Federal Register / Vol. 62, No. 155 / Tuesday, August 12, 1997 / Rules and Regulations 43091

1The uniform offering circular was published as

a final rule on January 5, 1993 (58 FR 412).

Amendments to the circular were published on

June 3, 1994 (59 FR 28773), March 15, 1995 (60 FR

13906), July 16, 1996 (61 FR 37007), August 23,

1996 (61 FR 43626), October 22, 1996 (61 FR

54908), January 6, 1997 (62 FR 846), and May 8,

1997 (62 FR 25113).

including, but not limited to, issuing a

demand or order to a Federal lessee, or

its designee, or any other person when:

(i) Your failure to issue the demand or

order would result in an underpayment

of an obligation due MMS; and

(ii) The underpayment would go

uncollected without MMS intervention.

§ 227.802 How will MMS terminate a

State’s delegation agreement?

This section explains the procedures

MMS will use to terminate all or a part

of your delegation agreement:

(a) MMS will notify you in writing

that it is initiating procedures to

terminate your delegation agreement;

(b) MMS will provide you notice and

opportunity for a hearing under

§ 227.803 of this part;

(c) The MMS Director, with

concurrence from the Secretary, will

decide whether to terminate your

delegation agreement.

(d) After the hearing, MMS may:

(1) Terminate your delegation

agreement; or

(2) Allow you 30 days to correct any

remaining deficiencies. If you do not

correct the deficiency within 30 days,

MMS will terminate all or a part of your

delegation agreement.

(e) MMS will determine the date your

agreement is terminated and will notify

you of that date in writing. MMS will

determine the termination date based on

the number of delegated functions and

the impact of the termination on all

affected parties.

§ 227.803 What are the hearing procedures

for terminating a State’s delegation

agreement?

(a) The MMS Director will appoint a

hearing official to conduct one or more

public hearings for fact finding and to

determine any actions you must take to

correct the noncompliance. The hearing

official will not decide whether to

terminate your delegation agreement;

(b) The hearing official will contact

you about scheduling a hearing date and

location;

(c) The hearing official will publish

notice of the hearing in the Federal

Register and other appropriate media

within your State;

(d) At the hearing, you will have an

opportunity to present testimony and

written information on your ability to

perform your delegated functions as

required under this part, your

delegation agreement, and the

Standards;

(e) Other persons may attend the

hearing and may present testimony and

written information for the record;

(f) MMS will record the hearing;

(g) After the hearing, MMS may

require you to submit additional

information; and

(h) Information presented at each

public hearing will help MMS to

determine whether:

(1) You have complied with the terms

and conditions of your delegation

agreement; or

(2) You have the capability to comply

with the requirements under § 227.106

of this part.

§ 227.804 How else may a State’s

delegation agreement terminate?

You may request MMS to terminate

your delegation at any time by

submitting your written notice of intent

6 months prior to the date on which you

want to terminate. MMS will determine

the date your agreement is terminated

and will notify you of that date in

writing. MMS will determine the

termination date based on the number of

delegated functions and the impact of

the termination on all affected parties.

§ 227.805 How may a State obtain a new

delegation agreement after termination?

After your delegation agreement is

terminated, you may apply again for

delegation by beginning with the

proposal process under this part.

PART 228—COOPERATIVE

ACTIVITIES WITH STATES AND

INDIAN TRIBES

2. The authority citation for part 228

is revised to read as follows:

Authority: Sec. 202, Pub. L. 97–451, 96

Stat. 2457 (30 U.S.C. 1732).

3. A new § 228.3 is added to read as

follows:

§ 228.3 Limitation on applicability.

As of the effective date of this rule,

September 11, 1997, this part does not

apply to Federal lands.

PART 229—DELEGATION TO STATES

4. The authority citation for part 229

is revised to read as follows:

Authority: 30 U.S.C. 1735.

5. A new § 229.3 is added to read as

follows:

§ 229.3 Limitation on applicability.

As of the effective date of this rule,

September 11, 1997, this part does not

apply to Federal lands.

[FR Doc. 97–21162 Filed 8–11–97; 8:45 am]

BILLING CODE 4310–MR–P

DEPARTMENT OF THE TREASURY

Fiscal Service

31 CFR Part 356

Sale and Issue of Marketable BookEntry Treasury Bills, Notes, and Bonds

(Department of the Treasury Circular,

Public Debt Series No. 1–93)

AGENCY: Bureau of the Public Debt,

Fiscal Service, Department of the

Treasury.

ACTION: Final rule.

SUMMARY: The Department of the

Treasury (‘‘Treasury’’ or ‘‘Department’’)

is publishing in final form an

amendment to 31 CFR part 356

(Uniform Offering Circular for the Sale

and Issue of Marketable Book-Entry

Treasury Bills, Notes, and Bonds). This

amendment makes the necessary

changes to accommodate three decimal

competitive bidding, in .005 percent

increments, for regular Treasury bills—

13-, 26-, and 52-week bills—and a

reduction in the net long position

reporting threshold amount for all

Treasury bill auctions (including cash

management bills). The final rule also

makes certain technical clarifications

and conforming changes.

DATES: The effective date is September

11, 1997, except for the change to

§ 356.13 (Net long position) which is

effective November 10, 1997.

ADDRESSES: This final rule has also been

made available for downloading from

the Bureau of the Public Debt’s Internet

site at the following address:

www.publicdebt.treas.gov.

FOR FURTHER INFORMATION CONTACT: Ken

Papaj (Director), Lee Grandy or Kurt

Eidemiller (Government Securities

Specialists), Department of the

Treasury, Bureau of the Public Debt,

Government Securities Regulations

Staff, (202) 219–3632.

SUPPLEMENTARY INFORMATION: 31 CFR

part 356, also referred to as the uniform

offering circular, sets out the terms and

conditions for the sale and issuance by

the Department of the Treasury to the

public of marketable Treasury bills,

notes, and bonds. The uniform offering

circular, in conjunction with offering

announcements, represents a

comprehensive statement of those terms

and conditions.1 The Department
43092 Federal Register / Vol. 62, No. 155 / Tuesday, August 12, 1997 / Rules and Regulations

2 62 FR 24375 (May 5, 1997).

3See letter dated June 4, 1997 from Stephanie S.

Wolf, Vice President and Associate General Counsel

of PSA, the Bond Market Trade Association to

Kenneth R. Papaj, Director, Government Securities

Regulations Staff. The comment letter is available

for public inspection and downloading on the

Internet, at the address provided earlier in this rule,

and for inspection and copying at the Treasury

Department Library, Room 5030, Main Treasury

Building, 1500 Pennsylvania Avenue, NW.,

Washington, DC 20220.

4Treasury Press Release was dated February 15,

1995. An amendment to the uniform offering

circular was published on March 15, 1995 (60 FR

13906).

published for public comment a

proposed amendment to the uniform

offering circular on May 5, 1997,2 which

specifically requested comments on

extending three decimal bidding, in .005

percent increments, to all Treasury bill

auctions (including cash management

bills (‘‘CMBs’’)) and reducing the net

long position reporting threshold

amount for all Treasury bill auctions

(including CMBs) from $2 billion to $1

billion. The closing date for comments

was June 4, 1997. The Department

received one comment letter which was

submitted by PSA, the Bond Market

Trade Association (‘‘PSA’’).3 In general,

PSA expressed support for the changes

as proposed, with a few exceptions

which are noted in each respective

section below. Treasury considered the

comments expressed in the PSA letter in

developing this final rule.

The final rule amends §§ 356.12 and

356.13 of the uniform offering circular

and provides two minor technical

clarifications in Appendix B to part 356

(Formulas and Tables) as well as

updated sample announcements of

Treasury auctions in Exhibit A to part

356 (Sample Announcements of

Treasury Offerings to the Public).

A. Three Decimal Competitive Bidding

in .005 Percent Increments

In February 1995, Treasury began

requiring competitive bids in note and

bond auctions to be expressed as yields

using three decimal places, in .001

percent increments, e.g., 7.123, rather

than two decimal places.4 At that time,

Treasury did not extend three decimal

bidding to bill auctions because three

decimal bidding, in .001 percent

increments, would not provide a price

unique to each discount rate for bills

with maturities less than 360 days. Price

uniqueness occurs when each separate

discount rate produces a different

(unique) price rounded to three decimal

places, i.e., no two discount rates result

in the same price. Price uniqueness is a

function of the minimum bid increment

allowed in auctions, price rounding

conventions, and the number of days to

maturity.

Under two decimal bidding, price

uniqueness is maintained for CMBs

with maturities of 36 days or more. If

three decimal bidding in increments of

one-half basis point is extended to

CMBs, price uniqueness would be

maintained with maturities of 72 days

or more. As stated in the proposed rule,

Treasury does not consider this to be

problematic given auction participants’

experience with the non-price

uniqueness of short-term CMBs under

the two decimal bidding process. For

regular Treasury bill auctions—13-, 26-

, and 52-week bills—three decimal

bidding, in .005 percent increments,

would maintain price uniqueness since

these bills have maturities of 90 days or

more.

As stated in its comment letter, PSA

supports three decimal bidding for bill

auctions with the view that consistent

bidding practices for all Treasury

securities would benefit the market and

result in an easier understanding of the

requirements for auction participation.

The letter also stated that the conversion

to three decimal bidding should not

require significant systems changes

since many market participants already

trade Treasury bills in minimum

increments of one-half to one-quarter

basis points. However, PSA

recommended that two decimal bidding

for CMBs be maintained given market

participants’ concern with non-price

uniqueness being extended further into

the maturity spectrum, from 36 to 72

days. This concern and ultimate

recommendation were based on PSA’s

view that, historically, Treasury has

generally issued CMBs with shorter

maturities, noting that during the past

twelve months most of the CMBs have

been issued with short maturities, with

a majority of less than 36 days. The

Department understands PSA’s view

and appreciates this concern given that

there has been only one CMB issued

since November 1995 with a maturity of

more than 72 days. Accordingly, as PSA

recommends, Treasury will not extend

three decimal bidding to CMBs, but will

maintain the current two decimal

bidding requirement, in .01 percent

increments, for all CMB auctions.

Section 356.12(c)(1)(i) of the final rule

reflects the change from the proposed

rule by requiring three decimal bidding,

in .005 percent increments, for regular

Treasury bills only. The third decimal

must be expressed in increments of onehalf basis point (e.g., 5.320 or 5.325) in

which the final decimal must be either

zero or five. The rule provides that three

decimal bidding, in .005 percent

increments, will be a requirement for

regular Treasury bill auctions—13-,

26-, and 52-week bills. The final rule

also specifically states that competitive

bids for CMBs must show the discount

rate bid expressed with two decimals, in

.01 percent increments. Accordingly,

the requirement for competitive bids for

CMBs to be expressed in two decimals,

in .01 percent increments, remains

unchanged.

As PSA suggested in its comment

letter, the effective date for the change

to § 356.12 will be 30 days after

publication of the final rule to provide

market participants with sufficient time

to update internal auction policies and

procedures. Accordingly, the effective

date of this rule change is September 11,

1997. Although this final rule amends

the uniform offering circular to

accommodate three decimal bidding for

regular bill auctions, Treasury will

implement this bidding change through

the offering announcements for specific

auctions. Therefore, auction participants

should refer to the specific offering

announcements as to when this change

in bidding will be implemented, which

in any event will be no sooner than the

date referenced above. All offering

announcements will continue to list

specific bidding requirements for each

offering, including how competitive

bids submitted for the particular auction

must be expressed, and will govern in

the event of an inconsistency with the

rules. (See § 356.10)

As stated in the proposed rule, the

change from two decimal, in .01 percent

increments, to three decimal bidding, in

.005 percent increments, for regular

Treasury bills is being adopted to

promote more efficient and aggressive

bidding in these auctions and is

expected to lead to marginally higher

auction revenues for Treasury.

The change to three decimal

competitive bidding, in .005 percent

increments, for regular bill auctions will

not affect how awards are made to

noncompetitive bidders, i.e., the price of

securities awarded to noncompetitive

bidders in these auctions will continue

to be the price equivalent to the

weighted average discount rate of

accepted competitive bids. Finally, the

Department wishes to remind auction

participants that the requirement for

competitive bids for Treasury note and

bond auctions to be expressed in three

decimals, in .001 percent increments,

remains unchanged. Further, the

restriction against using fractions still

applies to all marketable security

auctions.
Federal Register / Vol. 62, No. 155 / Tuesday, August 12, 1997 / Rules and Regulations 43093

B. Decrease in Net Long Position

Reporting Threshold Amount

Section 356.13(a) reflects the

reduction in the net long position

reporting threshold amount for all

Treasury bill auctions (i.e., 13-, 26-, 52-

week bills and CMBs) from $2 billion to

$1 billion, while maintaining the $2

billion threshold amount for Treasury

note and bond auctions. This change in

the reporting threshold amount is being

adopted in the final rule as it was

proposed. PSA supports this change as

reasonable and appropriate and believes

that consistently applying the $1 billion

threshold uniformly to all bill auctions,

rather than changing the threshold from

time to time, depending on the public

offering amount, will likely result in a

better overall understanding of, and

compliance with, the auction rules. PSA

requested that more preparation time be

provided for those market participants,

who in the past, may not have come

close to approaching the $2 billion

threshold. In its letter, PSA stated that

these participants may require

significant changes to their internal

auction policies, procedures, and

systems in order to capture and report

positions at the lower threshold. In

order to provide market participants

with a reasonable amount of time to

make the necessary procedural changes

and to notify their affiliates and

customers to ensure the broadest level

of compliance, Treasury accepts PSA’s

recommendation for a delayed effective

date of 90 days after the final rule is

published. The effective date of the

change to this section is November 10,

1997.

The net long position reporting

threshold amount for bills, notes, and

bonds will continue to be provided in

the offering announcement for the

particular security. As currently stated

in § 356.10 of the uniform offering

circular, the offering announcement

takes precedence whenever any

provision of the announcement is

inconsistent with any provision of the

circular. Section 356.10 affords Treasury

the flexibility to change the net long

position reporting threshold amount by

providing the amount in the offering

announcement. As stated in the

preamble to the proposed rule, this

reduction in the threshold amount for

Treasury bills is being adopted to more

effectively achieve a Treasury financing

objective of ensuring a broad

distribution of a security issue, whereby

no single bidder is awarded more than

35% of the public offering less the

bidder’s net long position as reportable

under § 356.13.

C. Additional Technical Clarifications

Two minor technical changes are also

being made with this final rule. A

clarifying note on Treasury’s price

rounding convention for conversion of

inflation-indexed security yields to

equivalent prices is being added to

Appendix B, Section III, Paragraphs A

and B after each resolution. This change

was not part of the proposed rule. Also,

the final rule adopts, with a minor

conforming revision, the note at the end

of Appendix B, Section IV, Paragraph C.

This minor revision identifies the

changes that have been made over the

years in the bidding conventions for

Treasury bill auctions. Treasury is not

revising any of the examples of formulas

in Appendix B, Section IV since the

change to three decimal competitive

bidding will not require any changes in

the applicable formulas for bills.

The sample offering announcements

of Treasury auctions in Exhibit A are

also being updated in this final rule to

reflect the changes that have occurred

since they were incorporated in the

uniform offering circular. Updated

samples for Treasury’s quarterly

financing, weekly bills, and CMB

auction announcements are included in

this final rule but were not part of the

proposed rule.

Procedural Requirements

This final rule does not meet the

criteria for a ‘‘significant regulatory

action’’ pursuant to Executive Order

12866.

Although this rule was issued in

proposed form to secure the benefit of

public comment, the notice and public

procedures requirements of the

Administrative Procedure Act are

inapplicable, pursuant to 5 U.S.C.

553(a)(2). As no notice of proposed

rulemaking is required, the provisions

of the Regulatory Flexibility Act (5

U.S.C. 601, et seq.) do not apply.

There is no new collection of

information contained in this final rule,

and, therefore, the Paperwork Reduction

Act does not apply. The collections of

information of 31 CFR part 356 have

been previously approved by the Office

of Management and Budget under

§ 3507(d) of the Paperwork Reduction

Act of 1995 (44 U.S.C. Chapter 35)

under control number 1535–0112.

Under this Act, an agency may not

conduct or sponsor, and a person is not

required to respond to, a collection of

information unless it displays a valid

OMB control number.

List of Subjects in 31 CFR Part 356

Bonds, Federal Reserve System,

Government securities, Securities.

Dated: August 6, 1997.

Gerald Murphy,

Fiscal Assistant Secretary.

For the reasons set forth in the

preamble, 31 CFR Chapter II, subchapter

B, part 356, is amended as follows:

PART 356—SALE AND ISSUE OF

MARKETABLE BOOK-ENTRY

TREASURY BILLS, NOTES, AND

BONDS (DEPARTMENT OF THE

TREASURY CIRCULAR, PUBLIC DEBT

SERIES NO. 1–93)

1. The authority citation for part 356

continues to read as follows:

Authority: 5 U.S.C. 301; 31 U.S.C. 3102, et

seq.; 12 U.S.C. 391.

2. Section 356.12 is amended by

revising paragraph (c)(1)(i) to read as

follows:

§ 356.12 Noncompetitive and competitive

bidding.

* * * * *

(c) * * *

(1) * * *

(i) Treasury bills. For all bills except

cash management bills, a competitive

bid must show the discount rate bid,

expressed with three decimals in .005

percent increments. The third decimal

must be either a zero or a five, e.g.,

5.320 or 5.325. Fractions may not be

used. For cash management bills, a

competitive bid must show the discount

rate bid, expressed with two decimals in

.01 percent increments, e.g., 5.14.

Fractions may not be used.

* * * * *

3. Section 356.13 is amended by

revising paragraph (a) to read as follows:

§ 356.13 Net long position.

(a) Reporting net long positions. When

bidding competitively, a bidder must

report the amount of its net long

position when the total of all of its bids

in an auction plus the bidder’s net long

position in the security being auctioned

equals or exceeds the net long position

reporting threshold amount. The net

long position reporting threshold

amount for any particular security will

be as stated in the offering

announcement for that security. (See

§ 356.10.) That amount will be $1

billion for bills, and $2 billion for notes

and bonds, unless otherwise stated in

the offering announcement. If the bidder

either has no position or has a net short

position and the total of all of its bids

equals or exceeds the net long position

reporting threshold amount, e.g., $1

billion for bills and $2 billion for notes

and bonds, a net long position of zero

must be reported. In cases where a

bidder that is required to report the
43094 Federal Register / Vol. 62, No. 155 / Tuesday, August 12, 1997 / Rules and Regulations

amount of its net long position has more

than one bid, the bidder’s total net long

position should be reported in

connection with only one bid. A bidder

that is a customer must report its

reportable net long position through

only one depository institution or

dealer. (See § 356.14(c).)

* * * * *

4. Appendix B to Part 356, Section III,

Paragraphs A and B are amended by

adding a note at the end of each

paragraph, respectively, to read as

follows:

Appendix B to Part 356—Formulas and

Tables

* * * * *

III. Formulas for Conversion of InflationIndexed Security Yields to Equivalent Prices

* * * * *

A. For inflation-indexed securities with a

regular first interest payment period:

* * * * *

Note: For the real price (P), Treasury has

rounded to three places. These amounts are

based on 100 par value.

B. For inflation-indexed securities

reopened during a regular interest period

where the purchase price includes

predetermined accrued interest:

* * * * *

Note: For the real price (P), and the

inflation-adjusted price (Padj), Treasury has

rounded to three places. For accrued interest

(A) and adjusted accrued interest (Aadj),

Treasury has rounded to six places. These

amounts are based on 100 par value.

* * * * *

5. Appendix B to part 356, Section IV,

Paragraph C is amended by revising the

note at the end of the paragraph to read

as follows:

* * * * *

IV. Computation of Purchase Price, Discount

Rate, and Investment Rate (CouponEquivalent Yield) for Treasury Bills

* * * * *

C. Conversion of prices to discount rates

for Treasury bills of all maturities:

* * * * *

Note: Prior to April 18, 1983, all bills were

sold in price-basis auctions, in which

discount rates calculated from prices were

rounded to three places, using normal

rounding procedures. Since that time, all

bills have been sold only on a discount rate

basis. For regular Treasury bills—13-, 26-,

and 52-week bills—discount rates bid were

submitted with two decimals in increments

of .01 percent, e.g., 5.32, until 1997, when

Treasury instituted a change to three decimal

bidding in increments of .005 percent, e.g.,

5.320 or 5.325.

* * * * *

6. Exhibit A to Part 356 is amended

by revising the text of Sections I through

III to read as follows:

Exhibit A to Part 356—Sample

Announcements of Treasury Offerings to the

Public

* * * * *

I. Treasury Quarterly Financing

Announcement

For Release When authorized at Press

Conference

February 5, 20XX

Contact: Office of Financing 202/XXX-XXXX

Treasury February Quarterly Financing

The Treasury will auction $17,750 million

of 3-year notes, $12,000 million of 10-year

notes, and $10,000 million of 30-year bonds

to refund $18,037 million of publicly-held

securities maturing February 15, 20XX, and

to raise about $21,725 million new cash.

In addition to the public holdings, Federal

Reserve Banks hold $1,795 million of the

maturing securities for their own accounts,

which may be refunded by issuing additional

amounts of the new securities.

The maturing securities held by the public

include $1,654 million held by Federal

Reserve Banks as agents for foreign and

international monetary authorities. Amounts

bid for these accounts by Federal Reserve

Banks will be added to the offering.

The 10-year note and the 30-year bond

being offered today are eligible for the

STRIPS program.

Tenders will be received at Federal Reserve

Banks and Branches and at the Bureau of the

Public Debt, Washington, D.C. This offering

of Treasury securities is governed by the

terms and conditions set forth in the Uniform

Offering Circular (31 CFR Part 356, as

amended) for the sale and issue by the

Treasury to the public of marketable Treasury

bills, notes, and bonds.

Details about the notes and bonds are given

in the attached offering highlights.

Attachment

Highlights of Treasury Offerings to the Public—February 20XX Quarterly Financing

February 5, 20XX

OFFERING AMOUNT: ......................... $17,750 million ............................ $12,000 million ............................ $10,000 million

DESCRIPTION OF OFFERING:

Term and type of security .... 3-year note ................................... 10-year notes ................................ 30-year bonds

Series ..................................... U–20XX ........................................ B–20XX ........................................ Bonds of February 20XX

CUSIP number ....................... 912827 XX X ................................ 912827 XX X ................................ 912810 XX X

Auction date .......................... February 11, 20XX ....................... February 12, 20XX ....................... February 13, 20XX

Issue date ............................... February 18, 20XX ....................... February 18, 20XX ....................... February 18, 20XX

Dated date .............................. February 18, 20XX ....................... February 15, 20XX ....................... February 15, 20XX

Maturity date ......................... February 15, 20XX ....................... February 15, 20XX ....................... February 15, 20XX

Interest rate ............................ Determined based on the average

of accepted competitive bids.

Determined based on the average

of accepted competitive bids.

Determined based on the average

of accepted competitive bids

Yield ...................................... Determined at auction ................. Determined at auction ................. Determined at auction

Interest payment dates .......... August 15 and February 15 ........ August 15 and February 15 ........ August 15 and February 15

Minimum bid amount ........... $5,000 ........................................... $1,000 ........................................... $1,000

Multiples ................................ $1,000 ........................................... $1,000 ........................................... $1,000

Accrued interest payable by

investor.

None ............................................. Determined at auction ................. Determined at auction

Premium or discount ............ Determined at auction ................. Determined at auction ................. Determined at auction

STRIPS INFORMATION:

Minimum amount required .. Not applicable .............................. Determined at auction ................. Determined at auction

Corpus CUSIP number .......... Not applicable .............................. 912820 XX X ................................ 912803 XX X

Due dates and CUSIP numbers for additional TINTs.Not applicable .............................. Not applicable .............................. February 15, 20XX—912833 XX

X

THE FOLLOWING RULES APPLY TO ALL SECURITIES MENTIONED ABOVE:

SUBMISSION OF BIDS:

Noncompetitive bids ............. Accepted in full up to $5,000,000 at the average yield of accepted competitive bids.

Competitive bids ................... (1) Must be expressed as a yield with three decimals in increments of .001%, e.g., 7.123%.

(2) Net long position for each bidder must be reported when the sum of the total bid amount, at all

yields, and the net long position is $2 billion or greater.

(3) Net long position must be determined as of one half-hour prior to the closing time for receipt of

competitive tenders.
Federal Register / Vol. 62, No. 155 / Tuesday, August 12, 1997 / Rules and Regulations 43095

Highlights of Treasury Offerings to the Public—February 20XX Quarterly Financing—Continued

February 5, 20XX

MAXIMUM RECOGNIZED BID AT A SINGLE YIELD:.35% of public offering.

MAXIMUM AWARD: ........................... 35% of public offering.

RECEIPT OF TENDERS:

Noncompetitive tenders ........ Prior to 12:00 noon Eastern Standard time on auction day.

Competitive tenders .............. Prior to 1:00 p.m. Eastern Standard time on auction day.

PAYMENT TERMS ............................. Full payment with tender or by charge to a funds account at a Federal Reserve Bank on issue date.

II. Treasury Weekly Bill Announcement

Embargoed until 2:30 P.M., April 15, 20XX

Contact: Office of Financing, 202/XXX–

XXXX

Treasury’s Weekly Bill Offering

The Treasury will auction two series of

Treasury bills totaling approximately $12,000

million, to be issued April 24, 20XX. This

offering will result in a paydown for the

Treasury of about $6,225 million, as the

maturing publicly-held weekly bills are

outstanding in the amount of $18,220

million.

In addition to the public holdings, Federal

Reserve Banks for their own accounts hold

$6,558 million of the maturing bills, which

may be refunded at the weighted average

discount rate of accepted competitive

tenders. Amounts issued to these accounts

will be in addition to the offering amount.

Federal Reserve Banks hold $3,007 million

as agents for foreign and international

monetary authorities, which may be refunded

within the offering amount at the weighted

average discount rate of accepted competitive

tenders. Additional amounts may be issued

for such accounts if the aggregate amount of

new bids exceeds the aggregate amount of

maturing bills.

Tenders for the bills will be received at

Federal Reserve Banks and Branches and at

the Bureau of the Public Debt, Washington,

D.C. This offering of Treasury securities is

governed by the terms and conditions set

forth in the Uniform Offering Circular (31

CFR part 356, as amended) for the sale and

issue by the Treasury to the public of

marketable Treasury bills, notes, and bonds.

Details about each of the new securities are

given in the attached offering highlights.

Attachment

Highlights of Treasury Offerings of Weekly Bills To Be Issued April 24, 20XX

April 15, 20XX

OFFERING AMOUNT: .................................................................................. $6,000 million .............................. $6,000 million

DESCRIPTION OF OFFERING:

Term and type of security .............................................................. 91-day bill ..................................... 182-day bill

CUSIP number ................................................................................ 912794 XX X ................................. 912794 XX X

Auction date .................................................................................... April 21, 20XX ............................. April 21, 20XX

Issue date ......................................................................................... April 24, 20XX ............................. April 24, 20XX

Maturity date ................................................................................... July 24, 20XX ................................ October 23, 20XX

Original issue date .......................................................................... July 25, 20XX ................................ April 24, 20XX

Currently outstanding ..................................................................... $31,725 million ............................

Minimum bid amount .................................................................... $10,000 .......................................... $10,000

Multiples ......................................................................................... $ 1,000 ........................................... $ 1,000

THE FOLLOWING RULES APPLY TO ALL SECURITIES MENTIONED ABOVE:

SUBMISSION OF BIDS:

Noncompetitive bids ...................................................................... Accepted in full up to $1,000,000 at the average discount rate of accepted competitive bids.

Competitive bids ............................................................................. (1) Must be expressed as a discount rate with three decimals in increments of .005%, e.g., 7.100%, 7.105%.

(2) Net long position for each bidder must be reported when the sum

of the total bid amount, at all discount rates, and the net long position is $1 billion or greater.

(3) Net long position must be determined as of one half-hour prior to

the closing time for receipt of competitive tenders.

MAXIMUM RECOGNIZED BID AT A SINGLE YIELD: ......................................... 35% of public offering.

MAXIMUM AWARD: ..................................................................................... 35% of public offering.

RECEIPT OF TENDERS:

Noncompetitive tenders ................................................................. Prior to 12:00 noon Eastern Daylight Saving time on auction day.

Competitive tenders ........................................................................ Prior to 1:00 p.m. Eastern Daylight Saving time on auction day.

PAYMENT TERMS: ...................................................................................... Full payment with tender or by charge to a funds account at a Federal Reserve Bank on issue date.

III. Treasury Cash Management Bill

Announcement

Embargoed until 2:30 p.m., February 25,

20XX

Contact: Office of Financing 202/XXX-XXXX

Treasury to Auction Cash Management Bills

The Treasury will auction approximately

$23,000 million of 45-day Treasury cash

management bills to be issued March 3,

20XX.

Competitive and noncompetitive tenders

will be received at all Federal Reserve Banks

and Branches. Tenders will not be accepted

for bills to be maintained on the book-entry

records of the Department of the Treasury

(TREASURY DIRECT). Tenders will not be

received at the Bureau of the Public Debt,

Washington, D.C.

Additional amounts of the bills may be

issued to Federal Reserve Banks as agents for

foreign and international monetary

authorities at the average price of accepted

competitive tenders.

This offering of Treasury securities is

governed by the terms and conditions set

forth in the Uniform Offering Circular (31

CFR part 356, as amended) for the sale and

issue by the Treasury to the public of

marketable Treasury bills, notes, and bonds.

Details about the new security are given in

the attached offering highlights.

Attachment
43096 Federal Register / Vol. 62, No. 155 / Tuesday, August 12, 1997 / Rules and Regulations

Highlights of Treasury Offering of 45-Day Cash Management Bill

February 25, 20XX

OFFERING AMOUNT ..................................................................................... $23,000 million.

DESCRIPTION OF OFFERING:.

Term and type of security ................................................................ 45-day Cash Management Bill.

CUSIP number .................................................................................. 912794 XX X.

Auction date ..................................................................................... February 27, 20XX.

Issue date .......................................................................................... March 3, 20XX.

Maturity date .................................................................................... April 17, 20XX.

Original issue date ............................................................................ October 17, 20XX.

Currently outstanding ...................................................................... $24,724 million.

Minimum bid amount ...................................................................... $10,000.

Multiples ........................................................................................... $1,000.

Minimum to hold amount ............................................................... $10,000.

Multiples to hold .............................................................................. $1,000.

SUBMISSION OF BIDS:

Noncompetitive bids ........................................................................ Accepted in full up to $1,000,000 at the average discount rate of accepted competitive bids.

Competitive bids ............................................................................... (1) Must be expressed as a discount rate with two decimals in increments of .01%, e.g., 7.12%.

(2) Net long position for each bidder must be reported when the

sum of the total bid amount, at all discount rates, and the net long

position is $1 billion or greater.

(3) Net long position must be determined as of one half-hour prior

to the closing time for receipt of competitive tenders.

MAXIMUM RECOGNIZED BID AT A SINGLE YIELD ............................................ 35% of public offering.

MAXIMUM AWARD ........................................................................................ 35% of public offering.

RECEIPT OF TENDERS:

Noncompetitive tenders ................................................................... Prior to 11:00 a.m. Eastern Standard time on auction day.

Competitive tenders ......................................................................... Prior to 11:30 a.m. Eastern Standard time on auction day.

PAYMENT TERMS ......................................................................................... Full payment with tender or by charge to a funds account at a Federal Reserve Bank on issue date.

* * * * *

[FR Doc. 97–21277 Filed 8–11–97; 8:45 am]

BILLING CODE 4810–39–W

DEPARTMENT OF TRANSPORTATION

Coast Guard

33 CFR Part 117

[CGD13–95–011]

RIN–2115–AE47

Drawbridge Operation Regulations;

Hood Canal, WA

AGENCY: Coast Guard, DOT.

ACTION: Final rule.

SUMMARY: At the request of the

Washington State Department of

Transportation (WSDOT), the Coast

Guard is amending the regulations

governing the operation of the Hood

Canal Bridge at Port Gamble,

Washington. This change limits the

width of the opening of the retractable

span of the floating bridge to 300 feet of

horizontal clearance unless a maximum

horizontal clearance of 600 feet is

specifically requested by the vessel

operator.

EFFECTIVE DATE: September 11, 1997.

ADDRESSES: Unless otherwise noted,

documents referred to in this preamble

are available for inspection and copying

at Commander (oan), Thirteenth Coast

Guard District, 915 Second Avenue,

Seattle, Washington 98174–1067.

Normal office hours are between 7:45

a.m. and 4:15 p.m., Monday through

Friday, except federal holidays.

FOR FURTHER INFORMATION CONTACT: John

E. Mikesell, Chief, Plans and Programs

Section, Aids to Navigation and

Waterways Management Branch,

(Telephone: (206) 220–7270).

SUPPLEMENTARY INFORMATION:

Drafting Information

The drafters of this notice are Austin

Pratt, Project Officer, and Lieutenant

Commander John C. Odell, Project

Attorney, Thirteenth Coast Guard

District Legal Office.

Regulatory History

On November 1, 1995, the Coast

Guard published a notice of proposed

rulemaking entitled Drawbridge

Operation Regulation; Hood Canal,

Washington, in the Federal Register (60

FR 55515). A single comment was

received which favored the proposed

change.

Background and Purpose

This change allows the floating

retractable span of the Hood Canal

Bridge to open halfway (300 feet) for the

passage of most vessels instead of the

maximum (600 feet). Current regulations

at 33 CFR 117.5 state that, unless

otherwise required, drawbridges shall

be fully opened for the passage of

vessels. The drawspan of the Hood

Canal is extremely wide compared to

the majority of drawbridges. Unlike

many drawbridges, no part of the draw

mechanism is suspended above the

channel when opened. Opening only to

300 feet for the vast majority of

openings will reduce energy

consumption and maintenance costs as

well as shorten delays to roadway

traffic. A full opening and closure of the

bridge, not including vessel transit time,

takes at least fifteen minutes. This is

two or three times longer than the

opening and closing time of many other

drawbridges. WSDOT has observed that

only one or two openings out of an

average of about 32 openings per month

are for vessels that need the span fully

opened to pass safely. The remaining

vessels pass safely through a horizontal

opening of only 300 feet. In practice,

many vessels routinely pass through the

bridge before the retractable span has

been fully opened.

Discussion of Comments and Changes

The single comment received was

from the United States Navy which is

the entity most often in need of full

openings for the safe passage of large

vessels on Hood Canal. This change is

not expected to affect naval operations