This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

7482 

Vol. 73, No. 27 

Friday, February 8, 2008 

DEPARTMENT OF AGRICULTURE 

Grain Inspection, Packers and 

Stockyards Administration 

9 CFR Part 201 

RIN 0580–AB01 

Swine Contractors 

AGENCY: Grain Inspection, Packers and 

Stockyards Administration, USDA. 

ACTION: Proposed rule. 

SUMMARY: We propose to add ‘‘swine 

contractors’’ to the list of regulated 

entities subject to specific regulations 

under the Packers and Stockyards Act 

(the P&S Act). In 2002, Congress added 

swine contractors as entities regulated 

under the P&S Act. The specific 

regulations we propose to amend 

prohibit regulated entities from 

circulating misleading reports about 

market conditions or prices. We also 

propose to amend regulations that 

address inspection of business records 

and facilities, information that regulated 

entities are required to share with the 

Secretary of Agriculture, and USDA’s 

responsibility to refrain from 

unauthorized disclosure of that 

information. The goal of these 

regulations is to ensure fairness in the 

marketing of livestock, meat, and 

poultry. Adding swine contractors to 

specific regulations under the P&S Act 

will assist swine contractors and swine 

production contract growers with 

determining which regulations apply to 

them. Adding swine contractors to 

specific regulations will also make it 

easier for GIPSA to identify potential 

violations and to enforce the provisions 

of the P&S Act and regulations. 

DATES: We will consider comments we 

receive by April 8, 2008. 

ADDRESSES: We invite you to submit 

comments on this proposed rule. You 

may submit comments by any of the 

following methods: 

• E-Mail: Send comments via 

electronic mail to 

comments.gipsa@usda.gov. 

• Mail: Send hardcopy written 

comments to Tess Butler, GIPSA, USDA, 

1400 Independence Avenue, SW., Room 

1643–S, Washington, DC 20250–3604. 

• Fax: Send comments by facsimile 

transmission to: (202) 690–2173. 

• Hand Delivery or Courier: Deliver 

comments to: Tess Butler, GIPSA, 

USDA, 1400 Independence Avenue, 

SW., Room 1643–S, Washington, DC 

20250–3604. 

• Federal e-Rulemaking Portal: Go to 

http://www.regulation.gov. Follow the 

on-line instruction for submitting 

comments. 

Instructions: All comments should 

make reference to the date and page 

number of this issue of the Federal 

Register. 

Background Documents: Regulatory 

analyses and other documents relating 

to this action will be available for public 

inspection in Room 1643–S, 1400 

Independence Avenue, SW., 

Washington, DC 20250–3604 during 

regular business hours. 

Read Comments: All comments will 

be available for public inspection in the 

above office during regular business 

hours (7 CFR 1.27(b)). Please call the 

GIPSA Management Support Services 

staff at (202) 720–7486 to arrange a 

public inspection of comments. 

FOR FURTHER INFORMATION CONTACT: S. 

Brett Offutt, Director, Policy and 

Litigation Division, P&SP, GIPSA, 1400 

Independence Ave., SW., Washington, 

DC 20250, (202) 720–7363, 

s.brett.offutt@usda.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

The Grain Inspection, Packers and 

Stockyards Administration (GIPSA) 

enforces the Packers and Stockyards 

(P&S) Act of 1921 (the P&S Act). Under 

authority granted the Secretary of 

Agriculture (Secretary) and delegated to 

us, we are authorized (7 U.S.C. 228) to 

make those regulations necessary to 

carry out the provisions of the P&S Act. 

The Farm Security and Rural 

Investment Act of 2002 (Pub. L. 107– 

171) amended the P&S Act to define and 

add ‘‘swine contractors’’ as a regulated 

entity. A swine contractor is defined as 

‘‘any person engaged in the business of 

obtaining swine under a swine 

production contract for the purpose of 

slaughtering the swine or selling the 

swine for slaughter, if (A) the swine is 

obtained by the person in commerce; or 

(B) the swine (including products from 

the swine) obtained by the person is 

sold or shipped in commerce.’’ ((7 

U.S.C. 182 (12)) 

Adding swine contractors to specific 

regulations under the P&S Act will 

assist swine contractors and swine 

production contract growers with 

determining which regulations apply to 

them. It will also make it easier for 

GIPSA to identify potential violations 

and enforce the provisions of the P&S 

Act and regulations. 

Description of Proposed Changes 

We now propose to amend the 

following regulations (9 CFR part 201) 

under the P&S Act to add the words 

‘‘swine contractors’’ to the list of those 

subject to the regulations: 

• Section 201.53 Persons subject to 

the Act not to circulate misleading 

reports about market conditions or 

prices. 

• Section 201.94 Information as to 

business; furnishing of by packers, live 

poultry dealers, stockyard owners, 

market agencies, and dealers. 

• Section 201.95 Inspection of 

business records and facilities. 

• Section 201.96 Unauthorized 

disclosure of business information 

prohibited. 

The proposed modification to 

§ 201.53 would inform swine 

contractors that they are prohibited from 

knowingly making, issuing, or 

circulating false or misleading reports, 

records, or representations about market 

conditions, about prices, or about the 

sale of livestock, meat, or live poultry. 

The proposed modification to § 201.94 

would require swine contractors to 

furnish the Secretary or his duly 

authorized representatives, if requested 

by such representatives, with business 

information required in order to carry 

out provisions of the P&S Act and 

regulations in 9 CFR part 201. The 

proposed modification to § 201.95 

would require swine contractors to 

permit authorized representatives of the 

Secretary to enter their places of 

business to examine and copy business 

records, and to inspect facilities. The 

proposed modification to § 201.96 

would prohibit agents or employees of 

the United States from disclosing a 

swine contractor’s business information 

without the consent of the swine 

contractor, except in the specific 

circumstances listed in § 201.96. 


ebenthall on PRODPC61 with PROPOSALS
Federal Register / Vol. 73, No. 27 / Friday, February 8, 2008 / Proposed Rules 7483 

Options Considered 

We considered not making these 

regulatory changes and continuing to 

protect the interests of swine producers 

indirectly through regulation of packers, 

dealers, and market agents. However, 

that option would not reflect the intent 

of Congress in amending the P&S Act to 

give the Secretary authority over swine 

contractors. We have the authority and 

the responsibility to directly regulate 

swine contractors. We could also take 

legal action against a swine contractor 

for alleged violations of the P&S Act 

without amending the regulations. 

However, that action would not clearly 

inform all swine contractors and swine 

production contract growers about the 

requirements that apply to swine 

contractors. Issuing the proposed 

regulations would make it clear to swine 

contractors and swine production 

contract growers which parts of the 

regulations apply to them, and would 

make it easier for GIPSA to identify 

potential violators and to enforce 

provisions of the P&S Act. 

Effects on Regulated Entities 

If we implement these regulatory 

changes, swine contractors will have to 

open their business records and 

facilities to authorized representatives 

of GIPSA upon request. Some swine 

contractors may have to change their 

policies to allow access and to 

accommodate GIPSA representatives. 

We are not requiring that new 

information or records be kept by swine 

contractors, unless existing information 

or records are false or misleading about 

market conditions, prices, or sales of 

livestock, meat, or live poultry. This 

proposed rule would give swine 

contractors assurance that business 

information examined by GIPSA will be 

kept confidential, except under specific 

circumstances. Furthermore, swine 

production contract growers will be 

given increased assurance of fair 

treatment by swine contractors. 

Executive Order 12866 and Regulatory 

Flexibility Act 

The Office of Management and Budget 

(OMB) has designated this rule as not 

significant for the purposes of Executive 

Order 12866. 

We have determined that this 

proposed rule will not have a significant 

economic impact on a substantial 

number of small entities as defined in 

the Regulatory Flexibility Act (5 U.S.C. 

601, et seq.). The proposed rule will 

affect swine contractors. Most of these 

entities are slaughterers or processors of 

swine with more than 500 employees 

and do not meet the applicable size 

standards for small entities in the Small 

Business Administration Regulations 

(13 CFR 121.201). A 2007 study of U.S. 

pork producers found that firms that 

market more than 50,000 head of swine 

per year account for nearly all of 

contracted swine production in the U.S. 

In accordance with 5 U.S.C. 605 of the 

Regulatory Flexibility Act, we are not 

providing an initial regulatory flexibility 

analysis because this proposed rule, if 

promulgated, will not have a significant 

economic impact on a substantial 

number of small entities. 

Small swine production contract 

growers should benefit indirectly from 

the proposed amendments, which 

should provide fairness in the marketing 

of swine and swine products. 

We have considered the effects of this 

rulemaking action under the Regulatory 

Flexibility Act and we believe that it 

will not have a significant impact on a 

substantial number of small entities. We 

welcome comments on the cost of 

compliance with this rule, and 

particularly on the impact of this 

proposed rule on small entities. We also 

welcome comments on alternatives to 

the proposed rule that could achieve the 

same purpose with less cost or burden. 

Executive Order 12988 

This proposed rule has been reviewed 

under Executive Order 12988, Civil 

Justice Reform. These actions are not 

intended to have retroactive effect. This 

rule will not pre-empt state or local 

laws, regulations, or policies, unless 

they present an irreconcilable conflict 

with this rule. There are no 

administrative procedures that must be 

exhausted prior to any judicial 

challenge to the provisions of this rule. 

Paperwork Reduction Act 

This proposed rule does not contain 

new or amended information collection 

requirements subject to the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501 

et seq.). It does not involve collection of 

new or additional information by the 

federal government. 

E-Government Act Compliance 

GIPSA is committed to complying 

with the E-Government Act, to promote 

the use of the internet and other 

information technologies to provide 

increased opportunities for citizen 

access to Government information and 

services, and for other purposes. 

List of Subjects in 9 CFR Part 201 

Confidential business information, 

Reporting and recordkeeping 

requirements, Stockyards, Trade 

practices. 

For the reasons set forth in the 

preamble, we propose to amend 9 CFR 

part 201 to read as follows: 

PART 201—REGULATIONS UNDER 

THE PACKERS AND STOCKYARDS 

ACT 

1. The authority citation for part 201 

is revised to read as follows: 

Authority: 7 U.S.C. 182, 222, and 228, and 

7 CFR 2.22 and 2.81. 

2. Revise § 201.53 to read as follows: 

§ 201.53 Persons subject to the Act not to 

circulate misleading reports about market 

conditions or prices. 

No packer, swine contractor, live 

poultry dealer, stockyard owner, market 

agency, or dealer shall knowingly make, 

issue, or circulate any false or 

misleading reports, records, or 

representation concerning the market 

conditions or the prices or sale of any 

livestock, meat, or live poultry. 

3. Revise § 201.94 to revise the 

heading and to read as follows: 

§ 201.94 Information as to business; 

furnishing of by packers, swine contractors, 

live poultry dealers, stockyard owners, 

market agencies, and dealers. 

Each packer, swine contractor, live 

poultry dealer, stockyard owner, market 

agency, and dealer, upon proper 

request, shall give to the Secretary or his 

duly authorized representatives in 

writing or otherwise, and under oath or 

affirmation if requested by such 

representatives, any information 

concerning the business of the packer, 

swine contractor, live poultry dealer, 

stockyard owner, market agency, or 

dealer, or which may be required in 

order to carry out the provisions of the 

Act and regulations in this part within 

such reasonable time as may be 

specified in the request for such 

information. 

4. Revise § 201.95 to read as follows: 

§ 201.95 Inspection of business records 

and facilities. 

Each stockyard owner, market agency, 

dealer, packer, swine contractor, and 

live poultry dealer, upon proper request, 

shall permit authorized representatives 

of the Secretary to enter its place of 

business during normal business hours 

and to examine records pertaining to its 

business subject to the Act, to make 

copies thereof and to inspect the 

facilities of such persons subject to the 

Act. Reasonable accommodations shall 

be made available to authorized 

representatives of the Secretary by the 

stockyard owner, market agency, dealer, 

packer, swine contractor, or live poultry 

dealer for such examination of records 

and inspection of facilities. 


ebenthall on PRODPC61 with PROPOSALS
7484 Federal Register / Vol. 73, No. 27 / Friday, February 8, 2008 / Proposed Rules 

5. Revise § 201.96 to read as follows: 

§ 201.96 Unauthorized disclosure of 

business information prohibited. 

No agent or employee of the United 

States shall, without the consent of the 

stockyard owner, market agency, dealer, 

packer, swine contractor, or live poultry 

dealer concerned, divulge or make 

known in any manner, any facts or 

information regarding the business of 

such person acquired through any 

examination or inspection of the 

business or records of the stockyard 

owner, market agency, dealer, packer, 

swine contractor, or live poultry dealer, 

or through any information given by the 

stockyard owner, market agency, dealer, 

packer, swine contractor, or live poultry 

dealer pursuant to the Act and 

regulations, except to such other agents 

or employees of the United States as 

may be required to have such 

knowledge in the regular course of their 

official duties or except insofar as they 

may be directed by the Administrator or 

by a court of competent jurisdiction, or 

except as they may be otherwise 

required by law. 

James E. Link, 

Administrator, Grain Inspection, Packers and 

Stockyards Administration. 

[FR Doc. E8–2376 Filed 2–7–08; 8:45 am] 

BILLING CODE 3410–KD–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2008–0147; Directorate 

Identifier 2007–NM–294–AD] 

RIN 2120–AA64 

Airworthiness Directives; Boeing 

Model 737–600, –700, –700C, –800, and 

–900 Series Airplanes, Equipped with 

CFM56–7 Engines 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: The FAA proposes to 

supersede an existing airworthiness 

directive (AD) that applies to certain 

Boeing Model 737–600, –700, and –800 

series airplanes. The existing AD 

currently requires repetitive inspections 

to detect damage of the aft strut 

insulation blanket, and eventual 

replacement of the insulation blankets 

with new, improved blankets. This 

proposed AD would add airplanes to the 

applicability and require installation of 

a new heat insulation blanket and new 

cover plate on the left and right side 

engine struts. This proposed AD would 

not retain the requirements of the 

existing AD and would terminate the 

requirements of the existing AD. This 

proposed AD results from reports of 

damaged heat insulation blankets on the 

engine struts. We are proposing this AD 

to prevent exposure of the lower surface 

of the strut to extreme high 

temperatures, consequent creation of a 

source of fuel ignition, and increased 

risk of an uncontrollable fire and 

possible fuel tank explosion. 

DATES: We must receive comments on 

this proposed AD by March 24, 2008. 

ADDRESSES: You may send comments by 

any of the following methods: 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov. Follow the 

instructions for submitting comments. 

• Fax: 202–493–2251. 

• Mail: U.S. Department of 

Transportation, Docket Operations, M–

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue, SE., 

Washington, DC 20590. 

• Hand Delivery: U.S. Department of 

Transportation, Docket Operations, M–

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue, SE., 

Washington, DC 20590, between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. 

For service information identified in 

this AD, contact Boeing Commercial 

Airplanes, P.O. Box 3707, Seattle, 

Washington 98124–2207. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http:// 

www.regulations.gov; or in person at the 

Docket Management Facility between 9 

a.m. and 5 p.m., Monday through 

Friday, except Federal holidays. The AD 

docket contains this proposed AD, the 

regulatory evaluation, any comments 

received, and other information. The 

street address for the Docket Office 

(telephone 800–647–5527) is in the 

ADDRESSES section. Comments will be 

available in the AD docket shortly after 

receipt. 

FOR FURTHER INFORMATION CONTACT: 

Kathrine Rask, Aerospace Engineer, 

Airframe Branch, ANM–120S, FAA, 

Seattle Aircraft Certification Office, 

1601 Lind Avenue, SW., Renton, 

Washington 98057–3356; telephone 

(425) 917–6505; fax (425) 917–6590. 

SUPPLEMENTARY INFORMATION: 

Comments Invited 

We invite you to send any written 

relevant data, views, or arguments about 

this proposed AD. Send your comments 

to an address listed under the 

ADDRESSES section. Include ‘‘Docket No. 

FAA–2008–0147; Directorate Identifier 

2007–NM–294–AD’’ at the beginning of 

your comments. We specifically invite 

comments on the overall regulatory, 

economic, environmental, and energy 

aspects of this proposed AD. We will 

consider all comments received by the 

closing date and may amend this 

proposed AD because of those 

comments. 

We will post all comments we 

receive, without change, to http:// 

www.regulations.gov, including any 

personal information you provide. We 

will also post a report summarizing each 

substantive verbal contact we receive 

about this proposed AD. 

Discussion 

On February 4, 1999, we issued AD 

99–04–11, amendment 39–11035 (64 FR 

6791, February 11, 1999), for certain 

Boeing Model 737–600, –700, and –800 

series airplanes. That AD requires 

repetitive inspections to detect damage 

of the aft strut insulation blanket. That 

AD also requires eventual replacement 

of the insulation blankets with new, 

improved blankets, which constitutes 

terminating action for the requirements 

of that AD. That AD resulted from 

reports of damaged aft strut insulation 

blankets. We issued that AD to prevent 

such damage, which could result in 

exposure of the lower surface of the 

strut to extreme high temperatures, 

consequent creation of a source of fuel 

ignition, and increased risk of an 

uncontrollable fire and possible fuel 

tank explosion. 

Actions Since Existing AD Was Issued 

Since we issued AD 99–04–11, we 

have received reports of failures of the 

insulation blankets that were installed 

in accordance with the requirements of 

that AD. A failed heat insulation blanket 

might go undetected in that area. 

Relevant Service Information 

We have reviewed Boeing Special 

Attention Service Bulletin 737–54–

1045, dated July 25, 2007. The service 

bulletin describes procedures for 

installing a new heat insulation blanket, 

P/N S315A213–57, and a new cover 

plate on the left and right side engine 

struts. Accomplishing the actions 

specified in the service information is 

intended to adequately address the 

unsafe condition. 

FAA’s Determination and Requirements 

of the Proposed AD 

We have evaluated all pertinent 

information and identified an unsafe 

condition that is likely to develop on 


ebenthall on PRODPC61 with PROPOSALS