53394 Federal Register / Vol. 73, No. 180 / Tuesday, September 16, 2008 / Proposed Rules 

1 FTC, Prohibitions On Market Manipulation and 

False Information in Subtitle B of Title VIII of The 

Energy Independence and Security Act of 2007, 73 

FR 48317 (Aug. 13, 2008). The NPRM was 

announced in a press release on August 13, 2008, 

available at (http://www.ftc.gov/opa/2008/08/ 

nprm.shtm). 

2 Specific instructions for submitting a comment 

are included in the NPRM. See 73 FR 48317. Please 

note that all such comments, like requests to 

participate, are public filings and will be placed on 

the public record of this proceeding, including the 

FTC’s public website. See footnote 3 below for 

further information. 

3 Please note that your request constitutes a 

public filing before the Commission, and will be 

placed on the public record of the proceeding, 

including on the publicly accessible FTC website, 

at http://www.ftc.gov/os/publiccomments.shtm. 

Therefore, your request should not include any 

sensitive or confidential information. In particular, 

it should not include any sensitive personal 

information—such as any individual’s Social 

Security Number; date of birth; driver’s license 

number or other state identification number or 

foreign country equivalent; passport number; 

financial account number; or credit or debit card 

number—or any sensitive health information, such 

as medical records or other individually identifiable 

health information. Your request should also not 

include any ‘‘[t]rade secrets and commercial or 

financial information obtained from a person and 

privileged or confidential. . . .,’’ as provided in 

section 6(f) of the FTC Act, 15 U.S.C. 46(f), and 

Commission rule 4.10(a)(2), 16 CFR 4.10(a)(2) 

(2008). 

The Federal Trade Commission Act and other 

laws the Commission administers permit the 

collection of requests to participate in the above 

workshop to consider and use in this proceeding as 

appropriate. As a matter of discretion, the 

Commission makes every effort to remove home 

contact information for individuals before placing 

requests to participate on the FTC website. More 

information, including routine uses permitted by 

the Privacy Act, may be found in the FTC’s privacy 

policy, at http://www.ftc.gov/ftc/privacy.shtm. 

4 Public Law 110-140, codified at 42 U.S.C. 

17001-17386. 

September 18, 2008, by which 

comments had to be received. 

On September 5, 2008, the 

Commission received a letter from the 

American Petroleum Institute (‘‘API’’) 

requesting that the Commission extend 

the comment deadline in the NPRM 

proceeding until October 17, 2008. In its 

request, API advances three arguments 

in support of an extension of the 

comment period. First, API argues that 

it needs additional time to canvass its 

more than 400 members about the 

NPRM and to ‘‘consolidate and present 

that information for the Commission’s 

consideration.’’ Second, API contends 

that the extension is necessary to ensure 

‘‘sufficient time for thoughtful 

deliberation’’ about the ‘‘many novel 

and complex issues’’ addressed in the 

NPRM. Third, API opines that ‘‘defining 

‘manipulation’ is inherently difficult 

and not within the Commission’s 

traditional antitrust or consumer 

protection experience,’’ and thus 

providing additional time to 

commenters will yield more carefully 

considered comments, which will 

benefit the Commission as it proceeds. 

Based on the arguments raised by API, 

the Commission believes that an 

extension of the initial 30-day comment 

period until October 17, 2008, is 

reasonable. The additional time should 

enable API and other commenters to 

finalize and submit detailed and 

thoughtful comments in response to the 

NPRM. Accordingly, the Commission 

has determined to extend the comment 

period set forth in the NPRM until 

October 17, 2008. 

By direction of the Commission. 

Donald S. Clark, 

Secretary. 

[FR Doc. E8–21605 Filed 9–15–08: 8:45 am] 

BILLING CODE 6750–01–S 

FEDERAL TRADE COMMISSION 

16 CFR Part 317 

[Project No. P082900] 

RIN 3084-AB12 

Public Workshop Concerning 

Petroleum Market Manipulation 

Rulemaking 

AGENCY: Federal Trade Commission. 

ACTION: Notice announcing public 

workshop. 

SUMMARY: The Federal Trade 

Commission (‘‘FTC’’ or ‘‘Commission’’) 

will host a public workshop to discuss 

issues arising from, and comments 

submitted in regard to, its rulemaking 

proceeding concerning Prohibitions on 

Market Manipulation and False 

Information in Subtitle B of Title VIII of 

The Energy Independence and Security 

Act of 2007 (‘‘EISA’’). In particular, the 

workshop will consider the desirability 

and scope of the proposed rule 

prohibiting market manipulation in 

wholesale petroleum markets. The 

Commission will publish an agenda on 

its website prior to the workshop. 

DATES: The workshop will be held on 

Thursday, November 6, 2008, in Room 

H-432 of the Federal Trade 

Commission’s Headquarters Building, 

located at 600 Pennsylvania Avenue, 

NW, Washington, DC 20580. Requests to 

participate as a panelist must comply 

with all applicable requirements set 

forth in this document and must be 

received by October 6, 2008. To be 

considered as a panelist for the 

workshop, interested parties must also 

submit a comment in response to the 

FTC’s Notice of Proposed Rulemaking 

(‘‘NPRM’’) in this matter1 by the close of 

the comment period on October 17, 

2008.2

ADDRESSES: Requests to participate in 

the public workshop may be filed in 

paper form or sent via e-mail to 

mmr@ftc.gov,3 and should refer to 

‘‘Market Manipulation Rulemaking 

Workshop—Request to Participate, 

P082900’’ to facilitate organization of 

such requests. Requests must comply 

with all other applicable requirements 

set forth in the SUPPLEMENTARY

INFORMATION section below and 

elsewhere in this document. A request 

to participate filed in paper form should 

include this reference both in the text 

and on the envelope, and should be 

mailed or delivered to: Federal Trade 

Commission/Office of the Secretary, 

Room H-135 (Annex G), 600 

Pennsylvania Avenue, NW, Washington, 

DC 20580. Because paper mail in the 

Washington area, and specifically to the 

FTC, is subject to delay due to 

heightened security screening, please 

consider submitting your request to 

participate via e-mail to: mmr@ftc.gov. 

The workshop will be open to the 

public, and there is no fee for 

attendance. For admittance to the 

building, all attendees will be required 

to show a valid photo identification, 

such as a driver’s license. Preregistration is not required for attendees, 

but persons desiring to participate as 

panelists must submit a request to 

participate and file a comment in 

response to the FTC’s NPRM in this 

matter. Members of the public and press 

who cannot attend in person may view 

a live webcast of the workshop on the 

FTC’s website. The workshop will be 

transcribed, and the transcript will be 

placed on the public record. 

The workshop venue will be 

accessible to persons with disabilities. If 

you need an accommodation related to 

a disability, call Carrie McGlothin at 

(202) 326-3388. Such requests should 

include a detailed description of the 

accommodations needed and a way to 

contact you if we need more 

information. Please provide advance 

notice of any needs for such 

accommodations. 

FOR FURTHER INFORMATION CONTACT: 

Catherine Harrington-McBride, Bureau 

of Consumer Protection, Federal Trade 

Commission, Market Manipulation 

Rulemaking Workshop, P.O. Box 2846, 

Fairfax, VA 22031-0846; (202) 326-2452; 

mmr@ftc.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

EISA became law on December 19, 

2007.4 Section 811 of EISA prohibits 

‘‘any person’’ from directly or 

indirectly: (1) using or employing ‘‘any 

manipulative or deceptive device or 


ebenthall on PROD1PC60 with PROPOSALS
Federal Register / Vol. 73, No. 180 / Tuesday, September 16, 2008 / Proposed Rules 53395 

5 42 U.S.C 17301. 

6 The Commission previously issued an Advance 

Notice of Proposed Rulemaking (‘‘ANPR’’) in this 

proceeding. FTC, Prohibitions On Market 

Manipulation and False Information in Subtitle B 

of The Energy Independence and Security Act of 

2007, 73 FR 25614 (May 7, 2008). The ANPR was 

announced in a press release on May 1, 2008, 

available at (http://www.ftc.gov/opa/2008/05/ 

anpr.shtm). 7 17 CFR 240.10b-5. 

contrivance;’’ (2) ‘‘in connection with 

the purchase or sale of crude oil 

gasoline or petroleum distillates at 

wholesale;’’ (3) that violates a rule or 

regulation that the FTC ‘‘may prescribe 

as necessary or appropriate in the public 

interest or for the protection of United 

States citizens.’’5

On August 13, 2008, the FTC issued 

an NPRM seeking public comments on 

a proposed rule prohibiting market 

manipulation in the petroleum 

industry.6 The proposed Rule would 

make it unlawful for any person, 

directly or indirectly, in connection 

with the purchase or sale of crude oil, 

gasoline, or petroleum distillates at 

wholesale: 

(a) To use or employ any device, 

scheme, or artifice to defraud, 

(b) To make any untrue statement of 

a material fact or to omit to state a 

material fact necessary in order to make 

the statements made, in the light of the 

circumstances under which they were 

made, not misleading, or 

(c) To engage in any act, practice, or 

course of business that operates or 

would operate as a fraud or deceit upon 

any person. 

The comment period on the proposed 

Rule closes on October 17, 2008. The 

Commission has scheduled a public 

workshop for Thursday, November 6, 

2008, to allow interested parties to 

discuss the proposed Rule and 

comments filed in response to the 

NPRM. 

II. Issues for Discussion at the 

Workshop 

The workshop will address the 

desirability and scope of the 

Commission’s proposed Rule 

prohibiting market manipulation in 

wholesale petroleum markets. The 

Commission will consider the views 

expressed at the workshop, along with 

previously submitted comments, in 

determining the desirability of 

promulgating a market manipulation 

rule and the contours of any such rule. 

The issues that will be discussed 

include the basis for and the contours of 

the proposed Rule; the element of 

scienter and the recklessness standard 

proposed by the Commission to satisfy 

the scienter element; and the 

Commission’s decision not to require a 

showing of price effects in order to 

establish a violation of the proposed 

Rule. 

The Commission based its proposed 

Rule on Securities and Exchange 

Commission (‘‘SEC’’) Rule 10b-5.7 The 

proposed Rule would prohibit fraud and 

deception in wholesale petroleum 

markets. At the workshop, staff will 

examine support for and opposition to 

this approach, as well as any 

alternatives raised in response to the 

NPRM. Staff will also explore the Rule 

10b-5 concept of fraud and deception, 

including the contours of fraud and 

deception under securities law, and 

how such concepts might apply to 

wholesale petroleum markets. 

The NPRM makes clear that the 

Commission anticipates requiring a 

showing of intent in determining 

whether there has been a violation of 

any final market manipulation rule. In 

the NPRM, the Commission indicated 

that a showing of recklessness may 

satisfy the intent requirement. At the 

workshop, staff will examine the types 

of evidence that could establish the 

requisite level of intent, with a 

particular focus on the evidentiary proof 

used to establish intent under securities 

law precedent. In addition, staff will 

explore the potential costs and benefits 

to industry and consumers of permitting 

a showing of recklessness to satisfy the 

intent element. 

In the NPRM, the Commission noted 

that it does not anticipate requiring a 

showing of price effects as an element 

of a violation of any final market 

manipulation rule. At the workshop, 

staff will explore whether a showing of 

price effects should be required, and the 

advantages and disadvantages of 

requiring evidence of such effects. Staff 

also anticipates examining the kinds of 

direct or indirect evidence that would 

demonstrate price effects from 

manipulative or deceptive conduct in 

wholesale petroleum markets, including 

the treatment of such evidence under 

relevant securities law precedent. 

III. Requests to Participate as Panelists 

As noted earlier, parties interested in 

participating as panelists must submit 

written comments addressing the issues 

raised in the NPRM, in addition to a 

formal written request to participate in 

the form and manner described above. 

Parties must include in their request a 

brief statement setting forth their 

expertise or knowledge of the issues on 

which the workshop will focus, as well 

as their contact information, including, 

if available: a telephone number, 

facsimile number, and e-mail address to 

enable the FTC to notify requesters if 

they have been selected to participate. 

FTC staff will select panelists based 

on the following criteria: 1) the party 

has expertise in or knowledge of the 

issues that are the focus of the 

workshop; 2) the party’s participation 

would promote a balance of interests 

represented at the workshop; and 3) the 

party has been designated by one or 

more interested parties (who timely file 

requests to participate) as a party who 

shares the interests of the designator(s). 

Members of the general public who 

attend the workshop may have an 

opportunity to make brief oral 

statements presenting their views on 

issues raised in the NPRM. Oral 

statements by members of the general 

public will be limited on the basis of the 

time available and the number of 

persons who wish to make statements. 

By direction of the Commission. 

Donald S. Clark, 

Secretary. 

[FR Doc. E8–21604 Filed 9–15–08: 8:45 am] 

BILLING CODE 6750–01–S 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[Docket No. USCG–2008–0809] 

RIN 1625–AA00 

Safety Zone; St. Croix Coral Reef 

Swim, Buck Island Channel, USVI 

AGENCY: Coast Guard, DHS. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The Coast Guard proposes to 

establish a safety zone on the navigable 

waters of Buck Island Channel, St. 

Croix, USVI. This proposed regulation is 

necessary to provide for the safety of 

participants, marine spectators, and 

recreational and professional mariner 

traffic during the St. Croix Coral Reef 

Swim event. This zone is intended to 

restrict vessels from entering into, 

transiting through, or anchoring within 

the waters where the event will be held 

unless authorized by the Captain of the 

Port (COTP) San Juan or a designated 

representative. 

DATES: Comments and related material 

must reach the Coast Guard on or before 

October 16, 2008. 

ADDRESSES: You may submit comments 

identified by Coast Guard docket 

number USCG–2008–0809 to the Docket 

Management Facility at the U.S. 

Department of Transportation. To avoid 


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