTEM, INCLUDING CATEGORIES OF USERS ANDTHE PURPOSES OF SUCH USES:

In addition to those disclosuresgenerally permitted under 5 U.S.C.



552a(b) of the Privacy Act, these recordsor information contained therein mayspecifically be disclosed outside theDoD as a routine use pursuant to 5U.S.C. 552a(b)(3) as follows:

The ‘Blanket Routine Uses’ set forth atthe beginning of the Marine Corp’scompilation of systems of recordsnotices apply to this system.

POLICIES AND PRACTICES FOR STORING,RETRIEVING, ACCESSING, RETAINING, ANDDISPOSING OF RECORDS IN THE SYSTEM:

STORAGE:Paper and electronic files.

RETRIEVABILITY:Name, Social Security Number,

organization, caliber and gage ofweapon.

SAFEGUARDS:Access provided on a need-to-know

basis only. Locked and/or guardedoffices.

RETENTION AND DISPOSAL:Record destroyed when member

departs command.

SYSTEM MANAGER(S) AND ADDRESS:Commanding officer of the activity in

question. U.S. Marine Corps officialmailing addresses are incorporated intothe Department of the Navy’s addressdirectory, published as an appendix tothe Navy’s compilation of systems ofrecords notices.

NOTIFICATION PROCEDURE:Individuals seeking to determine

whether information about themselvesis contained in this system shouldaddress written inquiries to theCommanding officer of the activity inquestion. U.S. Marine Corps officialmailing addresses are incorporated intothe Department of the Navy’s addressdirectory, published as an appendix tothe Navy’s compilation of systems ofrecords notices.

RECORD ACCESS PROCEDURES:Individuals seeking access to

information about themselves containedin this system should address writteninquiries to the Commanding officer ofthe activity in question. U.S. MarineCorps official mailing addresses areincorporated into the Department of theNavy’s address directory, published asan appendix to the Navy’s compilationof systems of records notices.

CONTESTING RECORD PROCEDURES:The USMC rules for contesting

contents and appealing initial agencydeterminations are published inSecretary of the Navy Instruction5211.5; Marine Corps Order P5211.2; 32

CFR part 701; or may be obtained fromthe system manager.

RECORD SOURCE CATEGORIES:Individual concerned, other records of

activity, investigators, witnesses andcorrespondents.

EXEMPTIONS CLAIMED FOR THE SYSTEM:None.

MMN00022

SYSTEM NAME:

Vehicle Control System (February 22,1993, 58 FR 10630).

CHANGES:

* * * * *


U.S.C. 301, Departmental Regulations;10 U.S.C. 5013, Secretary of the Navy;10 U.S.C. 5041, Headquarters, MarineCorps; and E.O. 9397 (SSN).’* * * * *


Delete second paragraph.* * * * *

MMN00022

SYSTEM NAME:

Vehicle Control System.

SYSTEM LOCATION:

Organizational elements of the U.S.Marine Corps. U.S. Marine Corpsofficial mailing addresses areincorporated into the Department of theNavy’s address directory, published asan appendix to the Navy’s compilationof systems of records notices.


All individuals that have motorvehicles, boats, or trailers registered ata particular Naval installation or eithera permanent or temporary basis.

All individuals who apply for aGovernment Motor Vehicle Operator’slicense.

All individuals who possess aGovernment Motor Vehicle Operator’slicense with authority to operategovernment motor vehicles.

CATEGORIES OF RECORDS IN THE SYSTEM:

File contains records of eachindividual who has registered a vehicleon the installation concerned to includedecal data, insurance information, stateof registration and identification. Filealso contains notations of trafficviolations, citations, suspensions,applications for government vehicle

operator’s I.D. card, operatorqualifications and record licensingexamination and performance, record offailures to qualify Government MotorVehicle Operator’s permit, record ofgovernment motor vehicle and othervehicle accidents, information onstudent driver training, andidentification for parking control.

Records of traffic violations, citationsand suspensions. For government motorvehicle operators: Application forvehicle operator’s I.D. card: Operatorqualifications and record of licensingexamination and performance, record offailures Government Motor VehicleOperator’s permit, record of issue of SF-46, Record of Government MotorVehicle accidents, standard Form 91accident report, record of SF-46suspensions/revocations, record ofstudent driver’s training.

Identification of parking control.



PURPOSE(S):To provide a record of each

individual who has registered a vehicleon an installation to include a record onindividuals authorized to operateofficial government vehicles.


In addition to those disclosuresgenerally permitted under 5 U.S.C.552a(b) of the Privacy Act, these recordsor information contained therein mayspecifically be disclosed outside theDoD as a routine use pursuant to 5U.S.C. 552a(b)(3) as follows:



STORAGE:Paper and electronic records.

RETRIEVABILITY:Name, Social Security Number, case

number, organization, decal number,state license plate number, vehicledescription.

SAFEGUARDS:Records are maintained in areas

accessible only to authorized personnel.Areas are locked during nonduty hoursand buildings are protected by securityguards.



RETENTION AND DISPOSAL:

Records are maintained for one yearafter transfer or separation from theinstallation concerned. Paper recordsare then destroyed and records onmagnetic tapes are erased.

SYSTEM MANAGER(S) AND ADDRESS:

Commanding officer of the activity inquestion. U.S. Marine Corps officialmailing addresses are incorporated intothe Department of the Navy’s addressdirectory, published as an appendix tothe Navy’s compilation of systems ofrecords notices.

NOTIFICATION PROCEDURE:

Individuals seeking to determinewhether information about themselvesis contained in this system shouldaddress written inquiries to theCommanding officer of the activity inquestion. U.S. Marine Corps officialmailing addresses are incorporated intothe Department of the Navy’s addressdirectory, published as an appendix tothe Navy’s compilation of systems ofrecords notices.

Written requests should contain fullname and Social Security Number.Individuals visiting the installationconcerned should provide properidentification such as militaryidentification, driver’s license or othersuitable identification.

RECORD ACCESS PROCEDURES:

Individuals seeking access toinformation about themselves containedin this system should address writteninquiries to the Commanding officer ofthe activity in question. U.S. MarineCorps official mailing addresses areincorporated into the Department of theNavy’s address directory, published asan appendix to the Navy’s compilationof systems of records notices.

Written requests should contain fullname and Social Security Number.Individuals visiting the installationshould provide proper identification.

CONTESTING RECORD PROCEDURES:

The USMC rules for contestingcontents and appealing initial agencydeterminations are published inSecretary of the Navy Instruction5211.5; Marine Corps Order P5211.2; 32CFR part 701; or may be obtained fromthe system manager.

RECORD SOURCE CATEGORIES:

Individual concerned, other records ofthe activity, investigators, witnesses,correspondents.

EXEMPTIONS CLAIMED FOR THE SYSTEM:

None.

MMN00036

SYSTEM NAME:Identification Card Control (February

22, 1993, 58 FR 10630).

CHANGES:

* * * * *


U.S.C. 301, Departmental Regulations;10 U.S.C. 5013, Secretary of the Navy;10 U.S.C. 5041, Headquarters, MarineCorps; and E.O. 9397 (SSN).’* * * * *

RETRIEVABILITY:Delete entry and replace with ‘By

name and/or Social Security Number.’

SAFEGUARDS:Delete entry and replace with

‘Records are maintained in areasaccessible only by authorizedpersonnel.’

RETENTION AND DISPOSAL:Delete entry and replace with ‘Record

destroyed two years from date of closingentry.’* * * * *

MMN00036

SYSTEM NAME:Identification Card Control.

SYSTEM LOCATION:All U.S. Marine Corps units.


Regular and Reserve Marinesincluding retired and disability retiredand their dependents who have beenissued an Identification Card.

CATEGORIES OF RECORDS IN THE SYSTEM:Log book contains name, rank, Social

Security Number, and card number,issue date, expiration date, signature ofperson card issued to and signature ofissuing person.



PURPOSE(S):To provide a record of identification

cards issued to military members foraccountability purposes.


In addition to those disclosuresgenerally permitted under 5 U.S.C.

552a(b) of the Privacy Act, these recordsor information contained therein mayspecifically be disclosed outside theDoD as a routine use pursuant to 5U.S.C. 552a(b)(3) as follows:



STORAGE:

These records are kept in a log book.

RETRIEVABILITY:

By name and/or Social SecurityNumber of type of card issued.

SAFEGUARDS:

Records are maintained in areasaccessible only by authorized personnel.


Record destroyed two years from dateof closing entry.


Unit Commanders. U.S. Marine Corpsofficial mailing addresses areincorporated into the Department of theNavy’s address directory, published asan appendix to the Navy’s compilationof systems of records notices.


Individuals seeking to determinewhether information about themselvesis contained in this system shouldaddress written inquiries to or visit theUnit Commanders. U.S. Marine Corpsofficial mailing addresses areincorporated into the Department of theNavy’s address directory, published asan appendix to the Navy’s compilationof systems of records notices.

Provide full name, Social SecurityNumber, and military status. Proof ofidentity may be established by militaryidentification card or DD 214 anddriver’s license.


Individuals seeking access toinformation about themselves containedin this system should address writteninquiries to or visit the UnitCommanders. U.S. Marine Corps officialmailing addresses are incorporated intothe Department of the Navy’s addressdirectory, published as an appendix tothe Navy’s compilation of systems ofrecords notices.

Provide full name, Social SecurityNumber, and military status. Proof ofidentity may be established by militaryidentification card or DD 214 anddriver’s license.




contents and appealing initial agencydeterminations are published inSecretary of the Navy Instruction5211.5; Marine Corps Order P5211.2; 32CFR part 701; or may be obtained fromthe system manager.

RECORD SOURCE CATEGORIES:Officers Qualification Record/Service

Record Book of individual applicationfor dependents privilege card,correspondence from Headquarters, U.S.Marine Corps.


MMN00037

SYSTEM NAME:Library Patron File (February 22,

1993, 58 FR 10630).

CHANGES:

* * * * *

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:Delete entry and replace ‘5 U.S.C. 301,

Departmental Regulation; 10 U.S.C.5013, Secretary of the Navy; 10 U.S.C.5041, Headquarters, Marine Corps; andE.O. Order 9397 (SSN).’* * * * *


Delete paragraphs two, three, andfour.* * * * *

RETRIEVABILITY:Delete entry and replace with

‘Alphabetically by last name for paperrecords or by name or Social SecurityNumber electronically.’* * * * *

RETENTION AND DISPOSAL:Delete entry and replace with

‘Records are maintained for seven years,based on library usage. After retentionperiod, records are deleted fromdatabase or destroyed.’* * * * *

MMN00037

SYSTEM NAME:Library Patron File.

SYSTEM LOCATION:System is decentralized and is

maintained at Marine Corps commands,organizations and activities havinglibraries. U.S. Marine Corps officialmailing addresses are incorporated intothe Department of the Navy’s addressdirectory, published as an appendix to

the Navy’s compilation of systems ofrecords notices.


All active, reserve and retired militarypersonnel, their dependents, and otherswho are entitled to use and borrowmaterial from Marine Corps libraries.

CATEGORIES OF RECORDS IN THE SYSTEM:The library patron file may contain

the following information pertinent toeach individual: Name, rank, SocialSecurity Number; organization andorganization address and phonenumber; home address and home phonenumber; names and ages of dependents;title of materials borrowed; dateborrowed; date returned; and notation ofmonetary settlement if borrowedmaterial was lost or damaged.


Regulation; 10 U.S.C. 5013, Secretary ofthe Navy; 10 U.S.C. 5041, Headquarters,Marine Corps; and E.O. Order 9397(SSN).

PURPOSE(S):To provide a record of library patrons

who are entitled to use and borrowmaterial from Marine Corps libraries.





STORAGE:Paper and electronic files.

RETRIEVABILITY:Alphabetically by last name for paper

records or by name or Social SecurityNumber electronically.

SAFEGUARDS:Library is locked when not in use.

Only authorized personnel have accessto records during working hours.

RETENTION AND DISPOSAL:Records are maintained for seven

years, based on library usage. Afterretention period, records are deletedfrom database or destroyed.


Commanding officer of activitymaintaining Marine Corps libraries. U.S.Marine Corps official mailing addressesare incorporated into the Department ofthe Navy address directory, publishedas an appendix to the Navy’scompilation of systems of recordsnotices.


Individuals seeking to determinewhether information about themselvesis contained in this system shouldaddress written inquiries to the libraryin question. U.S. Marine Corps officialmailing addresses are incorporated intothe Department of the Navy’s addressdirectory, published as an appendix tothe Navy’s compilation of systems ofrecords notices.


Individuals seeking access toinformation about themselves containedin this system should address writteninquiries to the commander of theMarine Corps command, organization oractivity that maintains the library inquestion.

Written requests for informationshould contain the full name of theindividual, Social Security Number,organization to which assigned whenlibrary utilized, and current address.

For personal visits the individualshould be able to provide acceptablepersonal identification during normalhours of library operation.




Information is obtained fromindividual concerned, library directorand library staff.


None.

MMN00038

SYSTEM NAME:

Amateur Radio Operator’s File(February 22, 1993, 58 FR 10630).

CHANGES:

* * * * *

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:

Delete entry and replace with ‘5U.S.C. 301, Departmental Regulations;10 U.S.C. 5013, Secretary of the Navy;



10 U.S.C. 5041, Headquarters, MarineCorps.’* * * * *

SAFEGUARDS:Delete entry and replace with

‘Records maintained in areas accessibleonly by authorized personnel.’* * * * *

MMN00038

SYSTEM NAME:Amateur Radio Operator’s File.

SYSTEM LOCATION:Marine Corps activities.


All amateur radio operators whooperate at Marine Corps activities.

CATEGORIES OF RECORDS IN THE SYSTEM:File contains name, Federal

Communications Center licensenumber, operating frequency, type ofequipment and home address.


Regulations; 10 U.S.C. 5013, Secretaryof the Navy; 10 U.S.C. 5041,Headquarters, Marine Corps.

PURPOSE(S):To provide a record of all amateur

radio operators at Marine Corpsactivities to ensure proper radiomanagement by communications centerpersonnel.





STORAGE:Paper records.

RETRIEVABILITY:Alphabetical by last name.

SAFEGUARDS:Records maintained in areas

accessible only by authorized personnel.

RETENTION AND DISPOSAL:Destroyed upon departure from

Marine Corps activity.

SYSTEM MANAGER(S) AND ADDRESS:Commanding officer of activity

concerned. U.S. Marine Corps officialmailing addresses are incorporated intothe Department of the Navy’s addressdirectory, published as an appendix tothe Navy’s compilation of systems ofrecords notices.

NOTIFICATION PROCEDURE:Individuals seeking to determine

whether information about themselvesis contained in this system shouldaddress written inquiries to theCommanding Officer of activityconcerned. U.S. Marine Corps officialmailing addresses are incorporated intothe Department of the Navy’s addressdirectory, published as an appendix tothe Navy’s compilation of systems ofrecords notices.

RECORD ACCESS PROCEDURES:Individuals seeking access to

information about themselves containedin this system should address writteninquiries to the Commanding Officer ofactivity concerned. U.S. Marine Corpsofficial mailing addresses areincorporated into the Department of theNavy’s address directory, published asan appendix to the Navy’s compilationof systems of records notices.

Written requests for informationshould contain the full name and gradeof the individual.

For personal visit, the individualshould be able to provide valid personalidentification such as an employeebadge, driver’s license, medicare card,etc.


contents and appealing initial agencydeterminations are published inSecretary of the Navy Instruction5211.5; Marine Corps Order P5211.2; 32CFR part 701; or may be obtained fromthe system manager.

RECORD SOURCE CATEGORIES:Individual.


MMN00039

SYSTEM NAME:Citizen Band Radio Request and

Authorization File (February 22, 1993,58 FR 10630).

CHANGES:

* * * * *

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:Delete the entry and replace with ‘5

U.S.C. 301, Departmental Regulations;10 U.S.C. 5013, Secretary of the Navy;

10 U.S.C. 5041, Headquarters, MarineCorps.’* * * * *

MMN00039

SYSTEM NAME:Citizen Band Radio Request and

Authorization File.

SYSTEM LOCATION:Communication Electronics Office

Marine Corps activities.


All personnel who desire to operateamateur/citizen band radios at MarineCorps installations.

CATEGORIES OF RECORDS IN THE SYSTEM:Amateur/Citizen Band Radio

Operation Request and AuthorizationForm.


Regulations; 10 U.S.C. 5013, Secretaryof the Navy; 10 U.S.C. 5041,Headquarters, Marine Corps.

PURPOSE(S):To provide a record of individuals

who have requested and are authorizedto operate amateur/citizen band radios.





STORAGE:Paper records.

RETRIEVABILITY:By name of the individual..

SAFEGUARDS:Located in a secure area that is

manned on a 24-hour basis.

RETENTION AND DISPOSAL:Retained for one (1) year and if not

renewed, the form is destroyed byburning or shredding.

SYSTEM MANAGER(S) AND ADDRESS:Commanding officer of activity in

question. U.S. Marine Corps official



mailing addresses are incorporated intothe Department of the Navy’s addressdirectory, published as an appendix tothe Navy’s compilation of systems ofrecords notices.


Individuals seeking to determinewhether information about themselvesis contained in this system shouldaddress written inquiries to theCommanding officer of activity inquestion. U.S. Marine Corps officialmailing addresses are incorporated intothe Department of the Navy’s addressdirectory, published as an appendix tothe Navy’s compilation of systems ofrecords notices.


Individuals seeking access toinformation about themselves containedin this system should address writteninquiries to the Commanding officer ofactivity in question. U.S. Marine Corpsofficial mailing addresses areincorporated into the Department of theNavy’s address directory, published asan appendix to the Navy’s compilationof systems of records notices.




Individual requester andCommunication Electronics Officer.


None.

MMN00040

SYSTEM NAME:

Individual Training Records/TrainingRelated Matters (February 22, 1993, 58FR 10630).

CHANGES:

* * * * *


Delete the entry and replace with ‘5U.S.C. 301, Departmental Regulations;10 U.S.C. 5013, Secretary of the Navy,10 U.S.C. 5041, Headquarters, MarineCorps; and E.O. 9397 (SSN).’* * * * *


Delete paragraphs two, three, andfour.

STORAGE:

Delete entry and replace with ‘Paperand electronics records.’

RETRIEVABILITY:

Delete the entry and replace with ‘Byname and Social Security Number.’* * * * *

MMN00040

SYSTEM NAME:

Individual Training Records/TrainingRelated Matters.

SYSTEM LOCATION:

System is decentralized andmaintained at all Marine Corpscommands, organizations and activities,Regular and Reserve. U.S. Marine Corpsofficial mailing addresses areincorporated into the Department of theNavy’s address directory, published asan appendix to the Navy’s compilationof systems of records notices.


All military personnel assigned,attached to or serving with a MarineCorps command, activity ororganization to include recruit training,formal military schools, operationalunits and training facilities.


The individual training record maycontain the following informationpertinent to each individual: Name,rank, Social Security Number, age, sex,military occupational specialty orspecialties, date joined unit, date of endof active service, date of birth,proficiency and conduct scores,physical fitness test scores, rifle andpistol qualification scores, gas masksize, blood type, leadership proficiency,military school and correspondencecourse records and results, specialtraining qualifications, weight andphysical characteristics, medical recordextracts addressing weight control andphysical fitness, human relationstraining experience, troop informationexposure, general military subject testresults, water survival qualification,instructor qualifications, specializedequipment qualification, personalcounseling records, foreign languagequalifications, inspection results, etc.

In the case of recruit training, specialdata as reflects remedial training,counseling, weakness or excellence,recruit questionnaires and readingevaluations may be included.

For personnel attending formalschools, evaluation information anddata reflecting successful completion ortermination for cause may be included.


Regulations; 10 U.S.C. 5013, Secretaryof the Navy, 10 U.S.C. 5041,Headquarters, Marine Corps; and E.O.9397 (SSN).

PURPOSE(S):To provide a record of all training

received by members on active duty inthe Marine Corps.





STORAGE:Paper and electronics records.

RETRIEVABILITY:By name and Social Security Number.

SAFEGUARDS:

Records are retained in controlledaccess areas and handled by trained andcleared personnel on a strict ‘need-to-know’ basis.

RETENTION AND DISPOSAL:Files are retained during the period

the individual is assigned to the activitymaintaining the record. Upon transfer ofthe individual concerned, records aretransferred with the individual ordestroyed.

In the case of drill instructor or recruitrecords, records are maintained for fouryears after departure of individual, thendestroyed.


The Commandant of the MarineCorps, Headquarters, U.S. Marine Corps,Washington, DC 20380-1775.


Individuals seeking to determinewhether information about themselvesis contained in this system shouldaddress written inquiries to thecommander of the Marine Corpscommand, organization or activity towhich the individual is assigned forduty or training. U.S. Marine Corpsofficial mailing addresses areincorporated into the Department of the



Navy’s address directory, published asan appendix to the Navy’s compilationof systems of records notices.


Individuals seeking access toinformation about themselves containedin this system should address writteninquiries to the commander of thecommand, organization or activity towhich assigned for duty or training. U.S.Marine Corps official mailing addressesare incorporated into the Department ofthe Navy’s address directory, publishedas an appendix to the Navy’scompilation of systems of recordsnotices.

Written requests should containname, rank, Social Security Number anddates assigned to the activity addressed.In cases where individual attended aformal school, name of course andcourse number should be included ifavailable.

Personal visits may be made to theactivity in question any normal workday between 8 a.m. - 4:30 p.m. Forpersonal visits individual should beable to provide valid personalidentification.




Training performance, evaluations,on-the-job performance evaluations,individual and instructor evaluations,individual service records, ManpowerManagement System, test andinspection results and trainingcorrespondence addressing individualconcerned.


None.

MTE00001

SYSTEM NAME:

Telephone Billing/Accounting File(February 22, 1993, 58 FR 10630).

CHANGES:

* * * * *


Delete the entry and replace with ‘5U.S.C. 301, Departmental Regulations;10 U.S.C. 5013, Secretary of the Navy,10 U.S.C. 5041, Headquarters, and E.O.9397 (SSN).’* * * * *

STORAGE:

Delete the entry and replace with‘Paper and electronic records.’* * * * *

MTE00001

SYSTEM NAME:

Telephone Billing/Accounting File.

SYSTEM LOCATION:

All Marine Corps activitiesmaintaining telephone accounts.


All military personnel, civiliancontractors, concessions, and MarineCorps sponsored activities that areprovided unofficial governmenttelephone service.


Files contain name, Social SecurityNumber, grade, military address,telephone number assigned toindividuals in the system, civiliancontractor’s business address andbusiness telephone numbers, ledger ofitemized telephone service charges andpayments, receipted bills, requests forservice, account number, addressographplate, cash collections vouchers fortelephone deposits, and routinecorrespondence.


5 U.S.C. 301, DepartmentalRegulations; 10 U.S.C. 5013, Secretaryof the Navy, 10 U.S.C. 5041,Headquarters, and E.O. 9397 (SSN).

PURPOSE(S):

To provide a record amounts owedand paid for telephone services atMarine Corps activities. The file is alsoused as a telephone directory serviceexcept for numbers unlisted.





STORAGE:

Paper and electronic records.

RETRIEVABILITY:

Information accessed and retrieved byname, address or telephone number.

SAFEGUARDS:

Records are maintained in an areaaccessible only to authorized personneland are under constant supervision. Thebuilding is locked during non-workinghours and someone is on duty 24 hoursa day.


Records remain active untilindividual leaves the Marine Corpsactivity concerned. Records are thentransferred to an inactive file for fouryears and then destroyed.


Commanding Officer of activityconcerned. U.S. Marine Corps officialmailing addresses are incorporated intothe Department of the Navy’s addressdirectory, published as an appendix tothe Navy’s compilation of systems ofrecords notices.


Individuals seeking to determinewhether information about themselvesis contained in this system shouldaddress written inquiries to thecommand to which an individual isassigned for duty. U.S. Marine Corpsofficial mailing addresses areincorporated into the Department of theNavy’s address directory, published asan appendix to the Navy’s compilationof systems of records notices.


Individuals seeking access toinformation about themselves containedin this system should address writteninquiries to the command to which anindividual is assigned for duty. U.S.Marine Corps official mailing addressesare incorporated into the Department ofthe Navy’s address directory, publishedas an appendix to the Navy’scompilation of systems of recordsnotices.

Written requests should include nameand Social Security Number andaddress.

For personal visits, the individualshould be able to provide the propermilitary or civilian identification.





RECORD SOURCE CATEGORIES:Application of the individual desiring

telephone service in governmenthousing aboard the activity.


[FR Doc. 00–52 Filed 1–3–00; 8:45 am]BILLING CODE 5001–10–F

DEPARTMENT OF ENERGY

Office of Policy; Availability of theInterim Report of the U.S. Departmentof Energy’s Power Outage StudyTeam: Findings From the Summer of1999 and Notice of Workshops

AGENCY: Office of Policy, Department ofEnergy.ACTION: Notice of availability of interimreport and announcement of workshops.

SUMMARY: This notice announces theavailability of The Interim Report of theU.S. Department of Energy’s PowerOutage Study Team: Findings From theSummer of 1999 as well as a series oftechnical workshops to be held seekingcomments on issues identified in thereport. In the report the team releasesthe results of its investigation intosignificant electric power outages andother power disturbances that occurredin various parts of the country duringthe summer of 1999. Developed inresponse to Secretary of Energy BillRichardson’s six-point initiative to helpprevent future power outages, the reportwas prepared by a team of expertscomposed of personnel from theDepartment of Energy headquartersstaff, the Department’s nationallaboratories, and academic institutions.The team is seeking input on issuesidentified in the report in workshops,over the Internet, and by mail. The teamwill then consider these comments indeveloping recommendations in its finalreport to the Secretary on what role theFederal government should play inaddressing ways to avoid future outages.The final report is expected to be issuedin March of 2000 and will be the focusof policy-level discussions amongindustry leaders and local and stategovernment officials.DATES: The Power Outage Study Teamhas planned three workshops for thosewishing to comment on the issuesidentified in the report. The workshopschedule is as follows:

January 20, 2000—8:30 a.m. to 5:00p.m., San Francisco, California

TopicsTransition to Competitive Energy

Service Markets (morning session)

Regulatory Policy for ReliableTransmission and Distribution(afternoon session)

January 25, 2000—8:30 a.m. to 5:00p.m., New Orleans, Louisiana

Topics

Information Resources (morningsession)

Operations Management and EmergencyResponse (afternoon)

January 27, 2000—8:30 a.m. to 12:00p.m., Newark, New Jersey

Topic

Reliability Metrics, Planning andTracking

ADDRESSES: The workshop locations are:San Francisco: Clarion Hotel San

Francisco Airport, 401 East MillbraeAvenue, Millbrae, California, 94030,(800)223–7111

New Orleans: Radisson Inn, NewOrleans Airport, 2150 VeteransMemorial Blvd, Kenner, Louisiana70062, (504) 467–3111

Newark: Holiday Inn, NewarkInternational Airport, 160 FrontageRd. Newark, New Jersey 07114, (973)589–1000All stakeholders are invited to register

to participate in one or more of theworkshops. A registration form isprovided in Appendix B of the InterimReport and is also available in theelectronic version of the report, whichcan be found on the Internet at:http://tis.eh.doe.gov/post/. There willalso be an opportunity at each workshopfor non-registrants to makerecommendations. Those who cannotattend these workshops may also sendtheir comments on the report to thePower Outage Study Team throughJanuary 31, 2000 via the Internetaddress listed previously or by mail to:Paul Carrier, PO–21, U.S. Department ofEnergy, 1000 Independence Avenue,S.W., Washington, DC 20585.FOR FURTHER INFORMATION CONTACT: Forcopies of the report you may contact theDepartment of Energy’s Public ReadingRoom, 1000 Independence Ave. S.W.,Washington, DC 20585, on (202) 586–3142. The report is also availableelectronically on the Internet at http://tis.eh.doe.gov/post/. For information onthe workshops you may contact ReginaGriego at (202) 586–6535.SUPPLEMENTARY INFORMATION: During thesummer of 1999, several heat waves inJune and July led to record peakdemand for power and capacityshortages. The heavy demand for powerput enormous strains on many electricutilities and resulted in a series ofpower outages in Chicago, Texas,

Louisiana, Arkansas, Mississippi, theDelmarva Peninsula, New Jersey, NewYork City, and Long Island, leavingmillions of people without power forsome period of time.

Issued: December 20, 1999.Mark J. Mazur,Director, Office of Policy.[FR Doc. 00–5 Filed 1–3–00; 8:45 am]BILLING CODE 6450–01–P


Public Information CollectionsApproved by Office of Managementand Budget

December 28, 1999.The Federal Communications

Commission (FCC) has received Officeof Management and Budget (OMB)approval for the following publicinformation collections pursuant to thePaperwork Reduction Act of 1995,Public Law 104–13. An agency may notconduct or sponsor and a person is notrequired to respond to a collection ofinformation unless it displays acurrently valid control number. Forfurther information contact Shoko B.Hair, Federal CommunicationsCommission, (202) 418–1379.

Federal Communications Commission

OMB Control No.: 3060–0848.Expiration Date: 06/30/2000.Title: Deployment of Wireline

Services Offering AdvancedTelecommunications Capability, CCDocket No. 98–147.

Form No.: N/A.Respondents: Business or other for-

profit.Estimated Annual Burden: 1400

respondents; 10.7 hours per response(avg.); 15,000 total annual burden hoursfor all collections.

Estimated Annual Reporting andRecordkeeping Cost Burden: $0.

Frequency of Response: On occasion;Third Party Disclosures.

Description: In CC Docket 98–147, theCommission seeks to implementCongress’s goal of promoting innovationand investment by all participating inthe telecommunications marketplace, inorder to stimulate competition for allservices, including advanced services asmandated by the TelecommunicationsAct of 1996. The following are theinformation collections:

(a) Showing Regarding LoopCondition.—Incumbent LECs whorefuse a competitive carrier’s request tocondition a loop must make an



affirmative showing to the relevant statecommission that conditioning thespecific loop in question willsignificantly degrade voicebandservices. See 47 CFR 51.319(h)(5). (No.of respondents: 1400; hours perresponse: 2 hours; total annual burden:2800 hours).

(b) Request for Alternative PhysicalAccess.—Incumbent LECs must providerequesting carriers with access to theloop facility for testing, maintenance,and repair. An incumbent seeking toutilize an alternative physical accessmethodology may request approval todo so from the relevant statecommission, but must show that theproposed alternative method isreasonable, nondiscriminatory, and willnot disadvantage a requesting carrier’sability to perform loop or servicetesting, maintenance or repair. See 47CFR 51.319(h)(7). (No. of respondents:1400; hours per response: .50; totalannual burden: 700 hours).

(c) Showing of SignificantDegradation.—An incumbent LEC maynot deny a carrier’s request to deploy atechnology that is presumed acceptablefor deployment unless the incumbentLEC demonstrates to the relevant statecommission that deployment of theparticular technology will significantlydegrade the performance of otheradvanced services or traditionalvoiceband services. See 47 CFR51.230(b) and (c). (No. of respondents:1400; hours per response: 1.5 hours;total annual burden: 2100 hours).

(d) Information on Type ofTechnology.—A requesting carrier thatseeks access to a loop or a highfrequency portion of a loop to provideadvanced services must provide to theincumbent LEC information on the typeof technology that the requesting carrierseeks to deploy. See 47 CFR 51.231(b)-(c). (No. of respondents: 1400; hours perresponse: 1.5 hours; total annualburden: 2100 hours).

(e) Petition.—Any party seekingdesignation of a technology as a knowndisturber should file a petition fordeclaratory ruling. See 47 CFR51.232(b). (No. of respondents: 100;hours per response: 1 hour; total annualburden: 100 hours).

(f) Showing of Network Harm.—Where the degradation remainsunresolved by the deploying carrier(s),after a reasonable opportunity to correctthe problem, the carrier whose servicesare being degraded must establish beforethe relevant state commission that aparticular technology deployment iscausing the significant degradation. See47 CFR Section 51.233(b)–(c). (No. ofrespondents: 100; hours per response: 2hours; total annual burden: 200 hours).

(g) List of Equipment, Affidavit.—Whenever an incumbent LEC objects tocollocation of equipment by arequesting telecommunications carrierfor the purposes within the scope ofsection 251(c)(6) of the Act, theincumbent LEC shall prove to the statecommission that the equipment will notbe actually used by thetelecommunications carrier for thepurpose of obtaining interconnection oraccess to unbundled network elements.An incumbent LEC that deniescollocation of a competitor’s equipment,citing safety standards, must provide tothe competitive LEC within fivebusiness days a list of all equipmentthat the incumbent LEC locates withinthe premises in question, together withan affidavit attesting that all of thatequipment meets or exceeds the safetystandard that the incumbent LECcontends the competitor’s equipmentfails to meet. See 47 CFR 51.323(b). (No.of respondents: 1400; hours perresponse: 1 hour; total annual burden:1400 hours).

(h) Space LimitationDocumentation.—An incumbent LECshall submit to the state commission,subject to any protective order as thestate commission may deem necessary,detailed floor plans or diagrams of anypremises where the incumbent LECclaims that physical collocation is notpractical because of space limitations.An incumbent LEC that contends spacefor physical collocation is not availablein an incumbent LEC premises mustalso allow the requesting carrier to tourthe entire premises in question, not justthe room in which space was denied,without charge, within ten days of thereceipt of the incumbent LEC’s denial ofspace. See 47 CFR Section 51.321(f).

(i) Report of Available CollocationSpace.—Upon request, an incumbentLEC must submit to the requestingcarrier within ten days of thesubmission of the request a reportindicating the incumbent LEC’savailable collocation space in aparticular LEC premises. This reportmust specify the amount of collocationspace available at each requestedpremises, the number of collocators, andany modifications in the use of thespace since the last report. Theincumbent LEC must maintain apublicly available document, posted forviewing on the Internet, indicating allpremises that are full, and must updatesuch a document within ten days of thedate at which a premises runs out ofphysical collocation space. See 47 CFRSection 51.321(h). (No. of respondents:1400; hours per response: 1 hour; totalannual burden: 1400 hours).

(j) Information on SecurityTraining.—An incumbent LEC mustprovide information to competitiveLECs on the specific type of securitytraining a competitive LEC’s employeesmust complete in order for theincumbent LEC to maintain reasonablesecurity measures for its equipment andnetworks. See 47 CFR Section51.323(i)(3). (No. of respondents: 1400;hours per response: .50 hours; totalannual burden: 700 hours).

(k) Access to Spectrum ManagementProcedures and Policies.—Anincumbent LEC must providecompetitive LECs withnondiscriminatory access to theincumbent LEC’s spectrum managementprocedures and policies. See 1st Reportand Order, para. 72 and 47 CFR Section51.231(a). (No. of respondents: 1400;hours per response: .50 hours; totalannual burden: 700 hours).

(l) Rejection and Loop Information.—An incumbent LEC must disclose torequesting carriers information withrespect to the rejection of the requestingcarrier’s provision of advanced services,together with the specific reason for therejection. An incumbent LEC must alsodisclose to requesting carriersinformation with respect to the numberof loops using advanced servicestechnology within the binder and typeof technology deployed on those loops.See 1st Report and Order, para. 73 and47 CFR Section 51.23(a). (No. ofrespondents: 1400; hours per response:1 hour; total annual burden: 1400hours).

(m) Notification of PerformanceDegradation.—If a carrier claims aservice is significantly degrading theperformance of other advanced servicesor traditional voice band services, thenthat carrier must notify the causingcarrier and allow that carrier areasonable opportunity to correct theproblem. Any claims of network harmmust be supported with specific andverifiable supporting information. See1st Report and Order, para. 75 and 47CFR 51.233. (No. of respondents: 1400;hours per response: .50 hours; totalannual burden: 700 hours). All of thecollections will be used by theCommission and by competitive carriersto facilitate the deployment of advanceddata services and to implement section706 of the Communications Act of 1934,as amended. Obligation to respond:Mandatory.

Public reporting burden for thecollections of information is as notedabove. Send comments regarding theburden estimate or any other aspect ofthe collections of information, includingsuggestions for reducing the burden to



Performance Evaluation and RecordsManagement, Washington, D.C. 20554.Federal Communications Commission.Magalie Roman Salas,Secretary.[FR Doc. 00–83 Filed 1–3–00; 8:45 am]BILLING CODE 8712–01–P


[DA 99–2824]

Auction Filing Window for NewTelevision Station Channel 52 atBlanco, Texas

AGENCY: Federal CommunicationsCommission.ACTION: Notice.

SUMMARY: This document announces anauction filing window for a new analogtelevision station on Channel 52 atBlanco, TX.DATES: The window filing opportunitybegins January 24, 2000, and closesJanuary 28, 2000.FOR FURTHER INFORMATION CONTACT:Shaun Maher, Video Services Division,Mass Media Bureau at (202) 418–1600.SUPPLEMENTARY INFORMATION: This is asummary of a Public Notice releasedDecember 17, 1999. It does not includeattachments. The complete text of thePublic Notice, including attachments, isavailable for public inspection andcopying during normal business hoursin the FCC Reference Center (Room CY–A257), 445 12th Street, SW,Washington, DC. It may also bepurchased from the Commission’s copycontractor, International TranscriptionServices, Inc. (ITS, Inc.), 1231 20thStreet, NW, Washington, DC 20035,(202) 857–3800. It is also available onthe Commission’s web site at http://www.fcc.gov.

The Mass Media Bureau and theWireless Telecommunications Bureauannounce an auction filing window fora new analog television station onChannel 52 at Blanco, Texas. The filingwindow will open on January 24, 2000and close on January 28, 2000.

Selection among mutually exclusiveapplicants for the new Blanco televisionstation will be via the Commission’sbroadcast competitive bidding rules. See47 CFR 73.5000 et seq. Those wishingto participate in the auction must fileelectronically a short form application(FCC Form 175) by 5:30 p.m. EasternStandard Time, January 28, 2000.Pursuant to the Commission’s broadcastcompetitive bidding rules, only thewinning bidder will be required tosubmit a long form (FCC Form 301)

following the close of the auction. See47 CFR 73.5005.Federal Communications Commission.Magalie Roman Salas,Secretary.[FR Doc. 00–82 Filed 1–3–00; 8:45 am]BILLING CODE 6712–01–P

FEDERAL RESERVE SYSTEM

Formations of, Acquisitions by, andMergers of Bank Holding Companies

The companies listed in this noticehave applied to the Board for approval,pursuant to the Bank Holding CompanyAct of 1956 (12 U.S.C. 1841 et seq.)(BHC Act), Regulation Y (12 CFR Part225), and all other applicable statutesand regulations to become a bankholding company and/or to acquire theassets or the ownership of, control of, orthe power to vote shares of a bank orbank holding company and all of thebanks and nonbanking companiesowned by the bank holding company,including the companies listed below.

The applications listed below, as wellas other related filings required by theBoard, are available for immediateinspection at the Federal Reserve Bankindicated. The application also will beavailable for inspection at the offices ofthe Board of Governors. Interestedpersons may express their views inwriting on the standards enumerated inthe BHC Act (12 U.S.C. 1842(c)). If theproposal also involves the acquisition ofa nonbanking company, the review alsoincludes whether the acquisition of thenonbanking company complies with thestandards in section 4 of the BHC Act(12 U.S.C. 1843). Unless otherwisenoted, nonbanking activities will beconducted throughout the United States.

Unless otherwise noted, commentsregarding each of these applicationsmust be received at the Reserve Bankindicated or the offices of the Board ofGovernors not later than January 27,2000.

A. Federal Reserve Bank of St. Louis(Randall C. Sumner, Vice President) 411Locust Street, St. Louis, Missouri63102–2034:

1. National CommerceBancorporation Memphis, Tennessee; toacquire 100 percent of the voting sharesof First National Bank, Lenoir City,Tennessee.

B. Federal Reserve Bank ofMinneapolis (JoAnne F. Lewellen,Assistant Vice President) 250 MarquetteAvenue, Minneapolis, Minnesota55480–2171:

1. Lewisville Bancorp, Inc., Lewisville,Minnesota; to become a bank holding

company by acquiring 100 percent ofthe voting shares of Van DeusenBancorp, Inc., Lewisville, Minnesota,and thereby indirectly acquiring 100percent of the voting shares of MadisonLake Bancorporation, Inc., MadisonLake, Minnesota, and its subsidiary,Peoples State Bank of Madison Lake,Madison Lake, Minnesota.

Board of Governors of the Federal ReserveSystem, December 28, 1999.Jennifer J. Johnson,Secretary of the Board.[FR Doc. 00–24 Filed 01–3–00; 8:45 am]BILLING CODE 6210–01–P


Notice of Proposals To Engage inPermissible Nonbanking Activities orTo Acquire Companies That areEngaged in Permissible NonbankingActivities

The companies listed in this noticehave given notice under section 4 of theBank Holding Company Act (12 U.S.C.1843) (BHC Act) and Regulation Y, (12CFR Part 225) to engage de novo, or toacquire or control voting securities orassets of a company, including thecompanies listed below, that engageseither directly or through a subsidiary orother company, in a nonbanking activitythat is listed in § 225.28 of Regulation Y(12 CFR 225.28) or that the Board hasdetermined by Order to be closelyrelated to banking and permissible forbank holding companies. Unlessotherwise noted, these activities will beconducted throughout the United States.

Each notice is available for inspectionat the Federal Reserve Bank indicated.The notice also will be available forinspection at the offices of the Board ofGovernors. Interested persons mayexpress their views in writing on thequestion whether the proposal complieswith the standards of section 4 of theBHC Act.

Unless otherwise noted, commentsregarding the applications must bereceived at the Reserve Bank indicatedor the offices of the Board of Governorsnot later than January 17, 2000.

A. Federal Reserve Bank of Chicago(Philip Jackson, Applications Officer)230 South LaSalle Street, Chicago,Illinois 60690–1413:

1. Iowa State Financial ServicesCorporation, Fairfield, Iowa; to acquireSisler Insurance Agency, Inc., Coggon,Iowa, (an ongoing concern), through theacquisition of North Linn Corporation,Coggon, Iowa; and thereby engage in theexempted nonbanking activity of salesof insurance in small towns as allowedby § 225.28(b)(11)(iii) of Regulation Y.



Board of Governors of the Federal ReserveSystem, December 28, 1999.Jennifer J. Johnson,Secretary of the Board.[FR Doc. 00–23 Filed 01–3–00; 8:45 am]BILLING CODE 6210–01–P


Sunshine Act Meeting

AGENCY HOLDING THE MEETING: Board ofGovernors of the Federal ReserveSystem.TIME AND DATE: 11:00 a.m., Monday,January 10, 2000.PLACE: Marriner S. Eccles FederalReserve Board Building, 20th and CStreets, N.W., Washington, D.C. 20551.STATUS: Closed.MATTERS TO BE CONSIDERED:

1. Personnel actions (appointments,promotions, assignments,reassignments, and salary actions)involving individual Federal ReserveSystem employees.

2. Any items carried forward from apreviously announced meeting.CONTACT PERSON FOR MORE INFORMATION:Lynn S. Fox, Assistant to the Board;202–452–3204.

SUPPLEMENTARY INFORMATION: You maycall 202–452–3206 beginning atapproximately 5 p.m. two business daysbefore the meeting for a recordedannouncement of bank and bankholding company applicationsscheduled for the meeting; or you maycontact the Board’s Web site at http://www.federalreserve.gov for anelectronic announcement that not onlylists applications, but also indicatesprocedural and other information aboutthe meeting.

Dated: December 30, 1999.Jennifer J. Johnson,Secretary of the Board.[FR Doc. 99–34072 Filed 12–30–99; 1:11 pm]BILLING CODE 6210–01–P


Administration for Children andFamilies

Agency Recordkeeping/ReportingRequirements Under EmergencyReview by the Office of Managementand Budget (OMB)

Title: FY 2000 DiscretionaryAnnouncement of the Availability of

Funds and Request for Applications forChild Care Research.

OMB No.: New Request.Description: The fiscal year 1999

Omnibus Consolidated and EmergencySupplemental Appropriation Act (PubL. 105–277) provides $10 million in FY2000 funds for child care research,demonstration, and evaluation activitiesto be used directly or through grants orcontracts. In this notice, ACF announcesthe availability of these funds andrequests child care researchapplications. Universities and colleges,public agencies, non-profitorganizations, and for-profitorganizations agreeing to waive theirfees are invited to submit applicationsfor Field Initiated Child Care ResearchProjects, Child Care Policy ResearchPartnerships, and implementation of theChild Care Research FellowshipProgram. Accredited universities andcolleges may submit a Child CareResearch Scholar application on behalfof a doctoral candidate who has adissertation proposal approved by theirdoctoral committee.

Respondents: Universities andcolleges, public agencies, non-profitorganizations, and for-profitorganizations.

ANNUAL BURDEN ESTIMATES

Instrument No. ofrespondents

No. ofresponses per

respondent

Averageburden hoursper response

Total burdenhours

Field Initiated ................................................................................................... 50 1 15 750Title Partnerships ............................................................................................. 25 1 20 500Fellows Program .............................................................................................. 15 1 10 150Scholars ........................................................................................................... 25 1 5 125

Estimated Total Annual Burdens Hours: 1,525 hours.

Additional Information: ACF isrequesting that OMB grant a 180 dayapproval for this information collectionunder procedures for emergencyprocessing by January 11, 2000. A copyof this information collection, withapplicable supporting documentation,may be obtained by calling theAdministration for Children andFamilies, Reports Clearance Officer,Robert Sargis at (202) 690–7275. Inaddition, a request may be made bysending an e-mail request to:[email protected].

Comments and questions about theinformation collection described aboveshould be directed to the followingaddress by January 11, 2000: Office ofInformation and Regulatory Affairs,Attn: OMB Desk Officer for ACF, Officeof Management and Budget, Paper

Reduction Project, 725 17th Street NW,Washington, DC 20503.

Dated: December 28, 1999.Bob Sargis,Reports Clearance Officer.[FR Doc. 00–22 Filed 1–3–00; 8:45 am]BILLING CODE 4184–01–M


National Institutes of Health

Regional Workshops on Centers forResearch To Reduce Oral HealthDisparities

Notice is hereby given that theNational Institute on Dental andCraniofacial Research (NIDCR) issponsoring a series of regionalworkshops for potential applicants

interested in the Request forApplications entitled ‘‘Centers forResearch to Reduce Oral HealthDisparities.’’ Also collaborating on thisinitiative are the Health Resources andServices Administration, the Centers forDisease Control and Prevention, the NIHOffice of Behavioral and Social SciencesResearch, the NIH Office of Research onWomen’s Health, the NIH Office ofResearch on Minority Health, theNational Institute of Child Health andHuman Development, and the NationalInstitute of Nursing Research. TheRegional Workshops on Centers forResearch to Reduce Oral HealthDisparities will be held:January 31—February 1, 2000

Wyndham Garden Hotel, 125 10thStreet, Atlanta, GA 30309

February 3–February 4, 2000The Boston Park Plaza Hotel, 64



Arlington Street, Boston, MA02116–3912

February 14–February 15, 2000Chicago Marriott O’Hare, 8535 West

Higgins Road, Chicago, IL 60631February 16–February 17, 2000

Harvey Hotel Dallas-Fort WorthAirport, 4545 John CarpenterParkway, Irving, TX 76039

February 24–25, 2000Park Plaza International San

Francisco, 11177 AirportBoulevard, Burlingame, CA 94010

February 28–February 29, 2000Hilton Philadelphia Airport, 4509

Island Avenue, Philadelphia, PA19153

April 5, 2000AADS and IADR Meetings,

Washington Convention Center,Washington, DC

No registration fee is required. Thetime for each workshop will be: (a) Day1—7 p.m.–9 p.m., (b) Day 2—8:30 a.m.–3 p.m.

The objective of the Centers forResearch to Reduce Oral HealthDisparities (CRROHD) initiative is toreduce health disparities in childrenand their caregivers through basic,patient-oriented/clinical, translationaland community research, throughtraining and career development, andthrough community outreach/service.

The purposes of the workshops are to:• Bring together potential applicants

from the various and diversecommunities including colleges/schools/departments of academic healthinstitutions representing the entirespectrum of the health professions (e.g.,dentistry, medicine, nursing, pharmacy,veterinary sciences, behavioral andsocial sciences), state and local healthand health financing agencies (e.g., stateMedicaid agencies and children’s healthinsurance programs), community andmigrant health centers, Indian healthservice clinics, CDC-sponsoredPrevention Research Centers, minorityand minority-serving institutions (e.g.,Historically Black Colleges andUniversities; Hispanic-servinginstitutions, tribal colleges anduniversities), and other groupsinterested in this initiative; and

• Address questions relating to thedevelopment of applications in responseto the Request for Applications (RFADE–99–003) available through theNIDCR Health Disparities Home Page(http://www.nidcr.nih.gov/opportunities/healthldisp.htm) ordirectly from the electronic version ofthe NIH Guide to Grants and Contracts(http://grants.nih.gov/grants/guide/rfa-files/RFA–DE–99–003.html).

Representatives from variousgovernment agencies involved in this

RFA will be available to answerquestions and provide additionalguidance.

Participants are responsible formaking arrangements for their owntravel and overnight accommodations.Blocks of sleeping rooms have been set-aside at each workshop site at a specialrate for federal and nonfederalparticipants. For additional informationplease contact Ms. Lorrayne Jackson on(301) 594–2616; email:([email protected]) or Dr.Norman S. Braveman (301) 594–2089;email: ([email protected]) orvisit the NIDCR Health DisparitiesActivities web site: (http://www.nidcr.nih.gov/opportunities/healthldisp.htm).

Dated: December 21, 1999.Yvonne H. du Buy,Associate Director for Management, NIDCR.[FR Doc. 00–61 Filed 1–3–00; 8:45 am]BILLING CODE 4140–01–M



Government-Owned Inventions;Availability for Licensing

AGENCY: National Institutes of Health.ACTION: Notice.

SUMMARY: The invention listed below isowned by an agency of the U.S.Government and is available forlicensing in the U.S. (and in selectedforeign markets) in accordance with 35U.S.C. 207 to achieve expeditiouscommercialization of results offederally-funded research anddevelopment.ADDRESSES: Licensing information maybe obtained by contacting MarleneShinn at the Office of TechnologyTransfer, National Institutes of Health,6011 Executive Boulevard, Suite 325,Rockville, MD 20852–3804; telephone:301/496–7056 ext. 285; fax: 301/402–0220; e-mail: [email protected] INFORMATION: The NIHannounces the issuance of U.S. Patent5,958,778, entitled ‘‘Container forDrying Biological Samples, Method ofMaking Such Container, and Method ofUsing Same,’’ developed by Dr. GeoffreyL. Kidd of the National Eye Institute.

Problem Addressed by This InventionMany compounds, such as drugs,

growth factors, etc., must be kept sterileand must be aliquotted for storage.Usually, these aliquots are best storedlyophilized. Yet, researchers have neverhad a way to keep aliquots sterile

through the lyophilization process.Consequently, each aliquot has had tobe filter-sterilized when reconstitutedfor use. This process has thedisadvantages of consuming excessivefilters, syringes, sterile, receptacles, andtime and results in serious loss ofprecious sample due to absorption bythe filters (especially with smallaliquots less than 1 ml). Alternatively,researchers have had to forgolyophilization and store their solutionsin the less-stable frozen form.

Solution Offered by This InventionSterile-lyophilization tubes having a

0.22 micron filter built into the cap.This unique feature allows a sterilesolution to remain sterile throughoutlyophilization, even after the vacuum isreleased and air reenters the tube. Thus,a starting solution is simply filter-sterilized while in a relatively largevolume, using a single filter andtherefore suffering minimal loss andconsuming little time. It is thenaliquotted into sterile-lyophilizationtubes and lyophilized. The tubes canthen be transferred directly to thefreezer, if desired. The compound isreconstituted when needed, and maythen be used immediately withoutfurther filtration.

Potential Applications of ThisInvention

All researchers worldwide who utilizesterile, labile compounds will have aninterest in this product, includinggovernmental, university, institutional,and drug company laboratories. Mostnotably in need are investigatorsinvolved in drug-testing, which isnormally done either in cell cultures,laboratory animals, or humans, andwhich requires sterility of many aliquotsof many drugs. Additionally, thisproduct will have a large market relatingto basic research utilizing microbial,plant, or animal cell or organ cultures,to which sterile compounds such asgrowth factors are commonly added.Research in drugs, growth factors, etc.,is expanding ever more rapidly, andgenerally requires a cell culture systemin which to study such compounds.Most of these compounds are quiteexpensive. Loss of potency duringstorage and loss of material duringfiltration are widespread problemswhich may be overcome with thisinvention. Therefore, there exists atremendous need, and immense marketfor, this sterile-lyophilization vessel.

Stage of DevelopmentDevelopment is complete and

invention has been successfully tested.Prototypes are available.



Dated: December 29, 1999.Jack Spiegel,Director, Division of Technology Developmentand Transfer, Office of Technology Transfer,National Institutes of Health.[FR Doc. 00–62 Filed 1–3–00; 8:45 am]BILLING CODE 4140–01–M



National Cancer Institute; NationalCancer Institute Sponsors an OpenForum on the 5 a Day for Better HealthProgram

The National Cancer Institute (NCI)will sponsor an open forum to hearpublic comment during an assessmentof the Institute’s 5 a Day for BetterHealth Program. Members of theassessment team will examine a numberof areas, including the program’ssuccess in achieving its goal andobjectives, its scientific base, and itsachievements in nutrition-relatedresearch, communications, andcoalition-building.

The purpose of the open forum is toenable individuals representing health,research, and professionalorganizations, as well as privatecitizens, to provide oral comment on the5 a Day program. The forum will be heldon January 13, 2000 from 1 to 2:30 p.m.at the Hyatt Regency Crystal City, 2799Jefferson Davis Highway, Arlington, VA22202. NCI staff and members of theteam will attend.

To enable NCI representatives to hearthe widest range of views, oralcomments will be limited to fiveminutes in length. In addition, the NCImay need to set a limit of one speakerper organization depending on thenumber of speakers. In order to have awritten record of all comments, the NCIwill have transcription servicesavailable for those who cannot providea typed copy of their comments on orbefore January 13. Prior to the oralcomment period, the NCI will provide abrief overview of the evaluation plan forthe Program.

Requests for time to make oralpresentations at the January 13 meetingneed to be made in writing by January11, 2000 to the contact person listedbelow.

Attendance at the forum will belimited to space available. Individualswho plan to attend and need specialassistance, such as sign languageinterpretation or other reasonableaccommodation, should notify theContact person listed below in advanceof the meeting.

NCI encourages anyone who is unableto make an oral presentation to submita written statement for the record.Written statement may be submitted tothe contact below until January 25,2000.

FOR FURTHER INFORMATION CONTACT:Kevin Callahan, Deputy Directors,Office of Science Policy, Planning andAssessment, National Cancer Institute,National Institutes of Health, Bldg. 31,Room 11A03, Bethesda, MD 20892,voice: 301–402–7519, fax 301–435–3876, e-mail: [email protected].

Dated: December 27, 1999.Anna Snouffer,Acting Director, Office of Federal AdvisoryCommittee Policy, National Institutes ofHealth.[FR Doc. 00–67 Filed 1–3–00; 8:45 am]BILLING CODE 4140–01–M



National Eye Institute; Notice of ClosedMeeting

Pursuant to section 10(d) of theFederal Advisory Committee Act, asamended (5 U.S.C. Appendix 2), noticeis hereby given of the followingmeeting.

The meeting will be closed to thepublic in accordance with theprovisions set forth in sections552b(c)(4) and 552b(c)(6), Title 5 U.S.C.,as amended. The grant applications andthe discussions could discloseconfidential trade secrets or commercialproperty such as patentable material,and personal information concerningindividuals associated with the grantapplications, the disclosure of whichwould constitute a clearly unwarrantedinvasion of personal privacy.

Name of Committee: National Eye InstituteSpecial Emphasis Panel.

Date: January 12, 2000.Time: 9 am to 2 pm.Agenda: To review and evaluate grant

applications.Place: 6120 Executive Blvd. Suite 350,

Rockville, MD 20892.Contact Person: Andrew P. Mariani, Chief,

Scientific Review Branch, 6120 ExecutiveBlvd, Suite 350, Rockville, MD 20892; 301/496–5561.

This notice is being published less than 15days prior to the meeting due to the timinglimitations imposed by the review andfunding cycle.(Catalogue of Federal Domestic AssistanceProgram Nos. 93.867, Vision Research,National Institutes of Health, HHS)


Anna Snouffer,Acting Director, Office of Federal AdvisoryCommittee Policy.[FR Doc. 00–64 Filed 1–3–00; 8:45 am]

BILLING CODE 4140–01–M



National Eye Institute; Notice of ClosedMeeting


The meeting will be closed to thepublic in accordance with theprovisions set forth in sections 552(c)(4)and 552(c)(6), Title 5 U.S.C., asamended. The grant applications andthe discussions could discloseconfidential trade secrets or commercialproperty such as patentable material,and personal information concerningindividuals associated with the grantapplications, the disclosure of whichwould constitute a clearly unwarrantedinvasion of personal privacy.

Name of Committee: National Eye InstituteSpecial Emphasis Panel.

Date: January 6, 2000.Time: 2 pm to 5 pm.Agenda: To review and evaluate grant

applications.Place: 6120 Executive Blvd. Suite 350,

Rockville, MD 20892 (Telephone ConferenceCall).

Contact Person: Andrew P. Mariani, Chief,Scientific Review Branch, 6120 ExecutiveBlvd., Suite 350, Rockville, MD 20892; 301/496–5561.

This notice is being published less than 15days prior to the meeting due to the timinglimitations imposed by the review andfunding cycle.

(Catalogue of Federal Domestic AssistanceProgram Nos. 93.867, Vision Research,National Institutes of Health, (HHS)








National Institute of Mental Health;Notice of Closed Meeting



Name of Committee: National Institute ofMental Health Special Emphasis Panel.

Date: January 14, 2000.Time: 10:00 am to 11:00 am.Agenda: To review and evaluate grant

applications.Place: Neuroscience Center, National

Institutes of Health, 6001 Executive Blvd.,Bethesda, MA 20892 (Telephone ConferenceCall).

Contact Person: Jerry Cott, ScientificReview Administrator, National Institute ofMental Health, NIH, 6001 Executive Blvd.,Room 7160, MSC 9635, Bethesda, MD 20892–9635, Bethesda, MD 20892–9635, (301) 443–1185, [email protected].

This notice is being published less than 15days prior to the meeting due to the timinglimitations imposed by the review andfunding cycle.

(Catalogue of Federal Domestic AssistanceProgram Nos. 93.242, Mental Health ResearchGrants; 93.281, Scientist DevelopmentAward, Scientist Development Award forClinicians, and Research Scientist Award;93.282, Mental Health National ResearchService Awards for Research Training,National Institutes of Health, HHS)






National Institute of Allergy andInfectious Diseases; Notice of ClosedMeeting


The meeting will be closed to thepublic in accordance with theprovisions set forth in sections552b(c)(4) and 552b(c)(6), Title 5 U.S.C.,as amended. The contract proposals andthe discussions could discloseconfidential trade secrets or commercialproperty such as patentable material,and personal information concerningindividuals associated with the contractproposals, the disclosure of whichwould constitute a clearly unwarrantedinvasion of personal privacy.

Name of Committee: National Institute ofAllergy and Infectious Diseases SpecialEmphasis Panel: Development andManufacture of Dosage Form for Compoundswith Potential Treatment of InfectiousDiseases.

Date: February 4, 2000.Time: 8:30 am to 5:30 pm.Agenda: To review and evaluate contract

proposals.Place: Holiday Inn Gaithersburg, Goshen

Room, 2 Montgomery Village Avenue,Gaithersburg, MD 20879.

Contact Person: Vassil S. Georgiev,Scientific Review Administrator, ScientificReview Program, Division of ExtramuralActivities, NIAID, NIH, Room 2217, 6700–BRockledge Drive, MSC, 7610, Bethesda, MD20892–7610; 301–496–2550.(Catalogue of Federal Domestic AssistanceProgram Nos. 93.855, Allergy, Immunology,and Transplantation Research; 93.856,Microbiology and Infectious DiseasesResearch, National Institutes of Health, HHS)

Dated: December 27, 1999.Anna Snouffer,Acting Director of Federal AdvisoryCommittee Policy.[FR Doc. 00–68 Filed 1–3–00; 8:45 am]BILLING CODE 4140–01–M



National Institute on Drug Abuse;Notice of Closed Meeting


The meeting will be closed to thepublic in accordance with theprovisions set forth in sections552b(c)(4) and 552b(c)(6), Title 5 U.S.C.,as amended. The contract proposals andthe discussions could discloseconfidential trade secrets or commercialproperty such as patentable material,and personal information concerningindividuals associated with the contractproposals, the disclosure of whichwould constitute a clearly unwarrantedinvasion of personal privacy.

Name of Committee: National Institute onDrug Abuse Special Emphasis Panel:‘‘Computerized Neuropsychological TestingSoftware’’.

Date: January 13, 2000.Time: 9 am to 5 pm.Agenda: To review and evaluate contract

proposals.Place: Neuroscience Center, National

Institutes of Health, 6001 Executive Blvd.,Bethesda, MD 20892.

Contact Person: Eric Zatman, ContractReview Specialist, Office of ExtramuralProgram Review, National Institute on DrugAbuse, National Institutes of Health, DHHS,6001 Executive Boulevard, Room 3158, MSC9547, Bethesda, MD 20892–9547; (301) 435–1438.

This notice is being published less than 15days prior to the meeting due to the timinglimitations imposed by the review andfunding cycle.(Catalogue of Federal Domestic AssistanceProgram Nos. 93.277, Drug Abuse ScientistDevelopment Award for Clinicians, ScientistDevelopment Awards, and Research ScientistAwards; 93.278, Drug Abuse NationalResearch Service Awards for ResearchTraining; 93.279, Drug Abuse ResearchPrograms, National Institutes of Health, HHS)

Dated: December 28, 1999.Anna Snouffer,Acting Director, Office of Federal AdvisoryCommittee Policy.[FR Doc. 00–69 Filed 1–3–00; 8:45 am]BILLING CODE 4140–01–M



National Institute of Allergy andInfectious Diseases; Notice of Meeting


The meeting will be open to thepublic as indicated below, withattendance limited to space available.Individuals who plan to attend andneed special assistance, such as signlanguage interpretation or otherreasonable accommodations, should



notify the Contact Person listed belowin advance of the meeting.


Name of Committee: Allergy, Immunology,and Transplantation Research Committee.

Date: January 25–27, 2000.Open: January 25, 2000, 1 pm to 2 pm.Agenda: Discussion of administrative

details relating to committee business andprogram review.

Closed: January 25, 2000, 2 pm toadjournment.

Agenda: To review and evaluate grantapplications.

Place: Doubletree Hotel Monterey, TwoPortoloa Plaza, Monterey, CA 93940.

Contact Person: Madelon C. Halula,Scientific Review Administrator, ScientificReview Program, Division of ExtramuralActivities, NIAID, NIH, Room 2217, 6700–BRockledge Drive, MSC 7610; Bethesda, MD20892–7610, 301 496–2550.(Catalog of Federal Domestic AssistanceProgram Nos. 93.855, Allergy, Immunology,and Transportation Research; 93.856,Microbiology and Infectious DiseasesResearch, National Institutes of Health, HHS)

Dated: December 28, 1999.Anna Snouffer,Acting Director, Office of Federal AdvisoryCommittee Policy.[FR Doc. 00–70 Filed 1–3–00; 8:45 am]BILLING CODE 4140–01–M



Clinical Center; Notice of Meeting

Pursuant to section 10(d) of theFederal Advisory Committee Act, asamended (5 U.S.C. Appendix 2), noticeis hereby given of a meeting of theBoard of Governors of the Warren GrantMagnuson Clinical Center.

The meeting will be open to thepublic as indicated below, withattendance limited to space available.Individuals who plan to attend andneed special assistance, such as signlanguage interpretation or otherreasonable accommodations, shouldnotify the Contact Person listed belowin advance of the meeting.

The meeting will be closed to thepublic in accordance with the

provisions set forth in section552b(c)(9)(B), Title 5 U.S.C., as amendedfor discussion of personal qualificationsand performance, the disclosure ofwhich would constitute a clearlyunwarranted invasion of personalprivacy.

Name of Committee: Board of Governors ofthe Warren Grant Magnuson Clinical Center.

Date: January 28, 2000.Open: 9 am to 1:10 pm.Agenda: For discussion of programmatic

policies and issues.Place: National Institutes of Health,

Clinical Center Medical Board Room, 2C116,9000 Rockville Pike, Bethesda, MD 20892.

Closed: 1:10 pm to 1:30 pm.Agenda: To review and evaluate personnel

qualifications.Place: National Institutes of Health,

Clinical Center Medical Board Room, 2C116,9000 Rockville Pike, Bethesda, MD 20892.

Contact Person: Maureen E. Gormley,Executive Secretary, Warren Grant MagnusonClinical Center, National Institute of Health,Building 10, Room 2C146, Bethesda, MD20892, Bethesda, MD 20892.




INTER-AMERICAN FOUNDATION

Board Meeting

Time and Date: January 14, 2000,11:30 a.m.–3:30 p.m.

Place: 901 N. Stuart Street, TenthFloor, Arlington, Virginia 22203.

Status: Open session.Matters To Be Considered:• Approval of the Minutes of the July

23, 1999, Meeting of the Board ofDirectors.

• Discussion of Fiscal Year 2000Programs and Operations.

• Development of Fiscal Year 2001Program Initiatives and Strategies.

Contact Person for More Information:Adolfo A. Franco, Secretary to the Boardof Directors, (703) 306–4325.


Adolfo A. Franco,Sunshine Act Officer.[FR Doc. 99–34071 Filed 12–30–99; 10:22am]



Geological Survey

Federal Geographic Data Committee(FGDC); Application NoticeAnnouncing the Opening Date forTransmittal of Applications Under theFGDC National Spatial DataInfrastructure (NSDI) PartnershipFunding Programs for Fiscal Year (FY)2000

AGENCY: U.S. Geological Survey,Interior.ACTION: Notice inviting applications forthe NSDI Cooperative AgreementsProgram (CAP) awards for Fiscal Year2000, with performance to begin inAugust 2000.

SUMMARY: The purpose of the FGDCNational Spatial Data Infrastructure(NSDI) Partnership Funding Programs isto facilitate and foster partnerships,alliances and technology within andamong various public and privateentities to assist in building the NSDI.The NSDI consists of technologies,policies, organizations and peoplenecessary to promote cost-effectiveproduction, ready availability, andgreater utilization of high qualitygeospatial data among a variety ofsectors, disciplines and communities.

The FY 2000 NSDI CooperativeAgreements Program funds projects inthree categories of activities. The firstcategory (‘‘Don’t Duck Metadata’’)promotes metadata collection, metadatapublication (via a clearinghouse accessof geographic data linked to theInternet), and activities that support thetransition from the FGDC ContentStandard for Digital Geospatial Metadatato the ISO Metadata Standard 19115(under development). The secondcategory (‘‘Framework CommunityImplementations’’) promotes addressingof community issues and decision-making utilizing basic geographic data(NSDI Framework). The third category(‘‘Web Mapping Testbeds’’) categoryfunds projects that test the OpenGISConsortium’s Web Mapping Testbedspecifications.

Applications may be submitted byFederal agencies, State and localgovernment agencies, educationalinstitutions, private firms, non-profitfoundations, and Federallyacknowledged or state-recognizedNative American tribes or groups.Applications from Federal agencies willnot be competed against applicationsfrom other sources. Authority for thisprogram is contained in the Organic Actof March 3, 1879, 43 U.S.C. 31 andExecutive Order 12906.



DATES: The program announcementsand application forms for the FY 2000NSDI Cooperative Agreements Programare expected to be available on or aboutJanuary 15, 2000. Applications must bereceived on or before March 15, 2000.ADDRESSES: Copies of ProgramAnnouncement #00HQPA0004 for theNSDI Cooperative Agreements Program,may be obtained by writing to Ms.Amanda Goodwin, U.S. GeologicalSurvey, Office of Acquisition andFederal Assistance, Mail Stop 205B,12201 Sunrise Valley Drive, Reston, VA20192; (703) 648–7372, fax (703) 648–7901. Requests must be in writing;verbal requests will not be honored.Also, copies of each ProgramAnnouncement will be availablethrough the Internet at <www.usgs.gov/contracts/index.html> and<www.fgdc.gov>.FOR FURTHER INFORMATION CONTACT: Forthe NSDI Cooperative AgreementsProgram contact Ms. Kathleen Craig,U.S. Geological Survey, Office ofAcquisition and Federal Assistance,Mail Stop 205B, 12201 Sunrise ValleyDrive, Reston, VA 20192; (703) 648–7357, fax (703) 648–7901.SUPPLEMENTARY INFORMATION: Under theNSDI Cooperative Agreements Programindividual proposals should be directedtowards only one of the three categoriesper application. A total of $1,000,000 isavailable for award.

2000 CAP Categories

Category 1: ‘‘Don’t Duck Metadata’’The project objectives for this

category are the documentation ofgeospatial data through metada creationand serving that documentation on theInternet through a NSDI clearing house.Under this category funds are providedfor: (a) Organizations needing assistancein metadata creation and clearinghousedevelopment; and (b) thoseorganizations that can provide trainingassistance or state/regional consolidatedassistance efforts.

Category 2: ‘‘Framework CommunityImplementations’’

This funding category advances thecapacity of communities to create anduse basic geospatial data. Frameworkdata are defined as geodetic control,cadastral, digital orthoimagery,elevation, bathymetry, transportation,hydrography, and governmental units.Projects funded under this category willdemonstrate collaborative GISapproaches and decision-support insolving community issues utilizingbasic ‘‘framework’’ data using orrefining existing FGDC Frameworkstandards. Projects will establish a

collaborative process that providesdifferent kinds of organizations anddisciplines the ability to integrate andshare framework data. Applicants mustdemonstrate partnership with at leastone other organization and are expectedto make a 100% in-kind award match.As part of category 2 submissions, jointCanadian/U.S. partnership projects areinvited.

Category 3: ‘‘Web Mapping Testbeds’’Projects funded under this category

are expected to result in the technicalability for users to discover and viewmap data from multiple map serversthrough the National Geospatial DataClearinghouse. These projects will usethe OpenGIS Consortium’s pendingopen specifications for web mappingand the result of these pilot projects willaid in refining future versions of thosestandards. Projects must build onexisting web mapping andClearinghouse installations andexpertise within a geographic area, andmust include two or more participatingorganizations with a requirement tovisualize each organization’s data in anoperational Internet environment.

Dated: December 28, 1999.John A. Kelmelis,Acting Chief, National Mapping Division.[FR Doc. 00–21 Filed 1–3–00; 8:45 am]BILLING CODE 4310–Y7–M


United States Geological Survey

Advisory Committee on WaterInformation (ACWI); Notice ofAvailability for Public Review of Reporton United States Geological SurveyFederal-State Cooperative WaterProgram

AGENCY: United States GeologicalSurvey, Interior.SUMMARY: Notice is hereby given of theavailability for public review of thereport, ‘‘External Task Force Review ofthe United States Geological Survey(USGS) Federal-State Cooperative WaterProgram,’’ Circular 1192, August 1999.Review of this report is sought underthe Terms of Reference of the ACWITask Force to Review the Federal-StateCooperative Water Program.

The ACWI has been established underthe authority of the Office ofManagement and Budget Memorandum92–01 and the Federal AdvisoryCommittee Act. The purpose of theACWI is to provide a forum for water-information users and professionals toadvise the Federal Government aboutactivities and plans which may improve

the effectiveness of meeting the Nation’swater information needs. The USGSestablished the Federal-StateCooperative Water Program Task Forceas approved by the ACWI at the meetingof August 1998. Additional informationabout the ACWI, including the TaskForce, is available at http://water.usgs.gov/wicp/.

The Task Force report is nowavailable for public review andcomment. The report may be accessed athttp://water.usgs.gov/pubs/circ/circ1192/. A printed copy of the reportmay be obtained by contacting the U.S.Geological Survey, 12201 Sunrise ValleyDrive, 409 National Center, Reston, VA20192; (703) 648–5216.

DATES: Comments on the report shouldbe provided no later than February 29,2000. Comments should be sent to Dr.Ethan T. Smith (Executive Secretary),Chief, Water Information CoordinationProgram, U.S. Geological Survey, 12201Sunrise Valley Drive, 417 NationalCenter, Reston, VA 20192; (703) 648–5022.

SUPPLEMENTARY INFORMATION: The USGSFederal-State Cooperative WaterProgram is the largest single source ofhydrologic data and information in thecountry. Hydrologic monitoring,assessments, investigations, andresearch conducted under the programsupport both national interests andcooperator needs. Costs for the programare jointly funded by the USGS andsome 1,200 State, Tribal, and localgovernment partners. The Federal-StateCooperative Water Program is a uniquepartnership, rather than a grantsprogram. State, Tribal, and localcooperators transfer their share of thefunding to the USGS for work onspecific projects. The resulting data andinformation are archived and sharednationwide. More information isavailable in the Federal-StateCooperative Water-Resources ProgramFact Sheet available at http://water.usgs.gov/wid/html/COOP.html/.

The Task Force conducted the firstexternal review of the Coop Program inits 100-year history. The purpose of theTask Force was to gather information, toassess the effectiveness of the program,and to draft recommendedimprovements. The Task Force hascompleted their work and has publishedtheir findings and recommendations ina report, USGS Circular 1192. Thereport is titled ‘‘External Task ForceReview of the United States GeologicalSurvey Federal-State Cooperative WaterProgram, August 1999.’’



Dated: December 22, 1999.Robert M. Hirsch,Chief Hydrologist, U.S. Geological Survey.[FR Doc. 00–100 Filed 01–03–00; 8:45 am]BILLING CODE 4310–Y7–M


Bureau of Land Management

[WY–040–00–1310–EJ]

Pinedale Anticline Natural GasExploration and Development ProjectDraft Environmental Impact Statement(DEIS), Sublette County, WY

AGENCY: Bureau of Land Management,Interior.ACTION: Notice: Comment periodextension.

SUMMARY: Notices of Availability (NOA)of the Pinedale Anticline Natural GasExploration and Development ProjectDraft Environmental Impact Statement(DEIS) were published in the FederalRegister by the EnvironmentalProtection Agency (EPA) (64 FR 66474)and the Bureau of Land Management(BLM) (64 FR 66194–66195) onNovember 26, 1999, providing 60 daysfor the public to review and commenton the DEIS. BLM is extending thatreview and comment period 10 days. Aletter regarding the extension of timehas been sent to all parties receiving theDEIS.DATES: Comments on the DEIS will nowbe due on February 4, 2000. The formalpublic hearing will still be held at 7p.m. on January 12, 2000, at thePinedale High School Auditorium, 101E. Hennick, Pinedale, WY. The purposeof the hearing will be to afford thepublic the opportunity to verbalize theircomments on the proposed natural gasexploration and development DEIS.ADDRESSES: Comments on the DEISshould be sent to the Bureau of LandManagement, Bill McMahan (ProjectCoordinator), 280 Highway 191 North,Rock Springs, WY 82901, or they can bee-mailed to [email protected] INFORMATION: TheWyoming BLM State Director receivedrequests from the Jackson HoleConservation Alliance, WyomingWildlife Federation, GreaterYellowstone Coalition, and theWyoming Outdoor Council for a 30-dayextension of time to review andcomment on the DEIS. After carefullyconsidering the request for extension ofthe 60-day public comment periodprovided for this DEIS, the WyomingBLM State Director decided to extendthe comment period for 10 days rather

than 30 days for the following reasons:The Council on Environmental Qualityregulations, Title 40, Code of FederalRegulations, Part 1506, require thatagencies provide at least 45 days for thepublic to comment on DEISs. The 60-day comment period provided alreadyallows the public an additional 15 daysto review and comment on this DEIS.

Public comment periods under thoseregulations commence upon the datethat EPA publishes a NOA of the draftin the Federal Register. EPA’s NOA forthis DEIS was published on November26, 1999. BLM mailed all copies of theDEIS, and the Technical Report, tointerested parties on or beforeNovember 19, 1999, to insure that theywould have the document in hand forthe full 60-day review and commentperiod.

The DEIS, along with the TechnicalDocument, are a substantial work, butare comparable to other Wyoming BLMEIS’s such as Continental Divide/Wamsutter II Natural Gas Project, theWyodak Coalbed Methane Project, andother major statements BLM hasprepared. We acknowledge that holidayactivities and obligations, along withconcurrent review timeframes of otherenvironmental documents, may affectinterested parties’ ability to reviewthem. However, we do not believe thoseare compelling reasons to extend thecomment period more than 10 days.

Dated: December 28, 1999.Alan R. Pierson,State Director.[FR Doc. 00–45 Filed 1–3–00; 8:45 am]BILLING CODE 4310–22–P


Bureau of Land Management

[NV–920–5700–00]

Change of Public Room Hours

AGENCY: Bureau of Land Management,Interior.ACTION: Notice.

SUMMARY: In order to meet ourcustomers needs, the Nevada StateOffice Public Room hours will beextended. The new hours will be 7:30a.m. to 4:30 p.m.EFFECTIVE DATE: January 17, 2000.ADDRESSES: 1340 Financial Blvd, Reno,NV 89502; P.O. Box 12000, Reno, NV89520–0006.FOR FURTHER INFORMATION CONTACT:Natalie Okimura or Josephine Leone at775–851–6500.

Dated: December 20, 1999.Thomas V. Leshendok,Deputy State Director, Minerals Management.[FR Doc. 00–34 Filed 1–3–00; 8:45 am]BILLING CODE 4310–84–P

INTERNATIONAL TRADECOMMISSION

[USITC SE–99–052]

Sunshine Act Meeting

AGENCY HOLDING THE MEETING: UnitedStates International Trade Commission.TIME AND DATE: January 6, 2000 at 11:00a.m.PLACE: Room 101, 500 E Street S.W.,Washington, DC 20436, Telephone:(202) 205–2000.STATUS: Open to the public.MATTERS TO BE CONSIDERED:

1. Agenda for future meeting: none2. Minutes3. Ratification List4. Inv. Nos. 731–TA–861–862

(Preliminary) (Expandable PolystyreneResins from Indonesia and Korea)—briefing and vote. (The Commission willtransmit its determination to theSecretary of Commerce on January 6,2000.)

5. Inv. Nos. 701–TA–202 and 731–TA–103 and 514 (Review) (Cotton ShopTowels from Bangladesh, China, andPakistan)—briefing and vote. (TheCommission will transmit itsdetermination to the Secretary ofCommerce on January 21, 2000.)

6. Outstanding action jackets:(1.) Document No. GC–99–110:

Regarding Inv. No. 731–TA–752 (Final)(Crawfish Tail Meat from China).

(2.) Document No. GC–99–111:Regarding Inv. No. 337–TA–422 (CertainTwo-Handle Centerset Faucets andEscutcheons and Components Thereof).

In accordance with Commissionpolicy, subject matter listed above, notdisposed of at the scheduled meeting,may be carried over to the agenda of thefollowing meeting.

Dated: December 30, 1999.By order of the Commission.

Donna R. Koehnke,Secretary.[FR Doc. 99–34073 Filed 12–30–99; 1:14 pm]BILLING CODE 7020–02–U

MEDICARE PAYMENT ADVISORYCOMMISSION

Commission Meeting

AGENCY: Medicare Payment AdvisoryCommission.



ACTION: Notice of meeting.

SUMMARY:The Commission will hold its next

public meeting on Thursday, January13, 2000 and Friday, January 14, 2000at the Ronald Reagan Building,International Trade Center, 1300Pennsylvania Avenue, NW, Washington,DC. The meeting is tentativelyscheduled to begin at 10 a.m. on January13, and 9 a.m. on January 14.

The Commission will discuss draftchapters for its March 2000 report.Topics for discussion also include:updating payments to physicians andambulatory care facilities,disproportionate share hospitalpayments, case mix refinement andpayments to teaching hospitals, postacute care, end-stage renal disease,MCBS access and satisfaction analysis,prescription drugs, analysis ofMedicare+Choice benefit data andhospital payment issues.

Agendas will be mailed on Tuesday,January 4, 2000. The final agenda willbe available on the Commission’swebsite (www.MedPAC.gov)ADDRESSES: MedPAC’s address is: 1730K Street, NW, Suite 800, Washington,DC 20006. The telephone number is(202) 653–7220.FOR FURTHER INFORMATION CONTACT:Diane Ellison, Office Manager, (202)653–7220.SUPPLEMENTARY INFORMATION: If you arenot on the Commission mailing list andwish to receive an agenda, please call(202) 653–7220.Murray N. Ross,Executive Director.[FR Doc. 00–92 Filed 1–3–00; 8:45 am]BILLING CODE 6820–BW–M

NUCLEAR REGULATORYCOMMISSION

[Docket No. 40–8681]

International Uranium (USA)Corporation

AGENCY: U.S. Nuclear RegulatoryCommission.ACTION: Final Finding of No SignificantImpact; Notice of Opportunity forHearing.

SUMMARY: The International Uranium(USA) Corporation (IUC) requested thatthe U.S. Nuclear RegulatoryCommission (NRC) amend its NRCSource Material License SUA–1358, toapprove its Reclamation Plan, asamended, for the White Mesa UraniumMill near Blanding, Utah. AnEnvironmental Assessment (EA) was

performed by the NRC staff inaccordance with the requirements of 10CFR Part 51. The conclusion of the EAis a Finding of No Significant Impact(FONSI) for the proposed licensingaction.

FOR FURTHER INFORMATION CONTACT: Mr.William von Till, Uranium Recoveryand Low-Level Waste Branch, Divisionof Waste Management, Office of NuclearMaterial Safety and Safeguards, U.S.Nuclear Regulatory Commission, MailStop T7–J8, Washington, DC 20555.Telephone (301) 415–6251.


Background

Materials License SUA–1358 wasoriginally issued by NRC on August 7,1979, pursuant to Title 10, Code ofFederal Regulations (10 CFR), Part 40,‘‘Domestic Licensing of SourceMaterial.’’ The IUC site is licensed bythe NRC under Materials License SUA–1358 to possess byproduct material inthe form of uranium waste tailings andother uranium byproduct wastegenerated by the licensee’s millingoperations, as well as other sourcematerial from multiple locations. Someof these locations include material fromFormerly Utilized Sites RemedialAction Program (FUSRAP) sitesmanaged by the U.S. Army Corps ofEngineers (USACE). These materialsgenerally have similar chemical,physical, and radiological compositionto conventional mill tailings. The mill iscurrently operating. The licenseamendment would approve IUC’sreclamation plan (RP). The proposedaction is needed to minimize exposureof contaminated materials, once the milloperations have ceased, by reclaimingcontaminated areas and stabilizingwastes. The goal of the reclamation planis to permanently isolate and stabilizethe tailings and associatedcontamination by minimizingdisturbances by natural forces, and to doso without ongoing maintenance. Thedesign objective is to be effective for upto one thousand years, to the extentreasonable, and, in any case for at least200 years; to provide reasonableassurance that releases of radon-222from the residual radioactive materialwill be minimized, and to providereasonable assurances to protectgroundwater resources.

The facilities to be reclaimed includethe following:

(1) Cell 1 (evaporative), Cells 2 and 3(tailings), and Cell 4A (not currentlyused).

(2) Mill buildings and equipment.(3) On-site contaminated areas.

(4) Off-site contaminated areas (i.e.,potential areas affected by windblowntailings).

The reclamation of the above facilitieswill include the following:

(1) Placement of materials and debrisfrom the mill decommissioning intailings Cells 2 and 3.

(2) Placement of contaminated soils,crystals, and synthetic liner materialfrom Cell 1 in tailings Cells 2 and 3.

(3) Placement of contaminated soils,crystals, and synthetic liner materialfrom Cell 4A in tailings Cells 2 and 3.

(4) Placement of an engineered multi-layer cover on Cells 2 and 3.

(5) Construction of runoff control anddiversion channels as necessary.

(6) Reconditioning of mill andancillary areas.

(7) Reclamation of borrow sources.The plan further describes the

designs, activities, schedule, andestimated costs for reclaiming IUC’sWhite Mesa Uranium Mill Site andTailing Impoundment, for bonding andsurety coverage requirements. Theactual final reclamation design and costanalyses will depend on the quantityand depth of the tailings actually placedin the impoundment area and thesurface area that they occupy. Allconditions and commitments in thereclamation plan are subject to NRCinspection. Violation of the plan mayresult in enforcement action.

IUC submitted the RP in a letter datedFebruary 28, 1997, and amended byletters of December 16, 1997, September11, 1998, October 23, 1998, May 26,1999, and June 22, 1999.

Summary of the EnvironmentalAssessment

The NRC staff performed an appraisalof the environmental impacts associatedwith the RP for the White Mesa mill, inaccordance with 10 CFR Part 51,Licensing and Regulatory PolicyProcedure for Environmental Protection.In conducting its appraisal, the NRCstaff considered the following: (1)Information contained in the previousenvironmental evaluations of the WhiteMesa project; (2) information containedin IUC’s reclamation plan; (3)information contained in IUC’s licenseamendment request submittedsubsequent to its reclamation plan, andNRC staff approvals of such requests; (4)land use and environmental monitoringreports; and (5) information derivedfrom NRC staff site visits andinspections of the White Mesa mill siteand from communications with IUC, theState of Utah Department ofEnvironmental Quality, the U.S. Bureauof Land Management, the U.S. Fish andWildlife Service, the State of Utah



Historic Preservation Officer, and theWhite Mesa Ute Tribal HistoricPreservation Officer. The results of thestaff’s appraisal are documented in anEnvironmental Assessment placed inthe docket file. Based on its review, theNRC staff has concluded that there areno significant environmental impactsassociated with the proposed action.

Conclusions

The NRC staff has examined theactual and potential environmentalimpacts associated with the reclamationplan and has determined that the actionis: (1) Consistent with requirements of10 CFR Part 40; (2) will not be inimicalto the public health and safety; and (3)will not have long-term detrimentalimpacts on the environment. Thefollowing statements support the FONSIand summarize the conclusionsresulting from the staff’s environmentalassessment:

1. An acceptable environmental andeffluent monitoring program is in placeto monitor effluent releases and todetect if applicable regulatory limits areexceeded. Radiological effluents fromsite operations have been and areexpected to continue to remain belowthe regulatory limits.

2. Present and potential risks from thereclamation were assessed. Given theremote location, the small area ofimpact, and the past activities on thesite, the staff has determined that therisk factors for health andenvironmental hazards are insignificant.

Alternatives to the Proposed Action

The proposed action that the NRC isconsidering is approval of IUC’sReclamation Plan and the amendment toa source material license issuedpursuant to 10 CFR Part 40. Theprincipal alternatives available to theNRC are:

1. Approve the license amendmentrequest as submitted; or

2. Amend the license with suchadditional conditions as are considerednecessary or appropriate to protectpublic health and safety and theenvironment; or

3. Deny the request.The NRC staff has concluded that

there are no significant environmentalimpacts associated with the proposedaction. Therefore, alternatives withequal or greater impacts need not beevaluated. The staff considers thatAlternative 1 is the appropriatealternative for selection. A technicalevaluation report will be completedwith respect to the criteria forreclamation, specified in 10 CFR Part40, Appendix A.

Finding of No Significant Impact

The NRC staff has prepared anEnvironmental Assessment for theproposed reclamation plan for NRCSource Material License SUA–1358. Onthe basis of this assessment, the NRCstaff has concluded that theenvironmental impact that may resultfor the proposed action would not besignificant, and, therefore, preparationof an Environmental Impact Statementis not warranted.

The Environmental Assessment andother documents related to thisproposed action are available for publicinspection and copying at the NRCPublic Document Room, in the GelmanBuilding, 2120 L Street NW.,Washington, DC 20555.

Notice of Opportunity for Hearing

The Commission hereby providesnotice that this is a proceeding on anapplication for a licensing action fallingwithin the scope of Subpart L, ‘‘InformalHearing Procedures for Adjudications inMaterials and Operator LicensingProceedings,’’ of the Commission’sRules of Practice for Domestic LicensingProceedings in 10 CFR Part 2 (54 FR8269). Pursuant to § 2.1205(a), anyperson whose interest may be affectedby this proceeding may file a request fora hearing. In accordance with§ 2.1205(c), a request for a hearing mustbe filed within thirty (30) days from thedate of publication of the FederalRegister notice. The request for ahearing must be filed with the Office ofthe Secretary either:

(1) By delivery to the Rulemaking andAdjudications Staff of the Office of theSecretary at One White Flint North,11555 Rockville Pike, Rockville, MD20852; or

(2) By mail or telegram addressed tothe Secretary, U.S. Nuclear RegulatoryCommission, Washington, DC 20555.Attention: Rulemaking andAdjudications Staff.

Each request for a hearing must alsobe served, by delivering it personally orby mail to:

(1) The applicant, InternationalUranium (USA) Corporation,Independence Plaza, Suite 950, 1050Seventeenth Street, Denver, Colorado80265;

(2) The NRC staff, by delivery to theExecutive Director of Operations, OneWhite Flint North, 11555 RockvillePike, Rockville, MD 20852, or by mailaddressed to the Executive Director forOperations, U.S. Nuclear RegulatoryCommission, Washington, DC 20555.

In addition to meeting otherapplicable requirements of 10 CFR Part2 of the Commission’s regulations, a

request for a hearing filed by a personother than an applicant must describe indetail:

(1) The interest of the requestor in theproceeding;

(2) How that interest may be affectedby the results of the proceedings,including the reasons why the requestorshould be permitted a hearing, withparticular reference to the factors set outin § 2.1205(g);

(3) The requestor’s area of concernabout the licensing activity that is thesubject matter of the proceedings; and

(4) The circumstances establishingthat the request for a hearing is timelyin accordance with § 2.1205(c).

Any hearing that is requested andgranted will be held in accordance withthe Commission’s ‘‘Informal HearingProcedures for Adjudications inMaterials and Operator LicensingProceeding’’ in 10 CFR Part 2, SubpartL.

Dated at Rockville, Maryland, this 23rd dayof December 1999.

For the Nuclear Regulatory Commission.Thomas H. Essig,Chief, Uranium Recovery and Low-LevelWaste Branch, Division of WasteManagement, Office of Nuclear MaterialSafety and Safeguards.[FR Doc. 00–77 Filed 1–3–00; 8:45 am]BILLING CODE 7590–01–P

NUCLEAR REGULATORYCOMMISSION

Public Workshop To Develop aStandard Review Plan forDecommissioning; Correction

AGENCY: Nuclear RegulatoryCommission.ACTION: Notice announcing publicworkshop; Correction.

SUMMARY: This document corrects anotice appearing in the Federal Registeron December 28, 1999 (64 FR 72702),that announces a public workshop tosolicit input from stakeholders duringthe development of a Standard ReviewPlan and other guidance fordecommissioning nuclear facilities. Thisaction is necessary to correct anerroneous date and location of theworkshop.FOR FURTHER INFORMATION CONTACT:Dominick A. Orlando, DecommissioningBranch, Division of Waste Management,Office of Nuclear Material Safety andSafeguards, at (301) 415–6749.SUPPLEMENTARY INFORMATION: On page72702, in the SupplementaryInformation, fourth sentence, the datefor the workshop is changed from



‘‘February 18 and 19, 2000,’’ to read‘‘February 17 and 18, 2000.’’

On page 72702, in the SupplementaryInformation, fifth sentence, the place forthe workshop is corrected to read ‘‘NRCHeadquarters in the Two White FlintNorth Auditorium, at 11545 RockvillePike, Rockville, MD.

Dated at Rockville, Maryland, this 28th dayof December, 1999.

For the Nuclear Regulatory Commission.Robert A. Nelson,Acting Chief, Decommissioning Branch,Division of Waste Management, Office ofNuclear Material Safety and Safeguards.[FR Doc. 00–78 Filed 1–3–00; 8:45 am]BILLING CODE 7590–01–P

SECURITIES AND EXCHANGECOMMISSION

Request for Public Comment

Upon Written Request, CopiesAvailable From: Securities andExchange Commission, Office of Filingsand Information Services, Washington,DC 20549.

Extension:Rule 17a–6, SEC File No. 270–433, OMB

Control No. 3235–0489

Notice is hereby given that pursuantto the Paperwork Reduction Act of 1995(44 U.S.C. 3501 et seq.), the Securitiesand Exchange Commission(‘‘Commission’’) is soliciting commentson the collection of informationsummarized below. The Commissionplans to submit this existing collectionof information to the Office ofManagement and Budget for extensionand approval.

Rule 17a–6 (17 CFR 240.17a–6)permits national securities exchanges,national securities associations,registered clearing agencies, and theMunicipal Securities Rulemaking Board(collectively, ‘‘SROs’’) to destroy orconvert to microfilm or other recordingmedia records maintained under Rule17a–1 (17 CFR 240.17a–1), if they havefiled with the Commission a plan todestroy or dispose of records and theCommission has declared such planeffective.

There are currently 23 SROs requiredunder Rule 17a–1 to maintain certainrecords and that could receive reliefunder Rule 17a–6: 8 national securitiesexchanges, 1 national securitiesassociation, 13 registered clearingagencies, and the Municipal SecuritiesRulemaking Board. Assuming that oneof these respondents might file a plan todestroy or dispose of records, or anamendment thereto, in a given year,such filing would require approximately

40 hours per respondent to complete.Thus, the total compliance burden is 40hours. At an approximate cost per hourof $100, the resulting total related costof compliance for these respondents is$4,000 per year (40 hours × $100/hour=$4,000).

Written comments are invited on: (a)Whether the proposed collection ofinformation is necessary for the properperformance of the functions of theagency, including whether theinformation shall have practical utility;(b) the accuracy of the agency’s estimateof the burden of the proposed collectionof information; (c) ways to enhance thequality, utility, and clarity of theinformation to be collected; (d) ways tominimize the burden of the collection ofinformation on respondents, includingthrough the use of automated collectiontechniques or other forms of informationtechnology. Consideration will be givento comments and suggestions submittedin writing within 60 days of thispublication.

Direct your written comments toMichael E. Bartell, Associate ExecutiveDirector, Office of InformationTechnology, Securities and ExchangeCommission, 450 Fifth Street, N.W.,Washington, D.C. 20549.

Dated: December 28, 1999.Margaret H. McFarland,Deputy Secretary.[FR Doc. 00–72 Filed 1–3–00; 8:45 am]BILLING CODE 8010–01–M


Request for Public Comment

Upon Written Request, CopiesAvailable From: Securities andExchange Commission, Office of Filingsand Information Services, Washington,DC 20549.

Extension:Rule 15g,–4, SEC File No. 270–347, OMB

Control No. 3235–0393Rule 15g–5, SEC File No. 270–348, OMB

Control No. 3235–0394Rule 17a–8, SEC File No. 270–53, OMB

Control No. 3235–0092Rule 17Ac2–1 and Form TA–1, SEC File No.

270–95, OMB Control No. 3235–0084Rule 19d–2, SEC File No. 270–204, OMB

Control No. 3235–0205

Notice is hereby given that pursuantto the Paperwork Reduction Act of 1995(44 U.S.C. 3501 et seq.), the Securitiesand Exchange Commission(‘‘Commission’’) is publishing thefollowing summary of collections forpublic comment. The Commission plansto submit these existing collections ofinformation of the Office of

Management and Budget for extensionand approval.

Rule 15g–4 requires brokers anddealers effecting transactions in pennystocks for or with customers to disclosethe amount of compensation received bythe broker-dealer in connection with thetransaction. It is estimated thatapproximately 270 respondents incur anaverage of 100 hours annually to complywith the rule.

Rule 15g–5 requires brokers anddealers to disclose to customers theamount of compensation to be receivedby their sales agents in connection withpenny stock transactions. It is estimatedthat approximately 270 respondentsincur an average burden of 100 hoursannually to comply with the rule.

Rule 17a–8 requires brokers anddealers to make and keep certain reportsand records concerning their currencyand monetary instrument transactions.The requirements allow the Commissionto ensure that brokers and dealers are incompliance with the Currency andForeign Transactions Reporting Act of1970 (‘‘Bank Secrecy Act’’) and with theDepartment of the Treasury regulationsunder that Act. The reports and recordsrequired under this rule initially arerequired under Department of theTreasury regulations. Additional burdenhours and costs are not imposed by thisrule.

Rule 17Ac2–1 is used by transferagents to register with the Commission,the Comptroller of the Currency, theBoard of Governors of the FederalReserve System, or the Federal DepositInsurance Corporation, and to amendtheir registration. It is estimated that onan annual basis, the Commission willreceive approximately 250 applicationsfor registration on Form TA–1 fromtransfer agents required to register assuch with the Commission. Included inthis figure are amendments made toForm TA–1 as required by Rule 17Ac2–1(c). Based upon past submissions, thestaff estimates that the average numberof hours necessary to comply with therequirements of Rule 17Ac2–1 is oneand one-half hours, with a total burdenof 375 hours.

Rule 19d–2 prescribes the form andcontent of applications to theCommission by persons desiring stays offinal disciplinary sanctions andsummary action of self-regulatoryorganizations (‘‘SROs’’) for which theCommission is the appropriateregulatory agency. It is estimated thatapproximately 30 respondents willutilize this application procedureannually, with a total burden of 90hours, based upon past submissions.The staff estimates that the averagenumber of hours necessary to comply



1 15 U.S.C. 78s(b)(1).2 Securities Exchange Act Release No. 42175

(November 23, 1999), 64 FR 67362.

3 15 U.S.C. 78q–1 and 78s(a),4 17 CFR 240.17Ab2–1(c).5 Securities Exchange Act Release No. 26812 (May

12, 1989), 54 FR 21691.6 Securities Exchange Act Release Nos. 28606

(November 16, 1990), 55 FR 47976; 30005(November 27, 1991), 56 FR 63747; 33233(November 22, 1993), 58 FR 63195; 36529(November 29, 1995), 60 FR 62511; 37986(November 25, 1996), 61 FR 64184; 38703 (May 30,1997), 62 FR 31183; 39700 (February 26, 1998), 63FR 10669; and 41103 (February 24, 1999), 64 FR10521.

7 In connection with this rule filing, NSCC hassubmitted a proposed rule change to amend itsrules to allow it to provide clearance and settlementservices previously offered by ISCC. (File No. SR–NSCC–99–12).

8 15 U.S.C. 78q–1(b)(3)(F).9 Securities Exchange Act Release Nos. 29841

(October 18, 1991), 56 FR 55960 (order approvingGCN) and 32564 (June 30, 1993), 58 FR 36722(order approving a data transmission link withEuroclear Systems). 10 17 CFR 200.30–3(a)(12).

with the requirements of Rule 19d–2 is3 hours.

Written comments are invited on: (a)Whether the proposed collection ofinformation is necessary for the properperformance of the functions of theagency, including whether theinformation shall have practical utility;(b) the accuracy of the agency’s estimateof the burden of the proposed collectionof information; (c) ways to enhance thequality, utility, and clarity of theinformation to be collected; and (d)ways to minimize the burden of thecollection of information onrespondents, including through the useof automated collection techniques orother forms of information technology.Consideration will be given tocomments and suggestions submitted inwriting within 60 days of thispublication.

Direct written comments to MichaelE. Bartell, Associate Executive Director,Office of Information Technology,Securities and Exchange Commission,450 5th Street, N.W., Washington, DC20549.

Dated: December 21, 1999.Margaret H. McFarland,Deputy Secretary.[FR Doc. 00–73 Filed 1–3–00; 8:45 am]BILLING CODE 8010–01–M


[Release No. 34–42274; File No. SR–ISCC–99–01]

Self-Regulatory Organizations;International Securities ClearingCorporation; Order GrantingAccelerated Approval of a ProposedRule Change Relating to InternationalSecurity Clearing Corporation’sWithdrawal From the Clearance andSettlement Business

December 27, 1999.On September 23, 1999, the

International Securities ClearingCorporation (‘‘ISCC’’) filed with theSecurities and Exchange Commission(‘‘Commission’’) a proposed rule change(File No. SR–ISCC–99–01) pursuant toSection 19(b)(1) of the SecuritiesExchange Act of 1934 (‘‘Act’’) 1 totransfer its clearance and settlementservices to the National SecuritiesClearing Corporation (‘‘NSCC’’) and towithdraw its registration as a clearingagency. Notice of the proposal waspublished in the Federal Register onDecember 1, 1999.2 No comment letters

were received. For the reasonsdiscussed below, the Commission isgranting accelerated approval of theproposed rule change.

I. DescriptionOn May 12, 1989, the Commission

granted, pursuant to Sections 17A and19(a) of the Act 3 and Rule 17Ab2–1,4the application of ISCC for registrationas a clearing agency on a temporarybasis for a period of eighteen months.5Since that time, the Commission hasextended ISCC’s temporary registrationthrough February 29, 2000.6

Under the rule change, ISCC, a whollyowned subsidiary of NSCC, will transferits clearance and settlement services toNSCC because it is no longer cost-effective to provide such servicesthrough a separate company.7 ISCC isalso requesting that it be allowed towithdraw from registration as a clearingagency. The transfer of services to NSCCwill be transparent to ISCC users. Theywill not be required to perform anysystem modifications, and they will becharged the same fees for the services atNSCC as they are currently paying ISCC.

II. DiscussionSection 17A(b)(3)(F) 8 of the Act

requires that the rules of a clearingagency be designed to assure the promptand accurate clearance and settlement ofsecurities transactions. ISCC wascreated to provide safe and efficientclearance and settlement of securitiestransactions between United Statesbroker-dealers and foreign financialinstitutions. ISCC serves this functionthrough its core services, the GlobalClearance Network (‘‘GCN’’) and theInternational Link Services (‘‘ILS’’).9

Under the proposed rule change, ISCCwill cease offering clearance andsettlement services, NSCC will offersimilar services under the same terms

and conditions as ISCC, and ISCC willbe allowed to withdraw fromregistration as a clearing agency.According to ISCC, it is no longer cost-effective to provide such servicesthrough a separate company. BecauseNSCC will continue ISCC’s role as aprovider of services for internationalsecurities transactions, the Commissionbelieves that ISCC’s rule change isconsistent with NSCC’s obligationsunder the Act.

ISCC has requested that theCommission find good cause forapproving the proposed rule changeprior to the thirtieth day after the dateof publication of notice of the filing. TheCommission finds good cause for soapproving the proposed rule changebecause accelerated approval willpermit ISCC to cease providingclearance and settlement services beforethe end of the year.

III. Conclusion

On the basis of the foregoing, theCommission finds that the proposedrule change is consistent with therequirements of the Act and inparticular Section 17A of the Act andthe rules and regulations thereunder.

It is therefore ordered, pursuant toSection 19(b)(2) of the Act, that theproposed rule change (File No. SR–ISCC–99–01) be and hereby is approved.

For the Commission by the Division ofMarket Regulation, pursuant to delegatedauthority.10

Margaret H. McFarland,Deputy Secretary.[FR Doc. 00–40 Filed 1–3–00; 8:45 am]BILLING CODE 8010–01–M


[Release No. 34–42273; File No. SR–NSCC–99–12]

Self-Regulatory Organizations;National Securities ClearingCorporation; Order GrantingAccelerated Approval of a ProposedRule Change Relating to the GlobalClearance Network and theInternational Link Service

December 27, 1999.On September 23, 1999, the National

Securities Clearing Corporation(‘‘NSCC’’) filed with the Securities andExchange Commission (‘‘Commission’’)a proposed rule change (File No. SR–NSCC–99–12) pursuant to Section19(b)(1) of the Securities Exchange Act



1 15 U.S.C. 78s(b)(1).2 Securities Exchange Act Release No. 42176

(November 23, 1999), 64 FR 67364.3 According to NSCC, it is no longer cost-effective

to provide international clearance and settlementservices through a separate company. Concurrentlywith this rule filing, ISCC has submitted a proposedrule change to withdraw from the clearance andsettlement business (File No. SR–ISCC–99–01).

4 Currently there are thirty users of GCN and threeusers of ILS.

5 The GCN service was originally approved by theCommission in 1991. Securities Exchange ActRelease No. 29841 (October 18, 1991), 56 FR 55960.ISCC subsequently modified its processingprocedures for GCN through the addition ofAddendum E to ISCC’s Rules and Procedures.Securities Exchange Act Release No. 35392(February 16, 1995), 60 FR 10415.

6 ISCC provided ILS since its inception in 1989as a clearing corporation.

7 15 U.S.C. § 78q–1(b)(3)(F).

8 17 CFR 200.30–3(a)(12).1 15 U.S.C. 78s(b)(1).2 17 CFR 240.19b–4.

of 1934 (‘‘Act’’) 1 to allow NSCC to offerthe Global Clearance Network (‘‘GCN’’)and the International Link Service(‘‘ILS’’), services which were previouslyoffered by the International SecuritiesClearing Corporation (‘‘ISCC’’). Notice ofthe proposal was published in theFederal Register on December 1, 1999.2No comment letters were received. Forthe reasons discussed below, theCommission is granting acceleratedapproval of the proposed rule change.

I. DescriptionThe rule change establishes new

Rules 61 and 62 and Addendum U toNSCC’s Rules. These new rules permitNSCC to offer the GCN and the ILSpreviously offered by ISCC.3 ISCC, awholly owned subsidiary of NSCC, isproposing to stop providing clearanceand settlement services, to transfer itsclearance and settlement services toNSCC, and to withdraw its registrationas a clearing agency. The new rules aresubstantially similar to the applicableISCC rules and procedures. NSCC Rule62, which authorizes NSCC to providethe GCN service, is based on previousISCC Rule 50; NSCC Rule 61, whichauthorizes NSCC to provide the ILSservice, is based on previous ISCC Rule40; and NSCC Addendum U, the GCNservice data processing procedures, isbased on ISCC Addendum E.

The transfer of service will betransparent to current ISCC membersbecause GCN and ILS as offered byNSCC will be substantially similar tothe services previously offered by ISCCand will be offered under the sameterms and conditions. Further, no newprogramming or system format changeswill be required to utilize GCN and ILSas offered by NSCC. Accordingly, allcurrent ISCC participants using GCNand ILS will be able to continue toutilize such services when they areoffered by NSCC.4

The GCN service 5 facilitates andcentralizes the processing ofinternational transactions by providing

a standardized platform to communicateclearance, settlement, and custodyinformation. GCN will allow users,NSCC members, utilizing standardizedinput and output formats, to transmitdata to NSCC several times throughoutthe day. Upon receipt, NSCC willvalidate the data and, if accepted, willtranslate the data into the format ofspecified agent banks and will transmitthe data to agent banks whereprocessing will occur under the agentbanks’ normal terms, conditions, andoperating framework.

The ILS facilitates the establishmentof links with foreign financialinstitutions (‘‘FFIs’’). ISCC previouslysponsored accounts at the DepositoryTrust Company (‘‘DTC’’) for the purposeof providing FFIs with custody servicesfor their U.S. securities.6 Deliveries andreceives of securities on deposit at DTC,based on instructions from the FFI, willoccur through DTC free of payment.

ISCC also provides facilitiesmanagement services the EmergingMarkets Clearing Corporation. Inconnection with ISCC’s deregistration asa clearing agency, these services will beprovided by NSCC.

II. Discussion

Section 17A(b)(3)(F) 7 of the Actrequires that the rules of a clearingagency be designed to assure the promptand accurate clearance and settlement ofsecurities transactions. One of theprimary reasons for ISCC’s registrationas a clearing agency was to enable it toprovide for the safe and efficientclearance and settlement ofinternational securities. Under the rulechange NSCC will offer substantiallysimilar services under the same termsand conditions as ISCC. Because NSCCwill continue ISCC’s role as a providerof clearance and settlement services forinternational securities transactions, theCommission believes that NSCC’s rulechange is consistent with NSCC’sobligations under the Act.

NSCC has requested that theCommission find good cause forapproving the proposed rule changeprior to the thirtieth day after the dateof publication of notice of the filing. TheCommission finds good cause for soapproving the proposed rule changebecause accelerated approval willpermit NSCC to provide GCN and ILSservices before the end of the year.

II. Conclusion

On the basis of the foregoing, theCommission finds that the proposed

rule change is consistent with therequirements of the Act and inparticular Section 17A of the Act andthe rules and regulations thereunder.

It is therefore ordered, pursuant toSection 19(b)(2) of the Act, that theproposed rule change (File No. SR–NSCC–99–12) be and hereby isapproved.

For the Commission by the Division ofMarket Regulation, pursuant to delegatedauthority.8

Margaret H. McFarland,Deputy Secretary.[FR Doc. 00–39 Filed 1–3–00; 8:45 am]



[Release No. 34–42270; File No. SR–NYSE–99–41]

Self-Regulatory Organizations; Noticeof Filing and Order GrantingAccelerated Approval of ProposedRule Change by the New York StockExchange, Inc. To Amend Paragraph902.02 of the Exchange’s ListedCompany Manual

December 22, 1999.

Pursuant to Section 19(b)(1) of theSecurities Exchange Act of 1934(‘‘Act’’) 1 and Rule 19b–4 thereunder,2notice is hereby given that on October20, 1999, the New York Stock Exchange,Inc. (‘‘NYSE’’ or ‘‘Exchange’’) filed withthe Securities and ExchangeCommission (‘‘Commission’’) theproposed rule change as described inItems I and II below, which Items havebeen prepared by the Exchange. TheCommission is publishing this notice tosolicit comments on the proposed rulechange from interested persons. For thereasons discussed below, theCommission is granting acceleratedapproval of the proposed rule change.

I. Self-Regulatory Organization’sStatement of the Terms of Substance ofthe Proposed Rule Change

The NYSE proposes to amendParagraph 902.02 of the Exchange’sListed Company Manual (‘‘Manual’’).Paragraph 902.2 contains the scheduleof current listing fees for companieslisting securities on the Exchange.



3 Conversation between Catherine R. Kinney,Group Executive Vice President, NYSE, and JosephP. Corcoran, Attorney, Commission on December15, 1999.

4 15 U.S.C. 78f(b)(4).

5 Pursuant to Section 3(f) of the Act, theCommission has considered the proposed rule’simpact on efficiency, competition, and capitalformation. 15 U.S.C. 78c(f).

6 15 U.S.C. 78f(b)(4).

7 15 U.S.C. 78f(b)(5) and 78s(b)(2).8 15 U.S.C. 78s(b)(2).9 17 CFR 200.30–3(a)(12).

II. Self-Regulatory Organization’sStatement of the Purpose of, andStatutory Basis for, the Proposed RuleChange

In its filing with the Commission, theNYSE included statements concerningthe purpose of and basis for theproposed rule change and discussed anycomments it received on the proposedrule change. The text of these statementsmay be examined at the places specifiedin Item III below. The NYSE hasprepared summaries, set forth inSections A, B, and C below, of the mostsignificant aspects of such statements.

A. Self-Regulatory Organization’sStatement of the Purpose of, andStatutory Basis for, the Proposed RuleChange

1. Purpose

The proposed rule change amends thelisted company fee schedule, set forth inParagraph 902.02 of the Manual, as itapplies to original listing fees.Specifically, the Exchange seeks: (1) Todelete the current fee cap benchmark of125 million shares; and (2) toimplement a $500,000 fee cap in itsplace levied on shares in conjunctionwith an original listing. This fee capincludes the $36,800 special charge andencompasses all classes of securities.The Exchange represents that theproposed rule change will result in areduction of the maximum initial listingfee for companies seeking to list on theNYSE.3

2. Statutory Basis

The NYSE represents that the basis forthe proposed rule change is Section6(b)(4) 4 of the Act which requires thatan Exchange have rules that provide forthe equitable allocation of reasonabledues, fees and other charges among itsmembers and issuers and other personsusing its facilities.

B. Self-Regulatory Organization’sStatement on Burden on Competition

The Exchange does not believe thatthe proposed rule change will imposeany burden on competition that is notnecessary or appropriate in furtheranceof the purposes of the Act.

C. Self-Regulatory Organization’sStatement on Comments on theProposed Rule Change Received FromMembers, Participants, or Others

The Exchange has neither solicitednor received written comments on theproposed rule change.

III. Solicitation of CommentsInterested persons are invited to

submit written data, views, andarguments concerning the foregoing,including whether the proposed rule isconsistent with the Act. Persons makingwritten submissions should file sixcopies thereof with the Secretary,Securities and Exchange Commission,450 Fifth Street, NW, Washington, DC20549–0609. Copies of the submission,all subsequent amendments, all writtenstatements with respect to the proposedrule change that are filed with theCommission, and all writtencommunications relating to theproposed rule change between theCommission and any person, other thanthose that may be withheld from thepublic in accordance with theprovisions of 5 U.S.C. 552, will beavailable for inspection and copying inthe Commission’s Public ReferenceRoom. Copies of such filing will also beavailable for inspection and copying atthe principal office of the NYSE. Allsubmissions should refer to File No.SR–NYSE–99–41 and should besubmitted by January 25, 2000.

IV. Commission’s Findings and OrderGranting Accelerated Approval ofProposed Rule Change

The Commission finds that theproposed rule change is consistent withthe requirements of the Act.5 Inparticular, the Commission finds theproposal is consistent with Section6(b)(4) 6 of the Act, which requires thatthe rules of an exchange provide for theequitable allocation of reasonable dues,fees, and other charges among itsmembers and issuers and other personsusing its facilities. Specifically, theCommission believes that the proposalmay ease the financial burden forcompanies seeking to list on theExchange, thus facilitating capitalformation and furthering competitionamong the Exchange and other marketcenters.

The Commission finds good cause forapproving the proposal prior to thethirtieth day after the date ofpublication of notice thereof in the

Federal Register. Accelerated approvalwill permit companies seeking to list onthe NYSE to take advantage of theExchange’s reduction in initial listingfees. Accordingly, the Commissionbelieves that good cause exists,consistent with Section 6(b)(5) andSection 19(b)(2) of the Act,7 to grantaccelerated approval of the proposedrule change.

It is therefore ordered, pursuant toSection 19(b)(2) of the Act,8 that theproposed rule change (SR–NYSE–99–41) is hereby approved on anaccelerated basis.

For the Commission, by the Division ofMarket Regulation, pursuant to delegatedauthority.9

Margaret H. McFarland,Deputy Secretary.[FR Doc. 00–41 Filed 1–3–00; 8:45 am]


SMALL BUSINESS ADMINISTRATION

[License No. 01/01–0055]

Business Achievement Corporation;Notice of License Surrender

Notice is hereby given that BusinessAchievement Corporation (‘‘BAC’’),1172 Beacon Street, Newton,Massachusetts 02461, has surrenderedits license to operate as a small businessinvestment company under the SmallBusiness Investment Act of 1958, asamended (‘‘the Act’’). BAC was licensedby the Small Business Administrationon May 8, 1963.

Under the authority vested by the Actand pursuant to the regulationspromulgated thereunder, the surrenderof the license was accepted onDecember 27, 1999, and accordingly, allrights, privileges, and franchises derivedtherefrom have been terminated.

(Catalog of Federal Domestic AssistanceProgram No. 59.011, Small BusinessInvestment Companies)


Don A. Christensen,Associate Administrator for Investment.[FR Doc. 00–71 Filed 1–3–00; 8:45 am]

BILLING CODE 8025–01–U




Coast Guard

[USCG–1999–5484]

Release of Vessel Response PlanInformation on the Internet Under theFreedom of Information Act

AGENCY: Coast Guard, DOT.ACTION: Notice of decision.

SUMMARY: This notice is to inform thesubmitters of vessel response plans thatthe Coast Guard has determined that therelease of information to the generalpublic via the Internet, as described inthis notice, will not cause substantialcompetitive harm to any submitter. Theinformation will be released on theInternet and will be publicly availablethrough our vessel response plan world-wide-web site http://www.uscg.mil/vrp.DATES: The release of the VRPinformation, as described in this notice,is scheduled to occur on or aboutFebruary 1, 2000.ADDRESSES: The Docket ManagementFacility maintains the public docket forthis notice (USCG–1998–5484). Theoriginal predisclosure notice, allcomments subsequently received fromthe submitters of vessel response plans,and this notice are part of the docketand are available for inspection orcopying at room PL–401 on the Plazalevel of the Nassif Building, 400Seventh Street SW., Washington, DC20590–0001, between 9 a.m. and 5 p.m.,Monday through Friday, except Federalholidays. You may also find this docketon the Internet at http://dms.dot.gov.FOR FURTHER INFORMATION CONTACT: Forquestions on this notice, call LieutenantCommander John Caplis, Plans andPreparedness Division, Office ofResponse, Coast Guard, telephone 202–267–6922, fax 202–267–4065, or at e-mail address [email protected] questions on viewing material in thedocket, call Dorothy Walker, Chief,Dockets, Department of Transportation,telephone 202–366–9329.SUPPLEMENTARY INFORMATION:

Background and Purpose

The owners and operators of tankvessels are required to submit vesselresponse plans to the Coast Guard forreview and approval in accordance withthe Oil Pollution Act of 1990 and 33CFR part 155. An important aspect ofthe planning and approval process is thesubmission and review of thepreparedness arrangements made by theowner/operator for each Captain of thePort (COTP) zone in which their tankvessel operates. These arrangements

include provisions for a ‘‘qualifiedindividual’’, a spill management team,and contracted response resources.Contracted response resources includearrangements for oil spill removalorganizations (OSROs), salvage andfirefighting companies, and emergencylightering companies.

As part of our review process, wemaintain an electronic database thattracks both the status of these plans aswell as many other important elements,such as the contracted responseresources listed in the plan for eachCOTP zone where a vessel operates. Webelieve that it is important for Federal,State, and local governments, non-governmental organizations, responseorganizations, and other interestedparties within the general public to haveready access to this pre-spill planninginformation. This information is criticalfor port state officials who areresponsible for monitoring activitieswithin their jurisdictions, as well asentities responsible for planningresponse activities in our coastal andriverine communities.

The Coast Guard has been working tomake this information available to thepublic. In 1997, we developed anInternet website for disseminatingimportant vessel response plan programinformation (http://www.uscg.mil/vrp).A portion of the Internet websiteprovides the general public with thestatus of each plan’s approval withrespect to each COTP zone. Theinformation available to the generalpublic on this website will be expandedto include other important data, such asidentity of the contracted responseresources listed for each COTP zoneincluded in a plan.

The information submitted in vesselresponse plans to the Coast Guard iscovered by the Freedom of InformationAct (FOIA), applicable regulations, andExecutive Order 12,600. Exemption 4,which applies to information submittedto the Government by any privateperson, applies here. Exemption 4shields from release confidential,commercial, or financial information ifthe release would cause substantialcompetitive harm to the submitter.Executive Order 12,600 also applies andrequires that before any executiveagency releases information to whichExemption 4 would apply, it must givesubmitters an opportunity to show thatthe material is confidential, commercial,or financial information and, if released,would cause substantial competitiveharm to the themselves. In accordancewith Executive Order 12,600, wepublished a ‘‘Predisclosure Notice andRequest for Comment’’ in the FederalRegister on May 4, 1999, announcing

our intentions to release the informationon the Internet, and provided thesubmitters of response plan informationan opportunity to comment.

Discussion of CommentsWe received sixteen written letters in

response to the ‘‘Predisclosure Noticeand Request for Comment’’. We receivedmany comments which raised validconcerns regarding the sensitivity ofcertain information contained withinthe plans. We agree that some of thisinformation contained within the plansmay be inappropriate for release to thegeneral public on the Internet. Inresponse to these comments, we haveidentified areas of sensitive informationin this notice and have restrainedcertain portions of the information frombeing released to the public. Thefollowing section summarizes thecomments received and elaborates onour determinations regarding whichinformation contained within the planswill be released and which informationwill be withheld.

Four comments stated that theresponse plan information should not bereleased because it could be misused byterrorists or radical protest groups. Twocomments specifically stated that theships drawings and diagrams containedwithin the response plans should not bereleased because they may be used byterrorists or radical extremists. We arekeenly aware of the need to protectpeople and property from the unwantedactions of terrorist or extremist groups.However, we disagree with thestatement that the release of some vesselresponse plan information will facilitatesuch actions. The information to bereleased on the internet does notcontain technical or operational detailsthat would facilitate the planning ofsuch terrorist-type activities. The CoastGuard does agree that ship’s drawingsand diagrams are sensitive in nature.Ships drawings or diagrams of any typewill not be released on the Internet.

Five comments stated that theresponse plan information should not bereleased because it will make approvedplan formats available for othercompanies to copy free of charge. Wedisagree. Entire plans or plan formatinformation will not be released, onlydata tables containing specific pieces ofinformation contained within the planwill be released on the Internet.

One comment stated that the responseplan information should not be releasedbecause worst case discharge data canbe equated to fuel capacities to theirvessels. We disagree. The worst casedischarge (WCD) data does notnecessarily equate to the fuel capacityfor a vessel. WCD amounts for



secondary carriers equals 25% of fuelcapacity plus cargo tank capacities. TheWCD data released only provides a totalamount, and does not provide a specificbreakdown of cargo or fuel tankcapacities that would be needed todetermine fuel capacities based on WCDinformation.

Ten comments stated that the releaseof phone or pager numbers for qualifiedindividuals (QIs), owners, spillmanagement teams (SMTs), or oil spillremoval organizations (OSROs), is aninvasion of privacy, and will clogcommunications during a response. Weagree with these comments. Phone,pager, and fax numbers or emailaddresses listed in the vessel responseplans will not be released to the public.For owners or listed points of contact(POC) for a plan, only the corporateaddress or address listed for the planpreparer will be released. The names ofcompany employees will not bereleased, except for QIs, or when theplan POC or owner listed is a namedindividual rather than a corporateentity. For OSROs, only company namesand prescribed coverage scenarios(AMPD, MMPD, or WCD) will bereleased. Since QI’s must be namedindividuals in the plans as per theregulations, QI names will be released,but no personal communicationinformation such as phone numbers,faxes, pagers, home addresses or emailswill be released in connection with theirdesignation as a QI.

One comment stated that responseplan information should not be releasedbecause the listing of designated OSROswithin a plan will create controversybetween multiple OSROs listed within aplan. We disagree. It is commonindustry practice for planholders tocontract or list more than one OSROwithin a plan since the resources ofmultiple OSROs are likely to mobilizeduring a response to a large spill. Thenature of the contractual relationshipbetween a planholder and its OSROs orthe criteria used for selecting an OSROfrom a multiple listing of OSROs willnot be released on the Internet.

Four comments stated that vesselnames, vessel identification numbers(VINs), vessel dimensions, listedcargoes, and cargo capacities should notbe released because the release of thisinformation will affect their ability tocompete with other companies. Weagree that specific cargo informationsuch as specific product names oramounts should not be released. Onlythe generic cargo types (groups I–V),which are based on a regulatory rangeof specific gravity’s (important for thetypes of response arrangements thatmust be made), and the WCD amount

for the vessel’s entire cargo will bereleased. Cargo tank capacities ordimensions will not be released. Vesseldimensions (such as length and beam),vessel name, and vessel identificationnumbers are commonly available withinthe public domain through a varietysources, and will be released on theInternet.

Two comments stated that theresponse plan information should not bereleased because the release of OSROdata will upset competition betweenOSROs and create price increases whichwill negatively impact the planholder.We disagree. Competition and thepricing for OSROs will be driven bymarket forces. Any price increases forthe services of an OSRO that may occuras a result of new information becomingavailable to the public or planholders atlarge will not be limited to a singlesubmitter, but is likely to apply equallyto all potential planholders.

Two comments stated that theresponse plan information should not bereleased because the terms ofcontractual information is proprietary.We agree that the terms of a contractualrelationship between the OSRO and aplanholder may be proprietary when therelease of financial information isdisclosed. For this reason, theprovisions of the contracts will not bereleased. Only the name of a providerand the response coverage to beprovided (AMPD, MMPD, WCD) will bereleased. No financial information willbe released.

One comment stated that responseplan information should not be releasedbecause information pertaining to vesseloperations and operating environmentsis proprietary and will affect theirability to compete with othercompanies. We disagree. Proprietaryinformation pertaining to precise vesselroutes, operational schedules, ortransfer points within a specific portwill not be released. The designation ofgeneric operating environments (i.e.,rivers, inland, or oceans environments),however, and the confirmation oflightering potential for each COTP zoneapproved in the plan, will be released.This information will help ensure thatthe types of OSROs and responsecoverage provided within a plan areappropriate for the vessel’s statedoperations.

One comment stated that the responseplan information should not be releasedbecause it may create additionalworkloads for companies who mustanswer inquiries from the general publicregarding their response plan. We agreethat the release of plan information maygenerate inquiries from the generalpublic to planholders regarding their

response plans. Public scrutiny of planswill help inform the public and helpensure quality assurance within theplan. While companies may receivepublic inquiries, there is no obligationor requirement being imposed on theplanholder to respond, and allsubmitters are equally subject toreceiving such inquiries. Such inquirieswill not cause substantial competitiveharm to the submitter of a plan.

Two comments stated that theresponse plan information should not bereleased because the informationreleased on the Internet may be out ofdate. We disagree. The information to bereleased on the Internet will have realtime access to the Coast Guard’sresponse plan tracking database, whichis updated daily as plan revisions arereceived and processed. The data willreflect the current version of the plansas they are approved by the Coast Guardat all times.

Discussion of DecisionThe information submitted in vessel

response plans to the Coast Guard iscovered by the Freedom of InformationAct (FOIA), applicable regulations, andExecutive Order 12,600. Under FOIA,information must be disclosed unless itfalls within one of the statute’s listedexemptions. Exemption 4 shields fromrelease confidential, commercial, orfinancial information if the releasewould cause substantial competitiveharm to the submitter. Under ExecutiveOrder 12,600 and 49 CFR 7.17, we musthave a detailed justification that showsthe likely cause of substantial harm toa submitter’s present or futurecompetitive position, in order towithhold such information.

We have reviewed the commentssubmitted to the docket and, except asdiscussed in this notice, havedetermined that none of the objectionsraised have sufficiently shown that therelease of this information would causethe submitters to suffer substantialcompetitive harm. We have determinedthat there is no substantial prohibitionto the release of the VRP data, asdescribed in this notice, on the Internet.We have taken a hard look at theobjections raised, and addressed eachconcern, to ensure that sensitiveresponse plan information will not bereleased.

The following general categories ofresponse plan information will beavailable to the general public via theInternet: (1) Owner name; (2) operatorname; (3) point of contact informationfor owner/operator (addresses only); (4)point of contact information for planpreparer (address only); (5) date of lastplan update; (6) plan approval status; (7)



plan approval date; (8) plan expirationdate; (9) plan identification number;(10) vessel name; (11) vesselidentification number; (12) vessel flag;(13) vessel type; (14) hull configuration;(15) vessel length; (16) cargo types(generic cargo groups based on specificgravity only, i.e. Groups I–V); (17)primary or secondary carrierdesignation; (18) worst case dischargeamount; (19) qualified individuals(name and company only); (20) oil spillremoval organizations (company nameand level of response only); (21) othercontracted resources; (22) alternatecompliance agreements; (23)navigational restrictions; and (24)operating environments (genericoperating areas only, i.e. offshore,nearshore, inland, rivers & canals, GreatLakes).

All submitters who responded withcomments to the ‘‘Predisclosure Noticeand Request for Comment’’ have beennotified by written letter of our decisionto release their information on theInternet. Executive Order 12,600provides that before a release of anyinformation to which Exemption 4might apply, if the submitters’assertions of confidentiality or harm arenot accepted, the release must bedelayed long enough to allow submittersa reasonable opportunity to obtain acourt order preventing the release. TheVRP information, as described in thisnotice, is scheduled for release on orabout February 1, 2000.

Dated: December 27, 1999.J.P. High,Acting Assistant Commandant for MarineSafety and Environmental Protection.[FR Doc. 00–33 Filed 1–3–00; 8:45 am]BILLING CODE 4910–15–U



Notice of Intent To Rule on ApplicationTo Impose and Use a PassengerFacility Charge (PFC) at MetropolitanOakland International Airport, Oakland,CA

AGENCY: Federal AviationAdministration (FAA), DOT.ACTION: Notice of Intent to Rule onApplication.

SUMMARY: The FAA proposes to rule andinvites public comment on theapplication to impose and use therevenue from a PFC at MetropolitanOakland International Airport under theprovisions of the Aviation Safety andCapacity Expansion Act of 1990 (TitleIX of the Omnibus Budget

Reconciliation Act of 1990) (Pub. L.101–508) and Part 158 of the FederalAviation Regulations (14 CFR Part 158).DATES: Comments must be received onor before February 3, 2000.ADDRESSES: Comments on thisapplication may be mailed or deliveredin triplicate to the FAA at the followingaddress: Federal AviationAdministration, Airports Division,15000 Aviation Blvd., Lawndale, CA90261, or San Francisco AirportsDistrict Office, 831 Mitten Road, Room210, Burlingame, CA 94010–1303. Inaddition, one copy of any commentssubmitted to the FAA must be mailed ordelivered to Mr. Steven J. Grossman,Director of Aviation of the Port ofOakland, at the following address: 530Water Street, Oakland, CA 94604. Aircarriers and foreign air carriers maysubmit copies of written commentspreviously provided to the Port ofOakland under section 158.23 of Part158.FOR FURTHER INFORMATION CONTACT:Marlys Vandervelde, Airports ProgramAnalyst, Airports District Office, 831Mitten Road, Room 210, Burlingame,CA 94010–1303, Telephone: (650) 876–2806. The application may be reviewedin person at this same location.SUPPLEMENTARY INFORMATION: The FAAproposes to rule and invites publiccomment on the application to imposeand use the revenue from a PFC atMetropolitan Oakland InternationalAirport under the provisions of theAviation Safety and Capacity ExpansionAct of 1990 (Title IX of the OmnibusBudget Reconciliation Act of 1990)(Public Law 101–508) and Part 158 ofthe Federal Aviation Regulations (14CFR Part 158).

On December 14, 1999, the FAAdetermined that the application toimpose and use the revenue from a PFCsubmitted by the Port of Oakland wassubstantially complete within therequirements of section 158.25 of Part158. The FAA will approve ordisapprove the application, in whole orin part, no later than March 16, 2000.The following is a brief overview of theimpose and use application number 00–09–C–00–OAK:

Level of proposed PFC: $3.00.Proposed charge effective date: June

1, 2000.Estimated charge expiration date:

January 1, 2003.Total estimated PFC revenue:

$38,459,000.Brief description of the impose and

use projects: Electronic Key SecuritySystem, TelecommunicationInfrastructure Program, Improve Sewer

System for Terminal 1, Airport RadioSystem, Taxiway Tango Reconstruction,Airfield Lighting Improvement Program,Airfield Master Plan, Runway 11/29Conduit and Lighting Project, PurchaseNew Airport Rescue and Firefighting(AAFF) Vehicle, Emergency OperationsCenter in ARFF Building, TaxiwayCharlie Pavement Improvements,Overlay Runway 9L/27R, InstallTaxiway Edge Lights on K, L, M, N, P,& Q, and Install Lighting on Ramp.

Brief description of impose onlyprojects: Water Pollution ControlFacility and Ground Run-up Enclosure.

Class or classes of air carriers whichthe public agency has requested not berequired to collect PFCs: Air Taxi/Commercial Operators filing FAA Form1800–31 and Commuters or SmallCertificated Air Carriers filing DOTForm 298–C T1 and E1.

Any person may inspect theapplication in person at the FAA officelisted above under FOR FURTHERINFORMATION CONTACT and at the FAARegional Airports Division located at:Federal Aviation Administration,Airports Division, 15000 Aviation Blvd.,Lawndale, CA 90261. In addition, anyperson may, upon request, inspect theapplication, notice and other documentsgermane to the application in person atthe Port of Oakland.

Issued in Hawthorne, California, onDecember 14, 1999.Herman C. Bliss,Manager, Airports Division, Western-PacificRegion.[FR Doc. 00–95 Filed 01–03–00; 8:45 am]BILLING CODE 4910–13–M



TSO–C140: Aerospace Fuel, EngineOil, and Hydraulic Fluid HoseAssemblies

AGENCY: Federal AviationAdministration, (DOT).ACTION: Notice of availability for publiccomment.

SUMMARY: This notice announces theavailability of, and requests commentson, a proposed Technical StandardOrder (TSO) pertaining to minimumperformance standards and fireresistance standards that hoseassemblies, commonly used inaerospace fuel, engine oil, and hydraulicfluid systems, must meet to beidentified with the TSO–C140 marking.DATES: Comments must be received onor before March 31, 2000.



ADDRESSES: Send all comments on theproposed Technical Standard Order to:Airworthiness Programs Branch, AFS–610, Regulatory Support Division, FlightStandards Service, Federal AviationAdministration, P.O. Box 26460,Oklahoma City, OK 73125–0460, ordeliver comments to: Federal AviationAdministration, Mike MonroneyAeronautical Center, ARB Room 304A,6500 S. MacArthur Boulevard,Oklahoma City, OK 73169. Commentsmust identify the TSO file number.FOR FURTHER INFORMATION CONTACT: RayBrown, Airworthiness Programs Branch,AFS–610, Regulatory Support Division,Flight Standards Service, FederalAviation Administration, P.O. Box26460, Oklahoma City, OK 73125–0460,Telephone No. (405) 954–6915 or FAXNo. (405) 954–4104.SUPPLEMENTARY INFORMATION:

Comments Invited

Interested persons are invited tocomment on the proposed TSO listed inthis notice by submitting such writtendata, views, or arguments, as they desireto the address specified. Commentsreceived on the proposed TechnicalStandard Order may be examined,before and after the comment closingdate, in ARB Room 304A, MikeMonroney Aeronautical Center, 6500 S.MacArthur Boulevard, Oklahoma City,OK 73169, weekdays, except Federalholidays, between 8:00 a.m. and 4:00p.m. All communications received on orbefore the closing date for commentsspecified above will be considered bythe Director of the Aircraft CertificationService before issuing the final TSO.

Background

Current TSO–C53a, ‘‘Fuel and EngineOil System Hose Assemblies,’’ andTSO–C75, ‘‘Hydraulic HoseAssemblies,’’ were issued in the early1960s and have not been updated orrevised to reflect the use of newmaterials and manufacturing methods.Proposed TSO–C140 would clearlydefine and identify improved materialsand hose designs that would satisfy theservice parameters for flexible hoseassemblies used in current aviationapplications. The standards of TSO–C140 would apply to any model ofaerospace fuel, engine oil, or hydraulicfluid hose assembly for which a TSOapplication is submitted after theeffective date of the TSO.

Revision B of the Society ofAutomotive Engineers, Inc. (SAE)Aerospace Standard Document No. 150(AS150 REV B), ‘‘Hose Assembly, TypeClassifications of, Basic Performanceand Fire Resistance,’’ is referenced in

proposed TSO–C140 to establishperformance standards and testconditions for hose assemblies.Representative samples of fire resistantand fireproof hose assemblies would berequired to meet the test conditionsspecified in SAE AS1055 REV D, ‘‘FireTesting of Flexible Hose, TubeAssemblies, Coils, Fittings, and SimilarSystem Components.’’

Hose assemblies currently approvedunder a TSO–C53a or TSO–C75authorization could continue to bemanufactured under the provisions oftheir original approval. Per 14 CFR§ 21.611(b), any major design change toa hose assembly previously approvedunder TSO–C53a or TSO–C75 wouldrequire a new authorization under theproposed TSO.

How to Obtain CopiesA copy of the proposed TSO–C140

may be electronically obtained via theInternet (http:/www.faa.gov/avr/air/air100/100home.htm) or requested fromthe FAA office listed under FOR FURTHERINFORMATION CONTACT. Copies of AS150REV B, AS1055 REV D, and other SAEdocuments referenced in AS150 REV Bmay be purchased by mail from theSociety of Automotive Engineers Inc.,400 Commonwealth Drive, Warrendale,PA 15096; by phone at (724) 776–4970;or by FAX at (724) 776–0790. Computerusers with Internet access may place anorder at Internet browser address: http://www.sae.org/products/standards/stdsinfo/standard.htm.

Issued in Washington, DC on December 17,1999.James C. Jones,Manager, Aircraft Engineering Division,Aircraft Certification Service.[FR Doc. 00–96 Filed 1–3–00; 8:45 am]BILLING CODE 4910–13–M


Research and Special ProgramsAdministration

[Docket RSPA–98–4957; Notice 17]

Notice of Extension of ExistingInformation Collection

AGENCY: Research and Special ProgramsAdministration, DOT.ACTION: Request for OMB approval andpublic comments.

SUMMARY: As required by the PaperworkReduction Act of 1995, the Research andSpecial Programs Administration’s(RSPA) published its intention to renewan existing information collection insupport of the Office of Pipeline Safety(OPS) for Management Information

System (MIS) Standardized DataCollection and Reporting of DrugTesting Materials (October 22, 1999, 64FR 57183). No comments were received.The purpose of this notice is to allowthe public an additional 30 days fromthe date of this notice to send in theircomments.

RSPA believes that its drug testingrequirements are an important tool foroperators to monitor drug usage in theindustry. RSPA has found that drug usein the pipeline industry is less than 1%of employees.DATES: Comments on this notice must bereceived on or before February 3, 2000to be assured of consideration.ADDRESSES: Comments should identifythe docket number of this notice, RSPA–98–4957, and be mailed directly toOffice of Regulatory Affairs, Office ofManagement and Budget, ATTN: RSPADesk Officer, 726 Jackson Place, NW.,Washington, DC 20503.FOR FURTHER INFORMATION CONTACT:Marvin Fell, Office of Pipeline Safety,Research and Special ProgramsAdministration, Department ofTransportation, 400 Seventh Street,SW., Washington, DC 20590, (202) 366–6205 or by electronic mail [email protected] INFORMATION:

Title: Management InformationSystem (MIS) Standardized DataCollection and Reporting of DrugTesting Materials.

OMB Number: 2137–0579.Type of Request: Extension of an

existing information collection.Abstract: Drug abuse is a major

societal problem and it is reasonable toassume the problem exists in thepipeline industry as it does in society asa whole. The potential harmful effect ofdrug abuse on safe pipeline operationswarrants imposing comprehensive drugtesting regulations on the pipelineindustry. These rules are found in 49CFR 199. These regulations requireannual information collection of theresults of the drug testing program.

Respondents: Pipeline operators.Estimated Number of Respondents:

2,419.Estimated Number of Responses per

Respondent: 1.Estimated Total Annual Burden on

Respondents: 8,264.Copies of this information collection

can be reviewed at the Dockets Facility,Plaza 401, U.S. Department ofTransportation, 400 Seventh Street,SW., Washington, DC 20590 from 9 a.m.to 5 p.m., Monday through Fridayexcept Federal holidays. They also canbe viewed over the Internet at http://dms.dot.gov.



1 BNSFC and BNSFR are referred to collectivelyas BNSF.

2 CNR, GTW, and IC are referred to collectivelyas CN.

3 BNSF and CN are referred to collectively asapplicants.

4 A major transaction is one under 49 U.S.C.11323 involving the merger or control of two ormore Class I railroads.

5 In addition, parties must submit electroniccopies, which we discuss in detail further below.

6 Applicants have advised that only NAR willhave a common equity interest in CNR.

7 Applicants have advised: that the exchangeablepreferred shares are expected to be attractive toCanadian residents because such shares will permitsuch residents, among other things, to defer

taxation; that, since the exchange, but not thereceipt, of these shares will be taxable for Canadiantax purposes, the holders will in effect be given achoice as to whether, when, and to what extent theywill exchange their CNR exchangeable preferredshares for NAR common shares; and that, bycomparison, U.S. residents would be expected toelect to receive the NAR common stock at the outsetbecause, under U.S. tax laws, such receipt will beessentially nontaxable to U.S. residents for federalincome tax purposes and, on an ongoing basis, willnot be subject to Canadian withholding tax.Applicants have further advised that the dividendrights of the holders of CNR’s exchangeablepreferred shares will be maintained in economicparity with the dividend rights of the holders ofNAR’s common shares.

8 Applicants have advised that NAR’s 10.1%voting right in CNR will permit NAR to claimforeign tax credits for federal income tax purposeswith respect to Canadian income taxes payable byCNR, which will reduce the federal income taxespayable by NAR with respect to dividends andother income received by NAR from CNR.

9 Applicants have advised: that the holders ofCNR’s exchangeable preferred shares will direct thetrustee as to the voting of the NAR special votingshare; and that this arrangement will give them thesame vote at NAR shareholder meetings as if theywere the direct owners of NAR common shares.

10 Applicants have advised that, as respects the‘‘stapled’’ units that will be received by BNSFCshareholders and also as respects the ‘‘stapled’’units that will be received by CNR shareholders, theterm ‘‘stapled’’ is intended to mean that the sharesin each such unit are ‘‘stapled’’ together and cannotbe traded or otherwise disposed of separately.

Comments are invited on: (a) Theneed for the proposed collection ofinformation for the proper performanceof the functions of the agency, includingwhether the information will havepractical utility; (b) the accuracy of theagency’s estimate of the burden of theproposed collection of informationincluding the validity of themethodology and assumptions used; (c)ways to enhance the quality, utility andclarity of the information to becollected; and (d) ways to minimize theburden of the collection of informationon those who are to respond, includingthe use of appropriate automated,electronic, mechanical, or othertechnological collection techniques.

Issued in Washington, DC on December 29,1999.Richard B. Felder,Associate Administrator for Pipeline Safety.[FR Doc. 00–93 Filed 1–3–00; 8:45 am]BILLING CODE 4910–60–P


Surface Transportation Board

[STB Finance Docket No. 33842]

Canadian National Railway Company,Grand Trunk Western RailroadIncorporated, Illinois Central RailroadCompany, Burlington Northern SantaFe Corporation, and The BurlingtonNorthern and Santa Fe RailwayCompany—Common Control

AGENCY: Surface Transportation Board.

ACTION: Decision No. 1; Notice ofprefiling notification.

SUMMARY: Pursuant to 49 CFR 1180.4(b),Burlington Northern Santa FeCorporation (BNSFC) and TheBurlington Northern and Santa FeRailway Company (BNSFR),1 andCanadian National Railway Company(CNR), Grand Trunk Western RailroadIncorporated (GTW), and Illinois CentralRailroad Company (IC),2 have notifiedthe Surface Transportation Board(Board) of their intention to file anapplication 3 seeking Boardauthorization under 49 U.S.C. 11323–25and 49 CFR part 1180 for a ‘‘major’’transaction 4 (hereinafter referred to asthe BNSF/CN transaction) under which

BNSF and CN would be brought undercommon control.ADDRESSES: An original and 25 copies ofall documents 5 filed in this proceedingmust refer to STB Finance Docket No.33842 and must be sent to the SurfaceTransportation Board, Office of theSecretary, Case Control Unit, ATTN:STB Finance Docket No. 33842, 1925 KStreet, N.W., Washington, DC 20423–0001. In addition, one copy of eachdocument filed in this proceeding mustbe sent to the Administrative Law Judge(ALJ) who will be assigned to entertainand rule upon all disputes concerningdiscovery in this proceeding, and toeach of applicants’ representatives: (1)Erika Z. Jones, MAYER, BROWN &PLATT, 1909 K Street, N.W.,Washington, DC 20006–1101(representing BNSF); and (2) Paul A.Cunningham, HARKINSCUNNINGHAM, 801 PennsylvaniaAvenue, N.W., Suite 600, Washington,DC 20004–2664 (representing CN).FOR FURTHER INFORMATION CONTACT: JuliaM. Farr, (202) 565–1613. [TDD for thehearing impaired: (202) 565–1695.]SUPPLEMENTARY INFORMATION: In thenotice of intent (BN/CN–1) filedDecember 20, 1999, applicants haveadvised that, on December 18, 1999,BNSFC and CNR entered into aCombination Agreement, a Plan ofArrangement, a Co-OperationAgreement, and a Voting and ExchangeTrust Agreement (VETA), under which,subject to Board authorization and otherconditions: (1) BNSFC will become awholly owned subsidiary of a newparent company named North AmericanRailways, Inc. (NAR), which will alsoacquire (in addition to its 100% interestin BNSFC) all of the equity in CNR 6 anda 10.1% voting right in CNR; (2) BNSFCshareholders will receive, for each shareof their BNSFC common stock, a‘‘stapled’’ unit consisting of one share ofNAR common stock plus one share ofCNR voting stock; (3) CNR shareholderswill receive, for each share of their CNRcommon stock, 1.05 ‘‘stapled’’ units,each consisting of, at the option of theholder, either (a) one share of NARcommon stock plus one share of CNRvoting stock, or (b) one share of CNRnonvoting exchangeable preferred stock(exchangeable at the option of theholder into one share of NAR commonstock) plus one share of CNR votingstock; 7 (4) NAR will receive 100% of

CNR’s limited voting equity shares,entitling NAR, as the holder, to a voteequal to 10.1% of the total number ofvotes to be cast by the holders of CNR’soutstanding voting shares; 8 and (5) TheTrust Company of the Bank of Montreal,as trustee under the VETA, will receiveNAR’s special voting share entitling thetrustee to a number of votes at NAR’sshareholder meetings equal to thenumber of outstanding shares of CNR’sexchangeable preferred stock.9Applicants have further advised: thatNAR, BNSF, and CN will be operatedunder the direction of the boards ofdirectors of NAR and CNR, which willbe identical after closing of the BNSF/CN transaction; that NAR’s Chairmanand its Chief Executive, ChiefOperating, and Chief Financial Officerswill serve in those same capacities atCNR; that NAR and CNR will have, atall times, the same shareholder base;that the NAR/CNR stapled units willcontinue to be publicly traded; and thateach stapled unit will have the samevoting power and economic interest inthe combined enterprise.10

Major Transaction Status

The Board finds that the BNSF/CNtransaction is a ‘‘major transaction,’’ asdefined at 49 CFR 1180.2(a), because, ifimplemented, it will bring undercommon control the Class I railroadnow controlled by BNSFC (BNSFR) andthe Class I railroads now controlled byCNR (GTW and IC). The BNSF/CN



11 The results derived from electronicworkpapers must be reproducible, i.e., allunderlying data bases, computer programs(FORTRAN, COBOL, C++, etc.) and electronicspreadsheets must be submitted in evidence.Program flows and logic trails must also beincluded. Computer programs must be submitted inboth source code and executable modules.Electronic spreadsheets must be executable and allcell inputs must be documented.

12 The electronic submission requirements setforth in this decision supersede, for the purposesof this proceeding, the otherwise applicableelectronic submission requirements set forth in ourregulations. See 49 CFR 1104.3(a).

13 Indeed, the most recent round of major mergersbegan with the consolidation of the ‘‘BurlingtonNorthern’’ and ‘‘Santa Fe’’ systems.

14 Of course, we also expect applicants to addressthe statutory criteria set forth in 49 U.S.C. 11324,including the effect on competition among railcarriers in the national rail system.

1 A copy of this decision is being served on allpersons designated as POR, MOC, or GOV on theservice list in STB Finance Docket No. 33388.

application must therefore, except asmodified by advance waiver, conform tothe 49 CFR part 1180 requirementsapplicable to major transactions.

Impact Analysis Base YearApplicants have indicated that they

will use the year 1998 as the base yearfor purposes of the impact analysis to befiled in their application.

Application Filing DateApplicants have indicated that they

anticipate filing their application on orafter the 90 days after December 20,1999. See 49 CFR 1180.4(b)(1) (thisprovision provides, in essence, that anapplication respecting a majortransaction must be filed between 3 and6 months after the filing of the prefilingnotification).

Administrative Law JudgeAs in past proceedings, an

Administrative Law Judge will beassigned to entertain and rule upon alldisputes concerning discovery in thisproceeding.

Protective Order; Procedural ScheduleAs in past proceedings, applicants

will be expected to submit: a draftversion of a protective order to governthe production of material regarded aseither ‘‘confidential’’ or ‘‘highlyconfidential’’ (as those terms have beenused in past proceedings); and aproposed procedural schedule to governthe processing of the BNSF/CNapplication.

Electronic SubmissionsIn addition to submitting an original

and 25 copies of all paper documentsfiled with the Board, parties must alsosubmit, on diskettes (3.5-inch IBM-compatible floppies) or compact discs,one electronic copy of each suchdocument (e.g., textual materials,electronic workpapers, data bases andspreadsheets used to developquantitative evidence).11 Textualmaterials must be in, or convertible byand into, WordPerfect 7.0. Spreadsheetsmust be in some version of Lotus, Excel,or Quattro Pro. Each diskette or compactdisc should be clearly labeled with theidentification acronym and number ofthe corresponding paper document, see49 CFR 1180.4(a)(2), and a copy of such

diskette or compact disc should beprovided to any other party uponrequest. The data contained on thediskettes or compact discs submitted tothe Board may be submitted under seal(to the extent that the correspondingpaper copies can be submitted underseal pursuant to the protective orderthat will be entered in this proceeding),and will be for the exclusive use of theBoard employees reviewing substantiveand/or procedural matters in thisproceeding. The flexibility provided bysuch computer data is necessary forefficient review of these materials by theBoard and its staff. 12

Downstream Effects and Service IssuesIn the past several years, the leading

North American railroads haveundertaken a series of majortransactions that, when taken together,have dramatically reconfigured theentire North American railroadindustry. This process has proved not tobe an easy one, as evidenced by thesignificant and ongoing adjustmentsrequired by railroads, shippers, and railemployees as the implementationprocess for those transactions continues.

The BNSF/CN transaction, ifapproved and implemented, may triggeryet another full round of majortransactions, as other railroads seek toposition themselves and their customersto meet the competitive effects of aunified BNSF/CN. 13 The ‘‘one case at atime’’ rule, 49 CFR 1180.1(g), providesthat in a major transaction proceeding,‘‘consideration will be limited to theimpacts of transactions which havealready been approved and are,therefore, reasonably certain to occur.’’However, given the competitiveresponses that can be expected of otherrailroads, we will waive, on our ownmotion, the rule set out in 49 CFR1180.1(g), so that applicants and otherinterested persons can submit, and theBoard can consider, evidence respectingthe ‘‘cumulative impacts and crossovereffects,’’ that are likely to occur in thewake of a BNSF/CN transaction.Similarly, parties should address theeffect of the proposed transaction andany likely subsequent transactions, thatwould produce further significantconsolidation in the industry, upon thestatutory goals embodied in 49 U.S.C.10101, with particular attention to thoseaimed at fostering sound and

competitive economic conditions in theU.S. railroad industry. 14

Furthermore, as noted, NorthAmerican railroads, together with theircustomers and employees, have not yetfully adjusted to the recent wave ofmajor rail transactions. Given our recentexperience with post-merger rail servicedisruptions, we expect applicants andother interested persons to submitevidence respecting the likely effects onrail service of any action we may take,considering again the statutory goalscited above.

This action will not significantlyaffect either the quality of the humanenvironment or the conservation ofenergy resources.

Decided: December 27, 1999.By the Board, Chairman Morgan, Vice

Chairman Clyburn, and CommissionerBurkes.Vernon A. Williams,Secretary.[FR Doc. 00–105 Filed 1–3–00; 8:45 am]BILLING CODE 4915–00–P


Surface Transportation Board

[STB Finance Docket No. 33388 (Sub-No.90)] 1

CSX Corporation and CSXTransportation, Inc., Norfolk SouthernCorporation and Norfolk SouthernRailway Company—Control andOperating Leases/Agreements—Conrail Inc. and Consolidated RailCorporation (Buffalo Rate Study)

ACTION: Decision No. 2; Extension ofDeadlines Applicable to the First Phaseof the Buffalo Rate Study.

SUMMARY: In Decision No. 1, which wasserved December 15, 1999, andpublished in the Federal Register onDecember 20, 1999 (at 64 FR 71188), theBoard initiated a 3-year study (theBuffalo Rate Study) to examine linehauland switching rates for rail movementsinto and out of the State of New York’sBuffalo area. By petition filed December23, 1999, CSX Corporation and CSXTransportation, Inc. (collectively, CSX)and Norfolk Southern Corporation andNorfolk Southern Railway Company(collectively, NS) have requested thateach of the respective due dates for thefirst phase (also referred to as the initial



6-month review) of the Buffalo RateStudy be extended for a period of fourweeks. In this decision, the Board isextending the due dates applicable tothe first phase of the Buffalo Rate Study.DATES: For the initial 6-month review(also referred to as the first phase), thecarriers’ rail 100% waybill files for theperiod beginning June 1, 1997, andending November 30, 1999, should bemade available to all interested partiesand to Board staff by January 27, 2000.CSX and NS comprehensive filings aredue by February 11, 2000; commentsfrom other parties are due by March 13,2000; and CSX and NS replies tocomments are due by March 28, 2000.

For the first full-year review, thecarriers’ rail 100% waybill files for theperiod ending May 31, 2000, should bemade available to all interested partiesand to Board staff by June 30, 2000. CSXand NS comprehensive filings are dueby July 14, 2000; comments from allinterested parties are due by August 14,2000; and CSX and NS replies tocomments are due by August 29, 2000.(The dates applicable to the first full-year review have not been changed; theyare noted here simply for ease ofreference.)ADDRESSES: An original and 25 copies ofall documents must refer to STBFinance Docket No. 33388 (Sub-No. 90)and must be sent to: SurfaceTransportation Board, Office of theSecretary, Case Control Unit, Attn: STBFinance Docket No. 33388 (Sub-No. 90),1925 K Street, N.W., Washington, DC20423–0001. In addition, one copy of alldocuments in this proceeding must besent to each representative: (1) DennisG. Lyons, Esq., Arnold & Porter, 55512th Street, N.W., Washington, DC20004–1202 (representing CSX); and (2)Richard A. Allen, Esq., Zuckert, Scoutt& Rasenberger, LLP, 888 17th Street,N.W., Washington, DC 20006–3939(representing NS).

In addition to submitting an originaland 25 copies of all paper documentsfiled with the Board, parties also mustsubmit, on 3.5-inch IBM-compatiblefloppy diskettes (disks) or compact discs(CDs), copies of all pleadings andattachments (e.g., textual materials,electronic workpapers, data bases andspreadsheets used to developquantitative evidence) and must clearlylabel pleadings and attachments andcorresponding computer diskettes withan identification acronym and pleadingnumber. Textual materials must be in,or convertible by and into, WordPerfect7.0. Electronic spreadsheets must be insome version of Lotus, Excel, or QuattroPro. Parties may individually seek awaiver from the disk-CD requirement.

FOR FURTHER INFORMATION, CONTACT:Michael A. Redisch, (202) 565–1544.[TDD for the hearing impaired: (202)565–1695.]

SUPPLEMENTARY INFORMATION: In theirpetition (designated CSX/NS–220) filedDecember 23, 1999, CSX and NS haveexplained that extension of the firstphase deadlines is necessary to assurethe orderly and efficient production ofthe waybill data called for in DecisionNo. 1. CSX and NS contend, in essence,that, in view of other year-end tasks,and considering the substantial dataprocessing required to produce therelevant waybill records, production ofthe required waybill data by December30, 1999 (the date set in Decision No. 1)is simply not feasible.

The requested extension is justified,especially in light of the need formeaningful data for the Buffalo RateStudy. As noted by CSX and NS,because the study is a 3-yearundertaking involving annual reviews,the 4-week extension will not affect thetimely completion of the initial annualreview or the overall study. Thedeadlines applicable to the first phasewill therefore be extended in themanner requested.

Service List

As with Decision No. 1, a copy of thisdecision is being served on all personsdesignated as POR, MOC, or GOV on theservice list in STB Finance Docket No.33388. This decision (like Decision No.1) will serve as a notice that personswho were parties of record in STBFinance Docket No. 33388 will notautomatically be placed on the servicelist as parties of record for this BuffaloRate Study proceeding. Any personsinterested in being on the STB FinanceDocket No. 33388 (Sub-No. 90) servicelist and receiving copies of CSX and NSfilings relating to the Buffalo Rate Studymust send us written notification withcopies to the railroads’ representatives.

This action will not significantlyaffect either the quality of the humanenvironment or the conservation ofenergy resources.

Decided: December 28, 1999.

By the Board, Vernon A. Williams,Secretary.

Vernon A. Williams,Secretary.[FR Doc. 00–106 Filed 1–3–00; 8:45 am]



Customs Service

Proposed Collection; CommentRequest; Bonded WarehouseProprietors’s Submission

AGENCY: U.S. Customs, Department ofthe Treasury.ACTION: Notice and request forcomments.

SUMMARY: As part of its continuing effortto reduce paperwork and respondentburden, Customs invites the generalpublic and other Federal agencies tocomment on an information collectionrequirement concerning the BondedWarehouse Proprietors’s Submission.This request for comment is being madepursuant to the Paperwork ReductionAct of 1995 (Pub. L. 104–13; 44 U.S.C.3505(c)(2)).DATES: Written comments should bereceived on or before March 6, 2000, tobe assured of consideration.ADDRESSES: Direct all written commentsto U.S. Customs Service, InformationServices Group, Room 3.2.C, 1300Pennsylvania Avenue, NW, Washington,D.C. 20229.FOR FURTHER INFORMATION CONTACT:Requests for additional information orcopies of the form and instructionsshould be directed to U.S. CustomsService, Attn.: J. Edgar Nichols, Room3.2.C, 1300 Pennsylvania Avenue NW,Washington, D.C. 20229, Tel. (202) 927–1426.SUPPLEMENTARY INFORMATION: Customsinvites the general public and otherFederal agencies to comment onproposed and/or continuing informationcollections pursuant to the PaperworkReduction Act of 1995 (Pub. L. 104–13;44 U.S.C. 3505(c)(2)). The commentsshould address: (a) Whether thecollection of information is necessaryfor the proper performance of thefunctions of the agency, includingwhether the information shall havepractical utility; (b) the accuracy of theagency’s estimates of the burden of thecollection of information; (c) ways toenhance the quality, utility, and clarityof the information to be collected; (d)ways to minimize the burden includingthe use of automated collectiontechniques or the use of other forms ofinformation technology; and (e) theannual costs burden to respondents orrecord keepers from the collection ofinformation (a total capital/startup costsand operations and maintenance costs).The comments that are submitted willbe summarized and included in theCustoms request for Office ofManagement and Budget (OMB)



approval. All comments will become amatter of public record. In thisdocument Customs is solicitingcomments concerning the followinginformation collection:

Title: Bonded WarehouseProprietors’s Submission.

OMB Number: 1515–0093.Form Number: Customs Form 300.Abstract: Customs Form 300 is

prepared by Bonded WarehouseProprietor’s and submitted to theCustoms Service annually. Thedocument reflects all bondedmerchandise entered, released, andmanipulated, and includes beginningand ending inventories.

Current Actions: There are no changesto the information collection. Thissubmission is being submitted to extendthe expiration date.

Type of Review: Extension (withoutchange).

Affected Public: Business or other for-profit institutions.

Estimated Number of Respondents:1,403.

Estimated Time Per Respondent: 132hours.

Estimated Total Annual BurdenHours: 185,757.

Estimated Total Annualized Cost onthe Public: $1,671,813.

Dated: December 23, 1999.J. Edgar Nichols,Agency Clearance Officer, InformationServices Branch.[FR Doc. 00–101 Filed 01–03–00; 8:45 am]BILLING CODE 4820–02–P


Customs Service

Proposed Collection; CommentRequest; Application for Extension ofBond for Temporary Importation


SUMMARY: As part of its continuing effortto reduce paperwork and respondentburden, Customs invites the generalpublic and other Federal agencies tocomment on an information collectionrequirement concerning the Applicationfor Extension of Bond for TemporaryImportation. This request for commentis being made pursuant to thePaperwork Reduction Act of 1995 (Pub.L. 104–13; 44 U.S.C. 3505(c)(2)).DATES: Written comments should bereceived on or before March 6, 2000, tobe assured of consideration.ADDRESSES: Direct all written commentsto U.S. Customs Service, Information

Services Group, Room 3.2.C, 1300Pennsylvania Avenue, NW, Washington,D.C. 20229.FOR FURTHER INFORMATION CONTACT:Requests for additional information orcopies of the form and instructionsshould be directed to U.S. CustomsService, Attn.: J. Edgar Nichols, Room3.2.C, 1300 Pennsylvania Avenue NW,Washington, D.C. 20229, Tel. (202) 927–1426.SUPPLEMENTARY INFORMATION: Customsinvites the general public and otherFederal agencies to comment onproposed and/or continuing informationcollections pursuant to the PaperworkReduction Act of 1995 (Pub. L. 104–13;44 U.S.C. 3505(c)(2)). The commentsshould address: (a) Whether thecollection of information is necessaryfor the proper performance of thefunctions of the agency, includingwhether the information shall havepractical utility; (b) the accuracy of theagency’s estimates of the burden of thecollection of information; (c) ways toenhance the quality, utility, and clarityof the information to be collected; (d)ways to minimize the burden includingthe use of automated collectiontechniques or the use of other forms ofinformation technology; and (e) theannual costs burden to respondents orrecord keepers from the collection ofinformation (a total capital/startup costsand operations and maintenance costs).The comments that are submitted willbe summarized and included in theCustoms request for Office ofManagement and Budget (OMB)approval. All comments will become amatter of public record. In thisdocument Customs is solicitingcomments concerning the followinginformation collection:

Title: Application for Extension ofBond for Temporary Importation.

OMB Number: 1515–0054.Form Number: Customs Form 3173.Abstract: Imported merchandise

which is to remain in the U.S. Customsterritory for 1-year or less without dutypayment is entered as a temporaryimportation. The importer may applyfor an extension of this period onCustoms Form 3173.





Estimated Time Per Respondent: 10minutes.


Estimated Total Annualized Cost onthe Public: $43,100.



Customs Service

Proposed Collection; CommentRequest; Application and Approval ToManipulate, Examine, Sample, orTransfer Goods


SUMMARY: As part of its continuing effortto reduce paperwork and respondentburden, Customs invites the generalpublic and other Federal agencies tocomment on an information collectionrequirement concerning the Applicationand Approval to Manipulate, Examine,Sample, or Transfer Goods. This requestfor comment is being made pursuant tothe Paperwork Reduction Act of 1995(Pub. L. 104–13; 44 U.S.C. 3505(c)(2)).DATES: Written comments should bereceived on or before March 6, 2000, tobe assured of consideration.ADDRESSES: Direct all written commentsto U.S. Customs Service, InformationServices Group, Room 3.2.C, 1300Pennsylvania Avenue, NW, Washington,DC 20229.FOR FURTHER INFORMATION CONTACT:Requests for additional information orcopies of the form and instructionsshould be directed to U.S. CustomsService, Attn.: J. Edgar Nichols, Room3.2.C, 1300 Pennsylvania Avenue NW,Washington, DC 20229, Tel. (202) 927–1426.SUPPLEMENTARY INFORMATION: Customsinvites the general public and otherFederal agencies to comment onproposed and/or continuing informationcollections pursuant to the PaperworkReduction Act of 1995 (Pub. L. 104–13;44 U.S.C. 3505(c)(2)). The commentsshould address: (a) Whether thecollection of information is necessaryfor the proper performance of thefunctions of the agency, includingwhether the information shall havepractical utility; (b) the accuracy of theagency’s estimates of the burden of thecollection of information; (c) ways to



enhance the quality, utility, and clarityof the information to be collected; (d)ways to minimize the burden includingthe use of automated collectiontechniques or the use of other forms ofinformation technology; and (e) theannual costs burden to respondents orrecord keepers from the collection ofinformation (a total capital/startup costsand operations and maintenance costs).The comments that are submitted willbe summarized and included in theCustoms request for Office ofManagement and Budget (OMB)approval. All comments will become amatter of public record. In thisdocument Customs is solicitingcomments concerning the followinginformation collection:

Title: Application & Approval toManipulate, Examine, Sample, orTransfer Goods.

OMB Number: 1515–0021.Form Number: Customs Form 3499.Abstract: Customs Form 3499 is

prepared by importers or consignees asan application to request examination,sampling, or transfer of merchandiseunder Customs supervision. This formis also an application for themanipulation of merchandise in abonded warehouse and abandonment ordestruction of merchandise.



Affected Public: Business or other for-profit institutions and individuals.


Estimated Time Per Respondent: 6minutes.


Estimated Total Annualized Cost onthe Public: $109,920.



United States Customs Service

Proposed Collection; CommentRequest; Country of Origin MarkingRequirements for Containers orHolders


SUMMARY: The Department of theTreasury, as part of its continuing effortto reduce paperwork and respondentburden, Customs invites the generalpublic and other Federal agencies tocomment on an information collectionrequirement concerning the Country ofOrigin Marking Requirements forContainers or Holders. This request forcomment is being made pursuant to thePaperwork Reduction Act of 1995(Public Law 104–13; 44 U.S.C.3505(c)(2)).DATES: Written comments should bereceived on or before March 6, 2000, tobe assured of consideration.ADDRESSES: Direct all written commentsto U.S. Customs Service, InformationServices Group, Room 3.2.C, 1300Pennsylvania Avenue, NW, Washington,DC 20229.FOR FURTHER INFORMATION CONTACT:Requests for additional information orcopies of the form and instructionsshould be directed to U.S. CustomsService, Attn.: J. Edgar Nichols, Room3.2.C, 1300 Pennsylvania Avenue NW,Washington, DC 20229, Tel. (202) 927–1426.SUPPLEMENTARY INFORMATION: Customsinvites the general public and otherFederal agencies to comment onproposed and/or continuing informationcollections pursuant to the PaperworkReduction Act of 1995 (Public Law 104–13; 44 U.S.C. 3505(c)(2)). The commentsshould address: (a) Whether thecollection of information is necessaryfor the proper performance of thefunctions of the agency, includingwhether the information shall havepractical utility; (b) the accuracy of the

agency’s estimates of the burden of thecollection of information; (c) ways toenhance the quality, utility, and clarityof the information to be collected; (d)ways to minimize the burden includingthe use of automated collectiontechniques or the use of other forms ofinformation technology; and (e) theannual costs burden to respondents orrecord keepers from the collection ofinformation (a total capital/startup costsand operations and maintenance costs).The comments that are submitted willbe summarized and included in theCustoms request for Office ofManagement and Budget (OMB)approval. All comments will become amatter of public record. In thisdocument Customs is solicitingcomments concerning the followinginformation collection:

Title: Country of Origin MarkingRequirements for Containers or Holders.

OMB Number: 1515–0163.Form Number: N/A.Abstract: Containers or Holders

imported into the United Statesdestined for an ultimate purchaser mustbe marked with the English name of thecountry of origin at the time ofimportation into Customs territory.




Estimated Number of Respondents:250.

Estimated Time Per Respondent: 15seconds.

Estimated Total Annual BurdenHours: 41.

Estimated Total Annualized Cost onthe Public: $533.00.



Tuesday

January 4, 2000

Part II

Federal HousingFinance Board12 CFR Parts 900, 910 and 941Reorganization of the Office of Finance;Authority To Issue ConsolidatedObligations on Which the Federal HomeLoan Banks Are Jointly and SeverallyLiable; Proposed Changes to the FinancialManagement Policy of the Federal HomeLoan Bank System; Proposed Rule andNotice



1 See Pub. L. 101–73, tit. VII, sec. 702, 103 Stat.183 (Aug. 9, 1989). A General Accounting Office(GAO) report commissioned by Congress in section1393 of the Housing and Community DevelopmentAct of 1992, which was issued on December 8, 1993(GAO/GGD–94–38) (GAO Report), noted thatFIRREA made ‘‘many changes’’ to the Bank Systemthat ‘‘introduced significant cultural changes for theBanks and their members.’’ GAO Report at 19–20.Principally, after FIRREA, the Banks were no longerinvolved in the oversight and supervision of theirmembers. The members henceforth only wouldview the Banks as a credit facility, and this changewould promote the cooperative nature of the BankSystem. GAO concluded, however, that to attractnew, voluntary members and retain members, theBanks ‘‘must provide sufficient value—through theproducts and services offered and the dividendspaid—to warrant the required stock investment formembership.’’ Id. at 21. The GAO Report noted theneed for coordination of System-wide businessissues. Id. at 117.

2 Indeed, GAO foresaw this need, stating that‘‘there may be a need for a central coordinatingmechanism * * * [that] should reside in the [Bank]System itself.’’ See GAO Report at 113. The GAOReport observed that there were certain positivegoals that could be attained by relieving the FinanceBoard of certain Bank System governance functions,including enhanced cost control and thecentralization of ‘‘certain business functions.’’ Id. at114.

3 Pub. L. 106–102, 113 Stat. 1338 (Nov. 12, 1999).


12 CFR Parts 900, 910 and 941

[No. 99–61]

RIN 3069–AA88

Reorganization of the Office ofFinance; Authority To IssueConsolidated Obligations on Which theFederal Home Loan Banks Are Jointlyand Severally Liable

AGENCY: Federal Housing FinanceBoard.ACTION: Proposed rule.

SUMMARY: The Federal Housing FinanceBoard (Finance Board) is proposing toamend its regulations regarding theOffice of Finance (OF), a joint office ofthe Federal Home Loan Banks (Bank orBanks). The proposed rule wouldreorganize the OF and broaden itsduties, functions and responsibilities intwo key respects: the OF would performconsolidated obligation (CO) issuancefunctions, including preparation ofcombined financial reports, for theBanks; and the OF would serve as avehicle for the Banks to carry out jointactivities in a way that promotesoperating efficiency and effectiveness inachieving the mission of the Banks.

With respect to the issuance of COs,i.e., bonds, notes or debentures, theproposed rule would make the Banks,rather than the Finance Board, theissuers of COs under section 11 of theFederal Home Loan Bank Act (Act). Asproposed, this action would not have asubstantive effect on the debt issuanceprocess or on the joint and severalobligation of the Banks on the COs, butit would make the Banks responsible foraccessing the capital markets throughthe OF to fund their own operations.This is consistent with devolutionaryactions taken by Congress to give theBanks greater autonomy over themanagement of their business and toremove the Finance Board frominvolvement in Bank managementfunctions.

The proposed rule also is intended toprovide the powers, operationalindependence, and flexibility the OFneeds to be available for the Banks’ useas a central management facility withrespect to all joint Bank asset activities,and to facilitate the issuance of COs bythe Banks or the Finance Board undersection 11 of the Bank Act.

The Finance Board is also proposingto make certain conformingamendments to its policy statemententitled ‘‘Financial Management Policyof the Federal Home Loan Bank System’’(FMP). A Notice describing the

proposed FMP changes in detail ispublished elsewhere in this issue of theFederal Register.DATES: The Finance Board will acceptcomments on the proposed rule inwriting on or before March 6, 2000.ADDRESSES: Send comments to Elaine L.Baker, Secretary to the Board, byelectronic mail at [email protected], or byregular mail at the Federal HousingFinance Board, 1777 F Street, N.W.,Washington, D.C. 20006. Comments willbe available for public inspection at thisaddress.FOR FURTHER INFORMATION CONTACT:Joseph A. McKenzie, Deputy ChiefEconomist, Office of Policy, Researchand Analysis, 202/408-2845,[email protected], Charlotte A. Reid,Special Counsel, Office of GeneralCounsel, 202/408–2510, [email protected],or Eric E. Berg, Senior Attorney, Officeof General Counsel, 202/408–2589,[email protected]. Staff also can bereached by regular mail at the FederalHousing Finance Board, 1777 F Street,N.W., Washington, D.C. 20006.SUPPLEMENTARY INFORMATION:

I. Overview of Proposal

The proposed rule would establish anew structure for the OF toaccommodate additional functionsproposed to address new challengesfaced by the Bank System. With respectto the issuance of COs, the proposedrule would authorize the Banks, ratherthan the Finance Board, to issue COs, asdiscussed more completely below. Thisaction is consistent with the FinanceBoard’s ongoing efforts to remove itselfas much as it can legally do frominvolvement in the management of theBanks, and with devolutionary actionstaken by Congress to give the Banksgreater autonomy over the managementof their business.

Notwithstanding the fact that themembers of the Bank System know theircommunities and customers’ needs best,the mortgage market is no longer thefragmented, localized market that it waswhen Congress created the Bank Systemin 1932. Driven by technologicalimprovements, the mortgage market’sdelivery systems have become morenational in scope, and the mortgagemarket now plays a central role in thenational economy. The need for ‘‘anappropriate vehicle for coordination ofSystem-wide business issues,’’ such as acentral facility to assist the Banks inmanaging various aspects of theiroperations, including mortgage-relatedassets, has grown in the ten years sinceCongress confirmed the OF as a jointoffice of the Banks in the Financial

Institutions Reform, Recovery andEnforcement Act of 1989 (FIRREA).1

The Finance Board believes that themarket has created an incentive and abusiness need for a facility controlled bythe Banks and their members to provideeconomies and efficiencies of scale, asit has done for the issuance of COs bythe Finance Board, by giving the Banksthe flexibility to centralize certain oftheir common business functions. TheFinance Board anticipates that this needwill become even more critical as theBanks develop asset activities such asMember Mortgage Assets as part of theircore business.2 Not only would such afacility provide operational benefits, italso would enhance the safety andsoundness of the operations byproviding both expertise and amechanism for achieving riskmanagement, and geographic diversityon a joint asset portfolio basis. In lightof the recent enactment of Title VI of theGramm-Leach-Bliley Act, the FederalHome Loan Bank System ModernizationAct of 1999,3 the Finance Board istaking this opportunity to propose areorganization of the OF that will allowthis joint office of the Banks to functionin this way at the request of the Banksand facilitate growth in the BankSystem’s business as the Banks seek toprovide their members with new creditproducts and respond to changes in themarketplace and congressionalmandates. The Finance Board believeshaving the OF serve these functions isparticularly important because the OF isthe only statutorily acknowledged andsanctioned joint office for the Banks,



4 See, e.g., section 304(a) of the GovernmentCorporation Control Act, codified at 31 U.S.C.A.§ 9102 (West 1994).

5 Id. 1431(b)–(d). The Bank Act makes clear thatobligations of the Banks issued with the approvalof the Finance Board are not the obligations of, andare not guaranteed by, the United States. See id.1435. Congress underscored this precept in theFederal Housing Enterprises Financial Safety andSoundness Act of 1992, which provides in pertinentpart that none of the housing government-sponsored enterprises’ obligations or securities arebacked by the full faith and credit of the UnitedStates. See Pub. L. 102–550, tit. XIII, sec. 1304, 106Stat. 3944 (Oct. 28, 1992) (codified at 12 U.S.C.4503).

6 On October 12, 1999, the Finance Boardpublished a final rule clarifying for the Banks howtheir joint-and-several liability on COs wouldoperate, and elucidating for bondholders how theybenefit from the Banks’ joint-and-several liability.See 64 FR 55125 (Oct. 12, 1999). The Bank Systemhas been and remains financially strong. As of

September 30, 1999, there were over $477 billionin COs outstanding. In the history of the BankSystem, no Bank has ever been delinquent ordefaulted on a principal or interest payment on anyCO issued by the Finance Board or its predecessoragencies. The joint-and-several liability of theBanks on the COs is an integral part of investorconfidence in Bank System debt.

and the legal authority for the Banks toestablish other joint entities is inquestion.4

A. Issuance of Consolidated ObligationsSince 1946, the operations of the

Banks and member demand foradvances have been financedprincipally with the proceeds from COsissued pursuant to section 11(c) of theBank Act by the Finance Board, or itspredecessor agencies. See 12 U.S.C.1431(c). The Banks, individually andcollectively, are the sole obligors on COsissued by the Finance Board undersection 11(c) of the Bank Act.5 Theissuance of COs by the Finance Boardunder section 11(c) of the Bank Act isgoverned by Finance Board regulationsset forth in 12 CFR parts 910 and 941,the FMP and an annual debtauthorization. The Finance Board isproposing to achieve the goal ofcontinuing to give the Banks theautonomy to manage and run their ownbusinesses by authorizing the Banks toissue joint debt pursuant to section 11(a)of the Bank Act through the OF as agentfor the Banks, which would still becalled COs, on which the Banks wouldbe jointly and severally liable. See 12U.S.C. 1422a(a)(3)(B)(iii), 1431(a) and(d). Section 11(a) of the Bank Actprovides that the Banks may issuebonds, debentures or other obligations‘‘upon such terms and conditions’’ asthe Finance Board may approve and‘‘subject to the rules and regulationsprescribed by’’ the Finance Board. Seeid. 1431(a). Under the proposed rule,the same rules governing theapportionment of joint-and-severalliability with respect to COs issued bythe Finance Board through the OF asagent pursuant to section 11(c) of theBank Act would apply to COs issued bythe Banks through the OF as agentpursuant to section 11(a) of the BankAct.6 To eliminate the potential for

conflicts to the Finance Board in its roleas regulator of the OF and the Banks, theFinance Board is removing itself fromits role as issuer of the COs, and insteadallowing the Banks to raise funds in thecapital markets to fund their operations,a management function tied directly tomember demand. While the FinanceBoard has long been uncomfortableserving in both of these capacities, theprocess, while awkward, has workedquite successfully. However, theFinance Board’s discomfort turned toconcern over potential liability for theUnited States as a result of litigationarising from the bankruptcy of theCounty of Orange, California.

In the course of the Orange Countylitigation, (which has since been settledwith respect to the Banks, the OF andthe United States), the United StatesDistrict Court for the Central District ofCalifornia held that Orange County hadstated a claim for relief based on itscontention that the United States hadviolated the federal securities laws inthe issuance of certain COs. The DistrictCourt also found that Orange County’sclaim for ‘‘restitution’’ against theUnited States under the provisions ofthe Administrative Procedure Act wasnot barred by the doctrine of sovereignimmunity. The Finance Board does notendorse these holdings, but hasdetermined it is prudent to limit anyfurther risk to the United States fromsuch suits. By taking the proposedaction, the Finance Board canaccomplish this goal as well as that ofmaking the Banks responsible in namefor this most central aspect of theirbusiness.

As a natural and necessary adjunct tothe issuance of COs, the Banks alsoshould be responsible for thepreparation of the disclosure documentsthat facilitate CO issuance and for theperiodic combined financial statementsfor the Bank System. Logic dictates thatthe OF, as the only joint Bank Systemoffice and existing agent for COissuance, is the most appropriate entityto perform that function. The OFalready prepares the offering documentsused in the sale of the Bank System’sCOs, services the Bank System’s debt,and possesses knowledge of the BankSystem’s financial statements,operations and condition. The FinanceBoard believes that transferring thefunction of preparing combined Bank

System annual and quarterly financialreports to the OF is entirely appropriateand a provision making the transfer isincluded in the proposed rule.

The proposed rule will codify thedisclosure standards set forth in theFinance Board’s ‘‘Statement of Policy:Disclosures in the Combined Annualand Quarterly Financial Reports of theFHLBank System’’ (Policy Statement).See 63 FR 39872 (July 24, 1998). Thesestandards generally require thecombined annual and quarterlyfinancial reports of the Bank System tobe prepared in a manner that is, in thejudgement of the Finance Board,consistent with the disclosurerequirements promulgated by theSecurities and Exchange Commission(SEC). While securities issued by theFinance Board or the Banks are exemptfrom the registration and reportingrequirements of the Securities ExchangeAct of 1934, 15 U.S.C. 77c(a)42 (1934Act), the Finance Board believes that thedisclosure requirements promulgated bythe SEC pursuant to the federalsecurities laws represent best practice,and that financial and other disclosureconcerning the Bank System shouldconform to this standard to the greatestextent practicable. However, havingdetermined that certain areas ofdisclosure are either inapplicable orinappropriate for the Bank System, theFinance Board has provided a list ofexceptions to the general standard in theAppendix to the proposed rule.Preparation of combined Bank Systemannual and quarterly financial reportsshould be greatly simplified by thecodification of uniform disclosurestandards.

In the area of compensationdisclosure, the Finance Board notes thatItem C of the proposed Appendixrequires disclosure of compensationinformation only for the 12 Bankpresidents and the CEO of the OF,whereas the SEC’s regulations requirethat information for the CEO, the 4 othermost highly compensated executiveofficers who held such offices duringthe last completed fiscal year, and up to2 additional individuals for whomdisclosure would have been providedbut for the fact that the individual wasnot serving as an executive officer at theend of the last completed fiscal year.This exception was adopted when theFinance Board regulated thecompensation of Bank employees, andwas intended to avoid the volume ofdisclosure that would result fromapplying the SEC standard to twelveBanks and the OF. However, now thatBank employee compensation has beenderegulated, the Finance Board seekscomment on whether it should (1)



7 In 1934, Section 503 of the National HousingAct of 1934 amended section 11 of the Bank Actto provide authority to the FHLBB to issue COs onwhich the Banks are jointly and severally liableunder sections 11(b) and (c) of the Bank Act (12U.S.C. 1431(b) and (c)). See H.R. 9680, 73rd Cong.,2d. Sess. (Pub. No. 479) (enacted). The contractualduties of the Fiscal Agent expanded to includemanaging the Banks’ investment portfolios.

8 See 13 FR 7447 and 8269 (1948) (codified at 24CFR 122.80 (1949)) (repealed). The regulationprovided for the appointment of the Fiscal Agent,and expanded the duties of the Fiscal Agent toinclude the sale and purchase of Bank Systemsecurities. After the Federal Home Loan MortgageCorporation (Freddie Mac) was created in 1970, theFHLBB created an Office of System Finance (as aseparate Bank System office) to manage FreddieMac’s investment portfolios and reserves with thoseof the Federal Savings and Loan InsuranceCorporation (FSLIC) in coordination with the Officeof Fiscal Agent. The Banks since had ceased havingthe OF perform investment services on their behalf.

9 From 1972 to 1992, the OF was headed by aDirector. See 12 CFR 932.55 (1992) (repealed).Following the reorganization, the OF Board ofDirectors consists of two Bank presidents and oneprivate citizen, all appointed by the Finance Board.

10 As originally enacted in 1932, section 11(a)permitted the Banks to issue debt. It provided that‘‘Each Federal Home Loan Bank shall have power,subject to the approval of the Board, * * * to issuebonds and debentures having such maturities asmay be determined by the board, secured by thetransfer of eligible obligations of borrowinginstitutions on advances made by the bank toborrowing institutions and by the deposit of homemortgages.’’ Sec. 11, c. 522, 47 Stat. 733 (July 22,1932).

11 Section 11(f) mandated that ‘‘the Federal HomeLoan Banks shall be jointly and severally liable forthe payment when due of all bonds and debentures,and of notes and other obligations issued by anyFederal Home Loan Bank.’’ Various provisions insection 11 required the Board to prescribe rules andregulations governing the issuance and security forthe bonds, notes or debentures, and setrequirements for the security for the Banks’ debt.Section 11(f) also specified that the Banks werepermitted to make agreements to ensure thepayment of such obligations, so long as theagreements did not restrict in any way the Banks’

expand the number of individuals forwhom the required compensationinformation would be provided and (2)change the triggering criteria forcompensation disclosure from title/position to income level, or fromindividual Banks to the Bank Systemoverall.

While the Finance Board is proposingthat the OF prepare the Bank System’sannual and quarterly financial reports,the Finance Board will continue to beresponsible for oversight of thecombined Bank System financialreports’ compliance with the applicabledisclosure standards. Accordingly, theproposed rule provides that the FinanceBoard in its sole discretion willdetermine whether or not a combinedannual or quarterly report prepared bythe OF meets the prescribed regulatorystandards. The proposed rule requiresthe OF to promptly comply with anydirective the Finance Board issuesregarding the preparation, filing,amendment or distribution of thecombined annual or quarterly financialreports.

B. Restructuring of the Office of FinanceThe Finance Board long has

recognized the importance of anorganizational structure for the OF thatreflects its duties and responsibilities.The Finance Board has re-evaluated theappropriate organizational structure ofthe OF in light of the changes proposedherein, with two key goals in mind.First, the Finance Board wants to buildon the governance model in the BankAct, particularly after enactment of theGramm-Leach-Bliley Act, whereby theBanks should have the autonomy tomanage and run their own businesses.Second, the Finance Board wants to giveall of the Banks representation on theOF Board of Directors to best achievetheir operational goals. Additionally,the Finance Board has considered thatthe members of the OF Board ofDirectors should possess experience andqualifications to enable the Board to bemost effective in exercising businessjudgment in its policy-making anddecision-making roles. The proposedreorganization is designed to providethe structure, additional functions andoperational capacity the OF mustpossess in order to accommodate theevolving business needs of the Banks.

The Finance Board proposes tosignificantly alter both the size andcomposition of the OF Board ofDirectors. Based on the considerationsdescribed above, particularly theincreased role being proposed for theOF, the Finance Board believes that theBank System would best be served by anOF Board of Directors that includes

representatives from each Bank,members of the Bank System, and thegeneral community. Accordingly, theproposed rule would expand the OFBoard of Directors to a total of 24members, 12 of whom would beappointed by the Banks, 6 of whomwould be elected by Bank Systemmembers, and 6 of whom would beappointed by the Finance Board.However, recognizing that this numberof directors may be unwieldy, theFinance Board invites commentsaddressing alternative board structuresfor the OF that would preserve anappropriate balance of representation bythe Banks, the members and the public,as discussed more completely below.

II. Statutory and RegulatoryBackground

A. The Office of FinanceThe OF was one of a number of joint

Bank offices established by regulation ofthe former Federal Home Loan BankBoard (FHLBB), predecessor agency tothe Finance Board. Over time, the OFhas evolved to support the Banks inresponding to changes in the financialmarkets and Bank System memberfunding requirements. As originallyenacted in 1932, the Bank Act permittedthe Banks to issue bonds anddebentures, and established a trustregistrar, which was the genesis of theOF. From 1934 to 1948, the FHLBBdirected the Banks collectively toemploy a fiscal agent to issue and sellconsolidated obligations.7 In 1948, theFHLBB promulgated a regulation thatcreated the Office of the Fiscal Agent ofthe Banks within the Bank System tofacilitate the issuance of COs.8

In 1972, the FHLBB promulgated aregulation that merged the Office ofSystem Finance with the Office of FiscalAgent and created the OF as a JointBank System office. See 37 FR 16864(Aug. 22, 1972) (codified at 12 CFR

522.80–82) (repealed). The regulationprovided for the OF to perform any‘‘function, duty or authority’’ previouslyvested in the Fiscal Agent. In additionto issuing COs under the delegatedauthority of the FHLBB and servicingthe debt as a fiscal agent of the Banks,the OF was required to perform otherduties as requested by a Bank or Banks,or the FHLBB. During the 1980’s, thoseduties included purchasing investmentsecurities on behalf of the Banks,researching alternative investmentvehicles and strategies and managingassets acquired by the FSLIC.

As a part of the amendments to theBank Act made by FIRREA, the existingjoint or collective offices of the BankSystem other than the OF wereabolished, and the FHLBB regulationgoverning the OF was transferred to theFinance Board’s regulations. See 12U.S.C. 1422b(b)(2); 12 CFR 932.56(a)(3)(repealed). The Finance Boardreorganized the OF as fiscal agent of theFinance Board in issuing COs undersection 11(c) of the Bank Act. See 57 FR2832 (Jan. 24, 1992); 57 FR 11429 (Apr.3, 1992) (codified at 12 CFR 941.9(b)(1)).The rule instituted a three-memberBoard of Directors for the oversight ofthe management of the OF, executingdaily operations and implementing theBoard of Directors plans and policies.9

B. Consolidated ObligationsThe Bank Act always has authorized

the Banks to issue debt, and empoweredthe regulator to issue rules, regulationsand orders governing virtually everyaspect of a Bank’s debt issuance.10

Under the original statutory scheme, theBanks were jointly and severally liablefor the debt of any Bank.11 In 1934,



joint and several liability. Section 11(f), however,contained a limited proviso permitting a Bankindependently to borrow ‘‘temporarily,’’ if the Bankclearly disclosed that the liability was limited to itas the sole issuer, and obtained the expressapproval of the FHLBB. See id.

12 Pub. L. 479, c. 847, sec. 503, 48 Stat. 1261 (Jun.27, 1934).

13 The following definitions apply to the leveragelimit provisions: ‘‘ (b) ’consolidated bonds’’ meansbonds or notes issued on behalf of all Banks;’’ ‘‘(c)’senior bonds’’ means consolidated bonds issuedpursuant to 12 U.S.C. 1431 and this part and notdefeased, other than bonds specificallysubordinated to any then outstanding consolidatedbonds;’’ ‘‘(d) ’unsecured, senior liabilities’’ meansall obligations of the Banks recognized as a liabilityunder Generally Accepted Accounting Principles,except (1) liabilities that are covered by a perfectedsecurity interest; (2) consolidated bonds; (3) bondsissued pursuant to 12 U.S.C. 1431(a); and (4)allowances for losses for off-balance sheetobligations.’’ 12 CFR 910.0(b)–(d) (1999).

14 The ‘‘negative pledge requirement’’ is theregulatory requirement that the Banks maintaincertain types of unpledged assets in an amountequal to the amount of the Bank’s senior bondsoutstanding. See 12 CFR 910.1(c) (1999). Section910.1(c) provides in pertinent part:

The Banks shall at all times maintain assets of thefollowing types, free from any lien or pledge, in atotal amount at least equal to the amount of seniorbonds outstanding: (1) Cash; (2) Obligations of orfully guaranteed by the United States; (3) Securedadvances; (4) Mortgages as to which one or moreBanks have any guaranty or insurance, orcommitment thereof, by the United States or anyagency thereof; (5) Investments described in section16(a) of the Bank Act, as amended (12 U.S.C.1436(a)); and (6) Other securities which have beenassigned a rating or assessment by a majornationally recognized securities rating agency thatis equivalent to or higher than the rating orassessment assigned by such agency or senior bondsoutstanding. (Proviso omitted).

section 503 of the National HousingAct 12 amended section 11 of the BankAct (1934 amendments) to give the BankSystem more ready access to the capitalmarkets, and authorized the FHLBB toissue consolidated obligations on whichthe Banks would be jointly andseverally liable. 12 U.S.C. 1431(b) and(c). Certain constraints on the Banks’power to issue debt were eliminated bythe 1934 amendments: the requirementthat security deposits be not less than190 percent of any consolidated issuewas replaced by provisions limitingconsolidated debentures issued by theFHLBB under section 11(b) to 5 timespaid in capital. The 1934 amendmentsalso replaced the requirement in section11(f) that all Banks would be jointly andseverally liable for obligations issued byany Bank, as well as the proviso, withthe more broadly drawn requirements insection (a), that the Banks’ power toissue debt ‘‘upon such terms andconditions as the Board may approve’’is ‘‘subject to the rules and regulationsprescribed by the Board.’’ Thus, the1934 revisions to section 11 of the BankAct gave broad authority to the Banks’regulator to determine the terms andconditions for the issuance ofobligations on which the Banks wouldbe liable.

In 1989, Congress authorized theFinance Board to maintain the OF, ajoint office of the Banks, and to delegateto the OF the ministerial functionsassociated with issuance of COs. See 12U.S.C. 1422b(b)(1) and (2). Accordingly,the Finance Board delegated to the OFthe authority to issue COs under section11 of the Bank Act subject to FinanceBoard regulations, resolutions orpolicies. See 12 CFR 900.30.

The issuance of COs is governed bypart 910 of the Finance Board’sregulations (12 CFR part 910), the FMPand an annual debt authorization. Theoperations of the OF are governed bypart 941 of the Finance Board’sregulations (12 CFR part 941). TheFinance Board’s regulations and theFMP provide for a leverage limit on theissuance COs. Section 910.1(b) prohibitsthe issuance of senior bonds whereimmediately following such issuancethe aggregate amount of senior bondsand unsecured senior liabilities wouldexceed 20 times the total paid-in capitalstock, retained earnings and reserves(exclusive of loss and deposit reserves

required pursuant to section 1431(g)) ofall of the Banks). See 12 CFR 910.1(b).13

Additionally, Finance Board regulationsrequire the Banks to maintain certainassets at all times free of lien or pledge(the negative pledge requirement) toensure sufficient collateralization of theconsolidated obligations.14

C. FMP

The FMP generally provides aframework within which the Banks mayimplement their financial managementstrategies in a prudent and responsiblemanner. Specifically, the FMP identifiesthe types of investments the Banks maypurchase pursuant to their statutoryinvestment authority. The FMP alsoincludes a series of guidelines relatingto the funding and hedging practices ofthe Banks, as well as to the managementof their credit, interest-rate and liquidityrisks, and establishes liquidityrequirements in addition to thoserequired by statute, as noted above. SeeFMP secs. III–IV.

The FMP evolved from a series ofpolicies and guidelines initially adoptedby the FHLBB in the 1970s and reviseda number of times thereafter. TheFinance Board adopted the FMP in1991, consolidating into one documentthe previously separate policies onfunds management, hedging and interestrate swap, and adding new guidelineson management of unsecured credit andinterest-rate risks.

III. Analysis of Proposed Rule

A. OverviewThe proposed rule would amend parts

910 and 941 of the Finance Board’sregulations governing operation of theOF and issuance of COs, to enable theOF to issue debt on behalf of the Bankspursuant to section 11(a) of the BankAct, require the OF to prepare thequarterly and annual combinedfinancial reports of the Bank System,and provide services at the request oftwo or more Banks related to joint assetactivities undertaken by the requestingBanks, including the administration ofMember Mortgage Asset programs andliquidity management. With theadditional functions and operationalcapacity established for the OF underthe proposed rule, the Banks will havethe ability to make the most efficient useof the OF and its services and therebyto maximize mission achievement asthey develop new joint asset activities.

B. Amendments to 12 CFR 900.30The proposed rule would amend

§ 900.30 of the Finance Boardregulations to provide for thetermination as of December 31, 2000, ofthe OF’s authority to act as agent for theFinance Board in the issuance of COsunder section 11(c) of the Bank Act. Bythis provision, the Finance Boardintends to transition itself out of, andthe Banks into, the debt issuancefunction under the provisions of section11(a) of the Bank Act as soon aspracticable.

C. CO Issuance—Proposed Amendmentsto Part 910

1. DefinitionsThe proposed rule would delete

§§ 910.0(a) and (b), the definitions of theterms ‘‘Board’’ and ‘‘Bank,’’ which havebeen proposed to be defined for allFinance Board regulations in a previousrulemaking, see 64 FR 52148 (Sept. 27,1999), and the definition of the term‘‘unsecured senior liabilities’’ in§ 910.0(d). The proposed rule wouldamend the definition of the term‘‘consolidated obligation’’ to clarify thatit includes bonds, notes or debenturesissued by the Banks through the OFunder section 11(a) of the Bank Act. Theproposed rule also would add a new§ 910.1(b) to define the term ‘‘NationallyRecognized Statistical RatingOrganizations.’’

2. Section 910.2Proposed § 910.2(a) sets forth the

types of liabilities authorized for Bankbusiness operations. It is intended to bean exclusive list and the Banks’ soleliability authority, replacing the



15 Eligible financial institutions include banksand Federal Deposit Insurance Corporation (FDIC)insured financial institutions, including U.S.subsidiaries of foreign commercial banks, whosemost recently published financial statementsexhibit at least $100 million of Tier I (or tangible)capital if the institution is a member of theinvesting Bank or at least $250 million of tangiblecapital for all other FDIC-insured institutions, andwhich have been rated at least a level III institutionas defined in section VI.C of the FMP.

Funding Guidelines section of the FMP.The Funding Guidelines of the FMP,which set forth the parameters for theuse by the Banks of alternative sourcesand structures in funding theiractivities, are proposed to be deleted ina separate notice published elsewhere inthis Federal Register, See FMP sec. IV.The Funding Guidelines differentiatebetween Bank specific liabilities andCOs, which are the joint-and-severalliabilities of the Banks. See id. at secs.IV.B. and C.

Under the FMP, authorized Bankspecific liabilities generally include: (1)Deposits from members, from anyinstitution for which a Bank isproviding correspondent services, fromanother Bank, and from otherinstrumentalities of the United States;(2) federal funds purchased from anyfinancial institution that participates inthe federal funds market; and (3)repurchase agreements, with theprovision that those requiring thedelivery of collateral by a Bank may beonly with Federal Reserve Banks, U.S.government sponsored agencies andinstrumentalities, primary dealersrecognized by the Federal Reserve Bankof New York, eligible financialinstitutions,15 and states andmunicipalities with a Moody’sInvestment Grade rating of 1 or 2.

The FMP also prohibits a Bank fromdirectly placing COs with another Bank.See id. at sec. IV.C.4.

The proposed rule would incorporatecertain provisions of section IV of theFMP into regulation. Proposed§ 910.2(a)(1) sets forth each Bank’sauthority to act as a joint-and-severalobligor with other Banks on COs, asauthorized under part 910. Proposed§ 910.2(a)(2) continues each Bank’sauthority to accept deposits frommembers, other Banks andinstrumentalities of the United States,but provides that the deposit transactionmay not be conducted in such a way asto result in the offer or sale of a securityin a public offering as those terms areused in 15 U.S.C. 77b(3). In addition,recognizing the importance of federalfunds and repurchase agreements for theBanks’ liquidity management, proposed§ 910.2(a)(3) allows a Bank to purchasefederal funds and enter into repurchase

agreements, but only in order to satisfythe Banks’ short-term liquidity needs.

Proposed § 910.2(b) would retain thesubstance of existing § 910.1(a)concerning COs to be issued by theFinance Board through the OF, butwould expressly provide that theFinance Board may terminate thedelegation of authority to the OF toissue COs on behalf of the FinanceBoard pursuant to section 11(c) of theBank Act. Proposed § 910.2(b) and (c)continue the existing prohibition ondirectly placing COs with another Bank.It is the opinion of the Finance Boardthat such placements do not further themission of the Bank System. Proposed§ 910.2(c) would expressly authorize theOF to undertake the issuance of jointBank debt pursuant to section 11(a) ofthe Bank Act as COs on which all of theBanks are jointly and severally liablesubject to § 910.8, which governs thejoint-and-several liability of the Bankson COs issued under section 11(c) of theBank Act.

The proposed rule does not includethe 20-to-1 leverage limit from § 910.1(b)of the existing regulations, or the 20-to-1 leverage limit on each Bank containedin the FMP. Instead, as discussed indetail in the Notice published elsewherein this issue of the Federal Register, theFinance Board is proposing to amendthe FMP to require each Bank to haveand maintain total capital in an amountequal to at least 4.76 percent of theBank’s total assets.

Neither the elimination of the System-wide leverage limit from the FinanceBoard’s regulations, nor the proposedrevision to the leverage limit containedin the FMP, would have any practicaleffect on the Bank System or itsbondholders. The Finance Board, as theregulator of the Banks, would continueto monitor each Bank for compliancewith the individual leverage limitincluded in the FMP. The current FMPprohibits a Bank from participating inCOs if such transactions would causethe Bank’s liabilities to exceed 20 timesthe Bank’s total capital. The proposedrevision to the FMP establishes anequivalent leverage standard, stated as apercentage of assets, which wouldrequire each Bank to maintain capital ofat least 4.76 percent of its total assets.The imposition of this standard on eachBank will ensure that the Bank Systemitself stays within the leverage limit,rendering any retention of a BankSystem-wide leverage limitunnecessary. Further, the Finance Boardnotes that with the recent passage of theGramm-Leach-Bliley Act, Banks will besubject to statutory leverage limits andrisk-based capital requirements. Whenimplemented, the new risk-based capital

regime will provide an additionalsafeguard to the Bank System and itsbondholders by requiring Banks to holdcapital in proportion to the risks theyassume.

As discussed above, the FinanceBoard, by incorporating COs issued bythe Banks under section 11(a) of theBank Act into the definition of the term‘‘consolidated obligations’’ in part 910,intends that the provisions of § 910.8pertaining to the joint-and-severalliability of the Banks on COs shall applyto such debt because it enhancesinvestor confidence in Bank Systemdebt, and promotes the liquidity of thebonds.

Proposed § 910.2(d) amends existing§ 910.1(c), the negative pledgerequirement, by requiring each Bank toat all times maintain the assets listed inan amount at least equal to the Bank’spro rata share of the outstanding COsissued by the OF on behalf of theFinance Board under section 11(c) andthe COs issued by the OF on behalf ofthe Banks under section 11(a) in whichthe Bank participated for purposes ofthe negative pledge requirement. Theproposed rule retains the negativepledge requirement for debt previouslyissued by the OF on behalf of theFinance Board under section 11(c), andexpressly requires each Bank tomaintain the specified assets free ofpledge in an amount equal to the Bank’spro rata share in COs issued by the OFon behalf of the Banks under section11(a) in which the Bank participated. Inconnection with these proposedamendments, it is the intention of theFinance Board to preserve the existenceof the special asset accounts at theBanks established when the leveragelimit in current part 910 was raised in1992 from 12-to-1 to 20-to-1. SeeFinance Board Res. No. 92–751 (Dec. 21,1992). The Finance Board hasmaintained these requirements in theproposal to cause the least amount ofchange possible to the current structureand thereby avoid disruptions of themarket. The Finance Board invitescomment on this provision.

3. Sections 910.3 Through 910.7Sections 910.3 through 910.6 are

retained, as amended, by substituting‘‘Finance Board’’ for ‘‘Board,’’ ‘‘Bank’’for ‘‘Federal home Loan Bank,’’ and‘‘consolidated obligation’’ for‘‘consolidated bond.’’ Current§ 910.6(b)(2), which purports to imposelimitations on the Finance Board’sability to change the leverage limitprovision in current § 910.6(b), providesthat current § 910.1(b) may be changedby the Finance Board if the FinanceBoard receives either: (1) Written



evidence from at least one majornationally recognized securities ratingagency that the proposed change willnot result in the lowering of that ratingagency’s then-current rating orassessment on senior bonds outstandingor next to be issued; or (2) a writtenopinion from an investment bankingfirm that the proposed change wouldnot have a materially adverse effect onthe creditworthiness of senior bondsoutstanding or next to be issued. Whilethe Finance Board will continue toconsult with the ratings agencies topreserve the triple-A rating of BankSystem COs, this provision is proposedto be deleted along with the rest of theexisting § 910.6.

Proposed § 910.7 provides theconditions under which the OF Board ofDirectors may authorize the issuance ofCOs: the OF Board of Directors shallauthorize the offering for current andforward settlement (not to exceed 12months) or the reopening of COs asnecessary and authorize the maturities,rates of interest, terms and conditions(subject to the provisions of 31 U.S.C.9108) under certain conditions,including the restriction that COs maybe offered for sale only to the extent thatthe Banks are committed to take theproceeds, the OF Board of Directorsshall implement investor suitabilitystandards and adopt a policy addressingthe relationship between the Banks andtheir members as debt issuers.

D. Powers, Duties, Responsibilities andFunctions of the OF—Amendments toPart 941

1. Section 941.1—Definitions

The definitions in § 941.1 areproposed to be revised as follows: theterm ‘‘Office of Finance’’ becomes ‘‘OF’’in the heading and is added as a definedterm; the term ‘‘OF Board of Directors’’is revised to mean the 24 memberadministrative body responsible for theoversight of management of the OF; theterms ‘‘Chief Executive Officer’’ and‘‘OF Operations Imprest Fund’’ areadded as new defined terms. Thedefinition of the term ‘‘consolidatedobligation’’ is made consistent with theproposed definition in § 910.1(a). Thedefinitions of the terms ‘‘FinanceBoard,’’ ‘‘Bank,’’ and ‘‘Bank Act’’ whichhave been proposed to be defined for allFinance Board regulations in a previousrulemaking, see 64 FR 52148 (Sept. 27,1999), and the definition of the term‘‘Director’’ are deleted.

2. Section 941.2—Powers andResponsibilities of the OF

Proposed § 941.2(a) states that the OFis a joint office of the Banks under

section 2B of the Bank Act. See 12U.S.C. 1422b(b)(2). Proposed § 941.2(b)sets out the broadened purpose of theOF: to facilitate the accomplishment ofthe mission of the Banks as set forth insection 2A of the Bank Act. Id.1422a(3)(A)(ii) and (iii). As a part of itspurpose to further the mission of theBanks, proposed § 941.2(b)(1) expresslyprovides that the OF shall issue COs onwhich the Banks shall be jointly andseverally liable, on behalf of the Banksand the Finance Board under sections11(a) and 11(c) of the Bank Act,respectively. Id. 1431(a) and (c). Thesecond prong of the OF’s purpose is tosupport the Banks upon the request oftwo or more Banks undertaking jointasset activities that the Banks areotherwise authorized by law toundertake individually.

Proposed § 941.2(c) sets out thefunctions the OF is authorized toundertake in support of the issuance ofdebt and the support to be provided toBanks engaged in joint asset activities.Proposed § 941.2(c)(1) contains thespecific parameters related to issuanceand servicing of COs: conductingnegotiations relating to the offering andsale of COs and other obligations of theBanks, and promoting market disciplineand making timely payments on theCOs. Proposed § 941.2(c)(1)(iii) requiresthe OF to offer, issue and service COseffectively and at the lowest all-infunding costs over time, with due regardfor prudent risk-management practices,prudential debt parameters, short-andlong-term market conditions, thecooperative nature of the Bank System,and the Banks’ role as government-sponsored enterprises. The proposedrule further provides that such debtshall be issued consistent withmaintaining reliable access to the short-term and long-term capital markets, bypositioning the issuance of debt to takeadvantage of current and future capitalmarket opportunities, and requires theOF to define and maintain appropriateinvestor suitability standards. Inconsidering the cooperative nature ofthe Bank System, the OF specificallymust take into account the relationshipbetween the Banks as debt issuers, andthe members of the Bank System asretail issuers of debt, such as certificatesof deposit, and the potential forcompetition between the Banks andtheir members.

As discussed, the OF currently issuesdebt on behalf of the Finance Board.The Finance Board annually adopts adebt-issuance authorization to the OFthat includes parameters to which thedebt must conform. If the Banks areauthorized to issue joint debt undersection 11(a) of the Bank Act, as

proposed, the annual Finance Boardauthorization, including the parametersto which debt must conform, would nolonger be required. However, theFinance Board continues to beresponsible for ensuring that the Banksare able to raise funds in the capitalmarkets. See 12 U.S.C.1422a(a)(3)(B)(iii). Accordingly, theproposed rule requires the OF Board ofDirectors to implement policies toaccess debt markets according to anefficient and managed process thatestablishes prudent debt parameters andrisk-management practices. Inparticular, this will involve establishingpolicies that may temporarily prevent aBank from accessing the capital marketsor prevent a Bank from issuing aspecific type of security. In addition, theproposed rule requires the OF to adopt,implement and maintain investorsuitability standards.

As a part of its CO issuance function,proposed § 941.2(c) would assign to theOF the function of preparing thecombined Bank System annual andquarterly financial reports (financialreports). Proposed § 941.2(c)(1)(iv)would codify current Finance Boardpolicy (Finance Board Res. No. 98–27(June 24, 1998)) and set forth thestandards under which the OF mustprepare the financial reports, includingrequiring that the scope, form andcontent of the disclosure contained insuch financial reports generally beconsistent with the requirements of theSEC’s Regulations S–K (specificnarrative disclosure requirements) andS–X (accounting and financial statementdisclosure requirements) (17 CFR parts229 and 210) and be presented inaccordance with the Statement OfFinancial Accounting Standards No.131, ‘‘Disclosures about Segments of anEnterprise and Related Information’’(FAS 131). While the FAS 131 standardonly applies to public businessenterprises, and not, therefore, to agovernment-sponsored enterprise suchas the Bank System, the Finance Boardcontinues to believe that presentationsresulting from compliance with FAS131, with each Bank presented as aseparate segment, provide usefulinformation to bondholders and Bankmembers.

Proposed § 941.2(c)(1)(iv)(C)references an Appendix to the proposedrule that lists exceptions to thestandards set forth in § 941.2(c)(1)(iv)(A)and (B). These exceptions stem from theFinance Board’s belief that the generalstandards may include disclosurerequirements that are inapplicable to, orinappropriate for, the Bank System. Thelist of exceptions is similar to thatcontained in the Finance Board’s Policy



Statement, and includes certaindisclosures concerning related-partytransactions, biographical information,compensation, submission of matters toa vote of shareholders, exhibits, per-share information and beneficialownership. Exceptions relating toderivatives and the filing schedule forfinancial reports that are included in theFinance Board’s Policy Statement havebeen omitted from the Appendix sincethe Finance Board intends the SECstandard to be met in each case. TheAppendix also expands the list ofpersons required to providebiographical information to includemembers of the OF Board of Directors,in recognition of the increased roleassigned to that body by the proposedreorganization of the OF.

References to the ‘‘managing directorof the OF’’ in the Policy Statement havebeen changed to the ‘‘Chief FinancialOfficer of the OF’’ in the Appendix.

Proposed § 941.2(c)(1)(iv)(D) providesthat the OF will file and distributecombined Bank System financial reportsaccording to a schedule that mirrors thefiling requirements applicable tocorporate registrants under the 1934 Act(i.e., annual reports within 90 days afterthe end of the fiscal year and quarterlyreports within 45 days after the end ofeach of the first three fiscal quarters).The Finance Board believes that, just asdisclosure concerning the Bank Systemshould conform to industry standards,so too should the Bank System providethat information to interested partieswithin the timeframes applicable in theindustry. Proposed § 941.2(c)(1)(iv)(D)would require the OF to distributefinancial reports to each Bank memberaccording to the same schedule toensure prompt dissemination of relevantinformation. Proposed§ 941.2(c)(1)(iv)(E) expressly confirmsthe Finance Board’s sole authority todetermine compliance with thestandards of part 941, while proposed§ 941.2(c)(1)(iv)(F) provides an explicitcompliance mechanism by requiring theOF to promptly comply with anyFinance Board directive pertaining tothe preparation, filing, amendment ordistribution of financial reports.

Proposed §§ 941.2(c)(1)(v), (vi) and(vii) obligate the OF to stay informed onissues and developments relating tocapital markets and COs, and to passrelevant information along to the Banks.Proposed § 941.2(c)(1)(v) expresslyrequires the OF to provide capitalmarkets information concerning debt tothe Banks. Proposed § 941.2(c)(1)(vi)provides that the OF shall managerelationships with NationallyRecognized Statistical RatingOrganizations (NRSROs) in connection

with the NRSRO’s ratings of COs, while§ 941.2(c)(1)(vii) allows the OF toconduct research reasonably related tothe issuance or servicing of COs. Thesefunctions are intended to allow the OFto serve as a centralized repository forinformation supporting the issuance ofCOs for the benefit of the Bank System.

3. Joint Asset Activity ManagementThe Finance Board has determined

that the Banks have incidental andinvestment authority to undertakecertain lending programs with theirmembers whereby a Bank may purchaseor fund mortgages originated bymembers, subject to certain conditions.On October 4, 1999, the Finance Boardadopted Resolution Number 99–50,which authorized the Banks to‘‘establish and operate MemberMortgage Assets programs, a genericdesignation for programs that efficientlyallocate mortgage risks so as to best usethe core competencies of the entitiesinvolved, provide appropriate capitaltreatment to the participating financialinstitution members, and providecapital market funding and riskmanagement alternatives, all for theultimate benefit of consumers.’’ SeeFinance Board Res. No. 99–50 (Oct. 4,1999); see also 64 FR 60448 (Nov. 5,1999). Finance Board ResolutionNumber 99–50 also includes the termsand conditions applicable to theoperation of member mortgage assetsprograms. See Finance Board Res. No.99–50 at 2.

These are not the only potential jointasset activities that the Banks maychoose to conduct. Certain advanceparticipation programs or investments,liquidity management and investmentsin housing finance agency bondspresent potential for joint activityamong the Banks.

Any joint asset activities in which theBanks may engage may be mostefficiently administered on a joint basisthrough a central facility. Administeringjoint assets through a centralized facilityoffers the added safety and soundnessbenefits of better risk-managementcapabilities and geographic diversity inthe portfolio. The latter is particularlyimportant given the national nature ofthe mortgage markets. This is an issuethe Finance Board will continue tostudy as this product develops andbusiness therein increases.

Proposed § 941.2(c)(2) is intended toauthorize the OF, as the only statutorilyrecognized joint office of the Banks, tooperate in the above capacity. Itprovides that, to the extent requested bytwo or more Banks pursuant to anyagreement or contract, the OF shallfacilitate or provide services to the

Banks in connection with any Bankjoint asset activities authorized by law.With regard to the joint asset activitiesof the Banks, the OF would be requiredto provide administrative and technicalsupport for the origination, purchase,management, servicing or sale of anyasset owned by one or more Bankspursuant to any contract, includingmember mortgage assets; provide marketinformation to the Banks concerningmember mortgage assets and otherassets or investments of the Banks;conduct and provide research on suchassets and investments; developeffective systems to monitor creditexposure and manage counter-partyrisk; adopt procedures to assist theBanks in managing their liquidity; andadopt procedures to facilitate the inter-Bank sale of participation interests inadvances and investments. This sectiondoes not require the Banks to make useof the OF in this capacity, but it doesrequire the OF to provide the servicesoutlined if two or more Banks wish theOF to do so. The OF may, of course,establish a reasonable fee structure orcharge for its services by contract orotherwise. It also may mediate amongcompeting Bank demands, inaccordance with its specified duties andresponsibilities.

Proposed § 941.2(c)(3) provides that,in accordance with policies andprocedures established by the OF Boardof Directors, the OF shall perform suchduties and responsibilities for theFinancing Corporation (FICO) or theResolution Funding Corporation(REFCorp) on behalf of the Banks, asmay be required. This section preservesa current function of the OF as set forthin § 941.5(b).

Proposed § 941.2(d) provides that theOF may contract with a Bank or Banksfor the use of Bank facilities orpersonnel in order to perform itsfunctions, which is currently set forth in§ 941.7(b).

4. Finance Board OversightProposed § 941.3 provides that the

Finance Board shall retain the sameregulatory oversight authority andenforcement powers over the OF, the OFBoard of Directors, the directors,officers, employees, agents, attorneys,accountants or other OF staff, as it hasover a Bank and its respective boardmembers, officers, employees, attorneys,accountants, agents or other staff, whichis broader than the existing provision.The proposed rule deletes § 941.3(a),which states that the activities of the OFare subject to the approval of theFinance Board. The Finance Boardbelieves that § 941.3 should be amendedto expressly state the Finance Board’s



supervisory role in the proposedexpanded functions of the OF.Additionally, the proposed rule statesthat, pursuant to Section 20 of the BankAct, 12 U.S.C. 1440, the Finance Boardshall examine the OF, all funds andaccounts that may be establishedpursuant to this part, and the operationsand activities of the OF, as provided forin the Bank Act or any regulationspromulgated pursuant thereto. This issomewhat broader in scope than theprovisions of existing § 941.3.

E. Organizational Structure—Amendments to Part 941

1. Section 941.4—the OF Board ofDirectors

Current § 941.7(c) establishes an OFboard of directors composed of threemembers, two Bank presidents and oneprivate citizen with demonstratedexpertise in financial markets, allappointed by the Finance Board. Thisstructure has served the OF and theBank System while the OF’s onlyfunctions have been to issue COs onbehalf of the Finance Board and makeCO principal and interest paymentswhen due on behalf of the Banks. Theproposed rule contemplates that the OFwill undertake additional, variedresponsibilities that would requirebroader oversight by a board of directorspossessing a wide range of financialsector credentials. Accordingly,proposed § 941.4(a) would change thesize and composition of the OF Board ofDirectors to reflect the proposedexpanded duties and functions of theOF. As revised, the OF Board ofDirectors would consist of 24individuals, 6 of whom would beappointed by the Finance Board, 6 ofwhom would be elected by Bank Systemmembers, and 12 of whom would beappointed by the Banks. The FinanceBoard acknowledges that the size of theproposed OF Board of Directors mayseem unwieldy to some. The ratio andbalance among Bank representatives,System representatives andrepresentatives of the public is theprinciple most important to the FinanceBoard in this provision. The quest toachieve the proper balance whileproviding every Bank a seat and a rolefor members and the public on the OFBoard of Directors, leads to the numberproposed. The Finance Board seekscomment on and suggestions foralternative structures that might be moreworkable in terms of number that thatwould still maintain the appropriatemix and balance of representation onthe OF Board of Directors. For instance,if less than 12 Banks were to berepresented on the OF Board of

Directors at any one time, the regulationcould provide for rotating Bankrepresentation, or the elimination of therequirement for an ExecutiveCommittee.

Under proposed § 941.4(a)(1),directors appointed by the FinanceBoard would have to be U.S. citizenswith demonstrated experience infinancial markets or asset management,and could not be affiliated with anyBank or broker-dealer under contractwith the OF. The proposed ruleestablishes no other eligibility criteriafor Finance Board appointees to the OFBoard. This differs from theappointment standards for publicinterest directors of the Banks, whichrequire that two out of six FinanceBoard appointees represent consumer orcommunity interest organizations, andprohibit any Finance Board appointeefrom serving as an officer of a Bank, oras an officer or director of any memberof a Bank, or from holding shares or anyother financial interest in any member,during his or her tenure as a Bankdirector. See 12 U.S.C. 1427(a). Theabsence of such restrictions for OFBoard appointees in the proposed ruleis intended to provide the FinanceBoard with maximum flexibility inselecting persons it believes would bestassist the OF in fulfilling its mission.However, the Finance Board seekscomment on whether the qualificationsand restrictions applicable to appointedBank directors, or any others, should beincluded in the proposed rule forFinance Board appointees to the OFBoard.

Under proposed § 941.4(a)(2), adirector appointed by a Bank must be anofficer, employee, or director of theBank. Pursuant to proposed§ 941.4(a)(3), Bank System memberswould elect six directors (two each year)through annual elections conducted bythe OF. Under proposed § 941.4(a)(3)(i),to be eligible for a directorship,nominees of members would have to beU.S. citizens with demonstratedexperience in financial markets or assetmanagement, and could not beassociated with a broker-dealer undercontract with the OF. A Bank Systemmember and its affiliates could not havemore than one representative on the OFBoard of Directors at any time.

Proposed § 941.4(a)(3)(ii) providesthat each member of the Bank System isentitled to nominate an eligible personfor service on the OF Board in eachannual election. From such nominees,two member-elected directorshipswould be filled each year by a pluralityvote of Bank System members. Eachmember would be permitted to cast anumber of votes equal to the number of

shares of stock in such Bank themember held at the end of the calendaryear preceding the election, without anylimitation, including limits that wouldapply to voting in director electionsunder section 7(b) of the Bank Act. See12 U.S.C. 1427(b). Under proposed§ 941.4(a)(3)(iii), the OF would preparenomination forms and transmit them toBank System members no later thanMarch 1st of the election year. Thenomination forms would state thedirector eligibility requirements andrestrictions. Members would have notless than 30 calendar days to submit thenomination forms to the OF, whichwould create acceptance andcertification of eligibility forms andprovide them to the nominees no laterthan May 1st of the election year. Thenominees would have 30 days to acceptor decline the nomination and providethe written eligibility certification to theOF.

Under proposed § 941.4(a)(3)(iv), theOF would prepare a ballot for the OFBoard of Directors election to be used ineach Bank district based on theacceptance and certification forms, andprovide the ballot to the Banks not laterthan July 1st of the election year. TheBanks would be required to transmit theballot to their members with theelection ballots for the election of theBanks’ respective boards of directors.Bank System members would have aminimum of 30 days to vote and returnthe OF Board of Directors election ballotto the OF. The OF would tabulate theballots and announce the slate of the OFBoard of Directors no later thanNovember 1st of the election year.

Proposed § 941.4(b) provides that thedirectors’ terms would be three years,and that initial terms would bestaggered so that 1⁄3 of the terms expireeach year. Under proposed § 941.4(c),appointed directorship vacancies wouldbe filled in the manner in which theappointment was originally made, whileelected directorship vacancies would befilled by majority vote of the remainingOF Board of Directors. A directorappointed or elected to fill a vacancywould serve the remainder of theoriginal term. Proposed § 941.4(d),which sets forth the means of selectionand duties of the Chair and Vice Chairof the OF Board of Directors, containsall of the substantive provisions ofcurrent § 941.7(e).

Proposed § 941.4(e), ‘‘Compensation,’’replaces the multiple provisions ofcurrent § 941.7(f) with a single standardthat permits members of the OF Boardof Directors to receive compensationand reimbursement for expensesincurred as a result of their service onthe OF Board of Directors.



Proposed § 941.4(f) is a new sectionthat requires the OF Board of Directorsto establish an audit committeeconsistent with the requirements setforth in part 917 (which is beingproposed in a separate notice ofproposed rulemaking); an executivecommittee comprised of member-elected directors, Bank-appointeddirectors, and Finance Board-appointeddirectors, each represented in the sameproportions as they are on the full OFBoard of Directors; and a committee tocoordinate the issuance and servicing ofCOs under part 910. The proposed ruleprovides authority for the OF Board ofDirectors to establish additionalcommittees as necessary andappropriate to carry out the Board’sduties and responsibilities.Additionally, the OF Board of Directorsis required to promulgate policies anddefine respective roles and duties of anycommittees so established, which shallbe binding upon such committees.

Proposed § 941.4(g) is a new sectionthat sets the quorum requirement formeetings of the OF Board of Directorsand meetings of committees of the OFBoard of Directors at a simple majorityof the total directorships on the OFBoard of Directors or the committee.

2. Section 941.5—Powers of the OFBoard of Directors

Proposed § 941.5, ‘‘Powers of the OFboard of directors,’’ incorporates andrevises the provisions of current § 941.8.As is true in § 941.8(a) of the currentrule, proposed § 941.5(a) provides thatthe OF Board of Directors shall have theincidental powers under section 12(a) ofthe Bank Act as are necessary,convenient and proper to accomplishthe efficient operation and managementof the OF. Also, as is true under§ 941.8(b) of the current rule, proposed§ 941.5(b) expressly empowers the OFBoard of Directors to act as the agent ofthe Finance Board in issuing COspursuant to section 11(c) of the BankAct. It also empowers the OF Board ofDirectors to act as agent for the Banksin issuing COs pursuant to section 11(a)of the Bank Act and in making principaland interest payments on COs issued byeither entity.

Proposed § 941.5(c) preserves theauthority of the OF Board of Directorsto delegate powers to OF staff to carryout OF functions, and proposed§ 941.5(d) retains the indemnificationpowers currently provided in § 941.8(d).

3. Section 941.6—Duties of the OFBoard of Directors

Proposed § 941.6, ‘‘Duties of the OFboard of directors’’ would substantiallyrevise the provisions of current § 941.9.

Proposed § 941.6(a) retains intact theprovisions of current § 941.9(a), whichprovides that the OF Board of Directorsshall adopt bylaws, consistent withapplicable laws and regulations asadministered by the Finance Board,governing its operation and issue suchguidance or instruction as will promotethe efficient operation of the OF andthat the OF Board of Directors shallconduct its business by majority vote ofits members convened at a meeting inaccordance with its bylaws.

Proposed § 941.6(b) enumerates theoversight responsibilities of the OFBoard of Directors. Importantly,proposed § 941.6(b)(2) requires the OFBoard of Directors to set policies formanagement of the OF, in particular apolicy in connection with the issuanceof debt that would take into account thecooperative nature of the Bank System,and the relationship of the Banks asissuers of debt to their members asissuers of debt. Proposed § 941.6(b) alsorequires the OF Board of Directors to beresponsible for the conduct andperformance of all duties, functions,operations and activities of the OF andfor its efficient and effective operation;approve a strategic business plan for theOF and monitor the progress of itsoperations under such plan; review,adopt, and monitor the annual operatingbudget of the OF including anysupplemental expenditure thereto;provide oversight for the OF Board ofDirectors committee charged withdirecting the issuance of COs; developand implement the pricing mechanismby which the OF will make private orpublic offerings of COs, subject to therequirements of part 910; select, employand define the duties of a ChiefExecutive Officer of the OF (CEO),provided that the CEO, or his designee,shall be the Fiscal Agent of the Banks,a member of the Directorate of theFinancing Corporation, pursuant tosection 21(b)(1)(A) of the Bank Act, 12U.S.C. 1441(b)(1)(A), and a member ofthe Directorate of the ResolutionFunding Corporation, pursuant tosection 21B(c)(1)(A) of the Bank Act, 12U.S.C. 1441b(c)(1)(A). Additionally, theOF Board of Directors would berequired to approve all contracts of theOF, and assume any otherresponsibilities that may from time totime be delegated to it by the FinanceBoard. The proposed rule also expresslyprovides that the OF Board of Directorswould be subject to and required tooperate in accordance with FinanceBoard policies and regulationsapplicable to the boards of directors ofthe Banks, including proposed part 917.

Proposed § 941.7 incorporates andrevises the provisions of current

§ 941.11. It retains the requirement ofcurrent § 941.11(f) that the Banks areresponsible for jointly funding the OF.Under the proposed rule, at thedirection of and pursuant to policiesand procedures adopted by the OFBoard of Directors, the Banks arerequired periodically to reimburse theOF Operations Imprest Fund tomaintain in such fund an amountapproved by the OF Board of Directorssufficient to fund the operations of theOF under a budget approved by the OFBoard of Directors. Each Bank’srespective pro rata share of thereimbursement must be based on theratio of the total paid-in value of itscapital stock relative to the total paid-in value of all capital stock in the BankSystem. The proposed rule providesnew authority for the OF Board ofDirectors, with the prior approval of theFinance Board, to devise an alternativeformula for determining each Bank’srespective share of the OF expenses or,by contract with a Bank or Banks, maychoose to be reimbursed through a feestructure in lieu of or in addition toassessment, for services provided to theBank or Banks for the issuance orservicing of COs or the management andadministration of joint asset activities.

Proposed § 941.8 retains the savingsclause contained in current § 941.12,which provides that all actions taken bythe OF as it existed prior to theseamendments will continue to be valid asregards the Finance Board and the BankSystem. The rest of the provisions ofcurrent § 941.12 are not included in theproposed rule as they are obsolete andno longer necessary.

IV. Regulatory Flexibility Act

The proposed rule applies only to theBanks, which do not come within themeaning of small entities as defined inthe Regulatory Flexibility Act (RFA).See 5 U.S.C. 601(6). Therefore, inaccordance with section 605(b) of theRFA, 5 U.S.C. 605(b), the Finance Boardhereby certifies that this proposed rule,if promulgated as a final rule, will nothave significant economic impact on asubstantial number of small entities.

V. Paperwork Reduction Act

This proposed rule does not containany collections of information pursuantto the Paperwork Reduction Act of 1995.See 33 U.S.C. 3501 et seq. Therefore, theFinance Board has not submitted anyinformation to the Office ofManagement and Budget for review.



List of Subjects

12 CFR Part 900Organization and functions

(Government agencies).

12 CFR Part 910Banks, Consolidated bonds and

debentures, Federal home loan banks,Securities.

12 CFR Part 941Consolidated bonds and debentures,

Federal home loan banks, Organizationand functions (Government agencies),Securities.

For the reasons stated in thepreamble, the Finance Board proposesto amend 12 CFR parts 900, 910 and 941as follows:

PART 900—DESCRIPTION OFORGANIZATION AND FUNCTIONS


Authority: 5 U.S.C. 552; 12 U.S.C. 1422b(a)and 1423.

2. Amend § 900.30 to add a newparagraph (a)(3) to read as follows:

§ 900.30 Office of Finance Board ofDirectors.

(a) * * *(3) The authority delegated under

paragraphs (a)(1) and (2) of this sectionexpires on December 31, 2000, unlessotherwise extended or modified by theFinance Board.* * * * *

3. Revise part 910 to read as follows:

PART 910—CONSOLIDATEDOBLIGATIONS

Sec.910.1 Definitions.910.2 Authorized liabilities; Issuance of

consolidated obligations.910.3 Form of consolidated obligations.910.4 Transactions in consolidated

obligations.910.5 Lost, stolen, destroyed, mutilated or

defaced consolidated obligations.910.6 Administrative provision.910.7 Conditions for issuance ofconsolidated obligations.910.8 Joint and several liability.

Authority: 12 U.S.C. 1422a, 1422b and1431.

§ 910.1 Definitions.For purposes of this part:(a) Consolidated obligations or CO

means any bond, debenture, or noteissued jointly by the Banks pursuant tosection 11(a) of the Federal Home LoanBank Act (Act), as amended (12 U.S.C.1431(a)), or any bond or note issued bythe Finance Board on behalf of all Bankspursuant to section 11(c) of the Act (12

U.S.C. 1431(c)), on which the Banks areby statute or regulation jointly andseverally liable.

(b) NRSRO means a credit ratingorganization regarded as a NationallyRecognized Statistical RatingOrganization by the Securities andExchange Commission.

(c) Senior bonds means COs issuedpursuant to section 11 of the Act andthis part and not defeased, other thanbonds specifically subordinated to anythen outstanding COs.

§ 910.2 Authorized liabilities; Issuance ofconsolidated obligations.

(a) Authorized liabilities. As a sourceof funds for business operations, eachBank is authorized to incur liabilitiesonly by:

(1) Acting as joint and several obligorwith other Banks on consolidatedobligations, as authorized under thispart;

(2) Accepting time or demanddeposits from members or anyinstitution for which the Bank isproviding correspondent services, otherBanks, and instrumentalities of theUnited States, so long as the deposittransaction is not conducted in such away as to result in the offer or sale ofa security in a public offering as thoseterms are used in 15 U.S.C. 77b(3); or

(3) Solely in order to satisfy theBank’s short-term liquidity needs, by:

(i) Purchasing federal funds; and(ii) Entering into repurchase

agreements.(b) Consolidated obligations issued by

the Finance Board. The Finance Boardmay issue consolidated obligationsunder section 11(c) of the Act (12 U.S.C.1431(c)), including the determination ofthe dates of issue, maturities, rates ofinterest, terms and conditions thereof,and the manner in which suchconsolidated obligations shall be issued,subject to the provisions of 31 U.S.C.9108. The Finance Board in itsdiscretion may delegate thisresponsibility, or terminate suchdelegation. Consolidated obligationsissued under this paragraph shall not bedirectly placed with any Bank.

(c) Consolidated obligations issued bythe Banks. (1) Pursuant to the Banks’housing finance mission set forth insection 2A(a)(3)(B)(ii) of the Act (12U.S.C. 1422a(a)(3)(B)(ii)), pursuant tothe Finance Board’s duty to ensure thatthe Banks carry out that mission andremain adequately capitalized and ableto raise funds in the capital marketsunder section 2A(a)(3)(B)(ii) and (iii) ofthe Act (12 U.S.C. 1422a(a)(3)(B)(ii) and(iii)), and subject to such rules,regulations, terms and conditions as theFinance Board may prescribe, the Banks

are authorized to issue joint debt undersection 11(a) of the Act (12 U.S.C.1431(a)), which shall be calledconsolidated obligations and on whichthe Banks shall be jointly and severallyliable under § 910.7.

(2) Consolidated obligations shall beissued through the Office of Finance, asagent of the Banks pursuant to this part910.

(3) Consolidated obligations issuedunder this paragraph (c) shall not bedirectly placed with any Bank.

(d) Negative pledge requirement. EachBank shall at all times maintain assetsdescribed in paragraphs (d)(1) through(d)(6) of this section free from any lienor pledge, in an amount at least equalto a pro rata share of the total amountof currently outstanding consolidatedobligations jointly issued by the Bankspursuant to section 11(a) of the Act (12U.S.C. 1431(a)) and by the FinanceBoard pursuant to section 11(c) of theAct (12 U.S.C. 1431(c)) equal to suchBank’s participation in all such COsoutstanding provided that any assetsthat are subject to a lien or pledge forthe benefit of the holders of any issueof consolidated obligations shall betreated as if they were assets free fromany lien or pledge for purposes ofcompliance with this paragraph (d).Eligible assets are:

(1) Cash;(2) Obligations of or fully guaranteed

by the United States;(3) Secured advances;(4) Mortgages as to which one or more

Banks have any guaranty or insurance,or commitment therefore, by the UnitedStates or any agency thereof;

(5) Investments described in section16(a) of the Act (12 U.S.C. 1436(a)); and

(6) Other securities that have beenassigned a rating or assessment by anNRSRO that is equivalent to or higherthan the rating or assessment assignedby an NRSRO to consolidatedobligations outstanding.

§ 910.3 Form of consolidated obligations.Consolidated obligations shall be

issued in series and all consolidatedobligations of the same series shall be oflike date, tenor, and effect except as todenominations, which shall be in suchamounts as may be authorized by theFinance Board. The Finance Board shallprescribe the form of each consolidatedobligation. Consolidated obligationsissued with maturities of one year orless may be designated consolidatednotes.

§ 910.4 Transactions in consolidatedobligations.

The general regulations of theDepartment of Treasury now or



hereafter in force governing transactionsin United States securities, except 31CFR part 357 regarding book-entryprocedure, are hereby incorporated intothis part 910, so far as applicable and asnecessarily modified to relate toconsolidated obligations, as theregulations of the Finance Board forsimilar transactions on consolidatedobligations. The book-entry procedurefor consolidated obligations is containedin part 912 of this subchapter.

§ 910.5 Lost, stolen, destroyed, mutilatedor defaced consolidated obligations.

United States statutes and regulationsof the Department of Treasury now orhereafter in force governing relief onaccount of the loss, theft, destruction,mutilation, or defacement of UnitedStates securities, so far as applicableand as necessarily modified to relate toconsolidated obligations, are herebyadopted as the regulations of theFinance Board for the issuance ofsubstitute consolidated obligations orthe payment of lost, stolen, destroyed,mutilated or defaced consolidatedobligations.

§ 910.6 Administrative provision.

The Secretary of the Treasury or theActing Secretary of the Treasury ishereby authorized and empowered, asthe agent of the Finance Board and theBanks to administer §§ 910.4 and 910.5,and to delegate such authority at theirdiscretion to other officers, employees,and agents of the Department ofTreasury. Any such regulations may bewaived on behalf of the Finance Boardand the Banks by the Secretary of theTreasury or the Acting Secretary of theTreasury or by an officer of theDepartment of Treasury authorized towaive similar regulations with respectto United States securities, but only inany particular case in which a similarregulation with respect to United Statessecurities would be waived. The terms‘‘securities’’ and ‘‘bonds’’ as used in thissection shall, unless the contextotherwise requires, include and apply tocoupons and interim certificates.

§ 910.7 Conditions for issuance ofconsolidated obligations.

The OF Board of Directors shallauthorize the offering for current andforward settlement (up to 12 months) orthe reopening of COs, as necessary, andauthorize the maturities, rates ofinterest, terms and conditions thereof,subject to the provisions of 31 U.S.C.9801 and the following conditions:

(a) COs may be offered for sale onlyto the extent that Banks are committedto take the proceeds;

(b) The OF Board of Directors shallimplement investor suitabilitystandards; and

(c) COs may be offered for sale onlypursuant to a policy adopted by the OFBoard of Directors that addresses therelationship between the Banks asissuers of debt and their members asissuers of debt.

§ 910.8 Joint and several liability.

(a) In general. (1) Each and everyBank, individually and collectively, hasan obligation to make full and timelypayment of all principal and interest onconsolidated obligations when due.

(2) Each and every Bank, individuallyand collectively, shall ensure that thetimely payment of principal and intereston all consolidated obligations is givenpriority over, and is paid in full inadvance of, any payment to orredemption of shares from anyshareholder.

(3) The provisions of this part shallnot limit, restrict or otherwise diminish,in any manner, the joint and severalliability of all of the Banks on all of theconsolidated obligations issued by theFinance Board pursuant to section 11(c)of the Bank Act (12 U.S.C. 1431(c) andby one or more Banks pursuant tosection 11(a) of the Bank Act (12 U.S.C.1431(a).

(b) Certification and reporting. (1)Before the end of each calendar quarter,and before declaring or paying anydividend for that quarter, the Presidentof each Bank shall certify in writing tothe Finance Board that, based on knowncurrent facts and financial information,the Bank will remain in compliancewith the liquidity requirements set forthin section 11(g) of the Act (12 U.S.C.1431(g)), and the Finance Board’sFinancial Management Policy or anyregulations, (as the same may beamended, modified or replaced), andwill remain capable of making full andtimely payment of all of its currentobligations, including direct obligations,coming due during the next quarter.

(2) A Bank shall immediately providewritten notice to the Finance Board if atany time the Bank:

(i) Is unable to provide thecertification required by paragraph(b)(1) of this section;

(ii) Projects at any time that it will failto comply with statutory or regulatoryliquidity requirements, or will be unableto timely and fully meet all of its currentobligations, including direct obligations,due during the quarter;

(iii) Actually fails to comply withstatutory or regulatory liquidityrequirements or to timely and fully meetall of its current obligations, including

direct obligations, due during thequarter; or

(iv) Negotiates to enter or enters intoan agreement with one or more otherBanks to obtain financial assistance tomeet its current obligations, includingdirect obligations, due during thequarter; the notice of which shall beaccompanied by a copy of theagreement, which shall be subject to theapproval of the Finance Board.

(c) Consolidated obligation paymentplans. (1) A Bank promptly shall file aconsolidated obligation payment planfor Finance Board approval:

(i) If the Bank becomes a non-complying Bank as a result of failing toprovide the certification required inparagraph (b)(1) of this section;

(ii) If the Bank becomes a non-complying Bank as a result of beingrequired to provide the notice requiredpursuant to paragraph (b)(2) of thissection, except in the event that a failureto make a principal or interest paymenton a consolidated obligation when duewas caused solely by a temporaryinterruption in the Bank’s debt servicingoperations resulting from an externalevent such as a natural disaster or apower failure; or

(iii) If the Finance Board determinesthat the Bank will cease to be incompliance with the statutory orregulatory liquidity requirements, orwill lack the capacity to timely and fullymeet all of its current obligations,including direct obligations, due duringthe quarter.

(2) A consolidated obligation paymentplan shall specify the measures the non-complying Bank will undertake to makefull and timely payments of all of itscurrent obligations, including directobligations, due during the applicablequarter.

(3) A non-complying Bank maycontinue to incur and pay normaloperating expenses incurred in theregular course of business (includingsalaries, benefits, or costs of officespace, equipment and related expenses),but shall not incur or pay anyextraordinary expenses, or declare, orpay dividends, or redeem any capitalstock, until such time as the FinanceBoard has approved the Bank’sconsolidated obligation payment plan orinter-Bank assistance agreement, orordered another remedy, and all of thenon-complying Bank’s direct obligationshave been paid.

(d) Finance Board payment orders;Obligation to reimburse. (1) The FinanceBoard, in its discretion andnotwithstanding any other provision inthis section, may at any time order anyBank to make any principal or interest



payment due on any consolidatedobligation.

(2) To the extent that a Bank makesany payment on any consolidatedobligation on behalf of another Bank,the paying Bank shall be entitled toreimbursement from the non-complyingBank, which shall have a correspondingobligation to reimburse the Bankproviding assistance, to the extent ofsuch payment and other associated costs(including interest to be determined bythe Finance Board).

(e) Adjustment of equities. (1) Anynon-complying Bank shall apply itsassets to fulfill its direct obligations.

(2) If a Bank is required to meet, orotherwise meets, the direct obligationsof another Bank due to a temporaryinterruption in the latter Bank’s debtservicing operations (e.g., in the event ofa natural disaster or power failure), theassisting Bank shall have the same rightto reimbursement set forth in paragraph(d)(2) of this section.

(3) If the Finance Board determinesthat the assets of a non-complying Bankare insufficient to satisfy all of its directobligations as set forth in paragraph(e)(1) of this section, then the FinanceBoard may allocate the outstandingliability among the remaining Banks ona pro rata basis in proportion to eachBank’s participation in all consolidatedobligations outstanding as of the end ofthe most recent month for which theFinance Board has data, or otherwise asthe Finance Board may prescribe.

(f) Reservation of authority. Nothingin this section shall affect the FinanceBoard’s authority to adjust equitiesbetween the Banks in a manner differentthan the manner described in paragraph(e) of this section, or to takeenforcement or other action against anyBank pursuant to the Finance Board’sauthority under the Act or otherwise tosupervise the Banks and ensure thatthey are operated in a safe and soundmanner.

(g) No rights created. (1) Nothing inthis section shall create or be deemed tocreate any rights in any third party.

(2) Payments made by a Bank towardthe direct obligations of another Bankare made for the sole purpose ofdischarging the joint and severalliability of the Banks on consolidatedobligations.

(3) Compliance, or the failure tocomply, with any provision in thissection shall not be deemed a defaultunder the terms and conditions of theconsolidated obligations.

4. Revise part 941 to read as follows:

PART 941—OPERATIONS OF THEOFFICE OF FINANCE

Sec.941.1 Definitions.941.2 Powers and responsibilities of the OF.941.3 Finance Board oversight.941.4 The OF board of directors.941.5 Powers of the OF board of directors.941.6 Duties of the OF board of directors.941.7 Funding of the OF.941.8 Savings clause.

Appendix A to Part 941—Exceptions to theGeneral Disclosure Standards

Authority: 12 U.S.C. 1422b(a) and 1431.

§ 941.1 Definitions.For purposes of this part:(a) Bank System means the 12 Banks

and the OF.(b) Chair means the Chairperson of

the OF Board of Directors.(c) Chief Executive Officer or CEO

means the Chief Executive Officer of theOF.

(d) OF means the Office of Finance.(e) OF Board of Directors means the

24 member administrative bodyresponsible for management of the OF.

(f) OF Operations Imprest Fundmeans the checking account establishedin a financial depository institutionapproved by the OF Board of Directorsto fund OF operations.

§ 941.2 Powers and responsibilities of theOF.

(a) Joint office. The OF is a joint officeof the Banks pursuant to section 2B ofthe Act (12 U.S.C. 1422b(b)(2)).

(b) Purpose. The role of the OF is tofacilitate the accomplishment of themission of the Banks set forth in section2A of the Act (12 U.S.C. 1422a(3)(A)(ii)and (iii)) by:

(1) Exclusively offering, issuing, andservicing consolidated obligations onbehalf of the Finance Board pursuant tosection 11(c) of the Act (12 U.S.C.1431(c)) and the Banks pursuant tosection 11(a) of the Act (12 U.S.C.1431(a)), on which the Banks are jointlyand severally liable; and

(2) At the request of two or moreBanks, by undertaking on a joint basisactivities the requesting Banks areauthorized by law to undertakeindividually.

(c) Functions. The OF shall have thefollowing functions:

(1) Subject to part 910 of this chapter,with respect to consolidated obligations,the OF shall:

(i) Conduct or facilitate negotiationsrelating to the public or private offeringand sale of consolidated obligations insuch a manner as to promote thecooperative nature of the Bank Systemand assure that suitability standards aremet;

(ii) Issue and service (includingmaking timely payments on principaland interest due, subject to § 910.7 ofthis chapter) consolidated obligationspursuant to and in accordance with thepolicies and procedures established bythe OF Board of Directors under thispart, which shall govern the frequencyand timing of issuance, issue size,minimum denomination, bondconcessions, underwriter qualifications,currency of issuance, interest-ratechange or conversion features, callfeatures, principal indexing features,selection and retention of outsidecounsel, selection of clearingorganizations, and the selection andcompensation of underwriters forconsolidated obligations, and shall be inaccordance with the mission of the OFas set forth in § 941.2 and therequirements and limitations set forth inparagraph (c)(1)(iii) of this section;

(iii) Discharge the function describedin paragraphs (c)(1)(i) and (ii) of thissection effectively and at the lowest all-in funding costs over time, with dueregard for prudent risk-managementpractices, prudential debt parameters,short and long-term market conditions,the cooperative nature of the BankSystem, and the Banks’ role asgovernment-sponsored enterprises, and,consistent with:

(A) Maintaining reliable access to theshort-term and long-term capitalmarkets;

(B) Positioning the issuance of debt totake advantage of current and futurecapital market opportunities; and

(C) Defining and maintainingappropriate investor suitabilitystandards.

(iv) Prepare and issue the combinedannual and quarterly financial reportsfor the Bank System in accordance withthe following requirements:

(A) The scope, form and content ofthe disclosure generally shall beconsistent with the requirements of theSecurities and Exchange Commission’sRegulations S–K and S–X (17 CFR parts229 and 210);

(B) Information about each Bank shallbe presented as a segment of the BankSystem as if Statement of FinancialAccounting Standards No. 131, titled‘‘Disclosures about Segments of anEnterprise and Related Information’’(FASB 131) applied to the combinedannual and quarterly financial reports ofthe Bank System.

(C) The standards set forth inparagraphs (c)(1)(iv)(A) and (B) of thissection are subject to the exceptions setforth in the Appendix to this part 941.

(D) The OF shall file with the FinanceBoard and distribute to each Bank andBank member the combined Bank



System annual report within 90 daysafter the end of the fiscal year, and thecombined Bank System quarterly reportwithin 45 days after the end of the firstthree fiscal quarters of each fiscal year.

(E) The Finance Board in its solediscretion shall determine whether ornot a combined Bank System annual orquarterly financial report prepared bythe OF pursuant to § 941.8 complieswith the standards of this part 941.

(F) The OF shall promptly complywith any directive of the Finance Boardregarding the preparation, filing,amendment or distribution of thecombined Bank System annual orquarterly financial reports.

(v) Provide capital marketsinformation concerning debt to theBanks;

(vi) Manage relationships with theNationally Recognized Statistical RatingOrganizations in connection with theirrating of consolidated obligations;

(vii) Conduct research reasonablyrelated to the issuance or servicing ofconsolidated obligations.

(2) The OF shall, to the extentrequested by two or more Bankspursuant to any agreement or contract,facilitate or provide services for themanagement and administration of jointasset activities of the Banks otherwiseauthorized by law and in accordancewith this part, including withoutlimitation:

(i) Providing administrative andtechnical support for the origination,purchase, management, servicing, orsale of any assets acquired or to beacquired by two or more Banks pursuantto any agreement or contract, includingMember Mortgage Assets;

(ii) Providing market information tothe Banks concerning joint assetactivities, or other assets or investments,as necessary from time to time;

(iii) Conducting and providing to theBanks research reasonably related tojoint asset activities or other assets orinvestments of the Banks, as necessaryfrom time to time;

(iv) Developing, administering, andmaintaining appropriate systems fortimely monitoring of each Bank’sunsecured credit exposure to individualcounter-parties, and appropriatesystems to manage Bank Systemexposure to counter-party risk withinBank System limits;

(v) Adopting and administeringprocedures to enable the Banks tojointly manage their liquidity; and

(vi) Adopting procedures to facilitatethe sale or participation of advances andother assets among the Banks.

(3) In accordance with policies andprocedures established by the OF Boardof Directors, the OF shall perform such

duties and responsibilities for theFinancing Corporation (FICO) or theResolution Funding Corporation(REFCorp) on behalf of the Banks, asmay be required.

(d) Use of facilities or personnel. TheOF may contract with a Bank or Banksfor the use of Bank facilities orpersonnel in order to perform itsfunctions.

§ 941.3 Finance Board oversight.(a) Oversight and enforcement

actions. The Finance Board has thesame regulatory oversight authority andenforcement powers over the OF, the OFBoard of Directors, the directors,officers, employees, agents, attorneys,accountants or other OF staff, as it hasover a Bank and its respective directors,officers, employees, attorneys,accountants, agents or other staff.

(b) Examinations. Pursuant to section20 of the Act (12 U.S.C. 1440), theFinance Board shall examine the OF, allfunds and accounts that may beestablished pursuant to this part 941,and the operations and activities of theOF, as provided for in the Act or anyregulations promulgated pursuantthereto.

§ 941.4 The OF board of directors.(a) Composition of the OF board of

directors. The OF Board of Directorsshall consist of 24 members, 6 of whomshall be appointed by the FinanceBoard, 6 of whom shall be elected bymembers of the Banks, and 12 of whomshall be appointed by the Banks.

(1) Finance Board appointments. TheFinance Board shall appoint a total ofsix directors. Each director appointed bythe Finance Board shall be a citizen ofthe United States having demonstratedexperience in financial markets or assetmanagement. An individual who isaffiliated with any consolidatedobligation selling or dealer groupmember under contract with the OF isnot eligible to be appointed or serve asa member of the OF Board of Directors.

(2) Bank appointments. Each Bankshall, by resolution of its board ofdirectors, appoint one director, whoshall be an officer, director or employeeof the Bank.

(3) Member elections. Bank SystemMembers shall elect six directorsthrough annual elections conducted bythe OF.

(i) Eligibility requirements. To beeligible for nomination, election, andservice as a member of the OF Board ofDirectors, an individual shall be acitizen of the United States withdemonstrated experience in financialmarkets or asset management. Anindividual who is affiliated with any

consolidated obligation selling or dealergroup member under contract with theOF is not eligible to serve as a memberof the OF Board of Directors. A BankSystem member and its affiliates maynot have more than one representativeon the OF Board of Directors at anytime.

(ii) Member-elected directorships andcertain restrictions. Each member of theBank System is entitled to nominate aneligible person for service on the OFBoard of Directors in each annualelection. Two member-electeddirectorships shall be filled each yearfrom such nominees by a plurality of thevotes which such members may cast inan election held by the OF under thispart 941. Each member may cast anumber of votes equal to the number ofshares of stock in such Bank held by themember at the end of the calendar yearpreceding the election.

(iii) Nominations. The OF shallprepare the nomination forms andtransmit them to the Bank Systemmembers no later than March 1st of theelection year. The nomination formsshall state the director eligibilityrequirements and the restrictions.Members shall have not less than 30calendar days to submit nominationforms to the OF. The OF shall createacceptance and certification ofeligibility forms, and provide suchforms to the nominees no later than May1st of the election year and thenominees shall have 30 days to acceptor decline the nomination and providethe written eligibility certification to theOF.

(iv) Ballots. The OF shall prepare aballot for the OF Board of Directorselection to be used in each Bank districtbased on the acceptance andcertification forms, and provide theballot to the Banks no later than July 1stof the election year. The Banks shalltransmit the ballot to their memberswith the election ballots for the electionof the Banks’ respective boards ofdirectors. Bank System members shallhave a minimum of 30 days to vote andreturn the OF Board of Directorselection ballot to the OF. The OF willtabulate the ballots and announce theslate of the OF Board of Directors nolater than November 1st of the electionyear.

(b) Terms. The term of each directorshall be three years and initial termsshall be staggered such that 1⁄3 of theterms expire each year.

(c) Vacancies. (1) In general. An OFdirector appointed or elected to fill avacancy shall be appointed or electedonly for the remainder of the termduring which the vacancy occurred.



(2) Appointed directors. Vacancies indirectorships appointed by the FinanceBoard or the Banks shall be filled in themanner in which the originalappointment was made.

(3) Elected directors. Vacancies indirectorships elected by Bank Systemmembers shall be filled by a majorityvote of the remaining directors.

(d) Chair and vice chair. (1) TheFinance Board shall designate onemember of the OF Board of Directors asthe chair, and another member as thevice chair.

(2) The chair shall preside overmeetings of the OF Board of Directors.In the absence of the chair, the vicechair shall preside. The chair isresponsible for ensuring that thedirectives and resolutions of the OFBoard of Directors are drafted andmaintained and for keeping the minutesof all meetings.

(e) Compensation. Members of the OFBoard of Directors may receivecompensation and reimbursement forexpenses incurred as a result of theirservice on the OF Board of Directors.

(f) Committees. (1) The OF Board ofDirectors shall establish an auditcommittee consistent with therequirements set forth in part 917 of thischapter.

(2) The OF Board of Directors shallestablish an executive committeecomprising member-elected directors,Bank-appointed directors, and FinanceBoard-appointed directors, eachrepresented in the same proportions asthey are on the full OF Board ofDirectors.

(3) The OF Board of Directors shallestablish a committee to coordinate theissuance and servicing of consolidatedobligations under part 910 of thischapter.

(4) The OF Board of Directors mayestablish additional committees that arenecessary and appropriate to carry outthe duties and responsibilities of the OFBoard of Directors.

(5) The OF Board of Directors shallpromulgate policies and define the rolesand duties of any committees soestablished, which shall be bindingupon such committees.

(g) Quorum. A quorum, for purposesof meetings of the OF Board of Directorsand of meetings of committees of the OFBoard of Directors, shall be a simplemajority of the total directorships on theOF Board of Directors or the committee.

§ 941.5 Powers of the OF board ofdirectors.

(a) General. The OF Board of Directorsshall enjoy such incidental powersunder section 12(a) of the Act (12 U.S.C.1432(a)), as are necessary, convenient

and proper to accomplish the efficientoperation and management of the OFpursuant to this part, consistent withpart 917 of this chapter.

(b) Agent. Subject to any limitationsset by the Finance Board, the OF Boardof Directors, in the performance of itsduties, shall have the power to act onbehalf of:

(1) The Banks in issuing consolidatedobligations pursuant to section 11(a) ofthe Act (12 U.S.C. 1431(a));

(2) The Finance Board in issuingconsolidated obligations pursuant tosection 11(c) of the Act (12 U.S.C.1431(c)); and

(3) The Banks in paying principal andinterest due on the consolidatedobligations, or other obligations of theBanks.

(c) Delegation. The OF Board ofDirectors may delegate any of its powersto any employee of the OF in order toenable the OF to carry out its functions.

(d) Indemnification. (1) The OF Boardof Directors may determine the termsand conditions under which itsmembers, the Chief Executive Officer,and other officers and employees of theOF will be indemnified by the OF,provided that such terms and conditionsare consistent with the terms andconditions of indemnification ofdirectors, officers and employees of theBank System, generally.

(2) Such indemnification procedures,when duly adopted, may besupplemented by a contract ofinsurance, and all expenses incident toindemnification will be treated as anexpense of the OF.

§ 941.6 Duties of the OF board ofdirectors.

(a) General. (1) Bylaws. The OF Boardof Directors shall adopt bylaws,consistent with applicable laws andregulations as administered by theFinance Board, governing its operationand issue such guidance or instructionas will promote the efficient operationof the OF.

(2) Conduct of business. The OFBoard of Directors shall conduct itsbusiness by majority vote of its membersconvened at a meeting in accordancewith its bylaws.

(b) Oversight. The OF Board ofDirectors shall:

(1) Be responsible for the conduct andperformance of all duties, functions,operations and activities of the OF andfor its efficient and effective operation;

(2) Set policies for management of theOF, including a policy addressing therelationship between the Banks asissuers of debt and Bank Systemmembers as issuers of debt;

(3) Approve a strategic business planfor the OF and monitor the progress ofits operations under such plan;

(4) Review, adopt and monitor theannual operating and capital budgets ofthe OF including any supplementalexpenditure thereto;

(5) Select, employ and define theduties of a Chief Executive Officer of theOF. The Chief Executive Officer, or theChief Executive Officer’s designee, shallbe:

(i) The Fiscal Agent of the Banks;(ii) A member of the Directorate of the

Financing Corporation, pursuant tosection 21(b)(1)(A) of the Act (12 U.S.C.1441(b)(1)(A); and

(iii) A member of the Directorate ofthe Resolution Funding Corporation,pursuant to section 21B(c)(1)(A) of theAct (12 U.S.C. 1441b(c)(1)(A)).

(6) Review and approve all contractsof the OF; and

(7) Assume any other responsibilitiesthat may from time to time be delegatedto it by the Finance Board.

(c) The OF Board of Directors shall besubject to and shall operate inaccordance with Finance Board policiesand regulations as applicable to theboards of directors of the Banks,including part 917 of this chapter.

§ 941.7 Funding of the OF.(a) General. The Banks are responsible

for jointly funding the OF.(b) Method. (1) At the direction of and

pursuant to policies and proceduresadopted by the OF Board of Directors,the Banks shall periodically reimbursethe OF Operations Imprest Fund inorder to maintain in such fund anamount approved by the OF Board ofDirectors sufficient to fund operations ofthe OF under a budget approved by theOF Board of Directors.

(2) Each Bank’s respective pro ratashare of the reimbursement described inparagraph (b)(1) of this section shall bebased on the ratio of the total paid-invalue of its capital stock relative to thetotal paid-in value of all capital stock inthe Bank System. With the priorapproval of the Finance Board, the OFBoard of Directors may implement analternative formula for determining eachBank’s respective share of the OFexpenses or, by contract with a Bank orBanks, may choose to be reimbursedthrough a fee structure in lieu of or inaddition to assessment, for servicesprovided to the Bank or Banks for theissuance or servicing of consolidatedobligations or the management andadministration of joint asset activities.

§ 941.8 Savings clause.All actions taken by the OF as it

existed prior to the amendments made



to this part shall continue to be valid asregards the Finance Board and the BankSystem.

Appendix A to Part 941—Exceptions tothe General Disclosure Standards

A. Related-Party Transactions. Item 404 ofRegulation S–K, 17 CFR 229.404, requires thedisclosure of certain relationships andrelated party transactions. In light of thecooperative nature of the Bank System,related-party transactions are to be expected,and a disclosure of all related-partytransactions that meet the threshold wouldnot be meaningful. Instead, the combinedannual report will disclose the percent ofadvances to members an officer of whichserves as a Bank director, and list the top 10holders of advances in the Bank System andthe top 5 holders of advances by Bank, witha further disclosure indicating which of thesemembers had an officer that served as a Bankdirector.

B. Biographical Information. Thebiographical information required by Items401 and 405 of Regulation S–K, 17 CFR

229.401 and 405, will be provided only forthe members of the Board of Directors of theFinance Board, Bank presidents, chairs andvice chairs, and the directors and ChiefExecutive Officer of the OF.

C. Compensation. The information oncompensation required by Item 402 ofRegulation S–K, 17 CFR 229.402, will beprovided only for Bank presidents and theChief Executive Officer of the OF. Since stockin each Bank trades at par, the Finance Boardwill not include the performance graphspecified in Item 402(1) of Regulation S–K,17 CFR 229.402(1).

D. Submission of Matters to a Vote ofStockholders. No information will bepresented on matters submitted toshareholders for a vote, as otherwise requiredby Item 4 of the SEC’s form 10–K, 17 CFR249.310. The only item shareholders voteupon is the annual election of directors.

E. Exhibits. The exhibits required by Item601 of Regulation S–K, 17 CFR 229.601, arenot applicable and will not be provided.

F. Per Share Information. The statement offinancial information required by Items 301and 302 of Rule S–K, 17 CFR 229.301 and

302, is inapplicable because the shares of theBanks are subscription capital that trades atpar, and the shares expand or contract withchanges in member assets or advance levels.

G. Beneficial Ownership. Item 403 ofRule S–K, 17 CFR 229.403, requires thedisclosure of security ownership ofcertain beneficial owners andmanagement. The combined financialreport will provide a listing of the 10largest holders of capital stock in theBank System and a listing of the 5largest holders of capital stock by Bank.This listing will also indicate whichmembers had an officer that served as adirector of a Bank.


Dated: December 14, 1999.Bruce A. Morrison,Chairman.[FR Doc. 00–35 Filed 1–3–00; 8:45 am]BILLING CODE 6725–01–P




[NO. 99–61A ]

RIN 3069–AA88

Proposed Changes to the FinancialManagement Policy of the FederalHome Loan Bank System

AGENCY: Federal Housing FinanceBoard.ACTION: Notice.

SUMMARY: The Federal Housing FinanceBoard (Finance Board) is proposing toamend its policy statement entitled‘‘Financial Management Policy of theFederal Home Loan Bank System’’(FMP). The proposed amendments tothe FMP are being made in conjunctionand conformance with proposedregulatory changes to the FinanceBoard’s regulations regarding the Officeof Finance (OF), described in detail ina Proposed Rule published elsewhere inthis issue of the Federal Register. Theproposed regulatory changes wouldreorganize the OF, a joint office of theFederal Home Loan Banks (Bank orBanks), and broaden its duties,functions and responsibilities in twokey respects: (1) the OF would performconsolidated obligation (CO) issuancefunctions, including preparation ofcombined financial reports, for theBanks; and (2) the OF would serve as avehicle for the Banks to carry out jointactivities in a way that promotesoperating efficiency and effectiveness inachieving the mission of the Banks.DATES: The Finance Board will acceptcomments on the proposed changes tothe FMP in writing on or before March6, 2000.ADDRESSES: Send comments to Elaine L.Baker, Secretary to the Board, byelectronic mail at [email protected], or byregular mail at the Federal HousingFinance Board, 1777 F Street, N.W.,Washington, D.C. 20006. Comments willbe available for public inspection at thisaddress.FOR FURTHER INFORMATION CONTACT:Joseph A. McKenzie, Deputy ChiefEconomist, Office of Policy, Researchand Analysis, 202/408–2845,[email protected]; Charlotte A. Reid,Special Counsel, Office of GeneralCounsel, 202/408–2510, [email protected];or Eric E. Berg, Senior Attorney, Officeof General Counsel, 202/408–2589,[email protected]. Staff also can bereached by regular mail at the FederalHousing Finance Board, 1777 F Street,N.W., Washington, D.C. 20006.SUPPLEMENTARY INFORMATION:

I. Background

The FMP evolved from a series ofpolicies and guidelines initially adoptedby the former Federal Home Loan BankBoard (FHLBB), predecessor agency tothe Finance Board, in the 1970s andrevised a number of times thereafter.The Finance Board adopted the FMP in1991, consolidating into one documentthe previously separate policies onfunds management, hedging, andinterest-rate swaps, and adding newguidelines on the management ofunsecured credit and interest-rate risks.See 62 FR 13146 (Mar. 19, 1997).

The FMP generally provides aframework within which the Banks mayimplement their financial managementstrategies in a prudent and responsiblemanner. Specifically, the FMP identifiesthe types of investments the Banks maypurchase pursuant to their statutoryinvestment authority and includes aseries of guidelines relating to thefunding and hedging practices of theBanks and the management of theircredit, interest-rate, and liquidity risks.The FMP also establishes liquidityrequirements in addition to thoserequired by statute. See FMP secs. III–IV.

II. Analysis of the FMP amendments

Pursuant to section 11 of the FederalHome Loan Bank Act, 12 U.S.C. 1431,and the proposed changes to 12 CFRparts 900, 910 and 941 described indetail in a Proposed Rule publishedelsewhere in this issue of the FederalRegister, the Finance Board and theBanks have authority to issue throughthe OF consolidated obligations (COs),i.e., bonds, notes, or debentures onwhich the Banks are jointly andseverally liable. Under the FMP, a Bankis authorized to participate in theproceeds from COs, so long as enteringinto such transactions will not cause theBank’s total COs and unsecured seniorliabilities to exceed 20 times its capital.See FMP sec. IV.C.

The FMP also authorizes a Bank toparticipate in certain types of standardand non-standard debt issues. See id.Specifically, the FMP requires a Bankparticipating in non-standard debtissues to enter into a contemporaneoushedging arrangement that passes theinterest-rate or basis risk through to thehedge counterparty unless the Bank isable to document that the debt will beused to fund mirror-image assets in anamount equal to the debt, offset orreduce interest-rate or basis risk in theBank’s portfolio, or otherwise assist theBank in achieving its interest-rate orbasis risk management objectives. If aBank participates in debt denominated

in a currency other than U.S. dollars, itis required to hedge the currencyexchange risk. See id. at sec. IV.C.3.

The proposed FMP amendmentswould delete existing section IV,‘‘Funding Guidelines,’’ and replace itwith a new section IV titled ‘‘MinimumTotal Capital and HedgingRequirements.’’ The new section wouldread as follows:

Minimum Total Capital and HedgingRequirements.

A. Leverage limit. Each Bank shall haveand maintain at all times total capital in anamount equal to at least 4.76 percent of theBank’s total assets. For purposes of thissection, total capital is the sum of a Bank’sretained earnings and total paid-in capitalstock outstanding, less the Bank’s unrealizednet losses on available-for-sale securities.

B. Prohibition on foreign currency orcommodity positions. A Bank shall not takea position in any commodity or foreigncurrency. If a Bank participates inconsolidated obligations denominated in acurrency other than U.S. dollars or linked toequity or commodity prices, it must hedgethe currency, equity, and commodity risks.

The proposed FMP amendmentswould eliminate the FundingGuidelines, with one exception, asunnecessary in light of the proposedcomprehensive regulatory amendmentspublished elsewhere in this issue of theFederal Register. The one exceptionconcerns the leverage limit. Currently,Finance Board regulations (12 CFR910.1(b)) and the FMP provide that, ona Bank System-wide and Bank-by-Bankbasis, respectively, liabilities cannotexceed 20 times paid-in capital stock,retained earnings, and reserves. Asdiscussed in detail in the proposedrulemaking, the Finance Board isproposing to remove the System-wideliability-based leverage limit fromFinance Board regulations asunnecessary, and is here proposing toreplace the current Bank-by-Bankliability-based leverage limit in the FMPwith a minimum total capitalrequirement that would, in effect, recastthe leverage limit as a percentage ofassets, that is, that a Bank’s total assetscannot exceed 21 times its capital, orinversely, capital must be at least 4.76percent of assets. The Bank System hadan average capital-to-assets ratio of 5.1percent at September 30, 1999.

Neither the elimination of the BankSystem-wide leverage limit from theFinance Board regulations, nor theproposed revision to the Bank-by-Bankleverage limit contained in the FMP,would have any practical effect on theBank System or its bondholders. TheFinance Board, as the regulator of theBanks, would continue to monitor eachBank for compliance with theindividual leverage limit included in



the FMP. The current FMP prohibits aBank from participating in COs if suchtransactions would cause the Bank’sliabilities to exceed 20 times the Bank’stotal capital. The proposed revision tothe FMP would establish an equivalentleverage standard stated as a percentageof assets that would require each Bankto maintain capital of at least 4.76percent of its total assets. Imposition ofthe 4.76 percent standard on each Bankwill ensure that the Bank System itselfstays within the leverage limit,rendering retention of a Bank System-wide leverage limit unnecessary.Further, the Finance Board notes thatwith the recent passage of Title VI of theGramm-Leach-Bliley Act, the FederalHome Loan Bank System ModernizationAct of 1999, Pub. L. 106–102, 113 Stat.1338 (Nov. 12, 1999), the Banks will besubject to statutory leverage limits andrisk-based capital requirements. Whenimplemented in regulations, the newrisk-based capital regime will providean additional safeguard to the BankSystem and its bondholders by requiringBanks to hold capital in proportion tothe risks they assume.

The changes reflected in proposedsection IV.B of the FMP do not draw thedistinction between standard and non-standard debt issues contained in thecurrent FMP. Instead, the changesrequire the Banks to hedge some typesof debt issues previously defined asnon-standard. The types of debt issuesthat must be hedged under the proposedamendments to the FMP are thoselinked to equity or commodity prices orthose denominated in foreigncurrencies.

The Finance Board also is taking thisopportunity to propose a change in theFMP unrelated to the issuance of debtor the OF reorganization. Section VII ofthe FMP contains guidelines for theBanks on the management of interest-rate risk. The Finance Board usesduration of equity as its primarymeasure of interest-rate risk. Thecurrent FMP gives the Banks an optionon how to calculate their duration ofequity. The option deals with theinclusion or exclusion of the cash flowsassociated with the Bank’s AffordableHousing Program (AHP) and ResolutionFunding Corporation (REFCorp)obligations. Since 1995, each Bank hasto contribute a minimum of 10 percentof its annual income (net of its REFCorpobligation) for the AHP, with a BankSystem-wide minimum of $100 million.See 12 U.S.C. 1430(j)(5)(C). In addition,the Banks, in the aggregate, formerlywere required annually to contribute$300 million towards the Bank System’sREFCorp obligation. Id. 1441b(f)(2)(c)(superseded).

The Gramm-Leach-Bliley Act changedthe REFCorp obligation for years 2000and beyond from a fixed annualpayment of $300 million to the paymentof 20 percent of the Banks’ net earnings(net of AHP and operating expenses),with the payment period extended orshortened as necessary to ensure fullpayment of the present value of theobligation. Since the AHP has not beena fixed dollar obligation since 1994 andthe REFCorp obligation will no longerbe a fixed dollar amount, the FinanceBoard proposes to prohibit the Banksfrom managing their assets and

liabilities as if these items are fixeddollar obligations. Instead, under therevised FMP, a Bank would treat theseobligations as typical variable expenses(like operating expenses) for purposes ofasset-liability management. Because theBanks’ AHP and REFCorp obligationsare variable expenses, the FinanceBoard believes that it would not beappropriate for the Banks to includeAHP and REFCorp-related cash flows intheir duration of equity calculations.The Finance Board originally proposedthis change to the FMP in 1997. See 62FR 13146 (Mar. 19, 1997). The proposedlanguage would read as follows:

Each Bank is required to report its cashflows and calculate its duration and marketvalue of equity without projected cash flowswhich represent the Bank’s share of theSystem’s REFCorp and AHP obligations.

The Finance Board is expresslyproposing this language again as evenmore appropriate in light of the Gramm-Leach-Bliley Act change to the REFCorppayment methodology.

The Finance Board will acceptcomments on the proposed FMPamendments for the same 60-daycomment period as the proposedregulatory amendments to parts 900,910, and 941.



Bruce A. Morrison,Chairman.[FR Doc. 00–36 Filed 1–3–00; 8:45 am]



Tuesday

January 4, 2000

Part III

Department of theTreasuryCommunity Development FinancialInstitutions Fund

Notice of Funds Availability (NOFA)Inviting Applications for the CommunityDevelopment Financial InstitutionsProgram—Technical Assistance (TA)Component; Notice




Community Development FinancialInstitutions Fund

Notice of Funds Availability (NOFA)Inviting Applications for theCommunity Development FinancialInstitutions Program—TechnicalAssistance (TA) Component

AGENCY: Community DevelopmentFinancial Institutions Fund, Departmentof the Treasury.ACTION: Notice of Funds Availability(NOFA) inviting applications.

SUMMARY: The Community DevelopmentBanking and Financial Institutions Actof 1994 (12 U.S.C. 4701 et seq.) (the‘‘Act’’) authorizes the CommunityDevelopment Financial InstitutionsFund (the ‘‘Fund’’) of the U.S.Department of the Treasury to select andprovide financial and technicalassistance to eligible applicants underthe Community Development FinancialInstitutions (‘‘CDFI’’) Program. Theinterim rule (12 CFR part 1805), mostrecently revised and published in theFederal Register on November 1, 1999,provides guidance on the contents of thenecessary application materials,evaluation criteria, and other programrequirements. More detailed applicationcontent requirements are found in theapplication packet. While the Fundencourages applicants to review theinterim rule, all of the applicationcontent requirements and the evaluationcriteria contained in the interim rule arealso contained in the application packet.Subject to funding availability, the Fundintends to award up to $4.5 million inappropriated funds under this NOFAand expects to issue approximately 80to 90 awards. The Fund reserves theright to award in excess of $4.5 millionin appropriated funds under this NOFAprovided that funds are available andthe Fund deems it appropriate. TheFund reserves the right to fund, inwhole or in part, any, all, or none of theapplications submitted in response tothis NOFA.

This NOFA is issued in connectionwith the TA Component of the CDFIProgram. The TA Component providesdirect assistance to CDFIs, and in somecircumstances, other entities thatpropose to become CDFIs, to enhancetheir capacity to serve their TargetMarkets.DATES: Applications may be submittedat any time following January 4, 2000.Applications will be received andreviewed on a rolling basis, as describedbelow. The final deadline for receipt ofan application, however, is 6 p.m. EDT

on May 31, 2000. Applications receivedin the offices of the Fund after that dateand time will be rejected and returnedto the sender.ADDRESSES: Applications shall be sentto: Awards Manager, CommunityDevelopment Financial InstitutionsFund, U.S. Department of the Treasury,601 13th Street, NW, Suite 200 South,Washington, DC 20005. Applicationssent electronically or by facsimile willnot be accepted.FOR FURTHER INFORMATION CONTACT: Ifyou have any questions aboutprogrammatic requirements, contact theTA Program Manager. Should you wishto request an application package orhave questions regarding applicationprocedures, contact the AwardsManager. The TA Program Manager andthe Awards Manager may be reached bye-mail at [email protected], bytelephone at (202) 622–8662, byfacsimile at (202) 622–7754 (these arenot toll free numbers), or by mail atCDFI Fund, 601 13th Street, NW, Suite200 South, Washington, DC 20005.Allow at least one to two weeks fromthe date the Fund receives a request forreceipt of the application package.Applications and other informationregarding the Fund and its programsmay be downloaded from the Fund’sweb site at http://www.treas.gov/cdfi.SUPPLEMENTARY INFORMATION:

I. BackgroundCredit and investment capital are

essential ingredients for developingaffordable housing, starting orexpanding businesses, creating andretaining jobs from these businesses,revitalizing neighborhoods, andempowering people. As a key urban andrural policy initiative, the CDFI Programfunds and supports a national networkof financial institutions that isspecifically dedicated to funding andsupporting community development.This strategy builds strong institutionsthat make loans and investments andprovide services to economicallydistressed investment areas andeconomically disadvantaged targetedpopulations. The Act authorizes theFund to select entities to receivefinancial and technical assistance. ThisNOFA invites applications from eligibleorganizations for technical assistance forthe purpose of promoting communitydevelopment activities.

The program connected with thisNOFA constitutes the TA Component ofthe CDFI Program, involving directtechnical assistance (TA) to CDFIs thatprovide loans, investments and otheractivities to their target markets. Underthis TA Component NOFA, the Fund

anticipates making a maximum awardamount of $50,000 to any one applicant.However, the Fund, in its solediscretion, reserves the right to awardamounts in excess of the anticipatedmaximum amount if the Fund deems itappropriate.

Previous awardees under the CDFIProgram are eligible to apply under thisNOFA, but such applicants must beaware that success in a previous roundshould not be considered indicative ofsuccess under this NOFA. In addition,organizations will not be penalized forhaving previously received awards fromthe Fund, except to the extent that:

(1) The Fund is generally prohibitedfrom obligating more than $5 million inassistance, in the aggregate, to any oneorganization and its subsidiaries andaffiliates during any three year period;and

(2) The Fund will not make an awardto a previous awardee that has failed tomeet its performance goals, financialsoundness covenants (if applicable),and/or other certain requirementscontained in the previously executedassistance agreement(s).

II. EligibilityThe Act and the interim rule specify

the eligibility requirements that eachapplicant must meet in order to beeligible to apply for assistance underthis TA Component NOFA. At the timean entity submits its application, theentity must be a duly organized andvalidly existing legal entity under thelaws of the jurisdiction in which it isincorporated or otherwise established.An entity must meet, or propose tomeet, CDFI eligibility requirements.

If the applicant does not meet theCDFI eligibility requirements, theapplication shall include a realistic planfor the applicant to meet the criteria bySeptember 30, 2002 (the deadline maybe extended at the sole discretion of theFund). In no event will the Funddisburse technical assistance to theapplicant until the applicant can becertified as a CDFI, except in suchcircumstances when, in the judgment ofthe Fund, the use of technical assistancewill help the applicant meet acertification requirement(s). Furtherdetails regarding eligibility and otherprogram requirements are found in theapplication packet.

In general, a CDFI and its affiliatesmust collectively have a primarymission of promoting communitydevelopment. In addition, the applicantorganization must: provide loans orequity investments, serve an investmentarea or a targeted population, providedevelopment services, maintaincommunity accountability, and be a



non-governmental entity. If an applicantis a depository institution holdingcompany or an affiliate of a depositoryinstitution holding company, theapplicant and its affiliates mustcollectively meet all of theaforementioned requirements. If anapplicant is a subsidiary of an insureddepository institution, the insureddepository institution and all of itssubsidiaries must collectively meet allof the aforementioned requirements.

III. Types of AssistanceAn applicant under this NOFA may

only submit one application for a TAgrant.

IV. Application PacketAn applicant under this NOFA must

submit the materials described in theapplication packet.

V. EvaluationWith the exception of applications

received by the Fund during January2000, applications received under thisNOFA will be reviewed monthly on arolling basis. All applications receivedby the Fund from the date of this NOFAthrough 6 p.m. EST, February 29, 2000,will be reviewed together; provided thatfunds are available, applicationsreceived after 6 p.m. EST, February 29,2000, through 6 p.m. EST, March 31,2000 will be reviewed together;provided that funds are available,applications received after 6 p.m. EST,March 31, 2000, through 6 p.m. EDT,April 28, 2000, will be reviewedtogether; and, provided that funds areavailable, applications received after 6p.m. EDT, April 28, 2000, through 6p.m. EDT, May 31, 2000, will bereviewed together. Applicationsreceived in the offices of the Fund after6 p.m. EDT, May 31, 2000, will berejected and returned to the sender.

An entity may submit only oneapplication under this NOFA. If asubsequent application is received, theFund will reject it and return it to thesender. Potential applicants should notethat, as the Fund intends to review andselect award applications on a rollingbasis, it is possible that fundingdecisions made early during the rollingreview period may obligate all of thefunds made available under this NOFA.The amount available for awards willdecrease each month as the Fundreviews applications and makes awardselections. After each submission date,applications received will first bereviewed for eligibility andcompleteness. If determined to beeligible and complete, applications willbe evaluated by the Fund on acompetitive basis in accordance with

the criteria described in this NOFA. Inconducting its substantive review, theFund will evaluate applicationsaccording to the criteria in, and use theprocedure described in, this NOFA.

Phase One

In Phase One of the substantivereview, each Fund reader will evaluateapplications using a 100-point scale,using the following criteria andallocation of points:

(a) Comprehensive Business Plan, 60points, with a minimum score of 30points required to advance to PhaseTwo review. The score for theComprehensive Business Plan is basedon a composite assessment of anapplicant’s strength and weaknessesunder six sub-criteria. Such scoringreflects different weighting of the sub-criteria depending on whether theapplicant is a start-up organization or anestablished organization. The Funddefines a start-up organization as anentity that has been in operation twoyears or less, as of the date of this NOFA(meaning, for purposes of this NOFA,having incurred initial operatingexpenses on or after January 4, 1998).

The six sub-criteria are:(1) Community development track

record (established organizations only):10 point maximum;

(2) Financial and operationalcapacity: 10 point maximum(established organizations); 4 pointmaximum (start-ups);

(3) Capacity, skills and experience ofthe management team: 14 pointmaximum (established organizations);and 30 point maximum (start-ups);

(4) Market analysis, program designand implementation plan: 12 pointmaximum;

(5) Projected activities andcommunity development impact: 10point maximum; and

(6) Funding sources: 4 pointmaximum.

In the case of an applicant that haspreviously received assistance from theFund under the CDFI Program, the Fundwill consider whether the applicant willexpand its operations into a new targetmarket, offer more products or services,and/or increase the volume of itsactivities. The Fund will consider theapplicant’s level of success in meetingits performance goals, financialsoundness covenants (if applicable), andother requirements contained in theassistance agreement(s) with the Fund,and the benefits that will be createdwith new Fund assistance over andabove benefits created by previous Fundassistance.

(b) Technical Assistance Proposal(TAP), 40 point maximum, with a 20

point minimum to advance to PhaseTwo review. The TAP provides theapplicant with an opportunity to assessand address the organizationalimprovements needed to achieve theobjectives of its comprehensive businessplan. Such assessment is accompaniedby a budget and a TA award request. Inthe TAP, the applicant should describehow improving its organization willtranslate to community developmentimpact within its Target Market. Thebudget and accompanying narrative willbe evaluated for the eligibility ofproposed uses of the TA award. Eligibletypes of TA award uses include, but arenot limited to, the following: (1)Consulting services; (2) technologyitems; and (3) training for staff ormanagement. The Fund will notconsider requests under this NOFA forexpenses that, in the interpretation ofthe Fund, are deemed to be ongoingoperating expenses rather than non-recurring expenses (for example, thecost of designing marketing materials fora loan product through a consultingcontract is a non-recurring expense, butthe cost of producing or distributingprinted marketing materials is anongoing expense; salary expenses forstaff are ongoing, but the cost of aconsulting contract for a discrete scopeof services is a non-recurring expense).Further, a TA award may not be used toassist an awardee to prepare anapplication for funding to the Fund orto any other source.

Phase TwoOnce the initial evaluation is

complete, the Fund will determinewhich applications will receive furtherconsideration for funding. The Fundwill make that determination based onapplication scores (standardized ifdeemed appropriate), recommendationsof individuals performing initialreviews, and the amount of fundsavailable. Applicants that advance toPhase Two may receive a telephoneinterview(s) conducted by a Fundreviewer for the purpose of obtainingclarifying or confirming information. Atthis point in the process, applicants maybe required to submit additionalinformation about their application inorder to assist the Fund with its finalevaluation. After conducting suchtelephone interview(s), the Fundreviewer will evaluate applications inaccordance with the criteria outlinedabove and will prepare arecommendation memorandumregarding the uses and amount ofassistance that should be provided tothe applicant.

A panel comprised of Fund staff willreview the reviewer’s recommendation



memorandum and make a finalrecommendation to the Fund’s selectingofficial, who will make the final fundingdecision. In making the fundingdecision, the Fund’s selecting officialalso may consider the institutionaldiversity and geographic diversity ofapplicants (e.g., recommending a CDFIfrom a State in which the Fund has notpreviously made an award over a CDFIin a State in which the Fund has alreadymade numerous awards).

The Fund’s selecting official willmake a final funding determinationbased on the applicant’s file, including,without limitation, recommendations ofthe Phase One reader(s), the Phase Tworeviewer, and the panel, and the amountof funds available. In the case ofregulated CDFIs, the selecting officialwill also take into consideration theviews of the appropriate Federalbanking agencies. In the case ofrecommendations for TA awards over$50,000, the Fund will seek to ensurethat there is a likelihood of significantcommunity development impactresulting from such awards.

The Fund reserves the right to changethese evaluation procedures if the Funddeems it appropriate.

VI. Information Sessions

In connection with this NOFA, theFund will conduct Information Sessionsto disseminate information toorganizations contemplating applyingfor, and other organizations interestedin learning about, the TA Component of

the CDFI Program. Registration isrequired and registration in advance ispreferred. The Fund will conduct six in-person Information Sessions, beginningJanuary 26, 2000, as follows:Albuquerque, NM, Monday, February

14, 2000;Des Moines, IA, Monday, February 7,

2000;Laramie, WY, Tuesday, February 1,

2000;Nashville, TN, Wednesday, February 9,

2000;Seattle, WA, Friday, February 11, 2000;

andWashington, DC, Wednesday, January

26, 2000.In addition to the in-person sessions

listed above, the Fund will broadcast anInformation Session using interactivevideo-teleconferencing technology onFriday, February 4, 2000 from 1 p.m. to4 p.m. EST. Registration is required andregistration in advance is preferred. ThisInformation Session will be produced inWashington, DC, and will bedownlinked via satellite or pic-tel to thelocal Department of Housing and UrbanDevelopment (HUD) offices located inthe following 81 cities: Albany, NY;Albuquerque, NM; Anchorage, AK;Atlanta, GA; Baltimore, MD; Bangor,ME; Birmingham, AL; Boise, ID; Boston,MA; Buffalo, NY; Burlington, VT;Camden, NJ; Casper, WY; Charleston,WV; Chicago, IL; Cincinnati, OH;Cleveland, OH; Columbia, SC;Columbus, OH; Dallas, TX; Denver, CO;Des Moines, IA; Detroit, MI; Fargo, ND;

Flint, MI; Fort Worth, TX; Fresno, CA;Grand Rapids, MI; Greensboro, NC;Hartford, CT; Helena, MT; Honolulu, HI;Houston, TX; Indianapolis, IN; Jackson,MS; Jacksonville, FL; Kansas City, KS;Knoxville, TN; Las Vegas, NV; LittleRock, AR; Los Angeles, CA; Louisville,KY; Lubbock, TX; Manchester, NH;Memphis, TN; Miami, FL; Milwaukee,WI; Minneapolis/St. Paul, MN;Nashville, TN; New Orleans, LA; NewYork, NY; Newark, NJ; Oklahoma City,OK; Omaha, NE; Orlando, FL;Philadelphia, PA; Phoenix, AZ;Pittsburgh, PA; Portland, OR;Providence, RI; Reno, NV; Richmond,VA; Sacramento, CA; St. Louis, MO; SaltLake City, UT; San Antonio, TX; SanDiego, CA; San Francisco, CA; San Juan,PR; Santa Ana, CA; Seattle, WA;Shreveport, LA; Sioux Falls, SD;Spokane, WA; Springfield, IL; Syracuse,NY; Tampa, FL; Tucson, AZ; Tulsa, OK;Washington, DC; and Wilmington, DE.

For more information, or to registerfor an Information Session, pleasecontact the Fund at (202) 622–8662 orvisit the Fund’s web site atwww.treas.gov/cdfi.

Authority: 12 U.S.C. 4703, 4703 note, 4704,4706, 4707, and 4717; 12 CFR part 1805.

Dated: December 22, 1999.Maurice A. Jones,Deputy Director for Policy and Programs,Community Development FinancialInstitutions Fund.[FR Doc. 99–33727 Filed 12–28–99; 8:45 am]BILLING CODE 4810–70–P


i

Reader Aids Federal Register

Vol. 65, No. 2


CUSTOMER SERVICE AND INFORMATION

Federal Register/Code of Federal RegulationsGeneral Information, indexes and other finding

aids202–523–5227

Laws 523–5227

Presidential DocumentsExecutive orders and proclamations 523–5227The United States Government Manual 523–5227

Other ServicesElectronic and on-line services (voice) 523–4534Privacy Act Compilation 523–3187Public Laws Update Service (numbers, dates, etc.) 523–6641TTY for the deaf-and-hard-of-hearing 523–5229

ELECTRONIC RESEARCH

World Wide Web

Full text of the daily Federal Register, CFR and otherpublications:

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Reference questions. Send questions and comments about theFederal Register system to:

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The Federal Register staff cannot interpret specific documents orregulations.

FEDERAL REGISTER PAGES AND DATE, JANUARY

1–200..................................... 3201–344................................. 4

CFR PARTS AFFECTED DURING JANUARY

At the end of each month, the Office of the Federal Registerpublishes separately a List of CFR Sections Affected (LSA), whichlists parts and sections affected by documents published sincethe revision date of each title.

3 CFR

Executive Orders:12543 (See Notice of

December 29,1999) ................................199

12544 (See Notice ofDecember 29,1999) ................................199

Administrative Orders:Notices:December 29, 1999.............199

7 CFR

1220.........................................1Proposed Rules:800.........................................75868.........................................78

9 CFR

303.......................................201381.......................................201

12 CFR

935.......................................202960.......................................203Proposed Rules:900.......................................324910.......................................324941.......................................324917.........................................81

14 CFR

39...1, 204, 205, 207, 209, 211,213

Proposed Rules:39 ........................250, 251, 254

15 CFR

902.........................................30

16 CFR

Proposed Rules:1700.......................................93

21 CFR

201...........................................7341...........................................7369...........................................7Proposed Rules:216.......................................256

23 CFR

655...........................................9

26 CFR

301.......................................215Proposed Rules:1...........................................258301.......................................263

30 CFR

250.......................................217

39 CFR

Proposed Rules:111.......................................264

40 CFR

52.....................................14, 16300.........................................19Proposed Rules:52.........................................104

47 CFR

73.................................219, 220Proposed Rules:73.........................................270

49 CFR

1...........................................220

50 CFR

17...........................................20216.........................................30300.........................................59600.......................................221660.......................................221679 ............................60, 65, 74Proposed Rules:18.........................................109216.......................................270222.......................................270223.......................................105226.......................................105300.......................................272648.......................................275

VerDate 15-DEC-99 17:09 Jan 03, 2000 Jkt 190000 PO 00000 Frm 00001 Fmt 4712 Sfmt 4712 E:\FR\FM\04JACU.XXX pfrm02 PsN: 04JACU

ii Federal Register / Vol. 65, No. 2 / Tuesday, January 4, 2000 / Reader Aids

REMINDERSThe items in this list wereeditorially compiled as an aidto Federal Register users.Inclusion or exclusion fromthis list has no legalsignificance.

RULES GOING INTOEFFECT JANUARY 4,2000

AGRICULTUREDEPARTMENTFood Safety and InspectionServiceMeat and poultry inspections:

Inspection services—Retail operations

exemption fromrequirements; published1-4-00

ENVIRONMENTALPROTECTION AGENCYAir quality implementation

plans; approval andpromulgation; variousStates:Tennessee; published 11-5-

99

FEDERAL HOUSINGFINANCE BOARDAffordable housing program

operation:Program requirements

clarification; published 1-4-00

Federal home loan banksystem:Advances to nonmembers;

technical amendment;reporting andrecordkeepingrequirements; published 1-4-00

TRANSPORTATIONDEPARTMENTFederal AviationAdministrationAirworthiness directives:

Agusta S.p.A.; published 12-20-99

Boeing; published 11-30-99Lockheed; published 11-30-

99McDonnell Douglas;

published 12-20-99Raytheon; published 11-30-

99Saab; published 11-30-99

TREASURY DEPARTMENTInternal Revenue ServiceProcedure and administration:

Agriculture Department;return informationdisclosures for statisticalpurposes and relatedactivities; published 1-4-00

COMMENTS DUE NEXTWEEK

AGRICULTUREDEPARTMENTAgricultural MarketingServiceMilk marketing orders:

Central Arizona and NewMexico-West Texas;comments due by 1-10-00; published 11-10-99

Onions (Vidalia) grown in—Georgia; comments due by

1-12-00; published 12-13-99

Spearmint oil produced in FarWest; comments due by 1-12-00; published 12-13-99

AGRICULTUREDEPARTMENTFarm Service AgencyMediation; certified mediation

program; comments due by1-10-00; published 11-9-99

Program regulations:Farm loan programs

account servicing policies;servicing sharedappreciation agreements;comments due by 1-10-00; published 11-10-99

AGRICULTUREDEPARTMENTRural Business-CooperativeServiceProgram regulations:

Farm loan programsaccount servicing policies;servicing sharedappreciation agreements;comments due by 1-10-00; published 11-10-99

AGRICULTUREDEPARTMENTRural Housing ServiceProgram regulations:


AGRICULTUREDEPARTMENTRural Utilities ServiceProgram regulations:


AGRICULTUREDEPARTMENTMediation; certified mediation

program; comments due by1-10-00; published 11-9-99

COMMERCE DEPARTMENTNational Institute ofStandards and TechnologyFastener Quality Act;

implementation; commentsdue by 1-14-00; published12-15-99

COMMERCE DEPARTMENTNational Oceanic andAtmospheric AdministrationEndangered and threatened

species:Sea turtle conservation;

Pamlico Sound, NC;closure to mesh gillnetfishing; comments due by1-10-00; published 12-16-99

Sea turtle conservation;shrimp trawlingrequirementsTurtle excluder device;

comments due by 1-12-00; published 12-13-99

Fishery conservation andmanagement:Alaska; fisheries of

Exclusive EconomicZone—Bering Sea and Aleutian

Islands groundfish;comments due by 1-12-00; published 12-13-99

Gulf of Alaska groundfish;comments due by 1-12-00; published 12-13-99

DEFENSE DEPARTMENTAcquisition regulations:

Voluntary consensusstandards (OMB CircularA-119); comments due by1-10-00; published 11-9-99

Civilian health and medicalprogram of uniformedservices (CHAMPUS):TRICARE program—

Family member dentalplan; comments due by1-14-00; published 12-15-99

ENVIRONMENTALPROTECTION AGENCYAir pollution control; new

motor vehicles and engines:Light-duty vehicles and

trucks—Pre-production certification

procedures; complianceassurance programs;reconsideration petition;comments due by 1-14-00; published 12-17-99

FEDERALCOMMUNICATIONSCOMMISSIONCommon carrier services:

Internet telephony andcomputer basedequipment; access by

persons with disabilities;comments due by 1-13-00; published 11-19-99

Radio stations; table ofassignments:California; comments due by

1-10-00; published 12-8-99

Michigan; comments due by1-13-00; published 12-8-99

Texas; comments due by 1-10-00; published 12-8-99

Television broadcasting:Satellite Home Viewer

Improvement Act;implementation—Retransmission consent

issues; comments dueby 1-12-00; published12-29-99

FEDERAL LABORRELATIONS AUTHORITYEqual Access to Justice Act;

implementation:Attorney fees regulations;


FEDERAL RESERVESYSTEMTruth in lending (Regulation

Z):Short-term cash advances

(payday loans); commentsdue by 1-10-00; published11-5-99

HHSChild Support EnforcementOfficeChild support enforcement

program:National Medical Support

Notice; child supportorders; health carecoverage provisions;comments due by 1-14-00; published 11-15-99

INTERIOR DEPARTMENTFish and Wildlife ServiceEndangered and threatened

species:Columbian white-tailed deer;


Spikedace and loachminnow; comments dueby 1-14-00; published 12-10-99

Marine mammals:Incidental take during

specified activities—Beaufort Sea, AK; year-

round oil and gasindustry operations;polar bears and Pacificwalrus; comments dueby 1-13-00; published1-3-00

Incidental taking—Beaufort Sea et al., AK;

oil and gas industry


iiiFederal Register / Vol. 65, No. 2 / Tuesday, January 4, 2000 / Reader Aids

operations; polar bearsand Pacific walruses;comments due by 1-10-00; published 12-9-99

INTERIOR DEPARTMENTNational Park ServiceSpecial regulations:

Denali National Park andPreserve, AK; traditionalactivities definition;comments due by 1-11-00; published 11-12-99

MINE SAFETY AND HEALTHFEDERAL REVIEWCOMMISSIONFederal Mine Safety andHealth Review CommissionProcedural rules; comments

due by 1-10-00; published12-8-99

INTERIOR DEPARTMENTNational Indian GamingCommissionIndian Gaming Regulatory Act:

Classification of games;comments due by 1-10-00; published 11-10-99

NUCLEAR REGULATORYCOMMISSIONRulemaking petitions:

Union of ConcernedScientists; comments dueby 1-10-00; published 10-27-99

PERSONNEL MANAGEMENTOFFICEPay administration:

Payments during evacuation;comments due by 1-14-00; published 12-15-99

POSTAL SERVICEDomestic Mail Manual:

SAVE verificationprocedures andrevisions—

Combined postagepayment standards;automation letter mail;comments due by 1-10-00; published 12-9-99

SECURITIES ANDEXCHANGE COMMISSIONInvestment advisers:

Broker-dealers deemed notto be investment advisers;comments due by 1-14-00; published 11-10-99

TRANSPORTATIONDEPARTMENTCoast GuardDrawbridge operations:

California; comments due by1-11-00; published 11-12-99

TRANSPORTATIONDEPARTMENTFederal AviationAdministrationAirworthiness directives:

Air Cruisers Co.; commentsdue by 1-10-00; published11-9-99

Airbus; comments due by 1-13-00; published 12-14-99

Bell; comments due by 1-14-00; published 11-15-99

Boeing; comments due by1-10-00; published 11-24-99

British Aerospace;comments due by 1-10-00; published 12-9-99

CFM International;comments due by 1-12-00; published 12-13-99

Dassault; comments due by1-10-00; published 12-9-99

Fokker; comments due by1-12-00; published 12-13-99

Israel Aircraft Industries,Ltd.; comments due by 1-10-00; published 12-9-99

McDonnell Douglas;comments due by 1-14-00; published 11-30-99

Transport categoryairplanes—Mode ≥C≥ transponders

with single Gillhamcode altitude input;comments due by 1-11-00; published 11-12-99

Airworthiness standards:Special conditions—

CASA Model C-295airplane; comments dueby 1-12-00; published12-13-99

Class D airspace; commentsdue by 1-14-00; published12-3-99

Environmental impacts;policies and proceduresimplementation; commentrequest; comments due by1-11-00; published 10-13-99

TRANSPORTATIONDEPARTMENTFederal RailroadAdministrationRailroad safety enforcement

procedures:Light rail transit operations

on general railroadsystem; safety jurisdiction;joint agency policystatement with FederalTransit Administration;comments due by 1-14-00; published 11-1-99

TREASURY DEPARTMENTCommunity DevelopmentFinancial Institutions FundCommunity Development

Financial Institutions

Program; implementation;comments due by 1-14-00;published 11-1-99

TREASURY DEPARTMENT

Customs Service

Organization and functions;field organization, ports ofentry, etc.:

Puget Sound, WA; portlimits; comments due by1-10-00; published 11-10-99

TREASURY DEPARTMENT


Income taxes:

Farm income averaging;comments due by 1-14-00; published 10-8-99

LIST OF PUBLIC LAWS

Note: The List of Public Lawsfor the first session of the106th Congress has beencompleted and will resumewhen bills are enacted intolaw during the second sessionof the 106th Congress, whichconvenes on January 24,2000.

A Cumulative List of PublicLaws for the first session ofthe 106th Congress will bepublished in the FederalRegister on December 30,1999.

Last List December 21, 1999.


· . II 2 Federal Register/Vol. 65, No. 2/Tuesday, January 4, 2000 The FEDERAL REGISTER is...

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