```

[Federal Register Volume 77, Number 66 (Thursday, April 5, 2012)]
[Rules and Regulations]
[Pages 20531-20536]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-8196]

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

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Parts 400, 401, 404, 405, 406, 413, 414, 415, 417, 420, 431, 
433, 435, 437, 440, 460

49 CFR Part 1

[Docket No. FAA-2012-0232; Amendment Nos. 400-3, 401-7, 404-5, 405-5, 
406-7, 413-10, 414-2, 415-5, 417-3, 420-5, 431-3, 433-2, 435-2, 437-1, 
440-3, 460-1; 1-114; related to Docket Nos. 28851, 43810, FAA-1999-
5535, FAA-1999-5833, FAA-1999-5835, FAA-2000-7953, FAA-2001-8607, FAA-
2005-21332, FAA-2005-23449, FAA-2006-24197, FAA-2007-27390; OST Docket 
No. 1]
[RINs 2120-AF99, 2120-AG71, 2120-AG15, 2120-AG72, 2120-AG37, 2120-AH18, 
2120-AI50, 2120-AI57, 2120-AI56, 2120-AI88]

Correction of Authority Citations for Commercial Space 
Transportation

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Technical amendment.

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

SUMMARY: In 2010, Congress transferred the statute authorizing the 
FAA's commercial space transportation regulations. This action is 
necessary to correct affected citations in the Code of Federal 
Regulations to reflect this transfer of authority. The intended effect 
of this action is to make the affected regulations comply with the 
statute.

DATES: These amendments become effective April 5, 2012.

FOR FURTHER INFORMATION CONTACT: Laura Montgomery, Senior Attorney for 
Commercial Space Transportation, Office of the Chief Counsel, 
Regulations Division, AGC-200, Federal Aviation Administration, 800 
Independence Avenue SW., Washington, DC 20591; telephone (202) 267-
3150; facsimile (202) 267-7971; email laura.montgomery@faa.gov.

SUPPLEMENTARY INFORMATION: 

Background

    Since 1994, the FAA has operated in the area of commercial space 
launch activities under the authority delegated by Congress in 49 
U.S.C. chapter 701. See Revision of Title 49, United States Code 
Annotated, ``Transportation,'' Public Law 103-272, 108 Stat. 745, 1130 
(1994). The FAA implements these regulations through Title 14, Code of 
Federal Regulations (14 CFR) chapter III, Commercial Space 
Transportation.
    In 2010, Congress consolidated commercial space laws into a single, 
unified title of the United States Code. See Enactment of Title 51--
National and Commercial Space Programs, Public Law 111-314, 124 Stat. 
3328 (2010). Congress' purpose was ``to codify certain existing laws 
related to national and commercial space programs as a positive law 
title of the United States Code.'' Id. During this process, 49 U.S.C. 
chapter 701 was transferred and redesignated as 51 U.S.C. chapter 509. 
The recodification makes no substantive changes.
    The congressional transfer of authority made a number of citations 
in the Code of Federal Regulations obsolete. See 14 CFR chapter III 
(2011); 49 CFR 1.47 (2010). This amendment corrects the affected 
citations to accurately reference the new citations. This amendment 
does not make substantive changes to the affected regulations.

List of Subjects

14 CFR Part 400

    Space transportation and exploration.

14 CFR Part 401

    Organization and functions (Government agencies), Space safety, 
Space transportation and exploration.

14 CFR Part 404

    Administrative practice and procedure, Space safety, Space 
transportation and exploration.

14 CFR Part 405

    Investigations, Penalties, Space safety, Space transportation and 
exploration.

14 CFR Part 406

    Administrative practice and procedure, Space safety, Space 
transportation and exploration.

14 CFR Part 413

    Confidential business information, Human space flight, Reporting 
and recordkeeping requirements, Space safety, Space transportation and 
exploration.

14 CFR Part 414

    Airspace, Aviation safety, Space transportation and exploration.

14 CFR Part 415

    Aviation safety, Environmental protection, Rockets, Space safety, 
Space transportation and exploration.

14 CFR Part 417

    Aviation safety, Reporting and recordkeeping requirements, Rockets, 
Space safety, Space transportation and exploration.

[[Page 20532]]

14 CFR Part 420

    Airspace, Human space flight, Space safety, Space transportation 
and exploration.

14 CFR Part 431

    Aviation safety, Environmental protection, Human space flight, 
Reporting and recordkeeping, Rockets, Space safety, Space 
transportation and exploration.

14 CFR Part 433

    Aviation safety, Environmental protection, Investigations, 
Reporting and recordkeeping requirements, Space transportation and 
exploration.

14 CFR Part 435

    Aviation safety, Environmental protection, Investigations, 
Reporting and recordkeeping requirements, Space safety, Space 
transportation and exploration.

14 CFR Part 437

    Aviation safety, Airspace, Human space flight, Rockets, Space 
safety, Space transportation and exploration.

14 CFR Part 440

    Armed forces, Claims, Federal building and facilities, Government 
property, Indemnity payments, Insurance, Reporting and recordkeeping 
requirements, Rockets, Space transportation and exploration.

14 CFR Part 460

    Human space flight, Reporting and recordkeeping requirements, 
Rockets, Space safety, Space transportation and exploration.

49 CFR Part 1

    Authority delegations (Government agencies), Organizations and 
functions (Government agencies).

The Amendments

    In consideration of the foregoing, the Federal Aviation 
Administration amends chapter III of title 14, Code of Federal 
Regulations, and subtitle A of title 49, Code of Federal Regulations, 
as follows:

Title 14--Aeronautics and Space

CHAPTER III--COMMERCIAL SPACE TRANSPORTATION, FEDERAL AVIATION 
ADMINISTRATION, DEPARTMENT OF TRANSPORTATION

PART 400--BASIS AND SCOPE

0
1. The authority citation for part 400 is revised to read as follows:

    Authority:  51 U.S.C. 50901-50923.

0
2. Revise Sec.  400.2 to read as follows:

Sec.  400.2  Scope.

    The regulations in this part set forth the procedures and 
requirements applicable to the authorization and supervision under 51 
U.S.C. Subtitle V, chapter 509, of commercial space transportation 
activities conducted in the United States or by a U.S. citizen. The 
regulations in this chapter do not apply to amateur rockets activities, 
as defined in 14 CFR 1.1, or to space activities carried out by the 
United States Government on behalf of the United States Government.

PART 401--ORGANIZATION AND DEFINITIONS

0
3. The authority citation for part 401 is revised to read as follows:

    Authority:  51 U.S.C. 50101-50923.

0
4. Revise the definitions of ``act'' and ``operator'' in Sec.  401.5 to 
read as follows:

Sec.  401.5  Definitions.

* * * * *
    Act means 51 U.S.C Subtitle V, Programs Targeting Commercial 
Opportunities, chapter 509--Commercial Space Launch Activities, 51 
U.S.C. 50901-50923.
* * * * *
    Operator means a holder of a license or permit under 51 U.S.C. 
Subtitle V, chapter 509.
* * * * *

PART 404--REGULATIONS AND LICENSING REQUIREMENTS

0
5. The authority citation for part 404 is revised to read as follows:

    Authority:  51 U.S.C. 50901-50923.

0
6. Revise Sec.  404.1 to read as follows:

Sec.  404.1  Scope.

    This part establishes procedures for issuing regulations to 
implement 51 U.S.C. Subtitle V, chapter 509, and for eliminating or 
waiving requirements for licensing or permitting of commercial space 
transportation activities under that statute.

PART 405--INVESTIGATIONS AND ENFORCEMENT

0
7. The authority citation for part 405 is revised to read as follows:

    Authority:  51 U.S.C. 50901-50923.

PART 406--INVESTIGATIONS, ENFORCEMENT, AND ADMINISTRATIVE REVIEW

0
8. The authority citation for part 406 is revised to read as follows:

     Authority:  51 U.S.C. 50901-50923.

0
9. Revise Sec.  406.1(a) introductory text to read as follows:

Sec.  406.1  Hearings in license, permit, and payload actions.

    (a) Pursuant to 51 U.S.C. 50912, the following are entitled to a 
determination on the record after an opportunity for a hearing in 
accordance with 5 U.S.C. 554.
* * * * *

0
10. Revise Sec.  406.9(a) to read as follows:

Sec.  406.9  Civil penalties.

    (a) Civil penalty liability. Under 51 U.S.C. 50917(c), a person 
found by the FAA to have violated a requirement of the Act, a 
regulation issued under the Act, or any term or condition of a license 
or permit issued or transferred under the Act, is liable to the United 
States for a civil penalty of not more than $110,000 for each 
violation, as adjusted for inflation. A separate violation occurs for 
each day the violation continues.
* * * * *

0
11. Revise Sec.  406.117(b), (c)(2), and (c)(3) to read as follows:

Sec.  406.117  Confidential information.

* * * * *
    (b) Marked information not made public. If a party files a document 
in a sealed envelope clearly marked ``CONFIDENTIAL'' the document may 
not be made available to the public unless and until the administrative 
law judge or the FAA decisionmaker decides it may be made available to 
the public in accordance with 51 U.S.C. 50916.
    (c) * * *
    (2) If the party claims that the information is protected under 51 
U.S.C. 50916, and if both the complainant and the respondent agree that 
the information is protected under that section, the administrative law 
judge must grant the motion. If one party does not agree that the 
information is protected under 51 U.S.C. 50916 the administrative law 
judge must decide. Either party may file an interlocutory appeal of 
right under Sec.  406.173(c).
    (3) If the party claims that the information should be protected on 
grounds other than those provided by 51 U.S.C. 50916 the administrative 
law judge must grant the motion if, based on the motion and any 
response to the motion, the administrative law judge determines that 
disclosure would be detrimental to safety, disclosure would not be in 
the public interest, or that the information is not otherwise required 
to be made available to the public.
* * * * *

[[Page 20533]]

0
12. Revise Sec.  406.159(c) to read as follows:

Sec.  406.159  Subpoenas.

* * * * *
    (c) Enforcement of subpoena. Upon a showing that a person has 
failed or refused to comply with a subpoena, the Secretary may apply to 
the appropriate district court of the United States to seek enforcement 
of the subpoena in accordance with 51 U.S.C. 50917(c). A party may 
request the Secretary to seek such enforcement.

0
13. Revise Sec.  406.173(c)(3) to read as follows:

Sec.  406.173  Interlocutory appeals.

* * * * *
    (c) * * *
    (3) Failure of the administrative law judge to grant a motion for a 
confidentiality order based on 51 U.S.C. 50916, under Sec.  
406.117(c)(2).
* * * * *

PART 413--LICENSE APPLICATION PROCEDURES

0
14. The authority citation for part 413 is revised to read as follows:

    Authority:  51 U.S.C. 50901-50923.

PART 414--SAFETY APPROVALS

0
15. The authority citation for part 414 is revised to read as follows:

    Authority:  51 U.S.C. 50901-50923.

PART 415--LAUNCH LICENSE

0
16. The authority citation for part 415 is revised to read as follows:

    Authority:  51 U.S.C. 50901-50923.

PART 417--LAUNCH SAFETY

0
17. The authority citation for part 417 is revised to read as follows:

    Authority:  51 U.S.C. 50901-50923.

PART 420--LICENSE TO OPERATE A LAUNCH SITE

0
18. The authority citation for part 420 is revised to read as follows:

    Authority:  51 U.S.C. 50901-50923.

0
19. Revise Sec.  420.41(a) to read as follows:

Sec.  420.41  License to operate a launch site--general.

    (a) A license to operate a launch site authorizes a licensee to 
operate a launch site in accordance with the representations contained 
in the licensee's application, with terms and conditions contained in 
any license order accompanying the license, and subject to the 
licensee's compliance with 51 U.S.C. Subtitle V, chapter 509 and this 
chapter.
* * * * *

0
20. Revise Sec.  420.51(b) to read as follows:

Sec.  420.51  Responsibilities--general.

* * * * *
    (b) A licensee is responsible for compliance with 51 U.S.C. 
Subtitle V, chapter 509 and for meeting the requirements of this 
chapter.

PART 431--LAUNCH AND REENTRY OF A RESUSABLE LAUNCH VEHICLE (RLV)

0
21. The authority citation for part 431 is revised to read as follows:

    Authority:  51 U.S.C. 50901-50923.

0
22. Revise Sec.  431.11 to read as follows:

Sec.  431.11  Additional license terms and conditions.

    The FAA may amend an RLV mission license at any time by modifying 
or adding license terms and conditions to ensure compliance with 51 
U.S.C. Subtitle V, chapter 509, and applicable regulations.

PART 433--LICENSE TO OPERATE A REENTRY SITE

0
23. The authority citation for part 433 is revised to read as follows:

    Authority:  51 U.S.C. 50901-50923.

PART 435--REENTRY OF A REENTRY VEHICLE OTHER THAN A REUSABLE LAUNCH 
VEHICLE

0
24. The authority citation for part 435 is revised to read as follows:

    Authority:  51 U.S.C. 50901-50923.

0
25. Revise Sec.  435.11 to read as follows:

Sec.  435.11  Additional license terms and conditions.

    The FAA may amend a reentry license at any time by modifying or 
adding license terms and conditions to ensure compliance with 51 U.S.C. 
Subtitle V, chapter 509, and applicable regulations.

PART 437--EXPERIMENTAL PERMITS

0
26. The authority citation for part 437 is revised to read as follows:

    Authority:  51 U.S.C. 50901-50923.

0
27. Revise Sec.  437.13 to read as follows:

Sec.  437.13  Additional experimental permit terms and conditions.

    The FAA may modify an experimental permit at any time by modifying 
or adding permit terms and conditions to ensure compliance with 51 
U.S.C. Subtitle V, chapter 509.

PART 440--FINANCIAL RESPONSIBILITY

0
28. The authority citation for part 440 is revised to read as follows:

    Authority:  51 U.S.C. 50901-50923.

0
29. Revise the introductory text and definition of ``financial 
responsibility'' in Sec.  440.3 to read as follows:

Sec.  440.3  Definitions.

    Except as otherwise provided in this section, any term used in this 
part and defined in 51 U.S.C. 50901-50923, or in Sec.  401.5 of this 
chapter shall have the meaning contained therein. For purposes of this 
part--
* * * * *
    Financial responsibility means capable of satisfying a liability 
obligation as required by 51 U.S.C Subtitle V, chapter 509.
* * * * *

0
30. Revise Sec.  440.5(c)(2) to read as follows:

Sec.  440.5  General.

* * * * *
    (c) * * *
    (2) Any covered claim of a third party for bodily injury or 
property damage arising out of any particular licensed activity exceeds 
the amount of financial responsibility required under Sec.  440.9(c) of 
this part and does not exceed $1,500,000,000 (as adjusted for inflation 
occurring after January 1, 1989) above such amount, and are payable 
pursuant to 51 U.S.C. 50915 and Sec.  440.19 of this part. A claim of 
an employee of any entity listed in paragraphs (1)(ii) through (1)(iii) 
in the Third party definition in Sec.  440.3 of this part for bodily 
injury or property damage is not a covered claim;
* * * * *

0
31. Revise Sec.  440.15(b) and (c)(1)(iii) to read as follows:

Sec.  440.15  Demonstration of compliance.

* * * * *
    (b) Upon a complete demonstration of compliance with financial 
responsibility and allocation of risk requirements under this part, the 
requirements of this part shall preempt each and any provision in any 
agreement between the licensee or permittee and an agency of the United 
States governing access to or use of United States launch or reentry 
property or launch or reentry services for a licensed or permitted 
activity which addresses financial responsibility, allocation of risk 
and

[[Page 20534]]

related matters covered by 51 U.S.C. 50914, 50915.
* * * * *
    (c) * * *
    (1) * * *
    (iii) In the event of any policy exclusions or limitations of 
coverage that may be considered usual under Sec.  440.19(c), or for 
purposes of implementing the Government's waiver of claims for property 
damage under 51 U.S.C. 50914(b), certifying that insurance covering the 
excluded risks is not commercially available at reasonable cost; and
* * * * *

0
32. Revise Sec.  440.19(a), (d), (e) introductory text, and (f)(1) to 
read as follows:

Sec.  440.19  United States payment of excess third-party liability 
claims.

    (a) The United States pays successful covered claims (including 
reasonable expenses of litigation or settlement) of a third party 
against a licensee, a customer, and the contractors and subcontractors 
of the licensee and the customer, and the employees of each involved in 
licensed activities, and the contractors and subcontractors of the 
United States and its agencies, and their employees, involved in 
licensed activities to the extent provided in an appropriation law or 
other legislative authority providing for payment of claims in 
accordance with 51 U.S.C. 50915, and to the extent the total amount of 
such covered claims arising out of any particular launch or reentry:
* * * * *
    (d) Upon the expiration of the policy period prescribed in 
accordance with Sec.  440.11(a), the United States shall provide for 
payment of claims that are payable under 51 U.S.C. 50915 from the first 
dollar of loss up to $1,500,000,000 (as adjusted for inflation 
occurring after January 1, 1989).
    (e) Payment by the United States of excess third-party claims under 
51 U.S.C. 50915 shall be subject to:
* * * * *
    (f) * * *
    (1) Prepare a compensation plan outlining the total amount of 
claims and meeting the requirements set forth in 51 U.S.C. 50915;
* * * * *

0
33. Revise Appendix D to part 440 to read as follows:

Appendix D to Part 440--Agreement for Waiver of Claims and Assumption 
of Responsibility for a Crew Member

    THIS AGREEMENT is entered into this ---- day of --------, by and 
among [name of Crew Member] (the ``Crew Member'') and the Federal 
Aviation Administration of the Department of Transportation, on 
behalf of the United States Government (collectively, the 
``Parties''), to implement the provisions of section 440.17(f) of 
the Commercial Space Transportation Licensing Regulations, 14 CFR 
chapter III (the ``Regulations''). This agreement applies to the 
Crew Member's participation in activities that the FAA has 
authorized by license or permit during the Crew Member's employment 
with [Name of licensee or permittee].
    In consideration of the mutual releases and promises contained 
herein, the Parties hereby agree as follows:

1. Definitions

    Crew Member means:
    (a) The above-named Crew Member,
    (b) All the heirs, administrators, executors, assignees, next of 
kin, and estate of the above-named Crew Member, and
    (c) Anyone who attempts to bring a claim on behalf of the Crew 
Member or for damage or harm arising out of the Bodily Injury, 
including Death, of the Crew Member.
    License/Permit means License/Permit No. -------- issued on ----
----, by the Associate Administrator for Commercial Space 
Transportation, Federal Aviation Administration, Department of 
Transportation, to the Licensee/Permittee, including all license/
permit orders issued in connection with the License/Permit.
    Licensee/Permittee means the Licensee/Permittee and any 
transferee of the Licensee under 51 U.S.C. Subtitle V, chapter 509.
    United States means the United States and its agencies involved 
in Licensed/Permitted Activities.
    Except as otherwise defined herein, terms used in this Agreement 
and defined in 51 U.S.C. Subtitle V, chapter 509--Commercial Space 
Launch Activities, or in the Regulations, shall have the same 
meaning as contained in 51 U.S.C. Subtitle V, chapter 509, or the 
Regulations, respectively.

2. Waiver and Release of Claims

    (a) Crew Member hereby waives and releases claims it may have 
against the United States, and against its respective Contractors 
and Subcontractors, for Bodily Injury, including Death, or Property 
Damage sustained by Crew Member, resulting from Licensed/Permitted 
Activities, regardless of fault.
    (b) The United States hereby waives and releases claims it may 
have against the Crew Member for Property Damage it sustains, and 
for Bodily Injury, including Death, or Property Damage sustained by 
its own employees, resulting from Licensed/Permitted Activities, 
regardless of fault.

3. Assumption of Responsibility

    (a) The Crew Member shall be responsible for Bodily Injury, 
including Death, or Property Damage sustained by Crew Member, 
resulting from Licensed/Permitted Activities, regardless of fault. 
The Crew Member shall hold harmless the United States, and the 
Contractors and Subcontractors of each Party, for Bodily Injury, 
including Death, or Property Damage sustained by Crew Member, 
resulting from Licensed/Permitted Activities, regardless of fault.
    (b) The United States shall be responsible for Property Damage 
it sustains, and for Bodily Injury, including Death, or Property 
Damage sustained by its own employees, resulting from Licensed 
Activities, regardless of fault, to the extent that claims it would 
otherwise have for such damage or injury exceed the amount of 
insurance or demonstration of financial responsibility required 
under sections 440.9(c) and (e), respectively, of the Regulations.
    (c) The United States shall be responsible for Property Damage 
it sustains, resulting from Permitted Activities, regardless of 
fault, to the extent that claims it would otherwise have for such 
damage exceed the amount of insurance or demonstration of financial 
responsibility required under section 440.9(e) of the Regulations.

4. Extension of Assumption of Responsibility and Waiver and Release of 
Claims

    (a) The United States shall extend the requirements of the 
waiver and release of claims, and the assumption of responsibility 
as set forth in paragraphs 2(b) and 3(b), respectively, to its 
Contractors and Subcontractors by requiring them to waive and 
release all claims they may have against Crew Member and to agree to 
be responsible, for any Property Damage the Contractors and 
Subcontractors sustain and for any Bodily Injury, including Death, 
or Property Damage sustained by their own employees, resulting from 
Licensed Activities, regardless of fault.
    (b) The United States shall extend the requirements of the 
waiver and release of claims, and the assumption of responsibility 
as set forth in paragraphs 2(b) and 3(c), respectively, to its 
Contractors and Subcontractors by requiring them to waive and 
release all claims the Contractors and Subcontractors may have 
against Crew Member and to agree to be responsible, for any Property 
Damage they sustain, resulting from Permitted Activities, regardless 
of fault.

5. Indemnification

    Crew Member shall hold harmless and indemnify the United States 
and its agencies, servants, agents, subsidiaries, employees and 
assignees, or any of them, from and against liability, loss, or 
damage arising out of claims brought by anyone for Property Damage 
or Bodily Injury, including Death, sustained by Crew Member, 
resulting from Licensed/Permitted Activities.

6. Assurances Under 51 U.S.C. 50914(e)

    Notwithstanding any provision of this Agreement to the contrary, 
Crew Member shall hold harmless the United States and its agencies, 
servants, agents, employees and assignees, or any of them, from and 
against liability, loss or damage arising out of claims for Bodily 
Injury, including Death, or Property Damage, sustained by Crew 
Member, resulting from Licensed/Permitted Activities, regardless of 
fault, except to the extent that, as provided in section 6(b) of 
this Agreement, claims result from willful misconduct of the United 
States or its agents.

7. Miscellaneous

    (a) Nothing contained herein shall be construed as a waiver or 
release by the United States of any claim by an employee of the 
United States, respectively, including

[[Page 20535]]

a member of the Armed Forces of the United States, for Bodily Injury 
or Property Damage, resulting from Licensed/Permitted Activities.
    (b) Notwithstanding any provision of this Agreement to the 
contrary, any waiver, release, assumption of responsibility or 
agreement to hold harmless herein shall not apply to claims for 
Bodily Injury, including Death, or Property Damage resulting from 
willful misconduct of any of the Parties, the Contractors and 
Subcontractors of any of the Parties, and in the case of the United 
States, its agents.
    (c) This Agreement shall be governed by and construed in 
accordance with United States Federal law.
    In witness whereof, the Parties to this Agreement have caused 
the Agreement to be duly executed by their respective duly 
authorized representatives as of the date written above.
    I [name of Crew Member] have read and understand this agreement 
and agree that I am bound by it.

Crew Member

Signature:-------------------------------------------------------------

Printed Name:----------------------------------------------------------

Federal Aviation Administration of the Department of Transportation 
on Behalf of the United States Government

By:--------------------------------------------------------------------

Its:-------------------------------------------------------------------

Associate Administrator for Commercial Space Transportation

0
34. Revise Appendix E to part 440 to read as follows:

Appendix E to Part 440--Agreement for Waiver of Claims and Assumption 
of Responsibility for a Space Flight Participant

    This agreement is entered into this ---- day of --------, by and 
among [name of Space Flight Participant] (the ``Space Flight 
Participant'') and the Federal Aviation Administration of the 
Department of Transportation, on behalf of the United States 
Government (collectively, the ``Parties''), to implement the 
provisions of section 440.17(e) of the Commercial Space 
Transportation Licensing Regulations, 14 CFR chapter III (the 
``Regulations''). This agreement applies to Space Flight 
Participant's travel on [name of launch or reentry vehicle] of [name 
of Licensee or Permittee]. In consideration of the mutual releases 
and promises contained herein, the Parties hereby agree as follows:

1. Definitions

    Space Flight Participant means
    (a) The above-named Space Flight Participant,
    (b) All the heirs, administrators, executors, assignees, next of 
kin, and estate of the above-named Space Flight Participant, and
    (c) Anyone who attempts to bring a claim on behalf of the Space 
Flight Participant or for damage or harm arising out of the Bodily 
Injury, including Death, of the Space Flight Participant.
    License/Permit means License/Permit No. -------- issued on ----
----, by the Associate Administrator for Commercial Space 
Transportation, Federal Aviation Administration, Department of 
Transportation, to the Licensee/Permittee, including all license/
permit orders issued in connection with the License/Permit.
    Licensee/Permittee means the Licensee/Permittee and any 
transferee of the Licensee under 51 U.S.C. Subtitle V, chapter 509.
    United States means the United States and its agencies involved 
in Licensed/Permitted Activities.
    Except as otherwise defined herein, terms used in this Agreement 
and defined in 51 U.S.C. Subtitle V, chapter 509--Commercial Space 
Launch Activities, or in the Regulations, shall have the same 
meaning as contained in 51 U.S.C. Subtitle V, chapter 509, or the 
Regulations, respectively.

2. Waiver and Release of Claims

    (a) Space Flight Participant hereby waives and releases claims 
it may have against the United States, and against its respective 
Contractors and Subcontractors, for Bodily Injury, including Death, 
or Property Damage sustained by Space Flight Participant, resulting 
from Licensed/Permitted Activities, regardless of fault.
    (b) The United States hereby waives and releases claims it may 
have against Space Flight Participant for Property Damage it 
sustains, and for Bodily Injury, including Death, or Property Damage 
sustained by its own employees, resulting from Licensed/Permitted 
Activities, regardless of fault.

3. Assumption of Responsibility

    (a) Space Flight Participant shall be responsible for Bodily 
Injury, including Death, or Property Damage sustained by the Space 
Flight Participant resulting from Licensed/Permitted Activities, 
regardless of fault. Space Flight Participant shall hold harmless 
the United States, and its Contractors and Subcontractors, for 
Bodily Injury, including Death, or Property Damage sustained by 
Space Flight Participant from Licensed/Permitted Activities, 
regardless of fault.
    (b) The United States shall be responsible for Property Damage 
it sustains, and for Bodily Injury, including Death, or Property 
Damage sustained by its own employees, resulting from Licensed 
Activities, regardless of fault, to the extent that claims it would 
otherwise have for such damage or injury exceed the amount of 
insurance or demonstration of financial responsibility required 
under sections 440.9(c) and (e), respectively, of the Regulations.
    (c) The United States shall be responsible for Property Damage 
it sustains, resulting from Permitted Activities, regardless of 
fault, to the extent that claims it would otherwise have for such 
damage exceed the amount of insurance or demonstration of financial 
responsibility required under section 440.9(e) of the Regulations.

4. Extension of Assumption of Responsibility and Waiver and Release of 
Claims

    (a) The United States shall extend the requirements of the 
waiver and release of claims, and the assumption of responsibility 
as set forth in paragraphs 2(b) and 3(b), respectively, to its 
Contractors and Subcontractors by requiring them to waive and 
release all claims they may have against Space Flight Participant, 
and to agree to be responsible, for any Property Damage they sustain 
and for any Bodily Injury, including Death, or Property Damage 
sustained by their own employees, resulting from Licensed 
Activities, regardless of fault.
    (b) The United States shall extend the requirements of the 
waiver and release of claims, and the assumption of responsibility 
as set forth in paragraphs 2(b) and 3(c), respectively, to its 
Contractors and Subcontractors by requiring them to waive and 
release all claims they may have against Space Flight Participant, 
and to agree to be responsible, for any Property Damage the 
Contractors and Subcontractors sustain, resulting from Permitted 
Activities, regardless of fault.

5. Indemnification

    Space Flight Participant shall hold harmless and indemnify the 
United States and its agencies, servants, agents, subsidiaries, 
employees and assignees, or any of them, from and against liability, 
loss or damage arising out of claims brought by anyone for Property 
Damage or Bodily Injury, including Death, sustained by Space Flight 
Participant, resulting from Licensed/Permitted Activities.

6. Assurances Under 51 U.S.C. 50914(e)

    Notwithstanding any provision of this Agreement to the contrary, 
Space Flight Participant shall hold harmless the United States and 
its agencies, servants, agents, employees and assignees, or any of 
them, from and against liability, loss or damage arising out of 
claims for Bodily Injury, including Death, or Property Damage, 
sustained by Space Flight Participant, resulting from Licensed/
Permitted Activities, regardless of fault, except to the extent 
that, as provided in section 6(b) of this Agreement, claims result 
from willful misconduct of the United States or its agents.

7. Miscellaneous

    (a) Nothing contained herein shall be construed as a waiver or 
release by the United States of any claim by an employee of the 
United States, respectively, including a member of the Armed Forces 
of the United States, for Bodily Injury or Property Damage, 
resulting from Licensed/Permitted Activities.
    (b) Notwithstanding any provision of this Agreement to the 
contrary, any waiver, release, assumption of responsibility or 
agreement to hold harmless herein shall not apply to claims for 
Bodily Injury, including Death, or Property Damage resulting from 
willful misconduct of any of the Parties, the Contractors, 
Subcontractors, and agents of the United States, and Space Flight 
Participant.
    (c) This Agreement shall be governed by and construed in 
accordance with United States Federal law.
    In witness whereof, the Parties to this Agreement have caused 
the Agreement to be duly executed by their respective duly 
authorized representatives as of the date written above.
    I [name of Space Flight Participant] have read and understand 
this agreement and agree that I am bound by it.

[[Page 20536]]

Space Flight Participant

Signature:-------------------------------------------------------------

Printed Name:----------------------------------------------------------

Federal Aviation Administration of the Department of Transportation 
on Behalf of the United States Government

By:--------------------------------------------------------------------

Its:-------------------------------------------------------------------

Associate Administrator for Commercial Space Transportation

PART 460--HUMAN SPACE FLIGHT REQUIREMENTS

0
35. The authority citation for part 460 is revised to read as follows:

    Authority: 51 U.S.C. 50901-50923.

Title 49--Transportation

Subtitle A--Office of the Secretary of Transportation

PART 1--ORGANIZATION AND DELEGATION OF POWERS AND DUTIES

0
36. The authority citation for part 1 continues to read as follows:

    Authority: 49 U.S.C. 322; 46 U.S.C. 2104(a); 28 U.S.C. 2672; 31 
U.S.C. 3711(a)(2); Pub. L. 101-552, 104 Stat. 2736; Pub. L. 106-159, 
113 Stat. 1748; Pub. L. 107-71, 115 Stat. 597; Pub. L. 107-295, 116 
Stat. 2064; Pub. L. 108-136, 117 Stat. 1392; Pub. L. 101-115, 103 
Stat. 691; Pub. L. 108-293, 118 Stat. 1028; Pub. L. 109-364, 120 
Stat. 2083; Pub. L. 110-140, 121 Stat. 1492; Pub. L. 110-432, 122 
Stat. 4848.

0
37. Revise Sec.  1.47(v) to read as follows:

Sec.  1.47  Delegations to Federal Aviation Administrator.

* * * * *
    (v) Carry out the functions vested in the Secretary by 51 U.S.C. 
Subtitle V.
* * * * *

    Issued in Washington, DC, on March 25, 2012.
Pamela Hamilton-Powell,
Director, Office of Rulemaking.
[FR Doc. 2012-8196 Filed 4-4-12; 8:45 am]
BILLING CODE 4910-13-P
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