Federal Register / Vol. 75, No. 190 / Friday, October 1, 2010 / Rules and Regulations 60617 

3 17 CFR 240.17a–5. 

4 15 U.S.C. 78a et seq. 5Many parts of Commission rules and staff 

guidance related to obligations of brokers and 

dealers refer to GAAS and contain requirements for 

audits to be conducted in accordance with GAAS. 

Rule 17a–5(g)(1) under the Exchange Act, for 

example, states that the audit of the report required 

by Rule 17a–5(d) ‘‘* * * shall be made in 

accordance with generally accepted auditing 

standards * * *’’ (See 17 CFR 240.17a–5) Rule 17a– 

12 under the Exchange Act requires that the audit 

of certain over-the-counter derivative dealers 

‘‘* * * shall be made in accordance with U.S. 

Generally Accepted Auditing Standards * * *’’ (17 

CFR 240.17a–12). 

6See PCAOB Rule 3100. See also, e.g., PCAOB 

Rules 3200T, 3300T, 3400T, and 3500T. 

7Audit and attestation standards established by 

the AICPA. 

Commission, auditing and related 

attestation, quality control, ethics, and 

independence standards to be used by 

registered public accounting firms with 

respect to the preparation and issuance 

of audit reports to be included in broker 

and dealer filings with the Commission 

pursuant to Rule 17a–5 3 under the 

Exchange Act of 1934 4 (‘‘Exchange 

Act’’). The amendments directly impact 

certain Commission rules, regulations, 

releases, and staff bulletins related to 

brokers and dealers (collectively 

referred to in this release as 

‘‘Commission rules and staff guidance’’) 

and certain provisions in the federal 

securities laws for brokers and dealers, 

which refer to Generally Accepted 

Auditing Standards (‘‘GAAS’’) and to 

specific standards under GAAS 

(including related professional practice 

standards).5 There may be confusion on 

the part of brokers, dealers, auditors, 

and investors with regard to the 

professional standards auditors should 

follow for reports filed and furnished by 

brokers and dealers pursuant to the 

federal securities laws and the rules of 

the Commission. 

The Commission is considering a 

rulemaking project to update the audit 

and related attestation requirements 

under the federal securities laws for 

brokers and dealers, particularly in light 

of the Dodd-Frank Act. In addition, the 

PCAOB has not yet revised its rules, 

which currently refer only to issuers, to 

require registered public accounting 

firms to comply with PCAOB standards 

for audits of non-issuer brokers and 

dealers.6

As a result, the Commission is 

providing transitional guidance with 

respect to its existing rules regarding 

non-issuer brokers and dealers. 

Specifically, references in Commission 

rules and staff guidance and in the 

federal securities laws to GAAS or to 

specific standards under GAAS, as they 

relate to non-issuer brokers or dealers, 

should continue to be understood to 

mean auditing standards generally 

accepted in the United States of 

America,7 plus any applicable rules of 

the Commission. The Commission 

intends, however, to revisit this 

interpretation in connection with its 

rulemaking project referenced above. 

List of Subjects in 17 CFR Part 241 

Brokers, Reporting and recordkeeping 

reports, Securities. 

Amendments to the Code of Federal 

Regulations 

■ For the reasons set forth above, the 

Commission is amending title 17, 

chapter II of the Code of Federal 

Regulations as set forth below: 

PART 241—INTERPRETATIVE 

RELEASES RELATING TO THE 

SECURITIES EXCHANGE ACT OF 1934 

AND GENERAL RULES AND 

REGULATIONS THEREUNDER 

■ Part 241 is amended by adding 

Release No. 34–62991 to the list of 

interpretive releases as follows: 

Subject Release No. Date Fed. Reg. vol. and page 

*******

Commission Guidance Regarding Auditing, Attestation, and Related Professional Practice 

Standards Related to Brokers and Dealers.

34–62991 September 24, 2010 ............................. 75 FR [INSERT FR PAGE NUMBER] 

By the Commission. 

Dated: September 24, 2010. 

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–24657 Filed 9–30–10; 8:45 am] 

BILLING CODE 8010–01–P 

SUSQUEHANNA RIVER BASIN 

COMMISSION 

18 CFR Parts 806 and 808 

Review and Approval of Projects 

AGENCY: Susquehanna River Basin 

Commission. 

ACTION: Final rule. 

SUMMARY: This document contains final 

rules that amend the project review 

regulations of the Susquehanna River 

Basin Commission (Commission) to 

include subsidiary allocations for public 

water supply systems under the scope of 

withdrawals requiring review and 

approval; improve notice procedures for 

all project applications; clarify 

requirements for grandfathered projects 

increasing their withdrawals from an 

existing source or initiating a new 

withdrawal; refine the provisions 

governing transfer and re-issuance of 

approvals; clarify the Executive 

Director’s authority to grant, deny, 

suspend, rescind, modify, or condition 

an Approval by Rule; include decisional 

criteria for diversions into the basin; 

amend administrative appeal 

procedures to broaden available 

remedies and streamline the appeal 

process; and make other minor 

regulatory clarifications to the text of 

the regulations. 

DATES: Effective November 1, 2010. 

ADDRESSES: Susquehanna River Basin 

Commission, 1721 N. Front Street, 

Harrisburg, PA 17102–2391. 

FOR FURTHER INFORMATION CONTACT: 

Richard A. Cairo, General Counsel, 

telephone: 717–238–0423, ext. 306; fax: 

717–238–2436; e-mail: rcairo@srbc.net. 

Also, for further information on the final 

rulemaking, visit the Commission’s Web 

site at http://www.srbc.net. 

SUPPLEMENTARY INFORMATION: 

Comments and Responses to Proposed 

Rulemaking 

Notice of proposed rulemaking was 

published in the Federal Register on 

June 25, 2010; the New York Register on 

July 7, 2010; the Pennsylvania Bulletin 

on July 10, 2010; and the Maryland 

Register on July 16, 2010. The 

Commission convened public hearings 

on July 27, 2010, in Binghamton, New 

York and on July 2010, in Harrisburg, 

Pennsylvania. A written comment 

period was held open until August 10, 

2010. Comments on the proposed 

rulemaking were received at both the 

hearings and during the comment 

period. A summary of the comments 

and the Commission’s responses thereto 

follows. 

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60618 Federal Register / Vol. 75, No. 190 / Friday, October 1, 2010 / Rules and Regulations 

Comments by Section, Part 806 

Section 806.4 Projects Requiring 

Review and Approval 

Comment: With respect to gas well 

development and hydrofracking 

operations, there is a need for the 

Commission to evaluate the cumulative 

impacts of water withdrawals and to 

require flow monitoring at water 

withdrawal sites. 

Response: The Commission does 

employ cumulative impact analysis in 

its review and approval of projects. 

Flows are monitored at all sites where 

passby flow requirements have been 

imposed either directly or through the 

use of reference gages. Commission field 

inspectors verify that users required to 

cease taking water at given flow levels 

are in fact abiding by passby limitations. 

In addition, the Commission has 

implemented a Remote Water Quality 

Monitoring Network with 30 monitoring 

stations in the areas where drilling in 

the Marcellus Shale formation is most 

active. 

Comment: The Commission should 

exercise greater regulatory authority 

over drilling operations in the Marcellus 

Shale formation, including assuming 

jurisdiction over water quality related 

matters. 

Response: The Commission’s current 

regulatory authority extends only to 

water withdrawal and consumptive use 

by gas drilling operations. As 

established in Section 3.2 of the 

Susquehanna River Basin Compact, the 

Commission is directed to utilize the 

existing agencies of Federal and State 

government who currently exercise 

regulatory authority on water quality, 

underground injection, and on the 

extraction of mineral resources. At this 

point, the member States are asserting 

their regulatory authority and it would 

not be appropriate for the Commission 

to interpose its authority and duplicate 

the plenary authority exercised by the 

States in this area. If, at some point in 

the future, the Commission concludes, 

after public hearing, that it must assume 

jurisdiction in order to effectuate the 

terms of the comprehensive plan or 

implement the terms of the Compact, it 

may then do so. 

Section 806.6 Transfer and ReIssuance of Approvals 

Comment: Allowing ‘‘transfer of 

approvals’’ under 18 CFR 806.6 is 

inappropriately treating water as a 

‘‘commodity’’ instead of as a ‘‘common 

resource’’ of the basin. 

Response: Under 18 CFR 806.6, the 

instances where approvals may be 

transferred with only administrative 

approval of the Executive Director are 

limited. Transfers of approvals more 

than ten years old, those changing the 

quantity or use of the water, or having 

pre-compact or pre-regulation elements 

will require a subsequent application for 

approval, thus phasing out 

grandfathered uses and bringing these 

projects under the authority of the 

Commission, where the water used can 

be better managed as a ‘‘common 

resource’’ of the basin. We would also 

note that transfer of approvals is not 

limited to the gas drilling industry. 

Other transfers occur, such as the 

transfer of water withdrawal approvals 

from municipalities to municipal 

authorities, whenever a project using 

the waters of the basin is sold to a new 

owner. 

Section 806.15 Notice of Application 

Comment: Notification of property 

owners within one-half mile of a 

withdrawal is insufficient. Notice 

should be provided to all property 

owners in the watershed or even to all 

basin residents because of the high 

volumes of water withdrawals for gas 

production and the contents of fracking 

water. Also, people farther than a half 

mile may experience impacts to their 

water, air, and soil quality. 

Response: The one-half mile 

notification requirement for 

withdrawals provides more effective 

notice than the current contiguous 

property owner requirement that is 

based on proximity, not science. 

Ongoing scientific evaluations indicate 

that a one-half mile notice will cover the 

vast majority of areas affected by 

groundwater and surface water 

withdrawals. Thus, the Commission 

believes this new standard is both 

reasonable and appropriate. If data is 

collected during the aquifer test that 

indicates that the influence of the 

withdrawal extends beyond a half mile 

radius, the staff has the discretion to 

direct project applicants to send 

notification to property owners in these 

extended areas. Because newspaper 

notice is also required and because the 

Commission publishes an advanced 

notice for all withdrawal applications in 

the Federal Register and State notice 

publications prior to taking action, other 

interested parties throughout the 

watershed and the basin will have 

notice and opportunity to comment on 

such applications. Similar information 

is also provided to the public by the 

Commission through its Web-based 

Water Resources Portal. 

Comment: In amending its 

notification requirements for project 

applications, the Commission is 

properly focusing on those persons who 

are actually affected and who have a 

real interest in participating in the 

approval process. 

Response: Agreed. 

Comment: The Commission’s 

proposed rules are scientifically based 

and therefore sound. 

Response: Agreed. 

Comment: The notice sent to 

landowners within one-half mile of a 

groundwater withdrawal should include 

an opportunity for the property owner 

to comment on the project application. 

Response: 18 CFR 806.15(a) specifies 

that all notices required under this 

section contain the address, electronic 

mail address, and phone number of the 

project sponsor and the Commission, 

and comments are therefore welcome 

from any landowner or other interested 

party who wishes to do so. Also, the 

form of notice sent to landowners 

contains information concerning the 

submission of comments and providing 

relevant contact information. 

Comment: The notice sent to property 

owners within one-half mile of a 

groundwater withdrawal should include 

information on how the 72-hour testing 

will be done, when it will occur, and 

other information concerning the 

evaluation and approval of the 

groundwater withdrawal project. 

Follow-up information should be 

provided to property owners receiving 

notifications such as the results of water 

withdrawal testing. 

Response: The Commission readily 

understands that landowners may have 

an interest in aquifer testing information 

at the application stage. Under current 

Commission procedures, however, 

applicants submit testing plans and 

conduct tests prior to the filing of an 

application that triggers the notice 

requirement. At this pre-application 

stage, applicants may also submit 

information supporting a request for a 

waiver of the testing requirements, 

which may or may not be granted. The 

Commission believes that the 

requirement for pre-application 

submission of test information is a 

conservative management approach 

helping to ensure that applications are 

supported by science. Rather than 

modifying this procedure, the 

Commission feels that the legitimate 

concerns expressed in this comment can 

best be addressed by providing 

landowners with a right of access to the 

information sought. 

Comment: For applications to use 

wastewater discharge sources, in 

addition to the newspaper notice, any 

property owner within 1,000 feet of the 

use (or some other appropriate distance 

compatible with other resource 

agencies) should be notified by mail. 

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Federal Register / Vol. 75, No. 190 / Friday, October 1, 2010 / Rules and Regulations 60619 

Response: Newspaper notices noting 

the use of a wastewater discharge source 

will be required in every area where the 

water will be used for natural gas 

development. The Commission believes 

that this form of notice will be 

sufficient. Also, all approved water 

sources that a natural gas developer may 

use on a given site are available for 

viewing on line by interested 

landowners at the Commission’s Web 

based Water Resources Portal. 

Section 806.24 Standards for 

Diversions 

Comment: The meaning of the ‘‘catch 

all phrase’’ in the proposed revision to 

18 CFR 806.24 requiring consideration 

of the ‘‘extent to which the proposed 

diversion satisfies all other applicable 

standards set forth in subchapter C of 

this part,’’ is not clear. It is 

recommended that this phrase be struck. 

Response: While the Commission 

agrees that a clarification is needed, it 

is important that the sponsors of 

diversion projects understand that they 

must also abide by the Commission’s 

general and specific standards set forth 

in subchapter C of part 806 governing 

withdrawals and consumptive use. The 

Commission has modified this language 

in the final rule to add more clarity. 

Comment: For projects involving a 

diversion of water out of the basin, the 

in-basin public should be noticed and 

have an opportunity to provide written 

comments. This notice should tell the 

public where the water is being diverted 

and why. 

Response: The proposed regulations 

do provide for newspaper publication in 

the in-basin area, plus since the 

diversion will also involve a withdrawal 

of some kind in the in-basin area, 

property owners within one-half mile 

will also receive notifications in 

accordance with 18 CFR 806.15. 

General Comments 

Comment: The Commission should 

institute a moratorium on approval of 

any unconventional gas drilling related 

water withdrawals until the completion 

of certain studies that will assess the 

environmental impacts of drilling and 

fracking activity. 

Response: The Commission can find 

no evidence linking its approval of 

water withdrawals and consumptive 

uses by gas drilling operations in the 

Marcellus Shale formation with a threat 

of harm or of injury to the public 

justifying a moratorium on all 

approvals. Ultimately, a moratorium 

based on supposition rather than 

science cannot be legally justified or 

defended. It is also far more appropriate 

for the States and the Federal 

government, who exercise broader 

authority with respect to water quality, 

underground injection and mineral 

extraction, and who have such studies 

underway, to inform the Commission’s 

regulatory program as that science 

develops. In the interim, the 

Commission continues to study and 

evaluate the cumulative impact of these 

withdrawals and consumptive use on 

the water resources of the basin. 

Comment: The idea of allowing water 

withdrawals for any other reason than to 

support life is abhorrent. 

Response: The Susquehanna River 

Basin Compact and the Commission 

Comprehensive Plan do place 

importance upon the conservation of 

water to support the living resources of 

the basin and the Chesapeake Bay, and 

the Commission devotes a major part of 

its mission to protecting those 

resources; however, the purposes of the 

Compact and the goals of the 

Comprehensive Plan also include the 

utilization and development of the 

basin’s water resources to make secure 

and protect developments within the 

States (i.e. economic development). 

Managing the basin’s waters to protect 

living resources and developments 

within the States are not mutually 

exclusive efforts. 

Comment: The Commission did not 

give sufficient public notice of the 

public hearings on these proposed rules. 

Response: The Commission followed 

the notice requirements of its own 

regulations found at 18 CFR 808.1, 

publishing well in advance of public 

hearings the text of the proposed rules 

in the Federal Register and in the 

member State notice publications, and 

including in those notices the date, time 

and place of two public hearings held in 

Binghamton, NY on July 27, 2010, and 

Harrisburg, PA on July 29, 2010. Written 

comments were also invited through 

August 10, 2010. The Commission gave 

further notice of the proposed 

rulemaking contents, the public 

hearings, and the comment period via 

its Web site and in a news release sent 

to media throughout the basin. These 

are the same notice procedures followed 

by the Commission on past proposed 

rulemaking actions as well. The 

Commission is, nevertheless, 

considering ways that it can improve 

notice procedures in future rulemaking 

actions and welcomes this comment. 

Comment: The Pennsylvania 

Department of Environmental Protection 

(PADEP) is permitting gas drilling on 

lands subject to frequent inundation, 

creating a danger that toxic materials or 

waters stored on such land will be 

washed away and contaminate streams 

and rivers. 

Response: 18 CFR 806.21 provides 

that the Commission may suspend the 

review of any project that has not been 

approved by a member jurisdiction or a 

political subdivision thereof. The 

Commission may also modify, suspend, 

or revoke a previously granted approval 

where the project sponsor fails to obtain 

or maintain the approval of member 

jurisdiction or political subdivision 

thereof. All land uses in Pennsylvania 

in flood prone designated communities 

are subject to the provisions of the 

Pennsylvania Flood Plain Management 

Act and local ordinances adopted 

pursuant thereto. If a project sponsor is 

not in compliance with these local 

ordinances, they run the risk of having 

their Commission approval suspended 

or revoked. 

Comment: The Commission has been 

blocking participation of landowners in 

the approval process for gas drilling 

consumptive use and withdrawal 

approvals by withholding information 

on pending project applications. 

Response: The Commission disagrees 

with this comment. The Commission 

has historically welcomed and 

encouraged public comment on 

applications submitted to the 

Commission for its review and 

consideration. It continues to improve 

its notice requirements, as witnessed by 

the modifications being made to 18 CFR 

806.15 of this final rule, and has taken 

considerable steps to build its online 

Water Resources Portal Web application 

to facilitate that end. 

Comment by Section, Part 808 

Section 808.2 Administrative Appeals 

Comment: There is a need to improve 

some of the provisions of the proposed 

changes to the administrative appeal 

provisions of 18 CFR 808.2 by removing 

certain unneeded language, defining a 

standard for granting nunc pro tunc 

appeals, providing for a direct notice of 

hearing to the petitioner and project 

sponsor, and specifying a deadline for 

filing an appeal for consideration at the 

next regular Commission meeting. 

Response: Agreed. These changes 

have been made to the text of 18 CFR 

808.2 in the final rulemaking document. 

List of Subjects in 18 CFR Parts 806 and 

808: 

Administrative practice and 

procedure, Water resources. 

■ Accordingly, for the reasons set forth 

in the preamble, the Susquehanna River 

Basin Commission amends 18 CFR parts 

806 and 808 as follows: 

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60620 Federal Register / Vol. 75, No. 190 / Friday, October 1, 2010 / Rules and Regulations 

PART 806—REVIEW AND APPROVAL 

OF PROJECTS 

Subpart C—Standards for Review and 

Approval 

■ 1. The authority citation for part 806 

continues to read as follows: 

Authority: Secs. 3.4, 3.5(5), 3.8, 3.10 and 

15.2, Pub. L. 91–575, 84 Stat. 1509 et seq. 

■ 2. In § 806.4, revise paragraphs (a)(2) 

introductory text, (a)(2)(iv), and (c) to 

read as follows: 

§ 806.4 Projects requiring review and 

approval. 

(a) * * * 

(2) Withdrawals. Any project 

described below shall require an 

application to be submitted in 

accordance with § 806.13, and shall be 

subject to the standards set forth in 

§ 806.23. Hydroelectric projects, except 

to the extent that such projects involve 

a withdrawal, shall be exempt from the 

requirements of this section regarding 

withdrawals; provided, however, that 

nothing in this paragraph shall be 

construed as exempting hydroelectric 

projects from review and approval 

under any other category of project 

requiring review and approval as set 

forth in this section, § 806.5, or 18 CFR 

part 801. The taking or removal of water 

by a public water supplier indirectly 

through another public water supply 

system or another water user’s facilities 

shall constitute a withdrawal hereunder. 

* * * * * 

(iv) With respect to groundwater 

projects in existence prior to July 13, 

1978, and surface water projects in 

existence prior to November 11, 1995, 

any project that will increase its 

withdrawal from any source, or initiate 

a withdrawal from a new source, or 

combination of sources, by a 

consecutive 30-day average of 100,000 

gpd or more, above that maximum 

consecutive 30-day amount which the 

project was withdrawing prior to the 

said applicable date. 

* * * * * 

(c) Any project that did not require 

Commission approval prior to January 1, 

2007, and not otherwise exempt from 

the requirements of paragraph (a)(1)(iv), 

(a)(2)(v), or (a)(3)(iv) pursuant to 

paragraph (b) of this section, may be 

undertaken by a new project sponsor 

upon a change of ownership pending 

action by the Commission on an 

application submitted by such project 

sponsor requesting review and approval 

of the project, provided such 

application is submitted to the 

Commission in accordance with this 

part within 90 days of the date change 

of ownership occurs and the project 

features related to the source, 

withdrawal, diversion or consumptive 

use of water, or the nature or quantity 

of water withdrawal, diversion or 

consumptive use associated with the 

project do not change pending review of 

the application. For purposes of this 

paragraph, changes in the quantity of 

water withdrawal, diversion or 

consumptive use shall only relate to 

increases in quantity in excess of the 

quantity withdrawn, diverted or 

consumptively used prior to the change 

of ownership. 

■ 3. In § 806.6, revise paragraphs (a), (b) 

introductory text, (b)(1), (c) introductory 

text and (d) introductory text, and add 

paragraph (e) to read as follows: 

§ 806.6 Transfer and re-issuance of 

approvals. 

(a) An existing Commission project 

approval may be transferred or 

conditionally transferred to a new 

project sponsor upon a change of 

ownership of the project, subject to the 

provisions of paragraphs (b), (c) and (d) 

of this section, and the new project 

sponsor may only operate the project in 

accordance with and subject to the 

terms and conditions of the existing 

approval pending approval of the 

transfer, provided the new project 

sponsor notifies the Commission within 

90 days from the date of the change of 

ownership, which notice shall be on a 

form and in a manner prescribed by the 

Commission and under which the new 

project sponsor certifies its intention to 

comply with all terms and conditions of 

the transferred approval and assume all 

other associated obligations. 

(b) An existing Commission project 

approval for any of the following 

categories of projects may be 

conditionally transferred, subject to 

administrative approval by the 

Executive Director, upon a change of 

ownership and the new project sponsor 

may only operate such project in 

accordance with and subject to the 

terms and conditions of the transferred 

approval: 

(1) A project undergoing a change of 

ownership as a result of a corporate 

reorganization where the project 

property is transferred to a corporation 

by one or more corporations solely in 

exchange for stock or securities of the 

transferee corporation, provided that 

immediately after the exchange the 

transferor corporation(s) own 80 percent 

of the voting stock and 80 percent of all 

other stock of the transferee corporation. 

* * * * * 

(c) An existing Commission approval 

of a project that satisfies the following 

conditions may be conditionally 

transferred and the project sponsor may 

only operate such project in accordance 

with and subject to the terms and 

conditions of the conditionally 

transferred approval, pending action by 

the Commission on the application 

submitted in accordance with paragraph 

(c)(3) of this section: 

* * * * * 

(d) An existing Commission project 

approval for any project not satisfying 

the requirements of paragraphs (b) or (c) 

of this section may be conditionally 

transferred and the project sponsor may 

only operate such project in accordance 

with and subject to the terms and 

conditions of the conditionally 

transferred approval, pending action by 

the Commission on an application the 

project sponsor shall submit to the 

Commission, provided that: 

* * * * * 

(e) An existing Commission project 

approval may be re-issued by the 

Executive Director at the request of a 

project sponsor undergoing a change of 

name, provided such change does not 

affect ownership or control of the 

project or project sponsor. The project 

sponsor may only continue to operate 

the project under the terms and 

conditions of the existing approval 

pending approval of its request for reissuance, provided it submits its request 

to the Commission within 90 days from 

the date of the change, which notice 

shall be on a form and in a manner 

prescribed by the Commission, 

accompanied by the appropriate fee 

established therefore by the 

Commission. 

■ 4. In § 806.7, revise paragraph (a) to 

read as follows: 

§ 806.7 Concurrent project review by 

member jurisdictions. 

(a) The Commission recognizes that 

agencies of the member jurisdictions 

will exercise their review and approval 

authority and evaluate many proposed 

projects in the basin. The Commission 

will adopt procedures to assure 

compatibility between jurisdictional 

review and Commission review. 

* * * * * 

■ 5. Revise § 806.15 to read as follows: 

§ 806.15 Notice of application. 

(a) Any project sponsor submitting an 

application to the Commission shall 

provide notice thereof to the appropriate 

agency of the member State, each 

municipality in which the project is 

located, and the county planning agency 

of each county in which the project is 

located. The project sponsor shall also 

publish notice of submission of the 

application at least once in a newspaper 

of general circulation serving the area in 

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Federal Register / Vol. 75, No. 190 / Friday, October 1, 2010 / Rules and Regulations 60621 

which the project is located. The project 

sponsor shall also meet any of the notice 

requirements set forth in paragraphs (b) 

through (e) of this section, if applicable. 

All notices required under this section 

shall be provided or published no later 

than 10 days after submission of the 

application to the Commission and shall 

contain a description of the project, its 

purpose, the requested quantity of water 

to be withdrawn obtained from for 

sources other than withdrawals or 

consumptively used, and the address, 

electronic mail address, and phone 

number of the project sponsor and the 

Commission. All such notices shall be 

in a form and manner as prescribed by 

the Commission. 

(b) For withdrawal applications 

submitted pursuant to § 806.4(a)(2), the 

project sponsor shall also provide the 

notice required under paragraph (a) of 

this section to each property owner 

listed on the tax assessment rolls of the 

county in which such property is 

located and identified as follows: 

(1) For groundwater withdrawal 

applications, the owner of any property 

that is located within a one-half mile 

radius of the proposed withdrawal 

location. 

(2) For surface water withdrawal 

applications, the owner of any property 

that is riparian or littoral to the body of 

water from which the proposed 

withdrawal will be taken and is within 

a one-half mile radius of the proposed 

withdrawal location. 

(c) For projects involving a diversion 

of water out of the basin, the project 

sponsor shall also publish a notice of 

the submission of its application at least 

once in a newspaper of general 

circulation serving the area outside the 

basin where the project proposing to use 

the diverted water is located. For 

projects involving a diversion of water 

into the basin, the project sponsor shall 

also publish a notice of the submission 

of its application at least once in a 

newspaper of general circulation serving 

the area outside the basin where the 

withdrawal of water proposed for 

diversion is located. 

(d) For applications submitted under 

§ 806.22(f)(12)(ii) to use a public water 

supply source, the newspaper notice 

requirement contained in paragraph (a) 

of this section shall be satisfied by 

publication in a newspaper of general 

circulation in the area served by the 

public water supply. 

(e) For applications submitted under 

§ 806.22(f)(12)(ii) to use a wastewater 

discharge source, the newspaper notice 

requirement contained in paragraph (a) 

of this section shall be satisfied by 

publication in a newspaper of general 

circulation in each area within which 

the water obtained from such source 

will be used for natural gas 

development. 

(f) The project sponsor shall provide 

the Commission with a copy of the 

United States Postal Service return 

receipt for the notifications to agencies 

of member States, municipalities and 

county planning agencies required 

under paragraph (a) of this section. The 

project sponsor shall also provide 

certification on a form provided by the 

Commission that it has published the 

newspaper notice(s) required by this 

section and made the landowner 

notifications as required under 

paragraph (b) of this section, if 

applicable. Until these items are 

provided to the Commission, processing 

of the application will not proceed. The 

project sponsor shall maintain all proofs 

of notice required hereunder for the 

duration of the approval related to such 

notices. 

■ 6. In § 806.22, revise paragraphs (e)(1), 

(e)(6), (f)(3), (f)(9), and (f)(12) to read as 

follows: 

§ 806.22 Standards for consumptive uses 

of water. 

* * * * * 

(e) * * * 

(1) Except with respect to projects 

involving natural gas well development 

subject to the provisions of paragraph (f) 

of this section, any project whose sole 

source of water for consumptive use is 

a public water supply, may be approved 

by the Executive Director under this 

paragraph (e) in accordance with the 

following, unless the Executive Director 

determines that the project cannot be 

adequately regulated under this 

approval by rule: 

(i) Notification of Intent: No fewer 

than 90 days prior to the construction or 

implementation of a project or increase 

above a previously approved quantity of 

consumptive use, the project sponsor 

shall submit a Notice of Intent (NOI) on 

forms prescribed by the Commission, 

and the applicable application fee, along 

with any required attachments. 

(ii) Within 10 days after submittal of 

an NOI under paragraph (e)(1)(i) of this 

section, the project sponsor shall satisfy 

the notice requirements set forth in 

§ 806.15. 

* * * * * 

(6) The Executive Director may grant, 

deny, suspend, rescind, modify or 

condition an approval to operate under 

this approval by rule and will notify the 

project sponsor of such determination, 

including the quantity of consumptive 

use approved. 

* * * * * 

(f) * * * 

(3) Within 10 days after submittal of 

an NOI under paragraph (f)(2) of this 

section, the project sponsor shall satisfy 

the notice requirements set forth in 

§ 806.15. 

* * * * * 

(9) The Executive Director may grant, 

deny, suspend, rescind, modify or 

condition an approval to operate under 

this approval by rule and will notify the 

project sponsor of such determination, 

including the sources and quantity of 

consumptive use approved. The 

issuance of any approval hereunder 

shall not be construed to waive or 

exempt the project sponsor from 

obtaining Commission approval for any 

water withdrawals or diversions subject 

to review pursuant to § 806.4(a). 

* * * * * 

(12) The following additional sources 

of water may be utilized by a project 

sponsor in conjunction with an 

approval by rule issued pursuant to 

paragraph (f)(9) of this section: 

(i) Water withdrawals or diversions 

approved by the Commission pursuant 

to § 806.4(a) and issued to persons other 

than the project sponsor, provided any 

such source is approved for use in 

natural gas well development, the 

project sponsor has an agreement for its 

use, and at least 10 days prior to use, the 

project sponsor registers such source 

with the Commission on a form and in 

a manner as prescribed by the 

Commission, and provides a copy of 

same to the appropriate agency of the 

member State. Any approval issued 

hereunder shall be further subject to any 

approval or authorization required by 

the member State to utilize such 

source(s). The project sponsor shall 

record on a daily basis, and report 

quarterly on a form and in a manner 

prescribed by the Commission, the 

quantity of water obtained from any 

source registered hereunder. 

(ii) Sources of water other than those 

subject to paragraph (f)(12)(i) of this 

section, including public water supply 

or wastewater discharge, provided such 

sources are first approved by the 

Executive Director pursuant to this 

section. Any request to utilize such 

source(s) shall be submitted on a form 

and in a manner as prescribed by the 

Commission, shall satisfy the notice 

requirements set forth in § 806.15, and 

shall be subject to review pursuant to 

the standards set forth in subpart C of 

this part. Any approval issued 

hereunder shall be further subject to any 

approval or authorization required by 

the member State to utilize such 

source(s). 

■ 7. In § 806.24, add paragraph (c)(2), to 

read as follows: 

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§ 806.24 Standards for diversions. 

* * * * * 

(c) * * * 

(2) In deciding whether to approve a 

proposed diversion into the basin, the 

Commission shall also consider and the 

project sponsor shall provide 

information related to the following 

factors: 

(i) Any adverse effects and cumulative 

adverse effects the project may have on 

the Susquehanna River Basin, or any 

portion thereof, as a result of the 

introduction or potential introduction of 

invasive or exotic species that may be 

injurious to the water resources of the 

basin. 

(ii) The extent to which the proposed 

diversion satisfies all other applicable 

general and specific standards set forth 

in subpart C of this part pertaining to 

withdrawals and consumptive use. 

■ 8. Revise § 806.35 to read as follows: 

§ 806.35 Fees 

Project sponsors shall have an 

affirmative duty to pay such fees as 

established by the Commission to cover 

its costs of administering the regulatory 

program established by this part, 

including any extraordinary costs 

associated with specific projects. 

PART 808—HEARINGS AND 

ENFORCEMENT ACTIONS 

■ 10. The authority citation for part 808 

continues to read as follows: 

Authority: Secs. 3.4, 3.5(5), 3.8, 3.10 and 

15.2, Pub. L. 91–575, 84 Stat. 1509 et seq. 

Subpart A—Conduct of Hearings 

■ 11. In § 808.2, revise paragraphs (a), 

(b), (c), (d), (e), (f), (g), and (h) to read 

as follows: 

§ 808.2 Administrative appeals. 

(a) A project sponsor or other person 

aggrieved by a final action or decision 

of the Commission or Executive Director 

on a project application or a records 

access determination made pursuant to 

Commission policy may file a written 

appeal requesting a hearing. In the case 

of a project approval or denial, such 

appeal shall be filed by a project 

sponsor within 30 days of receipt of 

actual notice, and by all others within 

30 days of publication of notice of the 

action taken on the project in the 

Federal Register. In the case of records 

access determinations, such appeal shall 

be filed with the Commission within 30 

days of receipt of actual notice of the 

determination. Appeals filed later than 

20 days prior to a regular Commission 

meeting will be considered at a 

subsequent Commission meeting. 

Appeals shall be filed on a form and in 

a manner prescribed by the Commission 

and the petitioner shall have 20 days 

from the date of filing to amend the 

appeal form. 

(b) The appeal shall identify the 

specific action or decision for which a 

hearing is requested, the date of the 

action or decision, the interest of the 

person requesting the hearing in the 

subject matter of the appeal, and a 

statement setting forth the basis for 

objecting to or seeking review of the 

action or decision. 

(c) Any request not filed on or before 

the applicable deadline established in 

paragraph (a) of this section hereof will 

be deemed untimely and such request 

for a hearing shall be considered denied 

unless the Commission, upon written 

request and for good cause shown, 

grants leave to make such filing nunc 

pro tunc; the standard applicable to 

what constitutes good cause shown 

being the standard applicable in 

analogous cases under Federal law. 

Receipt of requests for hearings 

pursuant to this section, whether timely 

filed or not, shall be submitted by the 

Executive Director to the commissioners 

for their information. 

(d) Petitioners shall be limited to a 

single filing that shall set forth all 

matters and arguments in support 

thereof, including any ancillary motions 

or requests for relief. Issues not raised 

in this single filing shall be considered 

waived for purposes of the instant 

proceeding. Where the petitioner is 

appealing a final determination on a 

project application and is not the project 

sponsor, the petitioner shall serve a 

copy of the appeal upon the project 

sponsor within five days of its filing. 

(e) If a hearing is granted, the 

Commission shall serve notice thereof 

upon the petitioner and project sponsor 

and shall publish such notice in the 

Federal Register. The hearing shall not 

be held less than 20 days after 

publication of such notice. Hearings 

may be conducted by one or more 

members of the Commission, by the 

Executive Director, or by such other 

hearing officer as the Commission may 

designate. 

(1) The petitioner may also request a 

stay of the action or decision giving rise 

to the appeal pending final disposition 

of the appeal, which stay may be 

granted or denied by the Executive 

Director after consultation with the 

Commission chair and the member from 

the affected member State. The decision 

of the Executive Director on the request 

for stay shall not be appealable to the 

Commission under this section and 

shall remain in full force and effect until 

the Commission acts on the appeal. 

(2) In addition to the contents of the 

request itself, the Executive Director, in 

granting or denying the request for stay, 

will consider the following factors: 

(i) Irreparable harm to the petitioner. 

(ii) The likelihood that the petitioner 

will prevail. 

(f) The Commission shall grant the 

hearing request pursuant to this section 

if it determines that an adequate record 

with regard to the action or decision is 

not available, the case involves a 

determination by the Executive Director 

or staff which requires further action by 

the Commission, or that the 

Commission has found that an 

administrative review is necessary or 

desirable. If the Commission denies any 

request for a hearing, the party seeking 

such hearing shall be limited to such 

remedies as may be provided by the 

compact or other applicable law or court 

rule. 

(g) If a hearing is granted, the 

Commission shall refer the matter for 

hearing to be held in accordance with 

§ 808.3, and appoint a hearing officer. 

(h) Intervention. (1) A request for 

intervention may be filed with the 

Commission by persons other than the 

petitioner within 20 days of the 

publication of a notice of the granting of 

such hearing in the Federal Register. 

The request for intervention shall state 

the interest of the person filing such 

notice, and the specific grounds of 

objection to the action or decision or 

other grounds for appearance. The 

hearing officer(s) shall determine 

whether the person requesting 

intervention has standing in the matter 

that would justify their admission as an 

intervener to the proceedings in 

accordance with Federal case law. 

(2) Interveners shall have the right to 

be represented by counsel, to present 

evidence and to examine and crossexamine witnesses. 

* * * * * 

Dated: September 21, 2010. 

Thomas W. Beauduy, 

Deputy Director. 

[FR Doc. 2010–24643 Filed 9–30–10; 8:45 am] 

BILLING CODE 7040–01–P 

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