Federal Register / Vol. 73, No. 41 / Friday, February 29, 2008 / Rules and Regulations 10985 

1This temporary exemption originally was 

scheduled to expire on September 5, 2007. OTS 

extended the expiration date to March 1, 2008. 72 

FR 50644 (Sept. 4, 2008). 

2 72 FR at 25953. 

3 72 FR at 25953–54. 

addressed to: U.S. Department of 

Energy, Attention: Office of Electricity 

and Energy Assurance, OE–30, Forrestal 

Building, 1000 Independence Avenue, 

SW., Washington, DC 20585. 

Chapter 9 of Title 48 

■ 10. The authority citation for parts 

911 and 952 is revised to read as 

follows: 

Authority: 42 U.S.C. 2201; 2282a; 2282b; 

2282c; 42 U.S.C. 7101 et seq.; 41 U.S.C. 418b; 

50 U.S.C. 2401 et seq. 

PART 911—DESCRIBING AGENCY 

NEEDS 

911.600 [Amended] 

■ 11. Section 911.600 is amended by 

removing the words ‘‘and those energy 

programs which maximize domestic 

energy supplies’’. 

911.602 [Amended] 

■ 12. Section 911.602 is amended by 

removing paragraph (d). 

911.604 [Amended] 

■ 13. Section 911.604 is amended by 

removing paragraphs (d) and (e). 

PART 952—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

■ 14. Section 952.211–70 is revised to 

read as follows: 

952.211–70 Priorities and allocations for 

energy programs (solicitations). 

As prescribed in 911.604(a), insert the 

following provision in solicitations that 

will result in the award of a contract in 

support of DOE atomic energy programs. 

Priorities and Allocations (Atomic Energy) 

(APR 2008) 

Contracts or purchase orders awarded as a 

result of this solicitation shall be assigned a 

[ ] DO-Rating; [ ] DX Rating; and certified 

for national defense use in accordance with 

the Defense Priorities and Allocations System 

(DPAS) regulation (15 CFR part 700) 

(Contracting officer check appropriate box.) 

[End of Clause] 

■ 15. Section 952.211–71 is revised to 

read as follows: 

952.211–71 Priorities and allocations for 

energy programs (contracts). 

As prescribed in 911.604(b), insert the 

following clause in contracts and 

purchase orders that are placed in 

support of authorized DOE atomic 

energy programs pursuant to the Atomic 

Energy Act of 1954, as amended. 

Priorities and Allocations (Atomic Energy) 

(APR 2008) 

The Contractor shall follow the provisions 

of Defense Priorities and Allocations System 

(DPAS) regulation (15 CFR part 700) in 

obtaining materials (including equipment), 

services, or facilities needed to fill this 

contract. 

[End of Clause] 

[FR Doc. E8–3773 Filed 2–28–08; 8:45 am] 

BILLING CODE 6450–01–P 

DEPARTMENT OF THE TREASURY 

Office of Thrift Supervision 

12 CFR Part 585 

[OTS–2007–0008] 

RIN 1550–AC14 

Prohibited Service at Savings and 

Loan Holding Companies Extension of 

Expiration Date of Temporary 

Exemption 

AGENCY: Office of Thrift Supervision 

(OTS) Treasury. 

ACTION: Final rule. 

SUMMARY: OTS is revising its rules 

implementing section 19(e) of the 

Federal Deposit Insurance Act (FDIA), 

which prohibits any person who has 

been convicted of any criminal offense 

involving dishonesty, breach of trust, or 

money laundering (or who has agreed to 

enter into a pretrial diversion or similar 

program in connection with a 

prosecution for such an offense) from 

holding certain positions with respect to 

a savings and loan holding company 

(SLHC). Specifically, OTS is extending 

the expiration date of a temporary 

exemption granted to persons who held 

positions with respect to a SLHC as of 

the date of the enactment of section 

19(e). The revised expiration date for 

the temporary exemption is June 1, 

2008. 

DATES: Effective Date: The final rule is 

effective on February 29, 2008. 

FOR FURTHER INFORMATION CONTACT: 

Donna Deale, Director, Holding 

Companies and Affiliates, Supervision 

Policy, (202) 906–7488, or Karen 

Osterloh, Special Counsel, Regulations 

and Legislation, (202) 906–6639, Office 

of Thrift Supervision, 1700 G Street, 

NW., Washington, DC 20552. 

SUPPLEMENTARY INFORMATION: On May 8, 

2007, OTS published an interim final 

rule adding 12 CFR part 585. This new 

part implemented section 19(e) of the 

FDIA, which prohibits any person who 

has been convicted of any criminal 

offense involving dishonesty, breach of 

trust, or money laundering (or who has 

agreed to enter into a pretrial diversion 

or similar program in connection with a 

prosecution for such an offense) from 

holding certain positions with a SLHC. 

Section 19(e) also authorizes the 

Director of OTS to provide exemptions 

from the prohibitions, by regulation or 

order, if the exemption is consistent 

with the purposes of the statute. 

The interim final rule described the 

actions that are prohibited under the 

statute and prescribed procedures for 

applying for an OTS order granting a 

case-by-case exemption from the 

prohibition. The rule also provided 

regulatory exemptions to the 

prohibitions, including a temporary 

exemption for persons who held 

positions with respect to a SLHC on 

October 13, 2006, the date of enactment 

of section 19(e). This temporary 

exemption is set to expire on March 1, 

2008, unless a case-by-case exemption is 

filed prior to that expiration date.1

OTS is extending the expiration date 

of the temporary exemption to June 1, 

2008. This extension will avoid 

needless disruptions of SLHC 

operations while OTS reviews the 

public comments and develops a final 

rule addressing these comments. OTS 

has concluded that this extension of the 

exemption of the exemption is 

consistent with the purposes of section 

19(3) of the FDIA. 

Regulatory Findings 

Notice and Comment and Effective Date 

For the reasons set out in the interim 

final rule,2 OTS has concluded that: 

notice and comment on this extension 

are unnecessary and contrary to the 

public interest under section 552(b)(B) 

of the Administrative Procedure Act; 

there is good cause for making the 

extension effective immediately under 

section 553(d) of the APA; and the 

delayed effective date requirements of 

section 302 of the Riegle Community 

Development and Regulatory 

Improvement Act of 1994 (CDRIA) do 

not apply. 

Regulatory Flexibility Act 

For the reasons stated in the interim 

final rule,3 OTS has concluded that this 

extension does not require an initial 

regulatory flexibility analysis under the 

Regulatory Flexibility Act (RFA) (5 

U.S.C. 601 et seq.), and that this 

extension should not have a significant 

impact on a substantial number of small 

entities, as defined in the RFA. 


rfrederick on PROD1PC67 with RULES
10986 Federal Register / Vol. 73, No. 41 / Friday, February 29, 2008 / Rules and Regulations 

4 72 FR 25954. 

1See 14 CFR 121.153(c), § 135.25(d), § 119.53(b), 

and § 212.4(b)(1) and § 212.9(b)(2). The cited 

sections of the FAA’s regulations (parts 121, 135 

and 119) generally prohibit a foreign air carrier from 

wet leasing aircraft to a U.S. certificated air carrier. 

Part 212 of the Department’s Economic Regulations 

provides for the wet leasing of aircraft without 

regard to the identity of the wet lessor, and do not 

explicitly prohibit wet lease operations by a foreign 

air carrier on behalf of a U.S. carrier. 

2On May 18, 2004, the Chief Counsel of the FAA 

issued an opinion that certain arrangements 

characterized as wet leases by the parties to the 

transaction were not true leases, because legal and 

actual possession of the subject aircraft never 

transferred from one party to the other. In addition, 

the FAA concluded that, where a foreign air carrier 

(identified as the lessor under such arrangements) 

retained operational control of the aircraft, the 

transaction was not subject to the wet lease 

prohibition of § 119.53(b). We have placed a copy 

of the FAA opinion in the Docket referenced above, 

and have also attached a copy to the service copy 

of this Notice. 

3We have in other instances required foreign air 

carriers to seek statements of authorization under 

§ 212.9(d) for various operations under that rule. 

See, for example, Orders 98–4–2 and 91–5–25. 

Paperwork Reduction Act 

OTS has determined that this 

extension does not involve a change to 

collections of information previously 

approved under the Paperwork 

Reduction Act (44 U.S.C. 3501 et seq.) 

Unfunded Mandates Act of 1995 

For the reasons stated in the interim 

final rule,4 OTS has determined that 

this extension will not result in 

expenditures by state, local, and tribal 

governments, in the aggregate, or by the 

private sector, of more than $100 

million of any one year. 

Executive Order 12866 

OTS has determined that this 

extension is not a significant regulatory 

action under Executive Order 12866. 

Plain Language 

Section 722 of the Gramm-LeachBliley Act (12 U.S.C. 4308) requires the 

Agencies to use ‘‘plain language’’ in all 

final rules published after January 1, 

2000. OTS believes that the final rule 

containing the extension is presented in 

a clear and straightforward manner. 

List of Subjects in 12 CFR Part 585 

Administrative practice and 

procedure, Holding companies, 

Reporting and recordkeeping 

requirements, Savings associations. 

Authority and Issuance 

■ For the reasons in the preamble, OTS 

is amending part 585 of chapter V of 

title 12 of the Code of Federal 

Regulations as set forth below: 

PART 585—PROHIBITED SERVICE AT 

SAVINGS AND LOAN HOLDING 

COMPANIES 

■ 1. The authority citation for 12 CFR 

part 585 continues to read as follows: 

Authority: 12 U.S.C. 1462, 1462a, 1463, 

1464, 1467a, and 1829(e). 

■ 2. Amend § 585.100(b)(2) introductory 

text to read as follows: 

§ 585.100 Who is exempt from the 

prohibition under this part? 

* * * * * 

(b) Temporary exemption. * * * 

(2) This exemption expires on June 1, 

2008, unless the savings and loan 

holding company or the person files an 

application seeking a case-by-case 

exemption for the person under 

§ 585.110 by that date. If the savings and 

loan holding company or the person 

files such an application, the temporary 

exemption expires on: 

* * * * * 

Dated: February 25, 2008. 

By the Office of Thrift Supervision. 

John M. Reich, 

Director. 

[FR Doc. 08–887 Filed 2–28–08; 8:45 am] 

BILLING CODE 6720–01–M 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Chapter I 

Office of the Secretary 

14 CFR Chapter II 

[Docket DOT–OST–2008–0063] 

Provision of Entire Aircraft With Crew 

to a U.S. Certificated Air Carrier by a 

Foreign Air Carrier 

AGENCY: Department of Transportation, 

Office of the Secretary; Department of 

Transportation, Federal Aviation 

Administration. 

ACTION: Regulatory guidance. 

SUMMARY: This Notice sets forth the 

conditions under which a foreign air 

carrier may make an arrangement with 

a U.S. air carrier for a flight or series of 

flights, to be conducted with the foreign 

air carrier’s aircraft and crew, for that 

U.S. certificated air carrier’s-authorized 

services in foreign air transportation. 

This Notice also describes the regulatory 

steps involved for seeking Department 

approval for such an operation. 

FOR FURTHER INFORMATION CONTACT: 

Richard Clarke, Federal Aviation 

Administration, Air Carrier Operations 

Branch, AFS–220, (202) 493–5581, or 

George Wellington, Department of 

Transportation, Office of International 

Aviation, X–40, (202) 366–2391. 

SUPPLEMENTARY INFORMATION: 

Discussion: The Office of the Secretary 

of Transportation (OST) and the 

Department’s Federal Aviation 

Administration (FAA) have identified 

the circumstances under which a 

foreign air carrier may provide a U.S. 

certificated air carrier with an entire 

aircraft with crew without contravening 

the FAA’s regulations that generally 

prohibit a foreign air carrier from wet 

leasing aircraft (i.e., providing legal 

possession of a specific aircraft (in its 

entirety) and at least one crewmember) 

to a U.S. certificated air carrier. Such 

transactions may occur, consistent with 

FAA and OST regulations,1 where it is 

clear that (i) operational control of the 

flight or flights involved would rest 

solely with the foreign air carrier and 

not with the U.S. certificated air carrier; 

(ii) legal and actual possession of the 

aircraft at all times would remain with 

the foreign air carrier; and (iii) OST 

determines, in conjunction with FAA, 

that such operations would otherwise be 

in the public interest, as more fully 

described below. Under those 

circumstances, the FAA has 

determined 2 that such transactions are 

not leases subject to the foreign wet 

lease prohibition in § 119.53(b), 

regardless of whether the parties to the 

transaction characterize the arrangement 

as a wet lease. 

To conduct an operation in this 

manner, the foreign air carrier involved 

would need to apply to the Department 

for a statement of authorization under 

14 CFR part 212 of the Department’s 

regulations. Section 212.9 requires prior 

Department approval for operations 

involving the provision of aircraft and 

crew by a foreign air carrier to another 

air carrier where the operations 

involved are in a fifth freedom market 

for the foreign air carrier, and for any 

such operations of 60 days or longer 

duration. Section 212.9(d) also provides 

that the Department may, at its 

discretion and upon at least 30 days’

notice, require a statement of 

authorization for these kinds of 

operations in other cases (e.g., where 

they are for less than 60 days’ duration). 

Given our need to make the operational 

control and public interest 

determinations described above, we 

will, in accordance with the provisions 

of § 212.9(d), and effective 30 days from 

the date of this Notice, require that 

foreign air carriers desiring to conduct 

the operations described in this Notice 

obtain a statement of authorization 

before conducting any such services.3


rfrederick on PROD1PC67 with RULES