![Latest Edition
Guide to Record Retention
Requirements
[Revised as of January 1, 1968]
This useful reference tool is designed
to keep businessmen and the general
public informed concerning published
requirements in laws and regulations
relating to record retention. It con
tains over 900 digests detailing the
retention periods for the many types
of records required to be kept under
Federal laws and rules.
The “ Guide” tells the user (1) what
records must be kept, (2) who must
keep them, and (3) how long they
must be kept. Each digest also includes
a reference to the full text of the basic
law or regulation providing for such
retention.
The booklet’s index, numbering over
2,000 items, lists for ready reference
the categories of persons, companies,
and products affected by Federal
record retention requirements.
Price: 40 cents
Compiled by Office of the Federal Register, National Archives and Records Service, General
« Services Administration
Order from Superintendent of Documents, U.S. Government Printing Office
Washington, D.C. 20402
Published daily, Tuesday through Saturday (no publication on Sundays, Mondays, or
on the day after an official Federal holiday), by the Office of the Federal Register, National
Archives and Records Service, General Services Administration (mail address National
Archives Building, Washington,%D.O. 20408), pursuant to the authority contained in the
Federal Register Act, approved July 26, 1035 (49 Stat. 500, as amended; 44 U.S.C., Ch. 8B), under regulations prescribed by the Admin
istrative Committee of the Federal Register, approved by the President (1 CFR Ch. I). Distribution is made only by the Superintendent
of Documents, U.S. Government Printing Office, Washington, D.C. 20402.
The Federal R egister will be furnished by mail to subscribers, free of postage, for $1.50 per month or $15 per year, payable in
advance. The charge for individual copies varies in proportion to the size of the issue (15 cents'for the first 80 pages and 5 cents for
each additional group of 40 pages, as actually bound). Remit check or money order, made payable to the Superintendent of Documents,
U.S. Government Printing Office, Washington, D.C. 20402.
The regulatory material appearing herein is keyed to the Code of Federal R egulations, which is published, under 50 titles, pur
suant to section 11 of the Federal Register Act, as amended. The Code of Federal R egulations is sold by the Superintendent of
Documents. Prices of books and pocket supplements are listed in the first F ederal R egister issue of each month.
There are no restrictions on the republication of material appearing in the F ederal R egister or the Code of F ederal Regulations.
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- 1. FEDERAL REGISTER V O L U M E 33 • N U M B E R 137 Tuesday, July 16,1968 • Washington, D.C. Pages 10129-10175 Agencies in this Issue— Agency for International Development Atomic Energy Commission Business and Defense Services Administration Civil Aeronautics Board Civil Service Commission Commerce Department Commodity Credit Corporation Commodity Exchange Commission Consumer and Marketing Service Customs Bureau Emergency Planning Office Engraving and Printing Bureau Federal Aviation Administration Federal Communications Commission Federal Highway Administration Federal Maritime Commission Federal Power Commission Food and Drug Administration Health, Education, and Welfare Department Housing and Urban Development Department Interstate Commerce Commission Land Management Bureau Public Health Service Renegotiation Board Securities and Exchange Commission Small Business Administration Social Security Administration Detailed list of Contents appears inside.
- 2. Latest Edition Guide to Record Retention Requirements [Revised as of January 1, 1968] This useful reference tool is designed to keep businessmen and the general public informed concerning published requirements in laws and regulations relating to record retention. It con tains over 900 digests detailing the retention periods for the many types of records required to be kept under Federal laws and rules. The “ Guide” tells the user (1) what records must be kept, (2) who must keep them, and (3) how long they must be kept. Each digest also includes a reference to the full text of the basic law or regulation providing for such retention. The booklet’s index, numbering over 2,000 items, lists for ready reference the categories of persons, companies, and products affected by Federal record retention requirements. Price: 40 cents Compiled by Office of the Federal Register, National Archives and Records Service, General « Services Administration Order from Superintendent of Documents, U.S. Government Printing Office Washington, D.C. 20402 Published daily, Tuesday through Saturday (no publication on Sundays, Mondays, or on the day after an official Federal holiday), by the Office of the Federal Register, National Archives and Records Service, General Services Administration (mail address National Archives Building, Washington,%D.O. 20408), pursuant to the authority contained in the Federal Register Act, approved July 26, 1035 (49 Stat. 500, as amended; 44 U.S.C., Ch. 8B), under regulations prescribed by the Admin istrative Committee of the Federal Register, approved by the President (1 CFR Ch. I). Distribution is made only by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402. The Federal R egister will be furnished by mail to subscribers, free of postage, for $1.50 per month or $15 per year, payable in advance. The charge for individual copies varies in proportion to the size of the issue (15 cents'for the first 80 pages and 5 cents for each additional group of 40 pages, as actually bound). Remit check or money order, made payable to the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402. The regulatory material appearing herein is keyed to the Code of Federal R egulations, which is published, under 50 titles, pur suant to section 11 of the Federal Register Act, as amended. The Code of Federal R egulations is sold by the Superintendent of Documents. Prices of books and pocket supplements are listed in the first F ederal R egister issue of each month. There are no restrictions on the republication of material appearing in the F ederal R egister or the Code of F ederal Regulations. .< O N A L A m . FEDEML#*REGISTER Area Code 202 »34 ¿ y *O mit^ Phone 962-8626
- 3. Contents agency fo r in t er n a t io n a l d evelo pm en t Notices k Listof ineligible suppliers— -------10154 AGRICULTURE DEPARTMENT See Commodity Credit Corpora tion; Commodity Exchange Commission; Consumer and Marketing Service. # ATOMIC ENERGY COMMISSION Notices Pacific Gas and Electric Co.; re ceipt of application for con struction permit and facility license_____________ .________ 10162 University of Utah; issuance of amended facility license—— — 10162 BUSINESS AND DEFENSE SERVICES ADMINISTRATION Notices North Carolina State University et al.; applications for duty-free entry of scientific articles-------- 10156 CIVIL AERONAUTICS BOARD Notices City of San Jose, Calif.; order to show cause____________________ 10163 CIVIL SERVICE COMMISSION Rules and Regulations Defense Department; excepted service ___________ _____—___10133 COMMERCE DEPARTMENT See also Business and Defense Services Administration. Notices •• » Business and Defense Services Ad ministration; organization__ __10158 COMMODITY CREDIT CORPORATION Notices Authoritydelegations: Controller et al__________ ____10156 Director, ASCS Commodity Office, Kansas City, Mo_____ 10Ì56 Director, ASCS Commodity Office, et al., Kansas City, Mo. 10156 COMMODITY EXCHANGE COMMISSION Notices Borum, Rodney L., and Joseph J. Saunders; membership______ _ 10156 CONSUMER AND MARKETING SERVICE Rules and Regulations Milk handling: Greater Cincinnati Marketing area; suspending certain provision-------------------------— 10133 Western Colorado marketing area; correction------------- — 10133 Proposed Rule Making Milk in Quad Cities-Dubuque marketing area; decision---------10147 Nuts, mixed, in shell; _U.S. stand ards for grades___ '____________10146 CUSTOMS BUREAU Rules and Regulations Richmond-Petersburg customs port of entry__________________ 10140 Notices Flowers, artificial, of plastic; clas sification ------------- -----------------10155 EMERGENCY PLANNING OFFICE Rules and Regulations Policy guidance on Government- owned production equipment-- 10143 Notices Texas; notice of major disaster— 10171 ENGRAVING AND PRINTING BUREAU Rules and Regulations Conduct in main building and grounds and in annex building and grounds------------— -----------10142 Notices Guard force; appointment as spe cial policemen________________10155 FEDERAL AVIATION ADMINISTRATION Rules and Regulations British Aircraft Corporation Vis count Models 744 and 745D air plane; airworthiness directives- 10133 FEDERAL COMMUNICATIONS COMMISSION Notices Mexican broadcast stations; list of changes, proposed changes, and corrections in assignments. 10167 Hearings, etc.: Avco Broadcasting Corp. et al_ 10164 Berwick Broadcasting Corp. and P.A.L. Broadcasters, Inc— — 10165 Community Broadcasting Com pany of Hartsville and East ern Carolina Broadcasters, Inc _________________________ 10165 Florida-Georgia Television Co., Inc., et al______________ 10165 H. & C. Broadcasting Co. and London Broadcasting Co., In c_____________________10167 KFPW Broadcasting Co. and George Domerese________ — 10165 Lawrence County Broadcastingv Corp. and Two Rivers Co., In c____________________ 10166 Milton Broadcasting Co------ 10167 FEDERAL HIGHWAY ADMINISTRATION Proposed Rule Making Accident reports; public avail ability _______________________ 10152 Parking brakes; safety regula tions; extension of time for filing comments------------------------ 10152 Notices School Bus Operation Safety Advisory Committee____________ 10161 FEDERAL MARITIME COMMISSION Rules and Regulations Licensing of independent ocean freight forwarders; compensa tion and freight forwarder certification; postponement of effective date----------------- 10145 Notices Agreements filed for approval: Australia-West Pacific Line and United States Lines, Inc-------10169 Columbus Line et al------------------ 10169 Israel/U.S. North Atlantic Ports Westbound Freight Confer ence _______________________ 10169 Swiss/North Atlantic Freight Conference _________________ 10169 Spain/North Atlantic Westbound Freight Conference; imposition of transfer charges to port of Boston; investigation-----------------10168 (iContinued on next page) 10131
- 4. 10132 CONTENTS FEDERAL POWER COMMISSION Rules and Regulations Statement of lateral line policy in rate schedules filed by natural gas pipeline companies; general terms and conditions_________ 10138 Uniform system of accounts for public utilities, licensees, and natural gas companies; method of accounting for costs asso ciated with first clearing and grading of lands and rights-of- way ---------------------___________ 10134 Notices Hearings, etc.: Cities Service Gas Co_________ 10170 Connecticut Light and Power C o ------------ 10170 Consumers Power Co. and Detroit Edison Co___ ________ 10170 Fuhrman, F. H., et al___________ 10171 FOOD AND DRUG ADMINISTRATION Rules and Regulations Cottage cheese, creamed; identity standard; listing of lactose as optional ingredient_____________10141 Desserts, frozen; exemption from certain labeling requirements__ 10140 Streptomycin sulfate discs for use in culture media_______________ 10142 ' Proposed Rule Making Apples, fresh; exemption from cer tain labeling requirements____ 10149 Notices Geigy Chemical Corp.; with drawal of petition regarding pesticide chemical______ m _____10160 HEALTH, EDUCATION, AND WELFARE DEPARTMENT See also Food and Drug Adminis tration; Public Health Service; Social Security Administration. Notices Motor vehicle pollution control; California State standards; waiver of application_____ ____10160 HOUSING AND URBAN DEVELOPMENT DEPARTMENT Notices Assistant Regional Administrator for Housing Assistance et al.; Region n i; redelegations of au thority regarding low-rent public housing____________ t__ 10161 Assistant Secretary and Deputy Assistant Secretary for Renewal and Housing Assistance; dele gations of authority——______ 10161 Deputy Assistant Secretary and General Deputy for Renewal Assistance; redelegations of au thority ------------------_ „ _ ---------10161 INTERIOR DEPARTMENT See Land Management Bureau. INTERSTATE COMMERCE COMMISSION Notices Fourth section applications for re lief (2 documents)_____ _____10172 Motor carrier temporary authority applications____ _____________10172 LAND MANAGEMENT BUREAU Notices Administrative officer, Kingman Civilian Conservation Center, ^ Ariz.; delegation of authority regarding contracts and leases— 10156 PUBLIC HEALTH SERVICE Rules and Regulations Grants for construction and mod ernization of hospitals and med ical facilities; miscellaneous amendments _;____ ___________10145 RENEGOTIATION BOARD Notices Financial statements; extension of ,time for filing_______ ________ joi7i SECURITIES AND EXCHANGE COMMISSION Rules and Regulations Front-end money schemes; inter pretative releases__________ _ 10134 Notices American Checkmaster System, Inc.; suspending trading— 1 0 17 1 SMALL BUSINESS ADMINISTRATION Notices Texas; disaster loan area___ ____10171 SOCIAL SECURITY ADMINISTRATION Proposed Rule Making Health insurance program for aged; conditions for coverage of portable X-ray services._______ 10149 Notices •Sweden; foreign social insurance or pension system_____________ 10160 STATE DEPARTMENT See Agency for International Development. TRANSPORTATION DEPARTMENT See Federal Aviation Administra tion; Federal Highway Adminis tration. TREASURY DEPARTMENT See Customs Bureau; Engraving and Printing Bureau. List of CFR Parts Affected The follow ing num erical guide is a list of the parts of each title of the Code of Federal Regulations affected by docum ents published in today's issue. A cum ulative list of parts affected, covering the current month to date, appears at the end of each issue beginning with the second issue of the month. A cum ulative guide is published separately at the end of each month. The guide lists the parts and sections affected b y documents published since January 1, 1968, and specifies how they are affected. 5 CFR 213---------- 10133 7 CFR 1033.---------- 10133 1134------------- 10133 Proposed R ules : 51------------------------------------- 10146 1063—-------- ---------------------------— 10147 14 CFR 39-----------------------------------------------10133 17 CFR 231—----------------------------- 10134 241--------------------------------------------- 10134 18 CFR 101— -------- ------------------------------10135 104 ______ 10135 105 ------------------------------------------10136 141-------------------------- 10138 154--------------------------------------------- 10138 201__________ 10136 204 __ _______;_________________10137 205 ----------- ------- ---------------— 10138 19 CFR 1------------------------------------ •„-------10140 20 CFR Proposed R ules: 405--------- 10149 21 CFR 1------------- ^_____________________10140 19-----------------------------------------------10141 147------------------- — , --------------- 10142 Proposed R ules: 31 CFR 605 ___ 10149 — 10142 32A CFR EPO (Ch. I) : DMO 8555.1A-........... ___ 10143 42 CFR S3 __ 10145 46 CFR 510 _ 10145 49 CFR P roposed R ules: 10152 294_____________________ _ 10152
- 5. 10133 Rules and Regulations Title 5— ADMINISTRATIVE PERSONNEL Chapter I— Civil Service Commission PART 213— EXCEPTED SERVICE Department of Defense Section 213.3306 is amended to show that the position of Private Secretary to the Deputy Assistant Secretary (Reserve Affairs) is excepted under Schedule C. Effective on publication in the F ederal Register, subparagraph (54) is added to paragraph (a) of § 213.3306 as set out below. § 213.3306 Department of Defense. (a) Office of the Secretary. * * * (54) One Private Secretary to the Deputy Assistant Secretary (Reserve Affairs). * * * * * (5 U.S.C. 3301, 3302, E.O. 10577, 19 F.R. 7521, 3 CFR 1954-58 Comp., p. 218) United States Civil S erv ice Co m m ission , [seal] James C. S p r y , Executive Assistant to the Commissioners. [F.R. Doc. 68-8541; Filed, July 15, 1698; 11:41 a.m.] Title 7— AGRICULTURE Chapter X— Consumer and Marketing Service (Marketing Agreements and Orders; Milk), Department of Agri culture _ [Milk Order 38] PART 1033— MILK IN THE GREATER CINCINNATI MARKETING AREA Order Suspending Certain Provision Pursuant to the provisions of the Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601 et seq.), and of the order regulating the handling of milk in the Greater Cin cinnati marketing area (7 CFR Part 1033), it is hereby found and determined that: (a) The following provision of the order no longer tends to effectuate the declared policy of the Act with respect ^ prod u cer milk deliveries during June 1968 and thereafter until further notice. In § 1033.15(d) the provision: “ * * * I at least 20 days’ production of the producer during the month is received h days notice of the effective date *s impractical, unnecessary, and C ° m aSL*° the public interest in that: rem • susPension order does not quire of persons affected substantial or extensive preparation prior to the effective date. (2) This suspension order is necessary to reflect current marketing conditions and to maintain orderly marketing con ditions in the marketing area. (3) This suspension was requested by cooperative associations representing the majority of producers on the market, pending reconsideration of the matter in a hearing on a proposal to amend the order. Suspension of this provision will price all milk diverted from a pool distributing plant on the basis of its location in the base pricing zone. Con- trarily, under present provisions, some milk diverted from such a plant is priced at the location of the plant to which diverted. The pricing of milk diverted from pool distributing plants and certain related provisions were modified by amendments to the order effective May 1, 1968 (33 F.R. 6604). Under current marketing practices of cooperatives and handlers, it is necessary at times to divert milk from pool distributing plants to other plants where location differentials apply. Consequently, a number of producers 'whose milk is involved receive lower prices for such diverted milk. Propo nent cooperatives contend that because of the uncertainty created as to their returns for milk, some producers may elect to ship to one of the several ready alternative markets available to them. Such occurrence would tend to jeopar dize needed supplies of milk for this market. The suspension of this provision will assure similar prices on all producer milk received at or diverted from pool dis tributing plants. Further, it will avoid an undue reduction in the uniform prices received by certain producers whose milk is diverted to plants subject to lo cation adjustments. (4) Interested parties were afforded opportunity to file written data, views, or arguments concerning this suspension (33 F.R. 9662). None were filed in oppo sition to the proposed suspension. Therefore, good cause exists for mak ing this order effective on publication in the Federal R egister. It is therefore ordered, That the afore said provision of the order is hereby suspended with respect to producer milk deliveries during June 1968 and there after until further notice. (Secs. 1-19, 48 Stat. 31, as amended; 7 U.S.C. 601-674) Effective date: Upon publication in the Federal R egister. Signed at Washington, D.C., on July 12,1968. John A. Schnittker, Under Secretary. [F.R. Doc. 68-8468; Filed, July 15, 1968; 8:50 a.m. [Milk Order 134] PART 1134— MILK IN THE WESTERN COLORADO MARKETING AREA Order Amending Order; Correction In F.R. Doc. 68-5163 appearing in the Federal R egister for Wednesday, May 1, 1968, at 33 F.R. 6643, § 1134.81(a) is erroneously stated and is hereby cor rected as set forth below. In lines 13 and 14 of § 1134.81(a), the phrase “such nonpool plant,” is deleted and the phrase “the pool plant from which diverted,” is substituted so that § 1134.81(a) reads as follows: § 1134.81 Location differentials to pro ducers and on nonpool milk. (a) The uniform price to be paid for milk received at a pool plant from pro ducers, in bulk from a pool plant oper ated by a cooperative association and from a cooperative association handler under § 1134.11(d) may be reduced by the amount of the location differential applicable at the location of the pool plant at which such milk was first physi cally received from producers, and the uniform price for producer milk diverted to a nonpool plant shall be reduced according to the location of the pool plant from which diverted, each at the rates set forth in § 1134.52; and 4 c * * * * Signed at Washington, D.C., on July 11,1968. John A. Schnittker, Under Secretary. [F.R. Doc. 68-8372; Filed,- July 15, 1968; 8:46 a.m.] Title 14— AERUNAUTICS AND SPACE Chapter I— Federal Aviation Adminis tration, Department of Transporta tion [Docket No. 7841; Arndt. 39-621] PART 39— AIRWORTHINESS DIRECTIVES British Aircraft Corp., Viscount Models 744 and 745D Airplanes A proposal to amend Part 39 of the Federal Aviation Regulations to require an inspection of the horizontal stabilizer top spar root joint fittings for cracks at intervals not to exceed 3,000 landings, on British Aircraft Corp. Viscount Models 744 and 745D airplanes was pub lished in 33 F.R. 6937. Interested persons have been afforded an opportunity to participate in the making of the amendment. No objections were received. FEDERAL REGISTER, VOL. 33, NO. 137— TUESDAY, JULY Y6, 1968
- 6. 10134 RULES AND REGULATIONS In consideration of the foregoing, and pursuant to the authority delegated to me by the Administrator (14 CFR 11.89), § 39.13 of Part 39 of the Federal Aviation Regulations is amended by adding the following new airworthiness directive: British Aircraft Corp. Applies to Viscount 744 and 745D airplanes. Compliance required as indicated, unless already accomplished. To prevent fatigue damage to the horizon tal stabilizer top spar root joint fittings, P/N 70118-231/232 (Pre Mod. D. 3190) and P/N 70118-671/672 (Post Mod. D. 3190), accomplish the following: (a) Inspect the horizontal stabilizer top spar root joint fittings for cracks in accord ance with British Aircraft Corp. PTL No. 264, Issue 2, dated February 12, 1968 (700 Series) or later ARB-approved issue, or an FAA- approved equivalent, as follows: (1) For fittings which have been involved in 11,500 or more landings on the effective date of this AD, within the next 500 landings, unless already accomplished within the last 2,500 landings, and thereafter at intervals not to exceed 3,000 landings from the last inspection. (2) For fittings which have been involved in less than 11,500 landings on the effective date of this AD, prior to the accumulation of 12,000 landings and thereafter at intervals not to exceed 3,000 landings from the last inspection. (b) After each inspection under paragraph (a), replace all cracked fittings with new fittings of the same part number before further flight. (c) For the purpose of complying with this AD, subject to acceptance by the as signed FAA maintenance inspector, the num ber of landings may be determined by dividing each airplane’s hours’ time in serv ice by the operator’s fleet average time from takeoff to landing for the airplane type. This superseded Amendment 39-371 (32 FR . 4306), AD 67-9-5. This amendment becomes effective August 15, 1968. (Secs. 313(a), 601, 603, Federal Aviation Act of 1958; 49 U.S.C. 1354(a), 1421, 1423) Issued in Washington, D.C., on July 8, 1968. R. S. Sliff, Acting Director, Flight Standards Service. [FR. Doc. 68-8349; Filed, July 15, 1968; 8:45 a.m.] Title 17— COMMODITY AND SECURITIES EXCHANGES Chapter II— Securities and Exchange Commission [Release Nos. 33-4913, 34-83511 PART 231— INTERPRETATIVE RE LEASES RELATING TO SECURITIES ACT OF 1933 AND GENERAL RULES AND REGULATIONS THEREUNDER PART 241— INTERPRETATIVE RE LEASES RELATING TO SECURITIES ACT OF 1934 AND GENERAL RULES AND REGULATIONS THEREUNDER Front-End Money Schemes Recent newspaper advertisements and public relations releases by various per sons, corporations, partnerships, trusts, and unincorporated organizations have offered aid to prospective borrowers in obtaining loans for real estate develop ment. From a private investigation being conducted by the Commission into pos sible violations of the statutes it adminis ters, it appears that some of these offers are made by persons or organizations which do not have the ability to secure such funds or do not have any intention of obtaining finances for the prospective borrowers, as distinguished from the op erating procedures of reputable mortgage brokers, whose business is based upon obtaining the requisite financing and the subsequent servicing of this financing. These schemes appear to follow two basic patterns. In one, the borrower must pay a substantial nonrefundable fee or fees without receiving a written loan commitment. In the other, the prospec tive borrower pays a substantial advance fee pursuant to an agreement which is silent or ambiguous on whether the fee is refundable, if a loan commitment is not obtained within a reasonable period of time and the payee will not return the funds or delays returning the funds until forced to do so by the appropriate legal authorities. It is, of course, possible tljat such schemes might take other forms. It should be pointed out that the per sons deceived and misled by these schemes were not merely ordinary prop erty owners who were unfamiliar with the mechanics of mortgage loan trans actions, but include many prominent companies and individuals with substan tial experience in the real estate and development field who are confronted with the tight mortgage money market. We do not suggest that there are not legitimate organizations in this field or that they do not provide a useful service to borrowers, particularly in times of tight money. Nevertheless, persons in terested in obtaining such loans should satisfy themselves that the firms with which they are dealing have the ability to obtain the proposed financing and are committed to do so before receiving sub stantial advance fees from the prospec tive borrower. There are indications that the use of these schemes may be widespread and that large sums may have been lost by prospective borrowers. Accordingly, in order to alert prospective borrowers and the industry of the problems and to pre vent the success of fradulent operations, we afe publishing this release. By the Commission, July 5,1968. [seal] Orval L. DtrBois, Secretary. [F.R. Doc. 68-8380; Filed, July 15, 1968; 8:47 a.m.] Title 18— CONSERVATION OF POWER AND WATER RESOURCES Chapter I— Federal Power Commission [Docket No. R-334; Order 366] UNIFORM' SYSTEM OF ACCOUNTS FOR PUBLIC UTILITIES, LICENSEES, AND NATURAL GAS COMPANIES (CLASSES A, B, C, AND D) Method of Accounting for Costs Asso ciated With First Clearing and Grading of Lands and Rights-of- Way July 8,1968. On November 14,1967, the Commission issued a notice of proposed rulemakingin this proceeding (32 F.R. 15927, Nov. 2 1 , 1967) proposing to amend the Uniform System of Accounts for Classes A, B, C , and D public utilities, licensees and na tural gas companies in order to provide for the inclusion of the costs associated with the first clearing and grading of lands and rights-of-way, and damages resulting therefrom, in the accounts for the structures to which such costs relate. Existing instructions generally require that the first cost of clearing and the cost of grading the land be included in the accounts for land rights and rights- of-way.1 Comments were submitted by three State regulatory commissions,2 13 nat ural gas companies,* and 26 electric utili ties or systems,41all of which urge the 1See Gas Plant Instructions 71(3) for Class A and B and 61(3) for Class C natural gas companies, 18 CFR 201 and 204, respectively: Electric Plant Instructions 71(3) for Class A and B and 61(3) for Class C public utilities and licensees, 18 CFR 101 and 104, respec tively; and Electric and Gas Plant Instruc tions 3A for Class D public utilities, licensees, and natural gas companies, 18 CFR 105, 205. 2State commissions: Public Service Com mission, State of West Virginia, State Corpo ration Commission of the State of Kansas, State Corporation Commission, Common wealth of Virginia. 2Gas utilities: Colorado Interstate Gas Co„ Consolidated Gas Supply Corp., El Paso Natural Gas Co., Lake Shore Pipe Line Co., Michigan Wisconsin Pipe Line Co., Natural Gas Pipe line Co. of America, Northern Nat ural Gas Co., Panhandle Eastern Pipe Iine Co., Tennessee Gas Pipe Line Co., Texas East ern Transmission Corp., Texas Gas Trans- misson Carp., Transcontinental Gas Pipe Line Corp., Transwestem Pipeline Co. 4Electric utilities : Alabama Power Co., American Electric Power System Cos., Cin cinnati Gas and Electric Co., The Cleveland Electric Illuminating Co., The Columbus and Southern Ohio Electric Co., Consumers Power Co., The Detroit Edison Co., Florida Power Corp., Georgia Power Co., Gulf Power Co., Iowa Electric Light and Power Co., Kansas City Power and Light Co., Long Is land Lighting Co., Minnesota Power and Light Co., Mississippi Power Co., Monongaheia Power Co., Northeast Utilities Service Co., Northern States Power Co., Oklahoma Gas and Electric Co., Pennsylvania Power and Light Co., Public Service Electric and Gas Co., Public Service Company of Indiana, Union Electric Co., Virginia Electric and Power Co., West Texas Utilities Co., Wiscon- sin Electric Power Co. FEDERAL REGISTER, V O L 33, NO. 137—-TUESDAY, JULY 16, 1968
- 7. RULES AND REGULATIONS 10135 adoption of the proposed changes. We agree that the accounting changes are appropriate and therefore are adopting the amendments as proposed in the notice. Inclusion of the costs associated with the first clearing and grading of lands and rights-of-way and the damages re sulting therefrom in the accounts for structures to which such costs relate would appear preferable since these costs aremore directly related to the construc tion of electric or gas plant than to the purchase of land or rights-of-way. It should be noted that jurisdictional com panies are presently required to include the costs associated with “grading and clearing when directly occasioned by the building of a structure” in the Struc tures and Improvements Account.6Since first clearing, as well as clearing which is “directly occasioned by the building of a structure,” is done not for the pur pose of enhancing the value of the land or right-of-way but for the purpose of constructing electric or gas plant, we have concluded that the costs related thereto, including damage costs inciden tal to such clearing,8 are more realisti cally chargeable to the accounts for the structures to which such costs are re lated rather than the accounts for land and land rights. As a practical matter, in those cases where the contractor bids and bills on the basis of the entire job, which includes first clearing and grading, without itemizing separate cost éléments, any allocation of costs between first clearing and grading and that “directly occasioned by the building of a struc ture” is subject to arbitrary détermina tion. The notice herein did not propose any provision for the disposition of past costs incurred for first clearing and grading of land presently carried in the accounts of land rights and rights-of-way. In order to avoid inconsistency in the accounting treatment of past and future costs, the Commission believes that it is desirable that these past costs should be transferred to the appropriate struc tures and improvements or equipment plant accounts. Were these costs not to be transferred a dual set of accounting rules would prevail until such time as the Gas Plant Instructions 8G(21) for Class and B and 7G(15) for Class C natural gas companies, 18 CFR 201 and 204, respec tively; Electric Plant Instructions 8H (21) for and B and ^ (1 5 ) for Class C public utilities and licensees, 18 CFR 101 and 104, respectively; and Electric and Gas Plant In structions 4A for Class D public utilities, li- ib5 205 and natural gas companies, 18 CFR _ / Ba?iages to abutting property during con- bp °1 buildings are now required to arif, . hided in the accounts for structures 8 G n ow rOVements' Gas Plant Instruction C la «n f°rt Class A and B and 7G(8) for and ofM natural gas companies, 18 CFR 201 tion ft-»/respect!veiy; Electric Plant Instruc- for o » f<L r class.A and B and 7H<8) CFR im ° Pnblic utilities and licensees, 18 G a fp ^ L aild J104, respectively; Electric and utnitips nStrUCtions 4A for Class D Public » S “ ;8o S ; 2r natuM appropriate balances have been extin guished. We note that some companies have fol lowed the practice of charging initial clearing and grading costs to depreciable plant and have taken depreciation while others have treated such costs as non depreciable. We have concluded that in those cases where related accumulated depreciation exists, it should be trans ferred to the appropriate accumulated depreciation accounts. Where no accum ulated depreciation exists, no retroactive depreciation reaccounting should be made; however, depreciation which has not been provided for periods prior to the date of reclassification of such costs, will be recognized prospectively over the remaining life of the facilities. The Commission finds: (1) Although the notice made no pro posal with respect to the disposition of past costs presently carried in the ac counts for land rights and rights-of-way, further notice is unnecessary as the dis position adopted is necessary to avoid inconsistency in accounting rules and does not impose an added burden on the respondents. (2) The adoption of these amend ments is necessary and appropriate for the administration of the Federal Power Act and the Natural Gas Act. The Commission, acting pursuant to the authority of the Federal Power Act, as amended, particularly sections 301, 304, and 309 thereof (49 Stat. 854, 855, 858; 16 U.S.C. 825, 825c, 825h), and of the Natural Gas Act, as amended, par ticularly sections 8, 10, and 16 thereof (52 Stat. 825, 826, and 830; 15 U.S.C. 717g, 717i, and 717o) orders; PART 101— UNIFORM SYSTEM OF ACCOUNTS PRESCRIBED FOR CLASS A AND CLASS B PUBLIC UTILITIES AND LICENSEES (A) The Electric Plant Instructions and the Electric Plant Accounts of the Uniform System of Accounts prescribed for Class A and B public utilities and licensees by Part 101, Subchapter C of Chapter I, Title 18 of the Code of Fed eral Regulations are amended as follows: By adding two sentences to Instruction 7A; bj* revising the first sentence of Instruction 7C; by deleting items 3 and 8 of Instruction 71; by adding a sentence to Instructions 8A and 9A; and by delet ing Electric Plant Account No. 351. As thus amended, the affected portions of Part 101 will read as follows: Electric Plant Instructions * $ * * * 7. Land and Land Rights. A. The accounts for land and land rights shall include the cost of land owned in fee by the utility and rights, interests, and privileges held by the utility in land owned by others, such as leaseholds, easements, water and water power rights, diversion rights, submer sion fights, rights-of-way, and other like interests in land. Do not include in the accounts for land and land rights and rights-of-way costs incurred in connec tion with first clearing and grading of land and rights-of-way and the damage costs associated with the construction and installation of plant. Such costs shall be included in the appropriate plant accounts directly benefited. 4c 4c 4c 4« 4» C. The net profit from the sale of timber, cord wood, or other property acquired with rights-of-way or other lands shall be credited to the appropriate plant account to which related. Where land is held for a considerable period of time and timber on the land at the time of purchase increases in value, the net profit (after giving effect to the cost of the timber) from the sales of timber or its products shall be credited to account 421, Miscellaneous Nonoperating Income. 4c 4c 4c 4c 4c I. The items of cost to be included in the accounts for land and land rights are as follows: 4c 4c 4c 4c * 3. [Revoked and reserved] — ■■ 4e 4c 4c 4c 8. [Revoked and reserved] 4c 4: 4c 4c 4> 8. Structures and Improvements. A. The accounts for structures and improvements shall include the cost of all buildings and facilities to house, sup port, or safeguard property or persons, including all fixtures permanently at tached to and made a part of buildings and which cannot be removed therefrom without cutting into the walls, ceilings, or floors, or without in some way impairing the buildings, and improvements of a permanent character on or to land. Also include those costs incurred in connec tion with the first clearing and grading of land and rights-of-way and the dam age costs associated with construction and installation of plant. 4c 4c 4c $ 4c 9. Equipment. A. The cost of equipment chargeable to the electric plant accounts, unless otherwise indicated in the text of an equipment account, includes the net pur chase price thereof, sales taxes, investi gation and inspection expenses necessary to such purchase, expenses of transpor tation when borne by the utility, labor employed, materials and supplies con sumed, and expenses incurred by the utility in unloading and placing the equipment in readiness to operate. Also include those costs incurred in connec tion with the first clearing and grading of land and rights-of-way and the dam age costs associated with contruction and installation of plant. 4c 4c 4c 4c 4c Electric Plant Accounts 4c 4c 4c 4c 4c 3. T ransmission Plant 4c 4c 4c 4c 4c 351 [Revoked and reserved] 4« 4c 4c 4c 4c PART 104— UNIFORM SYSTEM OF ACCOUNTS FOR CLASS C PUBLIC UTILITIES AND LICENSEES (B) The Electric Plant Instructions and the Electric Plant Accounts of the FEDERAL REGISTER, VOL. 33, NO. 137— TUESDAY, JULY 16, 1968
- 8. 10136 RULES AND REGULATIONS Uniform System of Accounts prescribed for Class C public utilities and licensees by Part 104, Subchapter C of Chapter I, Title 18 of the Code of Federal Regula tions are amended as follows: By adding two sentences to Instruction 6A; by re vising the first sentence of Instruction 6C; by deleting items 3 and 8 of Instruc tion 61; by adding a sentence to Instruc tion 7A and 8A; and by deleting Electric Plant Account No. 351. As thus amended, the affected portions of Part 104 will read as follows: Electric Plant Instructions * * * * * 6. Land and Land Rights. A. The accounts for land and land rights shall include the cost of land owned in fee by the utility and rights, interests, and privileges held by the util ity in land owned by others, such as leaseholds, easements, water and water power rights, diversion rights, submer sion rights, rights-of-way, and other like interests in land. Do not include in the accounts for land and land rights and rights-of-way costs incurred in connection with first clearing and grading of land and rights-of-way and the damage costs associated with the construction and installation of plant. Such costs shall be included in the ap propriate plant accounts directly bene fited. * * 4 e * * C. The net profit from the sale of. timber, cord wood, or other property acquired with rights-of-way or other lands shall be credited to the appropriate plant account to which related. Where land is held for a considerable period of time and timber on the land at the time of purchase increases in valué, the net profit (after giving effect to the cost of the timber) from the sale of timber or its products shall be credited to account 421, Miscellaneous Nonoperating Income. * * * * 4 c I. The items of cost to be included in the accounts for land and land rights are as follows: 4c 4c 4c 4c 4c 3. [Revoked and reserved] 4c 4c 4c 4c 4c 8. [Revoked and reserved] 4e 4c 4c ♦ 4c 7. Structures and Improvements. A. The accounts for structures and improvements shall include the .cost of all buildings and facilities to house, sup-r. port, or safeguard property or persons, including all fixtures permanently at tached to and made a part of buildings and which cannot be removed therefrom without cutting into the walls, ceilings, or floors, or without in some way impair ing the buildings, and improvements of a permanent character on or to land. Also include those costs incurred in connec tion with the first clearing and grading of land and rights-of-way, and the dam age costs associated with construction and installation of plant. * * * * * 8. Equipment. A. The cost of equipment chargeable to the electric plant accounts, unless otherwise indicated in the text of an equipment account, includes the net pur chase price thereof, sales taxes, in vestigation and inspection expenses necessary to such purchase, expenses of transportation when borne by the utility, labor employed, materials and supplies consumed, and expenses incurred by the utility in unloading and placing the equipment in readiness to operate. Also include those costs incurred in connec tion with the first clearing and grading of land and rights-of-way and the dam age costs associated with construction and installation of plant. 4 : ♦ * 4 s 4 s Electric Plant Accounts 4s 4s 4s 4s 4: 3. Transmission Plant 4s 4s 4s 4s * 351 [Revoked and reserved] PART 105— UNIFORM SYSTEM OF ACCOUNTS FOR CLASS D PUBLIC UTILITIES AND LICENSEES (C) The Electric Plant Instructions of the Uniform System of Accounts pre scribed for Class D public utilities and licensees by Part 105, Subchapter C of Chapter I, Title 18 of the Code of Fed eral Regulations are amended as follows: By adding two sentences to Instruction 3A; and by adding a sentence to Instruc tions 4A and 5A. As thus amended, the affected portions of Part 105 will read as follows: Electric Plant Instructions 3. Land and Land Rights. A. The accounts for land and land rights shall include the cost of land owned in fee by the utility and rights, interests, and privileges held by the util ity in land owned by others, such as leaseholds, easements, water and water power rights, diversion rights, submer sion rights, rights-of-way, and other like interests in land. Do not include in the accounts for land and land rightsWid rights-of-way costs incurred in connec tion with first clearing and grading of land and rights-of-way and the dam age costs associated with the construc tion and installation of plant. Such costs shall be included in the appropriate plant accounts directly benefited. 4s * * * 4: 4. Structures and Improvements. A. The accounts for structures^ and improvements shall include the cost of all buildings and facilities to house, sup port, or safeguard property or persons, including all fixtures permanently at tached to and made a part of buildings and which cannot be removed therefrom without cutting into the walls, ceilings, or floors, or without in some way im pairing the buildings, and improvements of a permanent character on or to land. Also include those costs incurred in con nection with the first clearing and grad ing of land and rights-of-way, and the damage costs associated with construc tion and installation of plant. * 4e * * * 5. Equipment. A. The cost of equipment chargeable to the electric plant accounts, unless otherwise indicated in the t6xt of an equipment account, includes the net pur chase price thereof, sales taxes, investi gation and inspection expenses neces sary to such*purchase, expenses of trans portation when borne by the utility, la bor employed, materials and supplies consumed, and expenses incurred by the utility in unloading and placing the equipment in readiness to operate. Also include those costs incurred in connec tion with the first clearing and grading of land and rights-of-way and the dam age costs associated with construction and installation of plant. PART 201— UNIFORM SYSTEM OF ACCOUNTS FOR NATURAL GAS COMPANIES (D) The Glass Plant Instructions and the Gas Plant Accounts of the Uniform System of Accounts prescribed for.Classes A and B natural gas companies by Part 201, Subchapter F of Chapter I, Title 18 of the Code of Federal Regulations are amended as follows: By adding two sen; tences to Instruction 7A; by revising the first sentence of Instruction 7C; by de leting items 3 and 8 of Instruction 71; by adding a sentence to Instructions 8A and 9A; and by adding parenthetical cross-references to Gas’ Plant Accounts Nos. 325.4, 325.5, and 350.4. As thus amended, the affected portions of Part 201 will read as follows: Gas Plant Instructions * * * * * 7. Land and land rights. A. The ac counts for land and land rights shall in clude the cost of land owned in fee by the utility and rights, interests, and privileges held by the utility in land owned by others, such as leaseholds, easements, rights-of-way, natural gas rights, and other like interests in land. Do not include in the accounts for land •and land rights and rights-of-way costs incurred in connection with first clearing and grading of land and rights- of-way and the damage costs associated with the construction and installation of plant. Such costs shall be included in the appropriate plant accounts directly benefited. * * * • - * * C. The net profit from the sale of tim ber, cord wood, or other property ac quired with rights-of-way or other lands shall be credited to the appropriate plant account to which related. Where land is held for a considerable period of time and timber on the land at the time of purchase increases in value, the net profit (after giving effect to the cost oi the timber) from the sales of timber FEDERAL REGISTER, VOL. 33, NO. 137—-TUESDAY, JULY 16, 1968
- 9. RULES AND REGULATIONS 10137 or its products shall be credited to ac count 421, Miscellaneous Nonoperating Income. * * * * * I The items of cost to be included in the accounts for land and land rights are asfollows: * * * * * 3. [Revoked and reserved] $ * * * * 8. [Revoked and reserved] * * * * * 8. Structures and improvements. A. The accounts for structures and im provements shall include the cost of all buildings and facilities to house, sup port, or safeguard property or persons, including all fixtures permanently at tached to and made a part of buildings and which cannot be removed therefrom without cutting into the walls, ceilings, or floors, or without in some way im pairing the buildings, and improvements of a permanent character on or to land. Also include those costs incurred in con nection with the first clearing and grad ing of land and rights-of-way, and the damage costs associated with construc tion and installation of plant. 4 e $ $ * * 9. Equipment. A. The cost of equip ment chargeable to the gas plant ac counts, unless otherwise indicated in the text of an equipment account, includes the net purchase price thereof, sales taxes, investigation and inspection ex penses necessary to such purchase, ex penses of transportation when borne by theutility, labor employed, materials and supplies consumed, and expenses in curred by the utility in unloading and placing the equipment in readiness to operate. Also include those costs incurred in connection with the first clearing and grading of land and rights-of-way and the damage costs associated with con struction and installation of plant. * * * 4e # Gas Plant Accounts * * * $ ♦ 2. Production Plant * * * * * B. NATURAL GAS PRODUCTION PLANT B. 1. Natural Gas Production and Gathering Plant * * * 4 c * 325.4 Rights-of-way. This account shall include the cost of all interests in land which terminate more than 1 year after they become ef fective and on which are located gath ering pipelines, telephone pole lines, and !~e property used in connection with the production of natural gas. (See gas Plant instruction 7.) 25.5 Other land and land rights. This account shall include the cost of and land rights used in connection with the production of natural gas, when not properly assignable to any of the foregoing accounts. (See gas plant instruction 7.) * * * * * 3. Storage Plant A. UNDERGROUND STORAGE PLANT * * * * * 850.4 Rights-of-way. This account shall include the cost of all interests in land which do not ter minate until more than 1 year after they become effective and on which are lo cated underground storage lines, tele phone poles lines, and like property used in connection with underground gas storage operations. (See gas plant in struction 7.) PART 204— UNIFORM SYSTEM OF ACCOUNTS FOR CLASS C NAT URAL GAS COMPANIES (E) The Gas Plant Instructions and Gas Plant Accounts of the Uniform Sys tem of Accounts prescribed for Class C natural gas companies by Part 204, Sub chapter F of Chapter I, Title 18 of the Code of Federal Regulations are amended as follows: By adding two sentences to Instruction 6A; by revising the first sen tence of Instruction 6C; by deleting items 3 and 8 of Instruction 61; by add ing a sentence to Instructions 7A and 8A; and by adding parenthetical cross- references to Gas Plant Accounts Nos. 325.4, 325.5, and 350.4. As thus amended, the affected portions of Part 204 will read as follows: Gas Plant Instructions * * * * * 6. Land and Land Rights. A. The accounts for land and land rights shall include the cost of land owned in fee by the utility and rights, in terests, and privileges held by the utility in land owned by others, such as lease holds, easements, rights-of-way, natural gas rights, and other like interests in land. Do not include in the accounts for land and land rights and rights-of-way costs incurred in connection with first clearing and grading of laiid and rights- of-way and the damage costs associated with the construction and installation of plant. Such costs shall be included in the appropriate plant accounts directly benefited. * * * * * C. The net profit from the sale of tim ber, cord wood, or other property ac quired with rights-of-way or other lands shall be credited to the appropriate plant account to which related. Where land is held for a considerable period of time and timber on the land at the time of purchase increases in value, the net profit -(after giving effect to the cost of the timber) from the sales of timber or its products shall be credited to account 421, Miscellaneous Nonoperating Income. * * * * * I. The items of cost to be included in the accounts for land and land rights are as follows: * * * * * 3. [Revoked and reserved] * * * * * 8. [Revoked and reserved] * * * * * 7. Structures and Improvements. A. The accounts for structures and improvements shall include the cost of all buildings and facilities to house, sup port, or safeguard property or persons, including all fixtures permanently at tached to and made a part of buildings and which cannot be removed therefrom without cutting into the walls, ceilings, or floors, or without in some way impair ing the buildings, and improvements of a permanent character on or to land. Also include those costs incurred in con nection with the first clearing and grading of land and rights-of-way, and the damage costs associated with con struction and installation of plant. 4 c 4 : * * * 8. Equipment. A. The cost of equipment chargeable to the gas plant accounts, unless other wise indicated in the text of an equip ment account, includes the net purchase price thereof, sales taxes, investigation and inspection expenses necessary to such purchase, expenses of transporta tion when borne by the utility, labor em ployed, materials and supplies consumed, and expenses incurred by the utility in unloading and placing the equipment in readiness to operate. Also include those costs incurred in connection with the first clearing and grading of land and rights- of-way and the damage costs associated with construction and installation of plant. 4 e * * * * Gas Plant Accounts * * * * • 2. Production Plant 4t 4« 4f * * B. NATURAL GAS PRODUCTION PLANT B. 1. Natural Gas Production and Gathering Plant 4 s * * * * 325.4 Rights-of-way. This account shall include the cost of all interests in land which terminate more than 1 year after they become ef fective and on which are located gather ing pipelines, telephone pole lines, and like property used in connection with the production of natural gas. (See gas plant instruction 6.) 325.5 Other land and land rights. This account shall include the cost of land and land rights used in connec tion with the production of natural gas, when not properly assignable to any of the foregoing accounts. (See gas plant instructions.) * * * * * No. 137— —2 FEDERAL REGISTER, VOL. 33, NO. 137— TUESDAY, JULY 16, 1968
- 10. 10138 RULES AND REGULATIONS 3. Storage Plant A. UNDERGROUND STORAGE PLANT ♦ * * * * * 350.4 Rights-of-way. This account shall include the cost of all interests in land which do not termi nate until more than 1 year after they become effective and on which are lo cated underground storage lines, tele phone pole lines, and like properly used in connection with underground gas storage operations. (See gas plant in struction 6.) and inspection expenses necessary to such purchase, expenses of transporta tion when borne by the utility, labor em ployed, materials and supplies consumed, and expenses incurred by the utility in unloading and placing the equipment in readiness to operate. Also include those costs incurred in connection with the first clearing and grading of land and rights-of-way and the damage costs associated with construction and instal lation of plant. * * * * * [Docket No. R-330; Order 365] PART 154— RATE SCHEDULES AND TARIFFS Statement of Lateral Line Policy in Rate Schedules Filed by Natural Gas Pipeline Companies July 8, 1968. On September 7, 1967, the Commission gave notice in this docket that it proposed to amend § 154.39 of its regulations un der the Natural Gas Act so as to clarify the meaning and purpose of the sales lateral policy requirement set forth therein.1 As set forth in the notice, the proposed amendment would define the term “sales lateral,” would require a precise statement of the method by which a pipeline company’s contribu tions to sales lateral construction, if any, are calculated, and would prescribe a uniform reservation clause. Each tariff statement would be required, under the proposed rule, to cover lateral line con struction to both new and existing cus tomers, and to describe the extent, if any, to which the pipeline company’s sales lateral construction arrangements with direct customers differ from its a r r a n g e m e n t s with jurisdictional customers. Interested persons were invited to sub mit comments by October 24, 1967. Sev enteen responses were submitted (in cluding two joint filings), representing the views of 15 pipeline companies,2 seven municipalities,® and one distribu tion company.4 The municipalities, the distribution company, and one pipeline company support the p r o p o s a l with minor qualifications; the other 16 pipe line companies oppose it, although fiveof them limited their objections to specific features of the proposed rule. This proceeding represents the Com mission’s second attempt to establish a satisfactory lateral line policy regula tion. The .language of the existing rule, promulgated in Docket No. R-301,5failed to elicit policy statements sufficiently precise to obviate the possibility of un duly discriminatory lateral line con struction arrangements. The language proposed in this docket is more explicit as to the required contents of each filing, leaving less doubt about the nature of the policy statements we seek. ' 132 F.R. 13077, Sept. 14, 1967. 2Algonquin Gas Transmission Go., Cities Service Gas Co., Colorado Interstate Gas Co., Consolidated Gas Supply Corp., Eastern Shore Natural Gas Co., Humble Gas Transmission Co., Lake Shore Pipe Line Co., Mississippi River Transmission Corp., Natural Gas Pipe line Company of America, Northern Natural Gas Co., Pacific Gas Transmission Co., Pan handle Eastern Pipe Line Co., Southern Natural Gas Co., Texas Eastern Transmis sion Corp., United Gas Pipe Line Co. »Cities of Bourbon, Cuba, Pulton, Rolla, St. James, Steelville, and Waynesville, Mo. *Public Service Electric and Gas Co., Newark, N.J. BOrder No. 328, 36 EPC 774, 31 F-R- I37“ " ’ Oct. 25, 1966. PART 205— UNIFORM SYSTEM OF ACCOUNTS FOR CLASS D NAT URAL GAS COMPANIES (P) The Gas Plant Instruction's of the Uniform System of Accounts prescribed for Class D natural gas companies by Part 205, Subchapter P of Chapter I, Title 18 of the Code of Federal Regula tions are amended as follows: By adding two sentences to Instruction 3A; by add ing a sentence to Instructions 4A and 5A. As thus amended, the affected portions of Part 205 will read as follows: Gas Plant Instructions 4 4 4 4 4 3. Land and Land Rights. A. The accounts for land and land rights shall include the cost of land owned in fee by the utility and rights, in terests, and privileges held by the utility in land owned by others, such as lease holds, easements, rights-of-way, natural gas rights, and other like interests in land. Do not include in the accounts for land and land rights and rights-of-way costs incurred in connection with first clearing and grading of land and rights- of-way and the damage costs associated with the construction and installation of plant. Such costs shall be included in the appropriate plant accounts directly benefited. * * 4 s 4 c 4 s 4. Structures and Improvements. A. The accounts for structures and improvements shall include the cost of all buildings and facilities to house, sup port, or safeguard property or persons, including all fixtures permanently at tached to and made a part of buildings and which cannot be removed therefrom without cutting into the walls, ceilings, or floors, or without in some way impair ing the buildings, and improvements of a permanent character on or to land. Also include those costs incurred in con nection with the first clearing and grading of land and rights-of-way, and the damage costs associated with con struction and installation of plant. 4: * * 4* 4t 5. Equipment. A. The cost of equipment chargeable to the gas plant accounts, unless other wise indicated in the text of an equip ment account, includes the net purchase price thereof, sales taxes, investigation p a r t 147— STATEMENTS AND RE PORTS (SCHEDULES) (G) The annual report FPC Form No. 1, prescribed for Classes A and B public utilities, licensees, and others by sections 141.1, Part 141, Subchapter D, Chapter I, Title 18 of the Code of Fed eral Regulations is amended by deleting line 45, Clearing Land and Rights-of- Way, in the schedule “Electric Plant in Service” (pages 401-402), on page 402. . (H) The Initial Statement of Actual Legitimate Original Cost FPC Form No. 6, prescribed for licensees by § 141.11, Part 141, Subchapter D, Chapter I, Title 18 of the Code of Federal Regulations, is amended by deleting the references to account 351, Clearing Land and Rights- of-Way, in schedule Nos. 6 and 6-C, pages 14 and 28, respectively, of Form No. 6. (I) All Classes A, B, and C public utilities and licensees shall transfer all costs presently recorded in account 351, Clearing land and rights-of-way, to the appropriate structures and improve ments or equipment plant accounts to which such costs relate. In those cases where related accumulated depreciation exists, it shall be transferred to the appropriate accumulated depreciation accounts. Where no accumulated depre ciation exists, no retroactive deprecia tion reaccounting shall be made. (J) All Classes A, B, C, and D public utilities, licensees, and natural gas com panies shall transfer all identifiable amounts relating to clearing and grad ing costs now included in the land and land rights accounts to the appropriate structures and improvements or equip ment plant accounts to which such costs relate. In those cases where related ac cumulated depreciation exists, it shall be transferred to the appropriate accumu lated depreciation accounts. Where no accumulated depreciation exists, no retroactive depreciation reaccounting shall be made. (K) Paragraphs (A) through (J) shall be effective 30 days after the issuance of this order. (L) The Secretary shall cause prompt publication of this order to be made in the Federal R egister. By the Commission. [seal] K enneth F. Plumb, Acting Secretary. [FJR. Doc. 68-8360; Filed, July 15, 1968; 8:46 a.m.] FEDERAL REGISTER, VOL. 33, NO. 137— TUESDAY, JULY 16, 1968
- 11. RULES AND REGULATIONS 10139 The specificity of the proposed amend ment, in fact, evoked the greatest number of unfavorable comments from the pipeline companies who responded to the notice. The respondents complain that the kind of policy statement con templated by the proposed rule would leave the industry none of the mana gerial flexibility to which it has been accustomed in sales lateral construction negotiations. Such limited restraints are an inevitable consequence of eco nomic regulation. Nevertheless, we eihphasize that legitimate managerial prerogatives will not be abridged by the lateral line policy provision. While each pipeline company would be required, under the regulation, to adopt and publish an explicit lateral construction policy, each would be entitled to fashion a policy appropriate to its own special circumstances. A pipeline company may choose to offer different «instruction contributions to different customers or classes of customers, but the differences must be based on objective and reason able criteria. We recognize, of course, that a depar ture from an otherwise satisfactory lateral line policy may be desirable in unusual circumstances. The purpose of the standard reservation clause (para graph (b) (lX ii)) in the proposed regu lation is to emphasize that no pipeline company will be denied the opportunity, in certification proceedings before the Commission, to seek a waiver of its lat eral line policy for good cause shown. A second source of protest is the proposed regulation’s requirement that each statement indicate—< whether any difference exists between the company’s policy with respect to the financing and/or construction of sales laterals for the benefit of jurisdictional cus tomers * * * and the company’s policy with respect to the financing and/or construction of similar facilities for nonjurisdictional customers * * *. Where the two policies differ, the pro vision would require that the statement include a brief description of the difference. The responses indicate generally that most pipeline companies have not estab lished lateral construction policies with respect to direct customers, and that, because of the different competitive and regulatory climate in which their nego tiations with industrial purchasers -are conducted, the determination whether to make a contribution and, if so, how large acontribution, depends ûpon the varying exigencies of individual negotiations. In view of the Commission’s lack of author- ! requ^ re uniformity with respect to the terms of direct sales by natural gas Pipeline companies, these facts cast doubt on the value of the proposed tariff requirement. It seems clear, on further ^ection, that illegal discrimination in the lateral line construction area against resale customers in favor of direct customers cannot be ascertained by a mere comparison of generalized tariff atements. Its identification will require r0^We^ e actual construction ar- ngements between pipeline companies and their direct customers. This informa tion is available in certification proceed ings before the Commission, and it is during such proceedings that the relationship between a pipeline com pany’s lateral line arrangements with resale and direct customers, respectively, will have to be evaluated. We are there fore striking those portions of the proposed regulation which relate to direct customers. Other objections are directed at the definition of “sales lateral” set forth in the proposed regulation. While circum stances may arise in which the precise character of proposed facilities is un clear, such circumstances are not likely to arise very often. When they do, and a pipeline company claims that proposed construction should be exempted from its lateral line policy, the Commission and the company’s customers will be alerted to the possibility of discrimina tion, and an ad hoc assessment of the pipeline company’s claim can then be made. Such exceptional cases deserve this kind of individual treatment, and the impossibility of creating foolproof definitions of “sales lateral” and “main line” is therefore ho obstacle to a work able lateral line policy regulation. Where the nature of the proposed extension is in question, the company’s policy state ment will at least provide an acknowl edged point of departure. -A number of respondents comment on the proposed applicability of the new rule to replacements of present sales lateral pipelines and new delivery points, arguing that it would frustrate the in tent of §§ 2.55 (b) and (c) of the Com mission’s regulations -(exempting re placements and new delivery points from the certificate requirement). This is in correct. Sections 2.55 (b) and (c) exclude replacement facilities and new delivery points from the definition of “facilities” as the word is used in section 7(c) of the Natural Gas Act. The regulations merely allow a pipeline company to construct replacement facilities or new delivery points (under certain specified condi tions) without first getting Commission approval. The Commission has not, how ever, divested itself of jurisdiction over this sort of equipment. The exclusions afforded by paragraphs (b) and (c) of § 2.55 simply suggest even more strongly the need for coherent company policies regarding replacements and delivery points. “Enlargements” of lateral lines—pipe line loops and other equipment—are not exempted from the certificate require ment, and there is no reason, therefore, to treat enlargements differently from other lateral line projects. One respondent points out that, in or der to file an application for a budget- type certificate of sales facilities under § 157.7(c) of the Commission’s regula tions, a pipeline company may not re quire a contribution from the customer (§ 157.7(c) (1) (i)), and that the lateral line policy rule will therefore generate artificially contrived and complex con struction arrangements. We recognize this difficulty, but we recognize too that the public’s interest in equitable behavior by pipeline companies outweighs the companies’ interest in simple contractual agreements. Where the two interests conflict, the choice is clear. The com ment in question says less, in fact, about the validity of the proposed rule than about the possibility that our adoption of this regulation may warrant an amendment of the rules for budget-type proceedings. This is a matter presently under study. It is suggested in one of the responses that the language of the proposed rule might be thought to require the formula tion of a single policy encompassing la teral construction to both new and exist ing customers. This is not our intent. We recognize that the economics of con structing a lateral to a new customer may differ from the economics of lateral construction to an existing customer. Ac cordingly, there is nothing inherently objectionable in a /policy statement which creates separate sets of criteria with respect to new and existing pur chasers, as long as the difference does not embody u n d u e discrimination against either group. Finally, it is claimed that the lateral line policy regulation may discriminate against “existing distribution companies who were not treated in a like manner with respect to a lateral line serving them or who seek retroactive application of the policy, practice or formula.” It is difficult, however, to infer from that statement any guide for Commission ac tion. First, to conclude that the regula tion is undesirable because some pipeline companies might adopt policies accord ing future customers more favorable treatment than that available to cus tomers already attached would be to sanction by default the very discrimina tion which prompted our original in quiry into lateral line practices. Second, a past practice should not preclude a pipeline company from changing its pol icy, “providing its new policy is a rea sonable one which it is willing and able to follow on a consistent and* nondis- criminatory basis.” Transcontinental Gas Pipe Line Co., et al., Opinion No. 493, 35 FPC 917, 926 (1966). The Commission finds: In view of the foregoing, and upon consideration of all relevant matters presented, includ ing the arguments, contentions, sugges tions, and other views expressed in the comments received, it is necessary and appropriate for the administration of the Natural Gas Act that the regulations under the Natural Gas Act be amended as herein provided. The Commission, acting pursuant to the authority granted by the Natural Gas Act, as amended, particularly sec tions 4, 5, 7, and 16 thereof (52 Stat. 822, 823, 824, and 830, as amended, 15 U.S.C. sections 717c, 717d, 717f, and 717o), orders: (A) Section 154.39, Part 154, Subchap ter E, Regulations Under the Natural Gas Act, Chapter I of Title 18 Of the Code of Federal Regulations, is amended to read as follows: FEDERAL REGISTER, VOL. 33, NO. 137— TUESDAY, JULY 16, 1968
- 12. 10140 RULES AND REGULATIONS § 154.39 General terms and conditions* * * * * * (b) The general terms and conditions of the tariff shall contain a statement of the company’s policy with respect to the financing and/or construction of sales laterals serving resale customers. For the purposes of this section, the term “sales lateral” is defined as any pipeline exten sion (other than a main line extension) built from an existing pipeline facility to deliver natural gas to one or more customers of the company inclusive of both new and present purchasers, and, for present purchasers, inclusive of new delivery points and enlargements or re placements of present sales lateral pipe lines. (1) If it is the company’s policy to build or contribute to the construction of any sales laterals to resale customers, the statement shall contain the following elements: (1) An explicit statement in measur able quantitative terms (e.g., estimated revenues, estimated cost of service, esti mated sales volumes, pipeline system ca pacity, or other specific quantitative fac tors) of the method (s) or formula(s) by which the company determines the amount of its or the purchaser’s contri bution to the construction of any sales lateral pipeline. If the company’s policy contemplates subsequent adjustment of initial contributions to construction to reflect actual operating experience, the statement shall set forth the method by which the adjustment is computed, and shall indicate (a) when the adjustment is determined, and (b) how the company disburses or collects additional contribu tions. The statement required by this subparagraph shall be formulated so as to facilitate ready computation of the respective contributions to sales lateral construction of the pipeline company and its purchaser. Reference to imprecise cri teria (e.g., “economic feasibility”) will be unacceptable. (ii) The following statement: “Noth ing in this policy statement shall require (the company) to file an application for a certificate of public convenience and necessity under section 7(c) of the Nat ural Gas Act. Nothing in this policy state ment, further, shall prevent (the com pany) from contesting an application for service filed pursuant to section 7(a). (The company) reserves the right to seek a waiver of the policy set forth herein, for good cause shown, during any pro ceeding before the Commission insti tuted tinder section 7 of the Natural Gas Act.” (2) If it is the company’s policy not to build or contribute to the construction of any sales laterals to resale customers, the policy statement shall read as follows.: “ (The company) will not build or con tribute to the cost of building any sales lateral pipelines to resale customers.” This statement shall be followed by the provision required by subdivision (ii) of subparagraph (1) of this paragraph. (B) The amendment herein pre scribed shall become effective upon the issuance of this order. (C) Each natural gas pipeline com pany having a tariff on file with the Federal Power Commission on the effec tive date of this order shall file, no later than September 6, 1968, such supple ments to the tariff as may be necessary to comply with the provisions of the regulation herein prescribed. (D) The Secretary shall cause prompt publication of this order to be made in the F ederal R egister. By the Commission.1 [seal] K enneth F. P lum b, Acting Secretary. [PH. Doc. 68-8359; Filed, July 15, 1968; 8:46 ajn.] Title 19— CUSTOMS DUTIES Chapter I— Bureau of Customs, Department of the Treasury [T.D. 68-179] PART 1— GENERAL PROVISIONS Richmond-Petersburg Customs Port of Entry J u l y 8, 1968. Notice that it was proposed to revoke the designation of Richmond and Peters burg, Va., as separate Customs port of entry, and simultaneously create a single Richmond-Petersburg, Va., Customs port of entry was published in the F ederal R egister on April 6, 1968 (33 FJR. 5458), pursuant to section 4 of the Administra tive Procedure Act (5 U.S.C. 553). No objections were received. Accordingly, by virtue of the authority vested in the President by section 1 of the Act of August 1, 1914, 38 Stat. 623 (19 U.S.C. 2), which was delegated to the Secretary of the Treasury by the President in Executive Order No. 10289, September 17, 1951 (3 CFR, Ch. ED, and pursuant to authorization given to me by Treasury Department Order No. 190, Rev. 5 (33 F.R. 5811), the designation of the Richmond and Petersburg, Va., Customs port of entry in the Norfolk, Va., Customs district (Region HI), is hereby revoked, and there is simul taneously created a new “Richmond- Petersburg” Customs port of entry in the Norfolk, Va., Customs district (Region HD. . The geographical boundaries of the new Richmond-Petersburg port of entry shall comprise all the territory within the counties of Henrico, Chesterfield, and Prince George Counties, including any independent citiesvand towns within the the boundaries of such counties, all in the State of Virginia, and that portion of the James River lying in Charles City County, Va., adjacent to the northern boundary of Prince George County, Va., and to the eastern boundary of Chester field County, Va. Section 1.2(c) of the Customs Regu lations is amended by deleting from the column headed “Ports of entry” in the 1Commissioner Carver not participating. Norfolk, Va., Customs district (Region IED, “Richmond” and “Petersburg,” and inserting in lieu thereof “Richmond- Petersburg (including the territory de scribed in T.D. 68-179).” (80 Stat. 379, sec. 1; 37 Stat. 434, sec. 1; 3 8 Stat. 623, as amended; R.S. 251, sec. 624- 46 Stat. 759; 5 U.S.C. 301; 19 U.S.C. 1, 2, 66,1624) This Treasury decision shall become effective 30 days after publication in the F ederal R egister. [ seal] Joseph M. Bowman, Assistant Secretary of the Treasury. [FJt. Doc. 68-8402; Filed, July 15, 1968; 8:49 a.m.] Title 21— FOOD AND DRUGS Chapter I— Food and Drug Adminis-* tration, Department of Health, Education, and Welfare SUBCHAPTER a — GENERAL PART 1— REGULATIONS FOR THE ENFORCEMENT OF THE FEDERAL FOOD, DRUG, AND COSMETIC ACT AND THE FAIR PACKAGING AND LABELING ACT Exemption of Frozen Desserts From Certain Labeling Requirements In the matter of exempting frozen desserts from certain labeling require ments of the regulations (21 CFR Part 1) for the enforcement of the Fair Packag ing and Labeling Act : A notice of proposed rulemaking in the above-identified matter was published in the F ederal R egister of January 26, 1968 (33 F.R. 1020), based on a petition submitted by the International Associa tion of Ice Cream Manufacturers, Suite 1105, 910 17th Street NW., Washington, D.C. 20005. In response to the proposal, 18comments were received as follows: 1. The Food Adjuncts Association, Inc., fully supports the proposal. 2. Bay-Lyn Jersey Farm of Lynden, Wash., opposes the exemption unless ap proved by Congress and the President. 3. Of the 16 State agencies responding: One opposed the prop'osal in its entirety; one accepted the grounds as being rea sonable but urged a negative ruling for the sake of establishing uniformity in labeling of foods; one for the same rea son urged retention of the placement requirement for the quantity of contents declaration; and one urged limiting the exemption to ice cream only. 4. Eleven State agencies recommended that 1-gallon size containers be included in the proposal to exempt 8-, 16-, 32-, and quirement that the net quantity of con tents declaration appear in the bottom 30 percent of the area of the label panel. This recommendation is adopted. 5. The Michigan Department of Agri culture recommended that the reference to frozen desserts “when packaged m standardized containers” be changed to “when measured by and packaged m FEDERAL REGISTER, VOL. 33, NO. 137— TUESDAY, JULY 16, 1968
- 13. RULES AND REGULATIONS 10141 measure-containers” to coincide with the “Measure Container Code of the Na tional Bureau of Standards Handbook 44.” This recommendation is also adopted. , The Commissioner of Food and Drugs concludes that since there was no oppor tunity for frozen dessert manufacturers to make label changes during the pend encyof the exemption proposal, any label changes on frozen desserts covered by this exemption, as well as any label changes on ice cream sandwiches, coated bars, stick confections, and other frozen dessert “novelties,” made necessary by the regulations under the Fair Packag ing and Labeling Act (21 CFR Part 1) shouldbe made before July A, 1969, rather thanbefore July 1,1968. Based on consideration of the com ments received and other relevant in formation, the Commissioner concludes that the proposed amendment, with the aforementioned changes, should be adopted as set forth below. Accordingly, pursuant to the provisions of the Fair Packaging and Labeling Act (secs. 5(b), 6(a), 80 Stat. 1298, 1299; 15 U.S.C. 1453, 1455) and the Federal Food, Drug, and Cosmetic Act (sec. 701, 52 Stat. 1055, as amended; 21 U.S.C. 371), and under the authority delegated to the Commissioner (21 CFR 2.120): It is ordered, That §1.1c(a) be amended by adding thereto anewsubparagraph, as follows: § 1.1c Exemptions from required label statements. * * * * * (а) Foods. * * * (б) (i) Ice cream, french ice cream, ice milk, fruit sherbets, water ices, quies cently frozen confections (with or with out dairy ingredients), special dietary frozen desserts, and products made in semblance of the foregoing, when measured by and packaged in ^-liquid pint and %-gallon measure-containers, as defined in the “Measure Container Code of National Bureau of Standards Handbook 44,” are exempt from the requirements of § 1.8b(b)(2) to the ex tent that net contents of 8-fluid ounces and 64-fluid ounces (or 2 quarts) may be expressed as y2 pint and y2 gallon, respectively. (ii) The foods named in subdivision (i) of this subparagraph, when meas- ured by and packaged in 1-liquid pint, 1-liquid quart, and %-gallon measure- containers, as defined in the “Measure Container Code of National Bureau of Standards Handbook 44,” are exempt from the dual net-contents declaration requirement of § 1.8b(j ). (iii) The foods named in subdivision (i) of this subparagraph, when measured by and packaged in y2-liquid pint, ■liquid pint, 1-liquid quart, Vfe-gallon, and 1-gallon measure-containers, as efined in the “Measure Container Code ^National Bureau of Standards Hand- k 44,” are exempt from the require ment of § 1.8b(f) that the declaration of ric contents be located within the bot- m 30 percent of the principal display Panel. Any person who will be adversely af fected by the foregoing order may at any time within 30 days from the date of its publication in the F ederal R egister file with the Hearing Clerk, Department of Health, Education, and Welfare, Room 5440, 330 Independence Avenue SW., Washington, D.C. 20201, written objections thereto. Objections shall show wherein the person filing will be ad versely affected by the order and specify with particularity the provisions of the order deemed objectionable and the grounds for the objections. If a hearing is requested, the objections must state the issues for the hearing, and such ob jections must be supported by grounds legally sufficient to justify the relief sought. Objections may be accompanied by a memorandum or brief in support thereof. All documents shall be filed in six copies. Effective date. This order shall become effective 60 days from the date of its publication in the F ederal R egister, ex cept as to any provisions that may be stayed by the filing of proper objections. Notice of the filing of objections or lack thereof will be announced by publication in the F ederal R egister. (Secs. 5 (b ), 6(a), 80 Stat. 1298, 1299; 15 U.S.O. 1453, 1455; sec. 701, 52 Stat. 1055, as amended; 21 U.S.C. 371) Dated: July 8, 1968. J. K . K ir k , Associate Commissioner -for Compliance. [F.R. Doc. 68-8406; Filed, July 15, 1968; 8:49 a.m.] SUBCHAPTER B— FOOD AND FOOD PRODUCTS PART 19— CHEESES, PRO CESSED CHEESES, CHEESE FOODS, CHEESE SPREADS, AND RELATED FOODS Creamed Cottage Cheese, Identity Standard; Order Listing Lactose as Optional Ingredient In the matter of amending the stand ard of identity for creamed cottage cheese (21 CFR 19.530) to list lactose as an optional ingredient for-the creaming mixture with provision for label declara tion: One comment (favorable) was received in response to-' the notice of proposed rulemaking in the above-identified mat ter that was published in the F ederal R egister of April 23,1968 (33 F.R. 6169), and based on a petition submitted by Foremost-McKesson, Inc., Ill Pine Street, San Francisco, Calif. .94111, and a label declarationjprovision proposed by the Commissioner of' Food and Drugs. Accordingly, on the basis of the infor mation submitted by the petitioner, the response to the proposal, and other rele vant information, the Commissioner concludes that it will promote honesty and fair dealing in the interest of con sumers to adopt the amendments as pro posed. Therefore, pursuant to the provisions of the Federal Food, Drug, and Cosmetic Act (secs. 401, 701, 52 Stat. 1046, 1055, as amended 70 Stat. 919, 72 Stat. 948; 21 U.S.C. 341, 371) and in accordance with the authority delegated to the Commis sioner (21 CFR 2.120) :Itis ordered, That § 19.530 (b) (2) and (d) (1) be revised to read as follows: § 19.530 Creamed cottage cheese; iden tity ; label statement of optional in gredients. * * * * * (b> * * * (2) One or any combination of two or more of the ingredients named in this subparagraph may be added to adjust the solids content, provided the weight of the solids added thereby does not ex ceed 3 percent of the weight of the creaming mixture. (i) Nonfat dry milk and concentrated skim milk. (ii) Sodium caseinate, ammonium caseinate, calcium caseinate, and potas sium caseinate. (iii) Dried milk protein. (iv) Lactose. * * * * * (d) (1) When one or a.mixture of two or more of the optional ingredients listed in paragraph (b) (2) (ii), (iii), and (iv), (5), and (6) (i) of this section is used, the label shall bear the statement *.__________ added” or “with added ____________” the blank being filled in with the common name or names of the optional ingredients used; Provided, however, That the name “vegetable gum” may be used in lieu of the specific names for carob (locust) bean gum, guar gum, gum karaya, and gum tragacanth. * * * * * Any person who will be adversely affected by the foregoing order may at any time within 30 days from the date of its publication in the F ederal R egis ter file with the Hearing Clerk, Depart ment of Health, Education, and Welfare, Room 5440, 330 Independence Avenue SW., Washington, D.C. 20201, written objections thereto. Objections shall show wherein the person filing will be ad versely affected by the order and specify with particularity the provisions of the order deemed objectionable and the grounds for the objections. If a hearing is requested, the objections must state the issues for the hearing, and such objections must be supported by grounds legally sufficient to justify the relief sought. Objections may be accompanied by a memorandum or brief in support thereof. All documents shall be filed in six copies. Effective date. This order shall become effective 60 days from the date of its publication in the F ederal R egister, except as to any provisions that may be stayed by the filing of proper objec tions. Notiee of the filing of objections or lack thereof will be announced by publication in the F ederal R egister. (Secs. 401, 701, 52 Stat. 1046, 1055, as amended, TO Stat. 919, 72 Stat. 948; 21 U.S.C. 341, 371) Dated: July 5, 1968. J. K . K ir k , Associate Commissioner for Compliance. [F.R. Doc. 68-8407; Filed, July 15, 1968; 8:49 a.m.] FEDERAL REGISTER, VOL. 33, NO. 137— TUESDAY, JULY 16, 1968
- 14. 10142 RULES AND REGULATIONS „ SUBCHAPTER C— DRUGS PART 147— ANTIBIOTICS INTENDED FOR USE IN THE LABORATORY DIAGNOSIS OF DISEASE Streptomycin Sulfate Discs for Use in Culture Media Under the authority vested in the Secretary of Health, Education, and Welfare by the Federal Food, Drug, and Cosmetic Act (sec. 507, 59 Stat. 463, as amended; 21 U.S.C. 357) and delegated to the Commissioner of Food and Drugs (21 CFR 2.120), the following new sec tion is added to Part 147 to provide for certification of streptomycin sulfate discs for use in culture media: § 147.6 Streptomycin sulfate discs for .use in culture media. (a) Requirements for certification— (1) Standards of identity, strength, quality, and purity. Streptomycin sulfate discs for use in culture media are paper discs intended for impregnation of cul ture media in the sensitivity testing of mycobacteria. They conform to all re quirements and. to all procedures pre scribed by § 147.2(a) for antibiotic sen sitivity discs, except that each disc shall contain streptomycin sulfate equivalent to 10, 25, 50, or 500 micrograms of strep tomycin. (2YPackaging. It shall be packaged in accordance with the requirements of § 147.2(b) of this chapter. (3) Labeling. In addition to complying with the requirements of § 147.2(c) of this chapter, the labeling shall also bear information indicating that the discs are for use in culture media for the sensi tivity testing of mycobacteria and not for use in ordinary sensitivity disc plate tests. (4) Requests for certification; samples. Requests for certification shall comply with § 147.2(d) of this chapter. (5) Fees. The fees shall comply with § 147.2(e) of this chapter. (b) Tests and methods of assay; po tency. Proceed as directed in § 147.1 of this chapter fox the assay of streptomy cin sulfate discs, except that: (1) In the assay of streptomycin sul fate discs labeled to contain the equiva lent of 10, 25, or 50 micrograms of strep tomycin, the control discs shall be made to contain the equivalent of 6.25, 12.5, 25, 50, and 100 micrograms of strepto mycin per disc. (2) In the assay of streptomycin sul fate discs labeled to contain the equiva lent of 500 micrograms of streptomycin: (i) To each 100 milliliters of seed agar used for the test add 2.0 milliliters of suspension number 11. (ii) The control discs shall be made to contain the equivalent of 50, 100, 200, 400, and 800 micrograms of streptomy cin per disc. Data supplied by the manufacturer concerning the subject sensitivity discs have been evaluated. Since the condi tions prerequisite to providing for certifi cation of the discs have been complied with and since it is in the public interest' not to delay in so providing, notice and public procedure and delayed effective date are not prerequisites to this promulgation. Effective date. This order shall be effective upon publication in the Feserai, R egister. (Sec. 507, 59 Stat. 463, as amended; 21 U.S.C. 357) Dated: July 5, 1968. 3. K . K ir k , Associate Commissioner for Compliance. [F.R. Doc. 68-8408; Filed, July 15, 1968; 8:49 ajn.J Title 31— MONEY AND FINANCE: TREASURY ' Chapter VI— Bureau of Engraving and Printing, Department of the Treasury PART 605— REGULATIONS GOVERN ING CONDUCT ON BUREAU OF EN G R A V IN G AND PRIN TIN G BUILDING AND GROUNDS AND BUREAU. OF ENGRAVING AND PRINTING ANNEX BUILDING AND GROUNDS The Treasury Department finds that it is necessary to promulgate regulations governing conduct on the Bureau of En graving and Printing Building and grounds and Bureau of Engraving and Printing Annex and grounds. The De partment also finds, in accordance with 5 U.S.C. 553(a), that notice and public procedure thereon are impractical and unnecessary and not required, since the new regulations pertain to the manage ment of public property. Accordingly, Subtitle B—Regulations relating to money and finance—is amended by adding Chapter VI—Bureau of Engraving and Printing, Department of the Treasury, and by promulgating therein the following part: Sec. 605.1 Authority. 605.2 Applicability. 605.3- Recording presence. 605.4 Preservation of property. 605.5 Compliance with signs and directions. 605.6 Nuisances. 605.7 Gambling. 605.8 Intoxicating beverages and narcotics, 605.9 Soliciting, vending, debt collection, and distribution of handbills. 605.10 Photographs for news, "advertising, or commercial purposes. 605.11 Dogs and other animals. 605.12 Vehicular and pedestrian traffic. 605.13 Weapons and explosives. 605.14 Penalties and other law. Authority : The provisions of this Part 605 issued under 5 U.S.C. 301; Delegation, Ad ministrator, General Services, 32 F.R. 11968; Treasury Dept. Order 177-25, 32 F.R. 17490. § 605.1 Authority, The regulations in this part governing conduct in and on the Bureau of Engrav ing and Printing Building and grounds and the Bureau of Engraving and Printing Annex Building and grounds located in Washington, D.C., at 14thand C Streets SW., are promulgated pur- suant to the authority vested in the Secretary' of the Treasury, including 5 U.S.C. 301 and that vested in him by delegation from the Administrator of General Services, 32 F.R. 11968 (1967), and in accordance with the authority vested in the Director of the Bureau of Engraving and Printing by Treasury Department Order No. 177-25 dated November 28, 1967, 32 F.R. 17490 (1967). § 605.2 Applicability. The regulations in this part apply to the building and grounds of the Bureau of Engraving and Printing Building and the Bureau of Engraving and Printing Annex Building located in Washington, D.C., at 14th and C Streets SW., and to all persons entering in or on such prop erty. Unless otherwise stated herein, the Bureau of Engraving and Printing Building and grounds and the Bureau of Engraving and Printing Annex Build ing and grounds shall be referred to in the regulations in this part as the “property”. It is the responsibility of the occupant agencies to require observ ance of the regulations in this part by their employees. § 605.3 Recording presence. Except as otherwise ordered, the prop erty shall be closed to the public during other than normal working hours. The property shall also be closed to the public in emergency situations and at such other times as may be necessary for the orderly conduct of the Government’s business. Admission te the property dur ing periods when such property is closed to the public will be limited to authorized individuals who will be required to sign the register and/or display identification documents when requested by the guard. § 605.4 Preservation of property. It shall be unlawful-for any person without proper authority to willfully destroy, damage, deface, or remove prop erty or any part thereof or any furnish ings therein. § 605.5 Compliance with signs and di rections. Persons in and on the property shall comply with the instructions of uni formed. Bureau of Engraving and Print ing Guards (JJ.S. Special Policemen), other authorized officials, and official signs of a prohibitory or directory nature. § 605.6 Nuisances. The use of loud, abusive, or profane language, unwarranted loitering, unau thorized assembly, the creation of any hazard to persons or things, improper disposal of rubbish, spitting, prurient prying, the commission of any obscene or indecent act, or any other disorderly conduct on the property ’ is prohibited. The throwing of any articles of any kind in, upon, or from the property and climbing upon any part thereof is pro hibited. The entry, without specific per mission, upon any part of the property to which the public does not customarily have access is prohibited. FEDERAL REGISTER, VOL. 33, NO. 137— TUESDAY, JULY 16, 1968
- 15. RULES AND REGULATIONS 10143 § 605.7 Gambling. Participating in games for money or other property, the operation of gambl ing devices, the conduct of a lottery or pool, the selling or purchasing of num bers tickets, or any other gambling in or on the property is prohibited. § 605.8 Intoxicating beverages and nar cotics. Entering or being on the property, or operating a motor vehicle thereon, by a person under the influence of intoxicat ing beverages or narcotic drug, or the consumption of such beverages or the use of such drug in or on the property is prohibited. § 605.9 Soliciting, vending, debt collec tion, and distribution of handbills. The unauthorized soliciting of alms and contributions, the commercial solic iting and vending of all kinds, the display ordistribution of commercial advertising, orthe collecting of private debts, in or on the property is prohibited. This rule does not apply to Bureau of Engraving and Printing concessions or notices posted by authorized employees on the bulletin boards. Distribution of material such as pamphlets, handbills, and flyers is pro hibited. without prior approval from the Director, Bureau of Engraving and Print ing, or his delegate. § 605.10 Photographs. The taking of photographs on the property is prohibited, without the writ ten permission of the Director, Bureau of Engraving and Printing. Title 18, United States Code, section 474 provides, in part, that whoever photographs any obligation or other security of the United States, or any part thereof, shall be fined not more than $5,000 or imprisoned not more than 15 years, or both. § 605.11 Dogs and other animals. Dogs and other animals, except seeing-eye dogs, shall not be brought upon the property for other than official purposes. S 605.12 Vehicular and pedestrian traf fic. ^ Drivers of all vehicles in or on the property shall drive in a careful and safe manner at all times and shall com ply with the signals and directions of guards and all posted traffic signs. (b) The blocking of entrances, drive- ways, walks, loading platforms, ,or fire ychants in or on the property is Prohibited. (c) Parking in or on the property is ot allowed without a permit or specific authority. Parking without authority parking in unauthorized locations or ir *tlons reserved for other persons O ] continuously in excess of 8 hours with- tin«P e/ mission' or contrary to the direc- 2 .a uniformed Bureau of Engraving Prohibited*^ Guard or of P°sted signs h Paragraph may be supple- 2 5 5 ^ * ™ time to time with the Director, Bureau of En- the Anting, or his delegate bj uance and posting of such specific traffic directives as may be required and when so issued and posted such directives shall have the same force and effect as if made a part hereof. § 605.13 Weapons and explosives. No person while on the property shall carry firearms, other dangerous or deadly weapons, or explosives, either openly or concealed, except for official purposes. § 6 0 5 .1 4 Penalties afid other law. Whoever shall be found guilty of vio lating the regulations in this part while on the property is subject to a fine of not more than $50 or imprisonment of not more than 30 days, or both (see 40 U.S.C. 318c). Nothing contained in the regulations in this part shall be con strued to abrogate any other- Federal laws or regulations or those of the Dis trict of Columbia applicable to the prop erty referred to in § 605.2 and governed by the regulations in this part. [seal] J ames A. Conlon, Director, Bureau of Engraving and Printing. [F.R. Doc. 68-8404; Filed, July 15, 1968; 8:49 a.m.] Title 32A— NATIONAL DEFENSE, APPENDIX Chapter I— Office of Emergency Planning [Defense Mobilization Order 8555.1A] DMO 8555.1 A— OEP POLICY GUID ANCE ON GOVERNMENT-OWNED PRODUCTION EQUIPMENT 1. Purpose. This order establishes policies on Government-owned produc tion equipment, including machine tools, which policies are necessary to maintain a highly effective and immediately avail able machine tool and equipment reserve for the emergency preparedness program of the U.S. Government. 2. Cancellation. This order supersedes Defense Mobilization Order 8555.1, No vember 13, 1963, as amended (28 F.R. 12581 and 29 F.R. 12646). 3. Scope and applicability. The policies and provisions of this order apply to all Federal Departments and Agencies having production equipment emergency preparedness functions assigned by Ex ecutive orders. They relate to the classes of Government-owned production equip ment listed in Appendix A of this order. Such exceptions as from time to time may be necessary, to the policy outlined herein shall be made only with prior approval of the Office of Emergency Planning. 4. Definitions, a. “Production equip ment,” as used herein, includes all items of equipment having an acquisition cost of $1,000 or more that fall within the categories of machinery and equipment listed in Appendix A of this order. b. “Idle production equipment,” as used herein, means all items of produc tion equipment for which no use is con templated or planned within 90 days. Idle equipment does not include production equipment in package form, in standby lines, or in active base packages, unless or until it has been withdrawn therefrom and has no contemplated use for a 90-day period. c. “Packaged form,” as used herein, means Government-owned production equipment assigned to a specific pro gram, contractor, and plant in either an in-use, idle, or partially idle status and which equipment as an entirety, or when combined with equipment owned by the contractor, is capable of producing at a specific level, a particular military or defense-supporting item or.items at that plant, by that contractor, as defense requirements may necessitate. d. '“Standby line,” as used herein means a complete set of installed Gov ernment-owned equipment, in an idle status, maintained intact in reserve con dition and which, when activated, is cap able of producing at a specific level of output. e. “Active base package,” as used herein means production equipment located in an active production facility when such equipment has been retained to provide production acceleration cap ability in the event of emergency, or to be used following a changeover to a new modified production item. f. “Package,” as used herein means those complements of production equip ment held in packaged form, standby lines, and active base packages, as de fined above. 5. Maintenance of the mobilization base—a. Policy— (1) Department of De fense. To the maximum extort possible reliance for support of mobilization pro duction will be placed upon private industry. Industrial plant equipment may be held in package plants, standby lines, or active base packages to main tain a high state of readiness for critical items of military materiel or to provide production capacity not available in private industry. (2) Other Government agencies. In dustrial plant equipment may be held in package plants, standby lines, or active base packages to maintain a high state of readiness for critical items of materiel or to provide production capacity not available in private industry. b. Provisions. (1) All equipment in packages shall be reviewed to insure their essentiality to mobilization requirements and to guard against obsolescence. Pack ages or parts of packages found to be obsolete or no longer essential to mobil ization requirements shall be reported as idle equipment to be screened for redis tribution or disposal. (2) In any instance in which a depart ment or agency cannot meet urgent pro duction schedules, because production equipment essential to this end is not im mediately available within the depart ment or agency or cannot be prômply obtained from other Federal agencies or from private industry, equipment in packages shall be made available on a loan or replacement basis for this pur pose. Upon termination of a loan, the FEDERAL REGISTER, VOL. 33, NO. 137— TUESDAY, JULY 16, 1968