Rules and Regulations. Final rule; request for comments

11,908 words·~54 min read·/register/2007/02/16/07-698

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

BILLING CODE 4910-13-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Document No. FAA-2007-27174; Directorate Identifier 2007-CE-006-AD; Amendment 39-14944; AD 2007-04-12] RIN 2120-AA64 Airworthiness Directives; Gippsland Aeronautics Pty. Ltd. Model GA8 Airplanes AGENCY: Federal Aviation Administration (FAA), DOT. ACTION: Final rule; request for comments. SUMMARY: We are adopting a new airworthiness directive

(AD)for the products listed above. This AD results from mandatory continuing airworthiness information

(MCAI)issued by the aviation authority of another country to identify and correct an unsafe condition on an aviation product. The MCAI describes the unsafe condition as: Inspection of a high time aircraft has revealed cracks in the Horizontal Stabiliser rear spar splice plate and inboard main ribs around the area of the Horizontal Stabiliser rear pivot attachment. Additionally, failure of some attach bolts in service may be due to improper assembly. This AD requires actions that are intended to address the unsafe condition described in the MCAI. DATES: This AD becomes effective March 8, 2007. The Director of the Federal Register approved the incorporation by reference of certain publications listed in this AD as of March 8, 2007. We must receive comments on this AD by March 19, 2007. ADDRESSES: You may send comments by any of the following methods: • *DOT Docket Web Site:* Go to *http://dms.dot.gov* and follow the instructions for sending your comments electronically. • *Fax:*

(202)493-2251. • *Mail:* Docket Management Facility, U.S. Department of Transportation, 400 Seventh Street, SW., Nassif Building, Room PL-401, Washington, DC 20590-0001. • *Hand Delivery:* Room PL-401 on the plaza level of the Nassif Building, 400 Seventh Street, SW., Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. • *Federal eRulemaking Portal: http://www.regulations.gov* . Follow the instructions for submitting comments. Examining the AD Docket You may examine the AD docket on the Internet at *http://dms.dot.gov;* or in person at the Docket Management Facility between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains this AD, the regulatory evaluation, any comments received, and other information. The street address for the Docket Office (telephone

(800)647-5227) is in the ADDRESSES section. Comments will be available in the AD docket shortly after receipt. FOR FURTHER INFORMATION CONTACT: Doug Rudolph, Aerospace Engineer, 901 Locust, Room 301, Kansas City, Missouri 64106; telephone:

(816)329-4059; fax:

(816)329-4090. SUPPLEMENTARY INFORMATION: Streamlined Issuance of AD The FAA is implementing a new process for streamlining the issuance of ADs related to MCAI. The streamlined process will allow us to adopt MCAI safety requirements in a more efficient manner and will reduce safety risks to the public. This process continues to follow all FAA AD issuance processes to meet legal, economic, Administrative Procedure Act, and **Federal Register** requirements. We also continue to meet our technical decision-making responsibilities to identify and correct unsafe conditions on U.S.-certificated products. This AD references the MCAI and related service information that we considered in forming the engineering basis to correct the unsafe condition. The AD contains text copied from the MCAI and for this reason might not follow our plain language principles. Discussion The Civil Aviation Safety Authority (CASA), which is the aviation authority for Australia, has issued CASA AD No. AD/GA8/5, Amdt 1, dated January 24, 2007 (referred to after this as “the MCAI”), to correct an unsafe condition for the specified products. The MCAI states: Inspection of a high time aircraft has revealed cracks in the Horizontal Stabiliser rear spar splice plate and inboard main ribs around the area of the Horizontal Stabiliser rear pivot attachment. Additionally, failure of some attach bolts in service may be due to improper assembly. The MCAI requires: This Airworthiness Directive addresses the problem using 5 separate inspections. The first is a brief daily external inspection. The other 4 inspections are a mixture of internal and external inspections as well as some parts replacement to be carried out at the next periodic inspection. You may obtain further information by examining the MCAI in the AD docket. Relevant Service Information Gippsland Aeronautics has issued Mandatory Service Bulletin SB-GA8-2002-02, Issue 4, dated January 4, 2007. The actions described in this service information are intended to correct the unsafe condition identified in the MCAI. FAA's Determination and Requirements of the AD This product has been approved by the aviation authority of another country, and is approved for operation in the United States. Pursuant to our bilateral agreement with this State of Design Authority, they have notified us of the unsafe condition described in the MCAI and service information referenced above. We are issuing this AD because we evaluated all information provided by the State of Design Authority and determined the unsafe condition exists and is likely to exist or develop on other products of the same type design. Differences Between This AD and the MCAI or Service Information We have reviewed the MCAI and related service information and, in general, agree with their substance. But we might have found it necessary to use different words from those in the MCAI to ensure the AD is clear for U.S. operators and is enforceable. In making these changes, we do not intend to differ substantively from the information provided in the MCAI and related service information. We might also have required different actions in this AD from those in the MCAI in order to follow FAA policies. Any such differences are highlighted in a Note within the AD. FAA's Determination of the Effective Date An unsafe condition exists that requires the immediate adoption of this AD. The FAA has found that the risk to the flying public justifies waiving notice and comment prior to adoption of this rule because of potential cracking of the horizontal stabilizer structure, which could lead to failure of the tailplane assembly. Therefore, we determined that notice and opportunity for public comment before issuing this AD are impracticable and that good cause exists for making this amendment effective in fewer than 30 days. Comments Invited This AD is a final rule that involves requirements affecting flight safety, and we did not precede it by notice and opportunity for public comment. We invite you to send any written relevant data, views, or arguments about this AD. Send your comments to an address listed under the ADDRESSES section. Include “Docket No. FAA-2007-27174; Directorate Identifier 2007-CE-006-AD” at the beginning of your comments. We specifically invite comments on the overall regulatory, economic, environmental, and energy aspects of this AD. We will consider all comments received by the closing date and may amend this AD because of those comments. We will post all comments we receive, without change, to *http://dms.dot.gov,* including any personal information you provide. We will also post a report summarizing each substantive verbal contact we receive about this AD. Authority for This Rulemaking Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, section 106, describes the authority of the FAA Administrator. “Subtitle VII: Aviation Programs,” describes in more detail the scope of the Agency's authority. We are issuing this rulemaking under the authority described in “Subtitle VII, Part A, Subpart III, Section 44701: General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action. Regulatory Findings We determined that this AD will not have federalism implications under Executive Order 13132. This AD will not have a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. For the reasons discussed above, I certify that this AD:

(1)Is not a “significant regulatory action” under Executive Order 12866;

(2)Is not a “significant rule” under DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979); and

(3)Will not have a significant economic impact, positive or negative, on a substantial number of small entities under the criteria of the Regulatory Flexibility Act. We prepared a regulatory evaluation of the estimated costs to comply with this AD and placed it in the AD docket. List of Subjects in 14 CFR Part 39 Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety. Adoption of the Amendment Accordingly, under the authority delegated to me by the Administrator, the FAA amends 14 CFR part 39 as follows: PART 39—AIRWORTHINESS DIRECTIVES 1. The authority citation for part 39 continues to read as follows: Authority: 49 U.S.C. 106(g), 40113, 44701. § 39.13 [Amended] 2. The FAA amends § 39.13 by adding the following new AD: **2007-04-12 Gippsland Aeronautics Pty. Ltd.:** Amendment 39-14944; Docket No. FAA-2007-27174; Directorate Identifier 2007-CE-006-AD. Effective Date

(a)This airworthiness directive

(AD)becomes effective March 8, 2007. Affected ADs

(b)None. Applicability

(c)This AD applies to all Model GA8 airplanes, serial numbers GA8-00-004 and up, certificated in any category. Subject

(d)Air Transport Association of America

(ATA)Code 55: Stabilizers. Reason

(e)The mandatory continuing airworthiness information

(MCAI)states: Inspection of a high time aircraft has revealed cracks in the Horizontal Stabiliser rear spar splice plate and inboard main ribs around the area of the Horizontal Stabiliser rear pivot attachment. Additionally, failure of some attach bolts in service may be due to improper assembly. Actions and Compliance

(f)Unless already done, do the following actions.

(1)Within the next 10 hours time-in-service

(TIS)after March 8, 2007 (the effective date of this AD):

(i)For all aircraft not incorporating CNC machined elevator hinges, inspect and repair as required, the left and right horizontal stabilizer rear pivot attachment installation following instruction “3. Rear Pivot Attachment Inspection,” of Gippsland Aeronautics Mandatory Service Bulletin SB-GA8-2002-02, Issue 4, dated January 4, 2007; and,

(ii)For all aircraft replace the left and right rear attach bolt following instruction “5. Rear Attach Bolt Replacement,” of Gippsland Aeronautics Mandatory Service Bulletin SB-GA8-2002-02, Issue 4, dated January 4, 2007.

(2)Within the next 10 hours TIS after March 8, 2007 (the effective date of this AD); and repetitively thereafter at intervals not to exceed 100 hours TIS or 12 months, whichever occurs first, for all aircraft:

(i)Inspect the horizontal stabilizer externally following instruction “2. External Inspection (Lower flange, Stabilizer rear spar),” of Gippsland Aeronautics Mandatory Service Bulletin SB-GA8-2002-02, Issue 4, dated January 4, 2007; and

(ii)Inspect the horizontal stabilizer internally following instruction “4. Internal Inspection,” of Gippsland Aeronautics Mandatory Service Bulletin SB-GA8-2002-02, Issue 4, dated January 4, 2007.

(3)Before further flight, if during the inspection required by paragraph (f)(2) of this AD any excessive local deflection or movement of the lower skin surrounding the lower pivot attachment, cracking, or working (loose) rivet is found, obtain an FAA-approved repair scheme from the manufacturer and incorporate this repair scheme. Continued operational flight with un-repaired crack damage is not permitted. FAA AD Differences Note: This AD differs from the MCAI and/or service information as follows:

(1)“Requirement: 1. Daily Inspection (Stabiliser attach bolt)” of the MCAI requires a daily inspection of the stabilizer attach bolt. The daily inspection is not a requirement of this AD. Instead of the daily inspection, we require you to perform, within 10 hours TIS, “Requirement 3. Rear Pivot Attachment Inspection” and “Requirement 5. Rear Attachment Bolt Replacement” of the MCAI. Compliance with requirement 3. and 5. is a terminating action for the daily inspection, and we are requiring these within 10 hours TIS after the effective date of this AD.

(2)“Requirement: 2. External Inspection (Lower flange, Stabiliser rear spar)” of the MCAI does not specify any action if excessive local deflection or movement of lower skin, cracking, or working (loose) rivet is found. We require obtaining and incorporating an FAA-approved repair scheme from the manufacturer before further flight.

(3)The MCAI does not state if further flight with known cracks is allowed. FAA policy is to not allow further flight with known cracks in critical structure. We require that if any cracks are found when accomplishing the inspection required in paragraph (f)(2) of this AD, you must repair the cracks before further flight. Other FAA AD Provisions

(g)The following provisions also apply to this AD:

(1)*Alternative Methods of Compliance (AMOCs):* The Manager, Standards Staff, FAA, ATTN: Doug Rudolph, Aerospace Engineer, FAA, Small Airplane Directorate, ACE-112, 901 Locust, Room 301, Kansas City, Missouri 64106; telephone:

(816)329-4059; fax:

(816)329-4090, has the authority to approve AMOCs for this AD, if requested using the procedures found in 14 CFR 39.19.

(2)*Airworthy Product:* For any requirement in this AD to obtain corrective actions from a manufacturer or other source, use these actions if they are FAA-approved. Corrective actions are considered FAA-approved if they are approved by the State of Design Authority (or their delegated agent). You are required to assure the product is airworthy before it is returned to service.

(3)*Reporting Requirements:* For any reporting requirement in this AD, under the provisions of the Paperwork Reduction Act (44 U.S.C. 3501 *et. seq* .), the Office of Management and Budget

(OMB)has approved the information collection requirements and has assigned OMB Control Number 2120-0056. Related Information

(h)Refer to MCAI CASA AD No. AD/GA8/5, Amdt 1, dated January 24, 2007; and Gippsland Aeronautics Mandatory Service Bulletin SB-GA8-2002-02, Issue 4, dated January 4, 2007, for related information. Material Incorporated by Reference

(i)You must use Gippsland Aeronautics Mandatory Service Bulletin SB-GA8-2002-02, Issue 4, dated January 4, 2007, to do the actions required by this AD, unless the AD specifies otherwise.

(1)The Director of the Federal Register approved the incorporation by reference of this service information under 5 U.S.C. 552(a) and 1 CFR part 51.

(2)For service information identified in this AD, contact Gippsland Aeronautics, Attn: Technical Services, P.O. Box 881, Morwell Victoria 3840, Australia; fax: +61 03 5172 1201; Internet: *http://www.gippsaero.com* .

(3)You may review copies at the FAA, Central Region, Office of the Regional Counsel, 901 Locust, Kansas City, Missouri 64106; or at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 202-741-6030, or go to: *http://www.archives.gov/federal-register/cfr/ibr-locations.html* . Issued in Kansas City, Missouri, on February 6, 2007. Kim Smith, Manager, Small Airplane Directorate, Aircraft Certification Service. [FR Doc. E7-2516 Filed 2-15-07; 8:45 am] BILLING CODE 4910-13-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. 2003-CE-51-AD; Amendment 39-13857; AD 2004-23-02] RIN 2120-AA64 Airworthiness Directives; Raytheon Aircraft Company 65, 90, 99, 100, 200, and 1900 Series Airplanes, and Models 70 and 300 Airplanes AGENCY: Federal Aviation Administration (FAA), DOT. ACTION: Final rule; correction. SUMMARY: This document makes a correction to Airworthiness Directive

(AD)2004-23-02, which was published in the **Federal Register** on November 9, 2004 (69 FR 64842), and applies to all Raytheon Aircraft Company (Raytheon) 65, 90, 99, 100, 200, and 1900 series airplanes and Models 70 and 300 airplanes. AD 2004-23-2 requires repetitive inspections of the nose landing gear

(NLG)fork for cracks with replacement if cracks are found (replacement terminates repetitive inspections). Current language in paragraph (e)(3) of AD 2004-23-02 references Part III of the Accomplishment Instructions of the service bulletin instead of Part II. This document corrects that paragraph by changing the reference from Part III to Part II. DATES: The effective date of this AD (2004-23-02) remains December 23, 2004. FOR FURTHER INFORMATION CONTACT: Steven E. Potter, Aerospace Engineer, Wichita Aircraft Certification Office (ACO), FAA, 1801 Airport Road, Wichita, Kansas 67209; telephone:

(316)946-4124; facsimile:

(316)946-4407. SUPPLEMENTARY INFORMATION: Discussion On November 1, 2004, the FAA issued AD 2004-23-02, Amendment 39-13857 (69 FR 64842, November 9, 2004), which applies to all 65, 90, 99, 100, 200, and 1900 series airplanes and Models 70 and 300 airplanes. AD 2004-23-2 requires repetitive inspections of the NLG fork for cracks with replacement if cracks are found (replacement terminates repetitive inspections). Current language in paragraph (e)(3) of AD 2004-23-02 references Part III of the Accomplishment Instructions of Raytheon Mandatory Service Bulletin SB 32-2102, Revision 7, Revised: July, 2003, instead of Part II. Need for the Correction This correction is needed to specify the correct section of the service bulletin necessary to do the actions of AD 2004-23-02. Correction of Publication Accordingly, the publication of November 9, 2004 (69 FR 64842), of Amendment 39-13857, AD 2004-23-02, which was the subject of FR Doc. 04-24718, is corrected as follows: PART 39—AIRWORTHINESS DIRECTIVES 1. The authority citation for part 39 continues to read as follows: Authority: 49 U.S.C. 106(g), 40113, 44701. § 39.13 [Corrected] 2. On page 64845, in § 39.13 [Amended], in paragraph (e)(3), in the Procedures column, remove the phrase “Part III” and add “Part II” in its place. Action is taken herein to correct this reference in AD 2004-23-02 and to add this AD correction to § 39.13 of the Federal Aviation Regulations (14 CFR 39.13). The effective date remains December 23, 2004. Issued in Kansas City, Missouri, on February 9, 2007. David R. Showers, Acting Manager, Small Airplane Directorate, Aircraft Certification Service. [FR Doc. E7-2754 Filed 2-15-07; 8:45 am] BILLING CODE 4910-13-P DEPARTMENT OF HOMELAND SECURITY Coast Guard 33 CFR Part 117 [CGD08-07-002] RIN 1625-AA09 Drawbridge Operation Regulation; Upper Mississippi River, Rock Island, IL AGENCY: Coast Guard, DHS. ACTION: Notice of deviation from drawbridge regulation. SUMMARY: The Commander, Eighth Coast Guard District has issued a temporary deviation from the regulation governing the operations of the Rock Island Railroad and Highway Drawbridge, Mile 482.9, Rock Island, Illinois across the Upper Mississippi River. This deviation allows the bridge to remain closed-to-navigation from 9 a.m. until 11:30 a.m., May 19, 2007. The deviation is necessary as the drawbridge is part of the annual route for the Quad Cities Heart Walk. DATES: This temporary deviation is effective from 9 a.m. until 11:30 a.m., May 19, 2007. ADDRESSES: Materials referred to in this document are available for inspection or copying at Room 2.107F in the Robert A. Young Federal Building, 1222 Spruce Street, St. Louis, MO 63103-2832, between 8 a.m. and 4 p.m., Monday through Friday, except Federal holidays. The Bridge Administration Branch maintains the public docket for this temporary deviation. FOR FURTHER INFORMATION CONTACT: Roger K. Wiebusch, Bridge Administrator,

(314)269-2378. SUPPLEMENTARY INFORMATION: The U.S. Army Rock Island Arsenal requested a temporary deviation for the Rock Island Railroad and Highway Drawbridge, mile 482.9, at Rock Island, Illinois across the Upper Mississippi River as the drawbridge is along the route of the annual Quad Cities Heart Walk. The Rock Island Railroad and Highway Drawbridge currently operates in accordance with 33 CFR 117.5 which requires the drawbridge to open promptly and fully for passage of vessels when a request to open is given in accordance with 33 CFR 117, Subpart A. In order to facilitate the annual event, the drawbridge must be kept in the closed-to-navigation position. This deviation allows the drawbridge to remain closed-to-navigation for two and one-half hours from 9 a.m. until 11:30 a.m., May 19, 2007. There are no alternate routes for vessels transiting this section of the Upper Mississippi River. The Rock Island Railroad and Highway Drawbridge, in the closed-to-navigation position, provides a vertical clearance of 23.8 feet above normal pool. Navigation on the waterway consists primarily of commercial tows and recreational watercraft. This temporary deviation has been coordinated with waterway users. No objections were received. In accordance with 33 CFR 117.35(e), the drawbridge shall return to its regular operating schedule immediately at the end of the designated time period. This deviation from the operating regulations is authorized under 33 CFR 117.35. Dated: February 1, 2007. Roger K. Wiebusch, Bridge Administrator. [FR Doc. E7-2795 Filed 2-15-07; 8:45 am] BILLING CODE 4910-15-P DEPARTMENT OF HOMELAND SECURITY Coast Guard 33 CFR Part 117 [CGD08-07-003] RIN 1625-AA09 Drawbridge Operation Regulation; Upper Mississippi River, Rock Island, IL AGENCY: Coast Guard, DHS. ACTION: Notice of deviation from drawbridge regulation. SUMMARY: The Commander, Eighth Coast Guard District has issued a temporary deviation from the regulation governing the operations of the Rock Island Railroad and Highway Drawbridge, Mile 482.9, Rock Island, Illinois across the Upper Mississippi River. This deviation allows the bridge to remain closed-to-navigation from 7:30 a.m. until 11:30 a.m., September 23, 2007. The deviation is necessary as the drawbridge is part of the annual route for the Quad City Marathon. DATES: This temporary deviation is effective from 7:30 a.m. until 11:30 a.m., September 23, 2007. ADDRESSES: Materials referred to in this document are available for inspection or copying at Room 2.107F in the Robert A. Young Federal Building, 1222 Spruce Street, St. Louis, MO 63103-2832, between 8 a.m. and 4 p.m., Monday through Friday, except Federal holidays. The Bridge Administration Branch maintains the public docket for this temporary deviation. FOR FURTHER INFORMATION CONTACT: Roger K. Wiebusch, Bridge Administrator,

(314)269-2378. SUPPLEMENTARY INFORMATION: The U.S. Army Rock Island Arsenal requested a temporary deviation for the Rock Island Railroad and Highway Drawbridge, mile 482.9, at Rock Island, Illinois across the Upper Mississippi River as the drawbridge is along the route of the annual Quad City Marathon. The Rock Island Railroad and Highway Drawbridge currently operates in accordance with 33 CFR 117.5 which requires the drawbridge to open promptly and fully for passage of vessels when a request to open is given in accordance with 33 CFR 117, Subpart A. In order to facilitate the annual event, the drawbridge must be kept in the closed-to-navigation position. This deviation allows the drawbridge to remain closed-to-navigation for four hours from 7:30 a.m. until 11:30 a.m., September 23, 2007. There are no alternate routes for vessels transiting this section of the Upper Mississippi River. The Rock Island Railroad and Highway Drawbridge, in the closed-to-navigation position, provides a vertical clearance of 23.8 feet above normal pool. Navigation on the waterway consists primarily of commercial tows and recreational watercraft. This temporary deviation has been coordinated with waterway users. No objections were received. In accordance with 33 CFR 117.35(e), the drawbridge shall return to its regular operating schedule immediately at the end of the designated time period. This deviation from the operating regulations is authorized under 33 CFR 117.35. Dated: February 1, 2007. Roger K. Wiebusch, Bridge Administrator. [FR Doc. E7-2796 Filed 2-15-07; 8:45 am] BILLING CODE 4910-15-P 72 32 Friday, February 16, 2007 Proposed Rules DEPARTMENT OF ENERGY Federal Energy Regulatory Commission 18 CFR 2, 33, 365, and 366 [Docket No. AD07-2-000] Technical Conference on Public Utility Holding Company Act of 1935 and Enactment of the Public Utility Holding Company Act of 2005; Notice of Technical Conference February 9, 2007. AGENCY: Federal Energy Regulatory Commission, DOE. ACTION: Notice of Technical Conference. SUMMARY: The Federal Energy Regulatory Commission (Commission) is holding a technical conference on March 8, 2007, to discuss certain issues raised in rulemakings issued in Commission Docket Nos. RM05-32-000 and RM05-34-000. This is the second conference being held as a follow-up to Commission Order Nos. 667 and No. 669. The Commission is now soliciting nominations for speakers at the technical conference. DATES: Nominations must be made on or before: February 15, 2007. FOR FURTHER INFORMATION CONTACT: Sarah McKinley, Office of External Affairs, Federal Energy Regulatory Commission, 888 First Street, NE., Washington, DC 20426,

(202)502-8004, *sarah.mckinley@ferc.gov.* SUPPLEMENTARY INFORMATION: This conference addresses certain issues raised in rulemakings issued in Docket No. RM05-32-000 (70 FR 75592, December 20, 2005) and Docket No. RM05-34-000 (71 FR 1348, January 6, 2006). Technical Conference on Public Utility Holding Company Act of 2005 and Federal Power Act Section 203 Issues February 9, 2007. Take notice that on March 8, 2007, a technical conference will be held at the Federal Energy Regulatory Commission to discuss certain issues raised in rulemakings issued in Docket Nos. RM05-32 and RM05-34. This is the second technical conference 1 being held as a follow-up to the Commission's Orders No. 667 and No. 669. 2 The technical conference will be held from approximately 9 a.m. to 4 p.m.

(EST)at the Federal Energy Regulatory Commission, 888 First Street, NE., Washington, DC 20426, in the Commission Meeting Room. Commissioners are expected to attend. All interested persons are invited to attend, and registration is not required. 1 The first technical conference was held on December 7, 2006, and primarily focused on matters pertaining to cross subsidization; cash management programs and money pools; and exemptions, waivers and blanket authorizations set forth in Order Nos. 667 and 669. 2 Repeal of the Public Utility Holding Company Act of 1935 and Enactment of the Public Utility Holding Company Act of 2005, Order No. 667, FERC Stats. & Regs. ¶ 31,197 (2005), order on reh'g, Order No. 667-A, FERC Stats. & Regs. ¶ 31,213, order on reh'g, Order No. 667-B, FERC Stats. & Regs. ¶ 31,224 (2006), reh'g pending; Transactions Subject to FPA Section 203, Order No. 669, FERC Stats. & Regs. ¶ 31,200 (2006), order on reh'g, Order No. 669-A, FERC Stats. Regs. ¶ 31,214 (2006), order on reh'g, Order No. 669-B, FERC Stats. & Regs. ¶ 31,225 (2006). The subject of this technical conference is whether the Commission's current merger policy should be revised, in particular whether the Commission's Appendix A analysis is sufficient to identify market power concerns in today's electric industry market environment. A further notice with a detailed agenda will be issued in advance of the conference. The Commission is now soliciting nominations for speakers at the technical conference. Persons wishing to nominate themselves as speakers should do so using this electronic link: *https://www.ferc.gov/whats-new/registration/puhca-03-08-speaker-form.asp.* Such nominations must be made before the close of business, Thursday, February 15, 2007, so that an agenda for the technical conference can be drafted and published. Transcripts of the conference will be immediately available from Ace Reporting Company (202-347-3700 or 1-800-336-6646) for a fee. They will be available for the public on the Commission's eLibrary system seven calendar days after FERC receives the transcript. A free webcast of this event will be available through *http://www.ferc.gov.* Anyone with Internet access who desires to view this event can do so by navigating to www.ferc.gov's Calendar of Events and locating this event in the Calendar. The event will contain a link to its webcast. The Capitol Connection provides technical support for the free webcasts. It also offers access to this event via television in the DC area and via phone bridge for a fee. If you have any questions, visit *http://www.CapitolConnection.org* or contact Danelle Perkowski or David Reininger at 703-993-3100. Commission conferences are accessible under section 508 of the Rehabilitation Act of 1973. For accessibility accommodations please send an e-mail to *accessibility@ferc.gov* or call toll free 1-866-208-3372 (voice) or 202-208-1659 (TTY), or send a FAX to 202-208-2106 with the required accommodations. For more information about this conference, please contact: Sarah McKinley, Office of External Affairs, Federal Energy Regulatory Commission,

(202)502-8004, *sarah.mckinley@ferc.gov.* Magalie R. Salas, Secretary. [FR Doc. E7-2707 Filed 2-15-07; 8:45 am] BILLING CODE 6717-01-P DEPARTMENT OF COMMERCE Patent and Trademark Office 37 CFR Part 1 [Docket No. PTO-C-2006-0057] RIN 0651-AC09 April 2007 Revision of Patent Cooperation Treaty Procedures AGENCY: United States Patent and Trademark Office, Commerce. ACTION: Notice of proposed rule making. SUMMARY: The United States Patent and Trademark Office (USPTO or Office) is proposing to amend the rules of practice in title 37 of the Code of Federal Regulations

(CFR)to conform them to certain amendments made to the Regulations under the Patent Cooperation Treaty

(PCT)that will take effect on April 1, 2007. These amendments will result in the addition of a mechanism to the PCT system whereby applicants may request that the right to claim priority be restored in applications that meet certain requirements. In addition, these amendments will provide a means for applicants to insert a missing portion of an international application without the loss of the international filing date. These amendments also will clarify the circumstances and procedures under which the correction of an obvious mistake may be made in an international application. Finally, the Office is proposing to revise the search fee for international applications. *Comment Deadline Date:* Written comments must be received on or before March 19, 2007. No public hearing will be held. ADDRESSES: Comments should be sent by electronic mail message via the Internet addressed to: *AC9.comments@uspto.gov.* Comments may also be submitted by mail addressed to: Mail Stop Comments-Patents, Commissioner for Patents, P.O. Box 1450, Alexandria, VA, 22313-1450, or by facsimile to

(571)273-0459, marked to the attention of Mr. Richard Cole. Although comments may be submitted by mail or facsimile, the Office prefers to receive comments via the Internet. The comments will be available for public inspection at the Office of the Commissioner for Patents, located in Madison East, Tenth Floor, 600 Dulany Street, Alexandria, Virginia, and will be available via the Office Internet Web site (address: *http://www.uspto.gov* ). Because comments will be made available for public inspection, information that is not desired to be made public, such as an address or phone number, should not be included in the comments. FOR FURTHER INFORMATION CONTACT: Richard R. Cole, Legal Examiner, Office of PCT Legal Administration (OPCTLA) directly by telephone at

(571)272-3281, or by facsimile at

(571)273-0459. SUPPLEMENTARY INFORMATION: During the September-October 2005 meeting of the Governing Bodies of the World Intellectual Property Organization (WIPO), the PCT Assembly adopted various amendments to the Regulations under the PCT that enter into force on April 1, 2007. The amended PCT Regulations were published in the PCT Gazette of February 23, 2006 (08/2006), in section IV, at pages 5496-5541. The purposes of these amendments are to:

(1)Bring the provisions of the PCT into closer alignment with the provisions of the Patent Law Treaty (PLT); and

(2)clarify the circumstances and procedures under which the correction of an obvious mistake may be made in an international application. *Alignment with the PLT:* The PLT provides for:

(1)Restoration of applicant's right to claim priority under certain situations (PLT Article 13(2));

(2)insertion of a missing portion of an application without the loss of the filing date (PLT Article 5(6)); and

(3)substitution of the description and drawings upon filing with a reference to a previously filed application (PLT Article 5(7)). The present amendments to the PCT Regulations will provide similar mechanisms for applicants using the PCT system. With regard to restoration of applicant's right to claim priority under certain situations (PLT Article 13(2)), PCT Rule 26 *bis* has been amended to provide for the restoration of the right to claim priority in international applications which have been filed between twelve and fourteen months after the priority date and in which the delay in filing the international application was either in spite of due care or unintentional. It must be noted that PCT Rule 49 *ter* provides for designated Offices whose national law is incompatible with the PCT provisions concerning restoration of the right of priority to take a reservation with respect to the effects of this provision on national applications. The United States has taken this reservation pending passage of legislation that would implement the PLT in the United States. Therefore, any restoration of a right of priority by the United States Receiving Office under this section, or by any other Receiving Office under the provisions of PCT Rule 26 *bis.* 3, will not entitle applicants to a right of priority in any application which has entered the national stage under 35 U.S.C. 371, or in any application filed under 35 U.S.C. 111(a) which claims benefit under 35 U.S.C. 120 and 365(c) to an international application in which the right of priority has been restored. Whether or not applicant is entitled to the right of priority continues to be governed by whether applicant has satisfied the provisions of 35 U.S.C. 119, 120, and 365. It must also be noted that even though restoration of such a right will not entitle applicant to the right of priority in a subsequent United States application, the priority date will still govern all PCT time limits, including the thirty-month period for filing national stage papers and fees under 37 CFR 1.495. PCT Article 2(ix), which defines “priority date” for purposes of computing time limits, contains no limitation that the priority claim be valid. Thus, for example, in an international application containing an earliest priority claim to a German application filed thirteen months prior to the filing date of the international application, the filing date of the German application will be used as the basis for computing time limits under the PCT, including the thirty-month time period set forth in 37 CFR 1.495 to submit the basic national fee (§ 1.492(a)) to avoid abandonment, even though applicant would not be entitled to priority to the German application in the United States national phase since the German application was filed more than twelve months from the international filing date. *See* 35 U.S.C. 119(a) and 365(b). Concerning insertion of a missing portion of an application without the loss of the filing date (PLT Article 5(6)) and substitution of the description and drawings upon filing with a reference to a previously filed application, these provisions could not be implemented to the extent provided in the PLT absent amendment of the PCT Articles. However, similar provisions have been made in the PCT by amending PCT Rules 4 and 20 to allow for the inclusion of an incorporation by reference statement on the PCT Request form. Applicants may then rely on this statement to insert portions of the international application (including the entire description, claims, and/or drawings) which were missing upon the international filing date. 37 CFR 1.412(c)(1) already provides that the USPTO, in its capacity as a PCT Receiving Office, will accord international filing dates in accordance with PCT Rule 20. Therefore, no change to the rules of practice in title 37 CFR is necessary to implement these provisions, other than the deletion of 37 CFR 1.437(b) due to the fact that missing drawings are no longer handled in a manner different from the description and claims. Discussion of Specific Rules Title 37 of the Code of Federal Regulations, part 1, is proposed to be amended as follows: *Section 1.17:* Section 1.17(t) is proposed to be amended to set forth the fee for requesting restoration of the right of priority. *Section 1.57:* Section 1.57(a)(2) is proposed to be amended to reflect that omitted portions of international applications, which applicant desires to be effective in other designated States, must be submitted in accordance with PCT Rule 20. *Section 1.437:* Section 1.437(a) is proposed to be amended for clarity and to remove inaccurate language currently present in the paragraph. Section 1.437(b) is proposed to be deleted to reflect the fact that missing drawings will no longer be treated differently from missing parts of the description or claims. Section 1.437(c) is proposed to be redesignated as § 1.437(b). *Section 1.445:* Section 1.445(a) is proposed to be amended to set a search fee that more accurately reflects the cost of conducting a search and preparing a Chapter I written opinion in an international application. The Activity-Based-Cost analysis for the search and preparation of search and preparing Chapter I written opinions for international applications reveals that the average cost of this activity is over $1,800.00. Therefore, the Office is proposing to revise § 1.445(a) to provide for a search fee (and supplemental search fee) of $1,800.00. In addition, the Office is proposing to revise § 1.445(a) to provide that this $1,800.00 search fee is applicable, regardless of whether there is a corresponding prior nonprovisional application under 35 U.S.C. 111(a), a corresponding prior provisional application under 35 U.S.C. 111(b), or no corresponding prior provisional or nonprovisional application under 35 U.S.C. 111. The Office currently provides a reduced search fee if there is a corresponding prior nonprovisional application under 35 U.S.C. 111(a) and such application is adequately identified in the international application or accompanying papers at the time of filing the international application. The current backlog of applications under 35 U.S.C. 111(a) awaiting examination is such that it is no longer deemed appropriate to provide a reduced fee or other incentive for applicants to file an application under 35 U.S.C. 111(a) prior to or essentially parallel with the filing of an international application. *Section 1.452:* Section 1.452 is proposed to be added to provide for restoration of the right of priority in international applications (subject to the enumerated conditions and limitations). Section 1.452(a) provides that applicants may request restoration of the right of priority if the international application was filed within fourteen months from the priority date and the delay in filing the international application was unintentional. Section 1.452(b) provides that any request for restoration must be filed within fourteen months from the priority date and must be accompanied by:

(1)A notice adding the priority claim, if applicable;

(2)the requisite fee; and

(3)a statement that the entire delay was unintentional. Section 1.452(c) provides that, in cases where applicant has requested early publication, the requirements under § 1.452(b) must be submitted prior to completion of the technical preparations for international publication. Section 1.452(d) sets forth that restoration of a priority claim by the United States Receiving Office under this section, or by any other Receiving Office under the provisions of PCT Rule 26 *bis* .3, will not entitle applicants to a right of priority in any application which has entered the national stage under 35 U.S.C. 371, or in any application filed under 35 U.S.C. 111(a) which claims benefit under 35 U.S.C. 120 and 365(c) to an international application in which the right to priority has been restored. *Section 1.465:* Section 1.465(b) is proposed to be amended for clarity and to remove the limitation that the priority claim must be “valid” in order to be used as the basis for computing time limits under the PCT. Section 1.465(c) is proposed to be deleted as unnecessary, as the obligation of the United States Receiving Office to proceed under PCT Rule 26 *bis* .2 arises under 35 U.S.C. 361. In addition, reference to Rule 20.2(a)(i) or

(iii)is no longer appropriate in view of the amendments to PCT Rule 20. Rule Making Considerations *Regulatory Flexibility Act:* For the reasons set forth herein, the Deputy General Counsel for General Law of the United States Patent and Trademark Office has certified to the Chief Counsel for Advocacy of the Small Business Administration that the changes proposed in this notice (if adopted) will not have a significant economic impact on a substantial number of small entities. *See* 5 U.S.C. 605(b). The significant changes proposed in this notice are:

(1)Provisions for a restoration of a right of priority in certain limited situations; and

(2)an adjustment of the search and supplemental search fee to more accurately reflect the cost of conducting a search and preparing a Chapter I written opinion in an international application. The PCT enables United States applicants to file one application (an international or PCT application) in a standardized format in English in the United States Receiving Office (the United States Patent and Trademark Office) and have that application acknowledged as a regular national or regional filing in as many PCT Contracting States as the applicants desire to seek patent protection. *See* Manual of Patent Examining Procedure

(MPEP)1801. The primary benefit of the PCT system is the ability to delay the expense of submitting papers and fees to the PCT national offices. *See* MPEP 1881. 35 U.S.C. 376(b) provides that the Director shall prescribe the amount of the search fee, the supplemental search fee, and such other fees as established by the Director. Pursuant to the authority in 35 U.S.C. 376(b), this notice proposes to adjust the search fee in § 1.445(b)(2)(iii) and the supplemental search fee in § 1.445(b)(3) from $1,000.00 to $1,800.00 (an increase of $800.00). This proposed adjustment to the search fee and supplemental search fee is to make these fees more accurately reflect the cost of conducting a search and preparing a Chapter I written opinion in an international application. The PCT does not preclude United States applicants from filing patent applications directly in the patent offices of those countries which are Contracting States of the PCT (with or without previously having filed a regular national application under 35 U.S.C. 111(a) or 111(b) in the United States) and taking advantage of the priority rights and other advantages provided under the Paris Convention and the World Trade Organization

(WTO)administered Agreement on Trade-Related Aspects of Intellectual Property (TRIPs Agreement). *See* MPEP 1801. That is, the PCT is not the exclusive mechanism for seeking patent protection in foreign countries, but is instead simply an optional alternative route available to United States patent applicants for seeking patent protection in those countries that are Contracting States of the PCT. *See id.* In addition, an applicant filing an international application under the PCT in the United States Receiving Office (the United States Patent and Trademark Office) is not required to use the United States Patent and Trademark Office as the International Searching Authority. The European Patent Office (except for applications containing business method claims) or the Korean Intellectual Property Office may be elected as the International Searching Authority for international applications filed in the United States Receiving Office. The applicable search fee if the European Patent Office is elected as the International Searching Authority European is $2,059.00 (set by the European Patent Office), and the applicable search fee if the Korean Intellectual Property Office is elected as the International Searching Authority is $232.00 (set by the Korean Intellectual Property Office). In 2003, the Government Accountability Office

(GAO)released a report containing the results of a survey of an expert panel of patent law attorneys concerning small businesses considering foreign patent protection with respect to the “cradle to grave” costs of foreign patent protection. *See Experts” Advice for Small Businesses Seeking Foreign Patents,* GAO-03-910 (2003). The GAO concluded that the cost of obtaining and maintaining foreign patents to be in the range of $160,000 to $330,000. *See Id.* at 41. Therefore, the international search fee increase of $800.00 is not significant in comparison to the overall costs that a small entity must incur to obtain international patent protection. In addition, filing an international application under the PCT is an optional route for an applicant seeking foreign patent protection, and an applicant who does not choose to seek foreign patent protection by filing an international application under the PCT in the United States Receiving Office (the United States Patent and Trademark Office) is not required to use the United States Patent and Trademark Office as the International Searching Authority. Pursuant to the authority in 35 U.S.C. 376(b), this notice proposes to eliminate the reduced search fee in § 1.445(b)(2)(i) or

(ii)when there is a corresponding prior nonprovisional application under 35 U.S.C. 111(a) and thereby adjusting the search fee in the situation in which there is a corresponding prior nonprovisional application under 35 U.S.C. 111(a) from $300.00 to $1,800.00 (an increase of $1,500.00). As discussed previously, this proposed adjustment to the search fee is to make these fees more accurately reflect the cost of conducting a search and preparing a Chapter I written opinion in an international application. An applicant has the option of filing a provisional application under 35 U.S.C. 111(b) (rather than a nonprovisional application under 35 U.S.C. 111(a)) or not filing a prior application before filing an international application. These alternatives are available at a lower overall cost in patent fees (even with the proposed adjustment in the search fee) than the cost in patent fees of filing a nonprovisional application under 35 U.S.C. 111(a) before filing an international application. This is the case even taking into account the current reduced search fee for there being a corresponding prior nonprovisional application under 35 U.S.C. 111(a). Pursuant to the authority in 35 U.S.C. 376(b), this notice proposes to establish a fee for filing a request for the restoration of the right of priority of $1,370.00. This fee amount is identical to the fee amount for petitions to accept an unintentionally delayed claim for priority under 35 U.S.C. 119, 120, 121, or 365(a) (37 CFR 1.55 and 1.78). In addition, the Office anticipates that very few applicants will file a request for the restoration of the right of priority (about 100 each year, in comparison to the over 45,000 international applications filed in the United States Receiving Office each year). For the reasons stated previously, the changes proposed in this notice (if adopted) will not have a significant economic impact on a substantial number of small entities. *Executive Order 13132:* This rule making does not contain policies with federalism implications sufficient to warrant preparation of a Federalism Assessment under Executive Order 13132 (Aug. 4, 1999). *Executive Order 12866:* This rule making has been determined to be significant for purposes of Executive Order 12866 (Sept. 30, 1993). *Paperwork Reduction Act:* This notice involves information collection requirements which are subject to review by the Office of Management and Budget

(OMB)under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 *et seq.* ). The collection of information involved in this notice has been reviewed and approved by OMB under OMB control number 0651-0021. The United States Patent and Trademark Office is not resubmitting an information collection package to OMB for its review and approval because the changes in this notice do not affect the information collection requirements associated with the information collection under OMB control number 0651-0021. Interested persons are requested to send comments regarding these information collections, including suggestions for reducing this burden, to:

(1)The Office of Information and Regulatory Affairs, Office of Management and Budget, New Executive Office Building, Room 10202, 725 17th Street, NW., Washington, DC 20503, Attention: Desk Officer for the Patent and Trademark Office; and

(2)Robert A. Clarke, Deputy Director, Office of Patent Legal Administration, Commissioner for Patents, P.O. Box 1450, Alexandria, VA 22313-1450. Notwithstanding any other provision of law, no person is required to respond to nor shall a person be subject to a penalty for failure to comply with a collection of information subject to the requirements of the Paperwork Reduction Act unless that collection of information displays a currently valid OMB control number. List of Subjects in 37 CFR Part 1 Administrative practice and procedure, Courts, Freedom of Information, Inventions and patents, Reporting and record keeping requirements, Small businesses. For the reasons set forth in the preamble, 37 CFR Part 1 is proposed to be amended as follows: PART 1—RULES OF PRACTICE IN PATENT CASES 1. The authority citation for 37 CFR Part 1 continues to read as follows: Authority: 35 U.S.C. 2(b)(2). 2. Section 1.17 is amended by revising paragraph

(t)to read as follows: § 1.17 Patent application and reexamination processing fees.

(t)For the acceptance of an unintentionally delayed claim for priority under 35 U.S.C. 119, 120, 121, or 365(a) (§§ 1.55 and 1.78) or for filing a request for the restoration of the right of priority under § 1.452—$1,370.00. 3. Section 1.57 is amended by revising paragraph (a)(2) to read as follows: § 1.57 Incorporation by reference.

(a)* * *

(2)Any amendment to an international application pursuant to this paragraph shall be effective only as to the United States, and shall have no effect on the international filing date of the application. In addition, no request under this section to add the inadvertently omitted portion of the specification or drawings in an international application designating the United States will be acted upon by the Office prior to the entry and commencement of the national stage (§ 1.491) or the filing of an application under 35 U.S.C. 111(a) which claims benefit of the international application. Any omitted portion of the international application which applicant desires to be effective as to all designated States, subject to PCT Rule 20.8(b), must be submitted in accordance with PCT Rule 20. 4. Section 1.437 is revised to read as follows: § 1.437 The drawings.

(a)Drawings are required when they are necessary for the understanding of the invention (PCT Art. 7).

(b)The physical requirements for drawings are set forth in PCT Rule 11 and shall be adhered to. 5. Section 1.445 is amended by revising paragraphs (a)(2) and (a)(3) to read as follows: § 1.445 International application filing, processing and search fees.

(a)* * *

(2)A search fee (see 35 U.S.C. 361(d) and PCT Rule 16)—$1,800.00

(3)A supplemental search fee when required, per additional invention—$1,800.00. 6. Section 1.452 is added to read as follows: § 1.452 Restoration of right of priority.

(a)If the international application has an international filing date which is later than twelve months from the priority date but within the period of fourteen months from the priority date, the right of priority in the international application may be restored upon request if the delay in filing the international application within the period of twelve months from the priority date was unintentional.

(b)A request to restore the right of priority in an international application under paragraph

(a)must be filed not later than fourteen months from the priority date and must include:

(1)A notice under PCT Rule 26 *bis.* 1(a) adding the priority claim, if the priority claim in respect of the earlier application is not contained in the international application;

(2)The fee set forth in § 1.17(t); and

(3)A statement that the entire delay was unintentional. The Director may require additional information where there is a question whether the delay was unintentional.

(c)If the applicant makes a request for early publication under PCT Article 21(2)(b), any requirement under paragraph

(b)of this section filed after the technical preparations for international publication have been completed by the International Bureau shall be considered as not having been submitted in time.

(d)Restoration of a right of priority to a prior application by the United States Receiving Office under this section, or by any other Receiving Office under the provisions of PCT Rule 26 *bis.* 3, will not entitle applicants to a right of priority in any application which has entered the national stage under 35 U.S.C. 371, or in any application filed under 35 U.S.C. 111(a) which claims benefit under 35 U.S.C. 120 and 365(c) to an international application in which the right to priority has been restored. 7. Section 1.465 is amended by revising paragraph

(b)to read as follows: § 1.465 Timing of application processing based on the priority date.

(b)When a claimed priority date is corrected under PCT Rule 26 *bis.* 1(a), or a priority claim is added under PCT Rule 26 *bis.* 1(a), withdrawn under PCT Rule 90 *bis.* 3, or considered not to have been made under PCT Rule 26 *bis.* 2, the priority date for the purposes of computing any non-expired time limits will be the filing date of the earliest remaining priority claim under PCT Article 8 of the international application, or if none, the international filing date. Dated: February 12, 2007. Jon W. Dudas, Under Secretary of Commerce for Intellectual Property, and Director of the United States Patent and Trademark Office. [FR Doc. E7-2761 Filed 2-15-07; 8:45 am] BILLING CODE 3510-16-P POSTAL SERVICE 39 CFR Part 111 Revised Standards for Mailing Adult Fowl AGENCY: Postal Service. ACTION: Proposed rule. SUMMARY: The Postal Service proposes new requirements for containers used for mailing adult chickens. Currently, we require all mailable adult fowl other than chickens to be mailed in containers approved by the manager of Mailing Standards. With this proposal, we intend to require adult chickens to be mailed in approved containers also. DATES: We must receive your comments on or before March 19, 2007. ADDRESSES: Mail or deliver written comments to the Manager, Mailing Standards, U.S. Postal Service, 475 L'Enfant Plaza SW., Room 3436, Washington, DC 20260-3436. You may inspect and photocopy all written comments at Postal Service Headquarters Library, 475 L'Enfant Plaza SW., 11th Floor N, Washington, DC between 9 a.m. and 4 p.m., Monday through Friday. FOR FURTHER INFORMATION CONTACT: Bert Olsen, 202-268-7276. SUPPLEMENTARY INFORMATION: To promote the safety of Postal Service employees, customers, and all mailed adult fowl, we propose to revise our requirements for containers used for mailing adult chickens. Current mailing standards permit adult chickens to be mailed in containers that pass basic package performance tests. By contrast, other adult fowl (such as turkeys, guinea fowl, doves, pigeons, pheasants, partridges, and quail) must be mailed in containers approved by the manager of Mailing Standards. The container standards for other adult fowl are more stringent than the standards for adult chickens. Because there is no compelling reason to treat adult chickens differently from other adult fowl, the revised standards will require adult chickens to be mailed in the same containers approved by Mailing Standards for use with other adult fowl. Vendors who wish to submit a container for USPS approval can contact the office of Mailing Standards for a list of container criteria. Additionally, the term “biologically secure” has been replaced by the word “secure” to eliminate any implication that such packaging will completely prevent the spread of disease during handling. Although we are exempt from the notice and comment requirements of the Administrative Procedure Act [5 U.S.C. of 553(b), (c)] regarding proposed rulemaking by 39 U.S.C. 410(a), we invite public comment on the following proposed revisions to *Mailing Standards of the United States Postal Service,* Domestic Mail Manual (DMM), incorporated by reference in the Code of Federal Regulations. See 39 CFR 111.1. List of Subjects in 39 CFR Part 111 Administrative practice and procedure, Postal Service. Accordingly, 39 CFR part 111 is proposed to be amended as follows: PART 111—[AMENDED] 1. The authority citation for 39 CFR Part 111 continues to read as follows: Authority: 5 U.S.C. 552(a); 39 U.S.C. 101, 401, 403, 404, 414, 416, 3001-3011, 3201-3219, 3403-3406, 3621, 3626, 5001. 2. Revise the following sections of Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM), as follows: 600 Basic Standards for All Mailing Services 601 Mailability 9.0 Perishables 9.3 Live Animals 9.3.4 Adult Fowl [Revise 9.3.4 as follows:] Disease-free adult fowl are mailable domestically when shipped under applicable law in accordance with 601.1.7. Adult chickens, turkeys, guinea fowl, doves, pigeons, pheasants, partridges, and quail as well as ducks, geese, and swans are mailable as follows: a. The mailer must send adult fowl by Express Mail in secure containers approved by the manager of Mailing Standards (see 608.8.0 for address). b. The number of birds per parcel must follow the container manufacturer limits and each bird must weigh more than 6 ounces. c. Indemnity may be paid only for loss, damage, or rifling, and not for death of the birds in transit if there is no visible damage to the mailing container. [Delete 9.3.5, Adult Chickens, and renumber 9.3.6 through 9.3.13 as new 9.3.5 through 9.3.12.] We will publish an appropriate amendment to 39 CFR Part 111 to reflect these changes if our proposal is adopted. Neva R. Watson, Attorney, Legislative. [FR Doc. E7-2817 Filed 2-15-07; 8:45 am] BILLING CODE 7710-12-P DEPARTMENT OF DEFENSE GENERAL SERVICES ADMINISTRATION NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 48 CFR Parts 2, 3, and 52 [FAR Case 2006-007; Docket 2007-0001; Sequence 1] RIN 9000-AK67 Federal Acquisition Regulation; FAR Case 2006-007, Contractor Code of Ethics and Business Conduct AGENCIES: Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA). ACTION: Proposed rule with request for comments. SUMMARY: The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (Councils) are proposing to amend the Federal Acquisition Regulation

(FAR)to address Contractor Code of Ethics and Business Conduct and the display of Federal agency Office of the Inspector General

(OIG)Fraud Hotline Poster. DATES: Interested parties should submit written comments to the FAR Secretariat on or before April 17, 2007 to be considered in the formulation of a final rule. ADDRESSES: Submit comments identified by FAR case 2006-007 by any of the following methods: • Federal eRulemaking Portal: *http://www.regulations.gov.* Search for any document by first selecting the proper document types and selecting “Federal Acquisition Regulation” as the agency of choice. At the “Keyword” prompt, type in the FAR case number (for example, FAR Case 2006-007) and click on the “Submit” button. Please include any personal and/or business information inside the document.You may also search for any document by clicking on the “Advanced search/document search” tab at the top of the screen, selecting from the agency field “Federal Acquisition Regulation”, and typing the FAR case number in the keyword field. Select the “Submit” button. • Fax: 202-501-4067. • Mail: General Services Administration, Regulatory Secretariat (VIR), 1800 F Street, NW, Room 4035, ATTN: Laurieann Duarte, Washington, DC 20405. *Instructions:* Please submit comments only and cite FAR case 2006-007 in all correspondence related to this case. All comments received will be posted without change to *http://www.regulations.gov* , including any personal and/or business confidential information provided. FOR FURTHER INFORMATION CONTACT: Mr. Ernest Woodson, Procurement Analyst, at

(202)501-3775 for clarification of content. For information pertaining to status or publication schedules, contact the FAR Secretariat at

(202)501-4755. Please cite FAR case 2006-007. SUPPLEMENTARY INFORMATION: A. Background FAR Part 3 provides guidance on improper business practices and personal conflicts of interest, but it does not discuss the contractor’s responsibilities with regard to code of ethics and business conduct and the avoidance of improper business practices. Currently, three agencies (the Departments of Defense, Veterans Affairs, and the Environmental Protection Agency) maintain policy for contractor code of ethics and business conduct and the contractor’s responsibility to avoid improper business practices. With few exceptions, the agencies’ clauses and prescriptions are very similar to one another, in that they- establish agency policy and recommend contents of a contractor’s system of management and internal controls in connection with Government contracts; establish contract dollar thresholds for display of the agency Inspector General poster; provide instructions for obtaining the hotline posters; and provide exemptions to displaying posters. However, the agencies’ policies differ on the contract dollar thresholds and the address and phone number of the Office of the Inspector General

(OIG)to obtain a fraud hotline poster. In view of the significant sums of Federal dollars spent by agencies to acquire goods and services, this rule establishes a clear and consistent policy regarding contractor code of ethics and business conduct, responsibility to avoid improper business practices, and procedures for displaying an agency OIG Fraud Hotline poster to facilitate the reporting of wrongdoing in Federal contracting. This rule also recognizes the need for agencies to cooperate with the Department of Homeland Security to ensure that contracts funded with disaster assistance funds require display of any event-specific fraud hotline posters announcing ad hoc or other special hotline reporting information applicable to the specific contract. This rule proposes amending the FAR to add FAR Subpart 3.10, Contractor Code of Ethics and Business Conduct, that will— 1. Define the “ *United States* ” to mean the 50 States, the District of Columbia and outlying areas as used in FAR 25.003, and exclude contracts performed outside the United States from the requirements of the rule. 2. Include policy stating that contractors “ *should* ” have a code of ethics and business conduct. 3. Exclude commercial item contracts awarded pursuant to FAR Part 12 from the requirements of the rule, because the rule will not implement statute or executive order, and because ethics programs and hotline posters are not standard commercial practices as stipulated by the Federal Acquisition Streamlining Act. 4. Provide that contractors receiving awards in excess of $5,000,000 that have performance periods of 120 days or more, shall have a written code of ethics and business conduct within 30 days after contract award. Furthermore, the contractor shall promote compliance by establishing, within 90 days after contract award, an employee ethics and compliance training program and an internal control system proportionate to the size of the company and extent of its business with the Federal Government. 5. Provide that contractors receiving awards in excess of $5,000,000 shall display the agency OIG fraud hotline poster and, when appropriate, any special disaster relief poster from Department of Homeland Security, at work locations in the United States and at the company website if the contractor has established a company website for the purposes of providing information to employees. 6. Provide alternates to the basic clause to accommodate those agencies that do not have posters and to accommodate agencies that choose to require the display of a fraud hotline poster at contract award thresholds at or below $5,000,000. 7. Include a flowdown provision that applies to subcontracts at the same dollar level as the prime contract. 8. Provide for remedies if the contractor fails to comply with the clause. This is not a significant regulatory action and, therefore, was not subject to review under Section 6(b) of Executive Order 12866, Regulatory Planning and Review, dated September 30, 1993. This rule is not a major rule under 5 U.S.C. 804. B. Regulatory Flexibility Act The Councils do not expect this proposed rule to have a significant economic impact on a substantial number of small entities within the meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, *et seq.* , because the rule does not require contractors to have a written code of ethics and business conduct, employee ethics and compliance training program, or internal control system for contracts valued at $5 million or less; and provides that when such programs are required, they shall be suitable to the size of the company and the extent of the company’s business with the Federal Government. Under the rule, contractors have the ability to determine the simplicity or complexity and cost of their programs. An Initial Regulatory Flexibility Analysis has, therefore, not been performed. We invite comments from small businesses and other interested parties. The Councils will consider comments from small entities concerning the affected FAR Parts 2, 3, and 52 in accordance with 5 U.S.C. 610. Interested parties must submit such comments separately and should cite 5 U.S.C. 601, *et seq.* (FAR case 2006-007), in correspondence. C. Paperwork Reduction Act The Paperwork Reduction Act does not apply because the proposed changes to the FAR do not impose information collection requirements that require the approval of the Office of Management and Budget under 44 U.S.C. 3501, *et seq.* List of Subjects in 48 CFR Parts 2, 3, and 52 Government procurement. Dated:February 7, 2007. Ralph De Stefano, Director, Contract Policy Division. Therefore, DoD, GSA, and NASA propose amending 48 CFR parts 2, 3, and 52 as set forth below: 1. The authority citation for 48 CFR parts 2, 3, and 52 continues to read as follows: Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42 U.S.C. 2473(c). PART 2 — DEFINITIONS OF WORDS AND TERMS 2. Amend section 2.101 in paragraph (b), in the definition “United States,” by redesignating paragraphs

(1)through

(6)as paragraphs(2) through)(7), respectively, and adding a new paragraph

(1)to read as follows: 2.101 Definitions. (b)* * * “United States,” when used in a geographic sense, means the 50 States and the District of Columbia, except as follows:

(1)For use in Subpart 3.10, see the definition at 3.1001. PART 3—IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST 3. Add Subpart 3.10 to read as follows: Sec. 3.1000 Scope of subpart. 3.1001 Definitions. 3.1002 Policy. 3.1003 Procedures. 3.1004 Contract clause. Subpart 3.10—Contractor Code of Ethics and Business Conduct 3.1000 Scope of subpart. This subpart prescribes policies and procedures for the establishment of contractor code of ethics and business conduct, and display of agency Office of Inspector General

(OIG)fraud hotline posters. 3.1001 Definitions. “United States,”as used in this subpart, means the 50 States, the District of Columbia, and outlying areas. 3.1002 Policy. Government contractors must conduct themselves with the highest degree of integrity and honesty. Contractors should have a written code of ethics and business conduct. To promote compliance with such code of ethics and business conduct, contractors should have an employee ethics and compliance training program and an internal control system that-

(a)Are suitable to the size of the company and extent of its involvement in Government contracting;

(b)Facilitate timely discovery and disclosure of improper conduct in connection with Government contracts; and

(c)Ensure corrective measures are promptly instituted and carried out. 3.1003 Procedures. Contracting officers shall ensure that the requirements of this subpart are implemented using the following procedures:

(a)*Exceptions* . Commercial item contracts performed under Part 12 or performed outside the United States do not apply to this subpart and are not required to —

(1)Have an employee ethics and compliance training program and internal control systems; or

(2)Have the contractor display the fraud poster.

(b)*Contracts exceeding $5,000,000* .

(1)Contracts exceeding $5,000,000 shall require the contractor to—

(i)Display the agency OIG fraud hotline poster, unless the agency does not have a fraud hotline poster; and

(ii)Display the Department of Homeland Security

(DHS)disaster assistance poster in accordance with paragraph (d)(2) of this section.

(2)In addition to the requirements of paragraph(b)(1) of this section, contracts exceeding $5,000,000 with performance periods of 120 days or more shall require the contractor to—

(i)Have a written code of ethics and business conduct; and

(ii)Establish an employee ethics and compliance training program and internal control systems commensurate with the size of the company and its involvement in Government contracting.

(c)*Contracts valued at $5,000,000 or less* . Agencies may establish policy and procedures for display of the agency OIG fraud hotline poster, without imposing the requirements of paragraph (b)(2) of this section, in contracts valued at $5,000,000 or less.

(d)*Fraud Hotline Poster* .

(1)Agencies are responsible for determining the need for, and content of, their respective agency OIG fraud hotline poster(s).

(2)When requested by the Department of Homeland Security (DHS), agencies shall ensure that contracts funded with disaster assistance funds require display of any event-specific fraud hotline poster applicable to the specific contract. As established by the agency, such posters may be displayed in lieu of, or in addition to, the agency’s standard poster. 3.1004 Contract clause. (a)(1) Insert the clause at FAR 52.203-XX, Contractor Code of Ethics and Business Conduct, in solicitations and contracts expected to exceed $5,000,000 and the performance period is 120 days or more, except when the contract -

(i)Will be awarded pursuant to the procedures in FAR Part 12; or to address Contractor Code of Ethics and Business Conduct and the display of Federal agency Office of the Inspector General

(OIG)Fraud Hotline Poster.

(ii)Will be performed outside the United States.

(2)The contracting officer shall insert the website link(s) or other contact information for obtaining the agency and/or DHS poster.

(b)Insert the clause with its Alternate I-

(1)When the agency does not have a fraud hotline poster; and

(2)When the requirements of 3.1003(d)(2) do not apply.

(c)Insert the clause with its Alternate II-

(1)When the contract performance period is less than 120 days; or

(2)If the agency has established policies and procedures for display of the OIG fraud hotline poster at a lesser amount. The contracting officer shall insert the agency authorized lesser amount in paragraph

(d)of this section. PART 52—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 4. Add section 52.203-XX to read as follows: 52.203-XX Contractor Code of Ethics and Business Conduct. As prescribed in 3.1004(a), insert the following clause: CONTRACTOR CODE OF ETHICS AND BUSINESS CONDUCT

(a)*Definition.* “United States,” as used in this clause, means the 50 States, the District of Columbia, and outlying areas.

(b)*Code of ethics and business conduct* .

(1)Within 30 days after contract award, the Contractor shall have a written code of ethics and business conduct.

(i)The Contractor shall promote compliance with its code of ethics and business conduct. Within 90 days after contract award, the Contractor shall establish—

(A)An employee ethics and compliance training program; and

(B)An internal control system.

(ii)Such program and system shall be suitable to the size of the company and its involvement in Government contracting.

(c)*Internal control system.*

(1)The Contractor’s internal control system shall—

(i)Facilitate timely discovery and disclosure of improper conduct in connection with Government contracts; and

(ii)Ensure corrective measures are promptly instituted and carried out.

(2)For example, the Contractor’s internal control system should provide for—

(i)Periodic reviews of company business practices, procedures, policies, and internal controls for compliance with the Contractor’s code of ethics and business conduct and the special requirements of Government contracting;

(ii)An internal reporting mechanism, such as a hotline, by which employees may report suspected instances of improper conduct, and instructions that encourage employees to make such reports;

(iii)Internal and/or external audits, as appropriate;

(iv)Disciplinary action for improper conduct;

(v)Timely reporting to appropriate Government officials of any suspected violations of law in connection with Government contracts or any other irregularities in connection with such contracts; and

(vi)Full cooperation with any Government agencies responsible for either investigation or corrective actions.

(d)Display of fraud hotline poster(s).

(1)During contract performance, the Contractor shall prominently display the _________ ( *Contracting Officer shall insert

(i)appropriate agency name(s) and/or

(ii)title of applicable DHS event-specific fraud hotline poster* ) fraud hotline poster(s) in common work areas within business segments performing work under this contract and at contract work sites. The Contractor is not required to display the poster(s) in common work areas and contract sites outside the United States.

(2)Additionally, if the Contractor maintains a company website as a method of providing information to employees, the Contractor shall display an electronic version of the poster(s) at the website.

(3)The _______ poster(s) may be obtained from _______. *(Contracting Officer shall insert the website(s) or other contact information for obtaining the poster(s).)*

(e)*Remedies.* In addition to the other remedies available to the Government, the Contractor’s failure to comply with the requirements of this clause may render the Contractor subject to—

(1)Withholding of contract payments; or

(2)Loss of award fee, consistent with the award fee plan, for the performance period in which the Government determined Contractor non-compliance.

(f)*Subcontracts.*

(1)The Contractor shall include the substance of this clause, including this paragraph (f), in all subcontracts that exceed $5,000,000, except when the subcontract—

(i)Is for the acquisition of a commercial item; or

(ii)Is performed outside the United States.

(2)The Contractor is not required to include the requirements of paragraphs

(b)and

(c)of this clause in subcontracts that have performance periods of less than 120 days. (End of clause) *Alternate I (DATE)* . As prescribed in 3.1004(b), delete paragraph (d), and redesignate paragraphs

(e)and

(f)as paragraphs

(d)and (e). *Alternate II (DATE)* . As prescribed in 3.1004(c), delete paragraphs (b),

(c)and

(f)from the basic clause, redesignate paragraphs

(d)and

(e)as paragraphs

(b)and

(c)and insert the following paragraph (d):

(d)*Subcontracts* . The Contractor shall include the substance of this clause, including this paragraph (d), in all subcontracts that exceed $_______ ( *Contracting Officer shall insert $5,000,000 or the amount authorized by agency procedures* ), except when the subcontract—

(1)Is for the acquisition of a commercial item; or

(2)Is performed outside the United States. [FR Doc. 07-698 Filed 2-15-07; 8:45 am]

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