Administrative Practice and Procedure, Postal Service, 67393-67396 [E8-26960]
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Federal Register / Vol. 73, No. 221 / Friday, November 14, 2008 / Rules and Regulations
governments, the potential effects on
Federally-recognized Indian tribes have
been evaluated, and it has been
determined at this time that there are no
potential effects that have not been
addressed in prior decision documents.
While the consultation agreements
noted above have not resulted in
findings of potential effects, review of
this rule has been facilitated by the
relationships established through
government-to-government
consultation.
Drafting Information: The principal
contributors to this rule are: Vic Knox,
Chuck Passek, Jane Hendrick, Andee
Sears and Paul Hunter, Alaska Regional
Office; and Jerry Case, Regulations
Program Manager, NPS, Washington,
DC.
List of Subjects in 36 CFR Part 13
Alaska, National Parks, Reporting and
recordkeeping requirements.
■ In consideration of the foregoing, the
National Park Service proposes to
amend 36 CFR part 13 as set forth
below:
PART 13—NATIONAL PARK SYSTEM
UNITS IN ALASKA
1. The authority citation for part 13
continues to read as follows:
■
Authority: 16 U.S.C. 1, 3, 462(k), 3101 et
seq.; Subpart N also issued under 16 U.S.C.
1a-2(h), 20, 1361, 1531, 3197; Pub. L. 105–
277, 112 Stat. 2681–259, October 21, 1998;
Pub. L. 106–31, 113 Stat. 72, May 21, 1999;
Sec. 13.1204 also issued under Sec. 1035,
Pub. L. 104–333, 110 Stat. 4240.
Subpart L—[Amended]
■
2. Revise § 13.902 to read as follows:
§ 13.902
Subsistence resident zone.
The following communities and areas
are included within the resident zone
for Denali National Park addition:
Cantwell (limited to the area within a 3mile radius of the Cantwell post office
as shown on a map available at the park
visitor center), Minchumina, Nikolai,
and Telida.
■ 3. Add § 13.903 to subpart L to read
as follows:
§ 13.904
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§ 13.903 Subsistence use of off-road
vehicles.
Operating a motor vehicle off road is
prohibited except by authorized
residents as defined in this section
when engaged in subsistence uses. For
purposes of this section, ‘‘authorized
residents’’ means residents of the
Cantwell resident zone community as
defined by this subpart or those
residents of Alaska Game Management
Unit 13E holding a permit issued under
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§ 13.440 of this part. Operating a motor
vehicle off road for subsistence
purposes outside any trail or area
designated by this section is prohibited.
A map and GPS coordinates of
designated trails and areas are available
on the park website and at the park
visitor center.
(a) Authorized residents may operate
vehicles off road only in the following
designated areas and trails:
(1) The Windy Creek Trail;
(2) The Cantwell Airstrip Trail;
(3) The Pyramid Trail;
(4) The Cantwell Creek Floodplain
Trail/Corridor; and
(5) A trail or area along the Bull River
Floodplain designated by the
superintendent under paragraph (b) of
this section.
(b) The superintendent may designate
a trail or area along the Bull River
Floodplain Corridor for motor vehicle
use by authorized residents if the
superintendent determines that the
following conditions are met:
(1) Access across adjacent non-NPS
lands has been secured;
(2) An NPS-approved trail has been
constructed on NPS lands; and
(3) Off-road vehicle use continues to
be necessary for reasonable access to the
Bull River for subsistence resources by
authorized residents.
(c) All of the following are prohibited:
(1) Motor vehicles greater than 5.5 feet
wide;
(2) Motor vehicles exceeding 1,000
pounds curb (unloaded) weight;
(3) Motor vehicles that steer by
locking or skidding a wheel or track;
and
(4) Operating a motor vehicle in
violation of § 13.460(d) of this part.
(d) The superintendent may restrict or
prohibit motor vehicle use authorized
by this section in accordance with
§ 13.460(b) of this part. The
Superintendent will notify the public of
the proposed restriction or closure by
issuing a press release, posting at local
post offices, posting on the park
website, posting signs at designated
trails or areas if appropriate, use of
electronic media, and via other
appropriate means.
■ 4. Revise § 13.904 to read as follows:
Camping.
Camping without a permit in
designated areas in the former Mount
McKinley National Park or the
Kantishna area is prohibited. A map
showing areas where a permit is
required for camping is available at the
park visitor center and on the park
website. Violating terms and conditions
of the permit is prohibited.
■ 5. Add § 13.905 to subpart L to read
as follows:
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§ 13.905
67393
Group size.
(a) The following are prohibited:
(1) Group sizes exceeding 12
individuals on the east side of the park
outside the Frontcountry Developed
Area as defined by this subpart.
(2) Group sizes exceeding 6
individuals on the west side of the park
outside the Frontcountry Developed
Area as defined by this subpart.
(b) A map showing the east and west
boundaries is available at the park
visitor center.
(c) The superintendent may authorize
larger groups on a case-by-case basis.
■ 6. Revise § 13.910 to read as follows:
§ 13.910
Mountain climbing.
(a) Climbing Mount McKinley or
Mount Foraker without a permit is
prohibited. The superintendent will
establish procedures for applying for a
permit. The superintendent may
authorize a maximum of 1500 climbers
on Mount McKinley from April 1
through August 1 each calendar year.
(b) Violating terms and conditions of
the permit is prohibited.
Dated: October 28, 2008.
Lyle Laverty,
Assistant Secretary, Fish and Wildlife and
Parks.
[FR Doc. E8–27049 Filed 11–13–08; 8:45 am]
BILLING CODE 4310–EF–P
POSTAL REGULATORY COMMISSION
39 CFR Part 3020
[Docket Nos. MC2009–1 and CP2009–2;
Order No. 128]
Administrative Practice and Procedure,
Postal Service
Postal Regulatory Commission.
Final rule.
AGENCY:
ACTION:
SUMMARY: The Commission is adding
Parcel Return Service Contract 1 to the
Competitive Product List. This action is
consistent with changes in a recent law
governing postal operations and a recent
Postal request. Republication of the lists
of market dominant and competitive
products is also consistent with new
requirements in the law.
DATES: Effective November 14, 2008.
FOR FURTHER INFORMATION CONTACT:
Stephen L. Sharfman, General Counsel,
202–789–6820 and
stephen.sharfman@prc.gov.
Regulatory
History, 73 FR 64370 (October 29, 2008).
The Postal Service seeks to add a new
product identified as Parcel Return
Service Contract 1 to the Competitive
Product List. For the reasons discussed
SUPPLEMENTARY INFORMATION:
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Federal Register / Vol. 73, No. 221 / Friday, November 14, 2008 / Rules and Regulations
below, the Commission approves the
request.
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I. Background
On October 15, 2008, the Postal
Service filed a formal request pursuant
to 39 U.S.C. 3642 and 39 CFR 3020.30
et seq. to add Parcel Return Service
Contract 1 to the Competitive Product
List. The Postal Service asserts that the
Parcel Return Service Contract 1
product is a competitive product ‘‘not of
general applicability’’ within the
meaning of 39 U.S.C. 3632(b)(3). This
request has been assigned Docket No.
MC2009–1.1
The Postal Service
contemporaneously filed a contract
related to the proposed new product
pursuant to 39 U.S.C. 3632(b)(3) and 39
CFR 3015.5. The contract has been
assigned Docket No. CP2009–2. The
Postal Service represents that the
contract fits within the proposed Mail
Classification Schedule (MCS) language.
In support of its Request, the Postal
Service filed the following materials: (1)
A redacted version of the Governors’
Decision authorizing the new product
which also includes an analysis of the
Parcel Return Service Contract 1; 2 (2) a
redacted version of the contract, which
among other things, provides that the
contract will expire 2 years from the
effective date which is proposed to be
1 day after the Commission issues all
regulatory approvals; 3 (3) requested
changes in the MCS product list; 4 (4) a
Statement of Supporting Justification as
required by 39 CFR 3020.32; 5 and (5)
certification of compliance with 39
U.S.C. 3633(a).6
In the Statement of Supporting
Justification, Daniel J. Barrett, Acting
Manager, Product & Business
Development, Ground Shipping
Services, asserts that the service to be
provided under the contract will cover
its attributable costs, make a positive
contribution to coverage of institutional
costs, and will increase contribution
toward the requisite 5.5 percent of the
Postal Service’s total institutional costs.
Request, Attachment D, at 1. W. Ashley
Lyons, Manager, Corporate Financial
Planning, Finance Department, certifies,
based on the financial analysis provided
1 Request of the United States Postal Service to
Add Parcel Return Service Contract to Competitive
Product List and Notice of Establishment of Rates
and Class Not of General Applicability, October 15,
2008 (Request).
2 Attachment A to the Request. The analysis that
accompanies the Governor’s Decision notes, among
other things, that the cost estimates may vary but
the risks reviewed and evaluated are limited.
3 Attachment B to the Request.
4 Attachment C to the Request.
5 Attachment D to the Request.
6 Attachment E to the Request.
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by the Postal Service, that the contract
complies with 39 U.S.C. 3633(a). See
id., Attachment E.
The Postal Service filed much of the
supporting materials, including the
Governors’ Decision and the specific
Parcel Return Service Contract 1, under
seal. In its Request, the Postal Service
maintains that the contract and related
financial information, including the
customer’s name and the accompanying
analyses that provide prices, terms,
conditions, and financial projections
should remain under seal. Id. at 2.
In Order No. 119, the Commission
gave notice of the two dockets,
appointed a public representative, and
provided the public with an opportunity
to comment. In addition, the
Commission posed questions to the
Postal Service seeking supplemental
information.
II. Comments
Comments were filed by the Public
Representative.7 No filings were
submitted by other interested parties.
The Public Representative’s comments
focus principally on confidentiality and
pricing under the contract. Public
Representative Comments at 2–4.
The Public Representative states that
a sufficient rationale for maintaining the
confidentiality of the documents under
seal has been provided by the Postal
Service. Also, based upon a review of
materials filed by the Postal Service in
this proceeding, the Public
Representative concludes that the
contract reduces costs for both parties.
Id. at 2–3.
The Public Representative notes that
the contract is intended to promote new
volumes for the Postal Service and
provide incentives for the shipper. He
concludes, inter alia, that the contract
should generate sufficient revenue to
cover the product’s attributable costs,
and contribute to the recovery of total
institutional costs assigned to
competitive products. Id. at 4.
III. Commission Analysis
The Commission’s statutory
responsibilities in this instance entail
assigning Parcel Service Return Contract
1 to either the Market Dominant Product
List or the Competitive Product List. 39
U.S.C. 3642. As part of this
responsibility, the Commission also
reviews the proposals for compliance
with the Postal Accountability and
Enhancement Act (PAEA) requirements.
This includes, for proposed competitive
products, a review of the provisions
7 Public Representative Comments in Response to
United States Postal Service Request to Add Parcel
Return Service Contract to Competitive Product
List, October 29, 2008.
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applicable to rates for competitive
products. 39 U.S.C. 3633.
Product list assignment. 39 U.S.C.
3642 governs the assignment of new
products to the Market Dominant or
Competitive Product List. In this case,
Parcel Return Service Contract 1 is
being proposed by the Postal Service to
be added to the Competitive Product
List.
The statutory standard that the
Commission must consider is whether
the Postal Service exercises sufficient market
power that it can effectively set the price of
such product substantially above costs, raise
prices significantly, decrease quality, or
decrease output, without risk of losing a
significant level of business to other firms
offering similar products.
39 U.S.C. 3642(b)(1). If so, the product
must be categorized as market
dominant. The competitive category of
products shall consist of all other
products.
The Commission is further required to
consider the availability and nature of
enterprises in the private sector engaged
in the delivery of the product, the views
of those that use the product, and the
likely impact on small business
concerns. 39 U.S.C. 3642(b)(3).
The Postal Service asserts that its
bargaining position is constrained by
the existence of other shippers who can
provide similar services. Thus, the
market precludes the Postal Service
from taking unilateral action to increase
prices without the risk of losing volume
to private companies. Request,
Attachment D, at 2–3. The Postal
Service also contends that the Postal
Service may not decrease quality or
output without risking the loss of
business to competitors that offer
similar expedited delivery services. Id.
at 2. It further states that the contract
partner supports the addition of the
contract to the product list to effectuate
the negotiated contractual terms. Id. at
3. Finally, the Postal Service states that
due to the fact that the market for
ground shipping services requires a
substantial infrastructure to support a
national network, only large shippers
serve the market under consideration.
Accordingly, the Postal Service is
unaware of any small business concerns
that could offer comparable service for
this customer. Id.
No commenter opposes the proposed
classification of Parcel Return Service
Contract 1 as competitive. Having
considered the statutory requirements
and the support offered by the Postal
Service and the public comment, the
Commission finds that Parcel Return
Service Contract 1 is appropriately
classified as a competitive product and
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Federal Register / Vol. 73, No. 221 / Friday, November 14, 2008 / Rules and Regulations
should be added to the Competitive
Product List.
Cost considerations. The Commission
has reviewed the contract, the financial
analysis provided under seal that
accompanies the agreement including
the responses to the questions posed in
PRC Order No. 119, as well as the
comments by the Public Representative.
Based on an analysis of the information
submitted, the cost accounting methods
proposed in Docket No. RM2008–6 are
to be used for updating costs for
subsequent years of the contract.8 The
analysis of the Commission is included
as part of the record of these
proceedings in Library Reference PRC–
CP2009–2–NP–LR–1.
Library Reference PRC–CP2009–2–
NP–LR–1 is the analysis of the Postal
Service data which updates the original
data with the supplemental data filed by
the Postal Service on October 27, 2008,
and provides calculations for revenue
per piece for each of the negotiated
service agreement’s rate categories. The
analysis finds that the updated data do
not cause financial results to vary
significantly.
Based on the data submitted, the
Commission finds that Parcel Return
Service Contract 1 should cover its
attributable costs (39 U.S.C. 3633(a)(2));
should not lead to the subsidization of
competitive products by market
dominant products (39 U.S.C.
3633(a)(1)), and should have a positive
effect on competitive products’
contribution to institutional costs (39
U.S.C. 3633(a)(3)). Thus, a preliminary
review of the proposed Parcel Return
Service Contract 1 indicates that it
comports with the provisions applicable
to rates for competitive products.
The Postal Service shall promptly
notify the Commission when the
contract terminates, but no later than
the actual termination date. The
Commission will then remove the
contract from the Mail Classification
Schedule at the earliest possible
opportunity.
In conclusion, the Commission
approves Parcel Return Service Contract
1 as a new product. The revision to the
Competitive Product List is shown
below the signature of this Order and is
effective upon issuance of this Order.
It is ordered:
1. Parcel Return Service Contract 1
(MC2009–1 and CP2009–2) is added to
the Competitive Product List as a new
product under Negotiated Service
Agreement, Domestic.
8 In its supplemental filing, the Postal Service
indicated its intent to do so. See Response of the
United States Postal Service to Commission’s
Inquiries in Order No. 119, section IV, October 27,
2008.
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2. The Postal Service shall notify the
Commission of the termination date of
the contract as discussed in this Order.
3. The Secretary shall arrange for the
publication of this Order in the Federal
Register.
List of Subjects in 39 CFR Part 3020
Administrative practice and
procedure, Postal Service.
By the Commission.
Steven W. Williams,
Secretary.
For the reasons stated in the preamble,
under the authority at 39 U.S.C. 503, the
Postal Regulatory Commission amends
39 CFR part 3020 as follows:
■
PART 3020—PRODUCT LISTS
1. The authority citation for part 3020
continues to read as follows:
■
Authority: 39 U.S.C. 503; 3622; 3631; 3642;
3682.
2. Revise Appendix A to subpart A of
part 3020—Mail Classification to read as
follows:
■
Appendix A to Subpart A of Part
3020—Mail Classification Schedule
Part A—Market Dominant Products
1000 Market Dominant Product List
First-Class Mail
Single-Piece Letters/Postcards
Bulk Letters/Postcards
Flats
Parcels
Outbound Single-Piece First-Class Mail
International
Inbound Single-Piece First-Class Mail
International
Standard Mail (Regular and Nonprofit)
High Density and Saturation Letters
High Density and Saturation Flats/Parcels
Carrier Route
Letters
Flats
Not Flat-Machinables (NFMs)/Parcels
Periodicals
Within County Periodicals
Outside County Periodicals
Package Services
Single-Piece Parcel Post
Inbound Surface Parcel Post (at UPU rates)
Bound Printed Matter Flats
Bound Printed Matter Parcels
Media Mail/Library Mail
Special Services
Ancillary Services
International Ancillary Services
Address List Services
Caller Service
Change-of-Address Credit Card
Authentication
Confirm
International Reply Coupon Service
International Business Reply Mail Service
Money Orders
Post Office Box Service
Negotiated Service Agreements
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67395
HSBC North America Holdings Inc.
Negotiated Service Agreement
Bookspan Negotiated Service Agreement
Bank of America Corporation Negotiated
Service Agreement
The Bradford Group Negotiated Service
Agreement
Market Dominant Product Descriptions
First-Class Mail [Reserved for Class
Description]
Single-Piece Letters/Postcards [Reserved
for Product Description]
Bulk Letters/Postcards [Reserved for
Product Description]
Flats [Reserved for Product Description]
Parcels [Reserved for Product Description]
Outbound Single-Piece First-Class Mail
International [Reserved for Product
Description]
Inbound Single-Piece First-Class Mail
International [Reserved for Product
Description]
Standard Mail (Regular and Nonprofit)
[Reserved for Class Description]
High Density and Saturation Letters
[Reserved for Product Description]
High Density and Saturation Flats/Parcels
[Reserved for Product Description]
Carrier Route [Reserved for Product
Description]
Letters [Reserved for Product Description]
Flats [Reserved for Product Description]
Not Flat-Machinables (NFMs)/Parcels
[Reserved for Product Description]
Periodicals [Reserved for Class Description]
Within County Periodicals [Reserved for
Product Description]
Outside County Periodicals [Reserved for
Product Description]
Package Services [Reserved for Class
Description]
Single-Piece Parcel Post [Reserved for
Product Description]
Inbound Surface Parcel Post (at UPU rates)
[Reserved for Product Description]
Bound Printed Matter Flats [Reserved for
Product Description]
Bound Printed Matter Parcels [Reserved for
Product Description]
Media Mail/Library Mail [Reserved for
Product Description]
Special Services [Reserved for Class
Description]
Ancillary Services [Reserved for Product
Description]
Address Correction Service [Reserved for
Product Description]
Applications and Mailing Permits
[Reserved for Product Description]
Business Reply Mail [Reserved for Product
Description]
Bulk Parcel Return Service [Reserved for
Product Description]
Certified Mail [Reserved for Product
Description]
Certificate of Mailing [Reserved for Product
Description]
Collect on Delivery [Reserved for Product
Description]
Delivery Confirmation [Reserved for
Product Description]
Insurance [Reserved for Product
Description]
Merchandise Return Service [Reserved for
Product Description]
Parcel Airlift (PAL) [Reserved for Product
Description]
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sroberts on PROD1PC70 with RULES
Registered Mail [Reserved for Product
Description]
Return Receipt [Reserved for Product
Description]
Return Receipt for Merchandise [Reserved
for Product Description]
Restricted Delivery [Reserved for Product
Description]
Shipper-Paid Forwarding [Reserved for
Product Description]
Signature Confirmation [Reserved for
Product Description]
Special Handling [Reserved for Product
Description]
Stamped Envelopes [Reserved for Product
Description]
Stamped Cards [Reserved for Product
Description]
Premium Stamped Stationery [Reserved for
Product Description]
Premium Stamped Cards [Reserved for
Product Description]
International Ancillary Services [Reserved
for Product Description]
International Certificate of Mailing
[Reserved for Product Description]
International Registered Mail [Reserved for
Product Description]
International Return Receipt [Reserved for
Product Description]
International Restricted Delivery [Reserved
for Product Description]
Address List Services [Reserved for
Product Description]
Caller Service [Reserved for Product
Description]
Change-of-Address Credit Card
Authentication [Reserved for Product
Description]
Confirm [Reserved for Product Description]
International Reply Coupon Service
[Reserved for Product Description]
International Business Reply Mail Service
[Reserved for Product Description]
Money Orders [Reserved for Product
Description]
Post Office Box Service [Reserved for
Product Description]
Negotiated Service Agreements [Reserved for
Class Description]
HSBC North America Holdings Inc.
Negotiated Service Agreement [Reserved
for Product Description]
Bookspan Negotiated Service Agreement
[Reserved for Product Description]
Bank of America Corporation Negotiated
Service Agreement
The Bradford Group Negotiated Service
Agreement
Part B—Competitive Products
Competitive Product List
Express Mail
Express Mail
Outbound International Expedited Services
Inbound International Expedited Services
Inbound International Expedited Services 1
(CP2008–7)
Priority Mail
Priority Mail
Outbound Priority Mail International
Inbound Air Parcel Post
Parcel Select
Parcel Return Service
International
International Priority Airlift (IPA)
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International Surface Airlift (ISAL)
International Direct Sacks—M-Bags
Global Customized Shipping Services
Inbound Surface Parcel Post (at non-UPU
rates)
International Money Transfer Service
International Ancillary Services
Special Services
Premium Forwarding Service
Negotiated Service Agreements
Domestic
Express Mail Contract 1 (MC2008–5)
Express Mail Contract 2 (MC2009–3 and
CP2009–4)
Parcel Return Service Contract 1 (MC2009–
1 and CP2009–2)
Priority Mail Contract 1 (MC2008–8 and
CP2008–26)
Outbound International
Global Expedited Package Services (GEPS)
Contracts
GEPS 1 (CP2008–5, CP2008–11, CP2008–
12, and CP2008–13, CP2008–18,
CP2008–19, CP2008–20, CP2008–21,
CP2008–22, CP2008–23, and CP2008–24)
Global Plus Contracts
Global Plus 1 (CP2008–9 and CP2008–10)
Global Plus 2 (MC2008–7, CP2008–16 and
CP2008–17)
Inbound Direct Entry Contracts with
Foreign Postal Administrations
(MC2008–6, CP2008–14 and CP2008–15)
Competitive Product Descriptions
Express Mail [Reserved for Group
Description]
Express Mail [Reserved for Product
Description]
Outbound International Expedited Services
[Reserved for Product Description]
Inbound International Expedited Services
[Reserved for Product Description]
Priority [Reserved for Product Description]
Priority Mail [Reserved for Product
Description]
Outbound Priority Mail International
[Reserved for Product Description]
Inbound Air Parcel Post [Reserved for
Product Description]
Parcel Select [Reserved for Group
Description]
Parcel Return Service [Reserved for Group
Description]
International [Reserved for Group
Description]
International Priority Airlift (IPA)
[Reserved for Product Description]
International Surface Airlift (ISAL)
[Reserved for Product Description]
International Direct Sacks—M-Bags
[Reserved for Product Description]
Global Customized Shipping Services
[Reserved for Product Description]
International Money Transfer Service
[Reserved for Product Description]
Inbound Surface Parcel Post (at non-UPU
rates) [Reserved for Product Description]
International Ancillary Services [Reserved
for Product Description]
International Certificate of Mailing
[Reserved for Product Description]
International Registered Mail [Reserved for
Product Description]
International Return Receipt [Reserved for
Product Description]
International Restricted Delivery [Reserved
for Product Description]
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International Insurance [Reserved for
Product Description]
Negotiated Service Agreements [Reserved
for Group Description]
Domestic [Reserved for Product
Description]
Outbound International [Reserved for
Group Description]
Part C—Glossary of Terms and Conditions
[Reserved]
Part D—Country Price Lists for International
Mail [Reserved]
[FR Doc. E8–26960 Filed 11–13–08; 8:45 am]
BILLING CODE 7710–FW–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 131
[EPA–HQ–OW–2007–93; FRL–8740–4]
Withdrawal of Direct Final Rule
Removing the Federal Antidegradation
Policy Applicable to Waters of the
United States Within the
Commonwealth of Pennsylvania
Environmental Protection
Agency (EPA).
ACTION: Withdrawal of direct final rule.
AGENCY:
SUMMARY: EPA is withdrawing a direct
final rule that the Agency published on
September 15, 2008. The direct final
rule would have removed from the Code
of Federal Regulations a rule that EPA
promulgated in 1996 making provisions
of the federal antidegradation policy
directly applicable for all waters of the
United States within the
Commonwealth of Pennsylvania. EPA
published the direct final rule with a
parallel proposal to remove the federal
antidegradation rule as it applies to
waters in Pennsylvania. In a separate
action today, EPA is also re-opening the
comment period of the proposed rule to
ensure all parties have adequate
opportunity to express their views to the
Agency prior to taking final action on
the proposed rule.
DATES: Effective on November 14, 2008,
EPA withdraws the direct final rule
published at 73 FR 53140, on September
15, 2008.
ADDRESSES: EPA has established a
docket for this action under Docket ID
No. EPA–HQ–OW–2007–0093. All
documents in the docket are listed on
the www.regulations.gov Web site.
Although listed on the web site, some
information is not publicly available,
e.g., CBI or other information whose
disclosure is restricted by statute.
Certain other material, such as
copyrighted material, is not placed on
the Internet and will be publicly
available only in hard copy form.
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]]>Agencies
[Federal Register Volume 73, Number 221 (Friday, November 14, 2008)]
[Rules and Regulations]
[Pages 67393-67396]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-26960]
=======================================================================
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POSTAL REGULATORY COMMISSION
39 CFR Part 3020
[Docket Nos. MC2009-1 and CP2009-2; Order No. 128]
Administrative Practice and Procedure, Postal Service
AGENCY: Postal Regulatory Commission.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Commission is adding Parcel Return Service Contract 1 to
the Competitive Product List. This action is consistent with changes in
a recent law governing postal operations and a recent Postal request.
Republication of the lists of market dominant and competitive products
is also consistent with new requirements in the law.
DATES: Effective November 14, 2008.
FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel,
202-789-6820 and stephen.sharfman@prc.gov.
SUPPLEMENTARY INFORMATION: Regulatory History, 73 FR 64370 (October 29,
2008).
The Postal Service seeks to add a new product identified as Parcel
Return Service Contract 1 to the Competitive Product List. For the
reasons discussed
[[Page 67394]]
below, the Commission approves the request.
I. Background
On October 15, 2008, the Postal Service filed a formal request
pursuant to 39 U.S.C. 3642 and 39 CFR 3020.30 et seq. to add Parcel
Return Service Contract 1 to the Competitive Product List. The Postal
Service asserts that the Parcel Return Service Contract 1 product is a
competitive product ``not of general applicability'' within the meaning
of 39 U.S.C. 3632(b)(3). This request has been assigned Docket No.
MC2009-1.\1\
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\1\ Request of the United States Postal Service to Add Parcel
Return Service Contract to Competitive Product List and Notice of
Establishment of Rates and Class Not of General Applicability,
October 15, 2008 (Request).
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The Postal Service contemporaneously filed a contract related to
the proposed new product pursuant to 39 U.S.C. 3632(b)(3) and 39 CFR
3015.5. The contract has been assigned Docket No. CP2009-2. The Postal
Service represents that the contract fits within the proposed Mail
Classification Schedule (MCS) language.
In support of its Request, the Postal Service filed the following
materials: (1) A redacted version of the Governors' Decision
authorizing the new product which also includes an analysis of the
Parcel Return Service Contract 1; \2\ (2) a redacted version of the
contract, which among other things, provides that the contract will
expire 2 years from the effective date which is proposed to be 1 day
after the Commission issues all regulatory approvals; \3\ (3) requested
changes in the MCS product list; \4\ (4) a Statement of Supporting
Justification as required by 39 CFR 3020.32; \5\ and (5) certification
of compliance with 39 U.S.C. 3633(a).\6\
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\2\ Attachment A to the Request. The analysis that accompanies
the Governor's Decision notes, among other things, that the cost
estimates may vary but the risks reviewed and evaluated are limited.
\3\ Attachment B to the Request.
\4\ Attachment C to the Request.
\5\ Attachment D to the Request.
\6\ Attachment E to the Request.
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In the Statement of Supporting Justification, Daniel J. Barrett,
Acting Manager, Product & Business Development, Ground Shipping
Services, asserts that the service to be provided under the contract
will cover its attributable costs, make a positive contribution to
coverage of institutional costs, and will increase contribution toward
the requisite 5.5 percent of the Postal Service's total institutional
costs. Request, Attachment D, at 1. W. Ashley Lyons, Manager, Corporate
Financial Planning, Finance Department, certifies, based on the
financial analysis provided by the Postal Service, that the contract
complies with 39 U.S.C. 3633(a). See id., Attachment E.
The Postal Service filed much of the supporting materials,
including the Governors' Decision and the specific Parcel Return
Service Contract 1, under seal. In its Request, the Postal Service
maintains that the contract and related financial information,
including the customer's name and the accompanying analyses that
provide prices, terms, conditions, and financial projections should
remain under seal. Id. at 2.
In Order No. 119, the Commission gave notice of the two dockets,
appointed a public representative, and provided the public with an
opportunity to comment. In addition, the Commission posed questions to
the Postal Service seeking supplemental information.
II. Comments
Comments were filed by the Public Representative.\7\ No filings
were submitted by other interested parties. The Public Representative's
comments focus principally on confidentiality and pricing under the
contract. Public Representative Comments at 2-4.
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\7\ Public Representative Comments in Response to United States
Postal Service Request to Add Parcel Return Service Contract to
Competitive Product List, October 29, 2008.
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The Public Representative states that a sufficient rationale for
maintaining the confidentiality of the documents under seal has been
provided by the Postal Service. Also, based upon a review of materials
filed by the Postal Service in this proceeding, the Public
Representative concludes that the contract reduces costs for both
parties. Id. at 2-3.
The Public Representative notes that the contract is intended to
promote new volumes for the Postal Service and provide incentives for
the shipper. He concludes, inter alia, that the contract should
generate sufficient revenue to cover the product's attributable costs,
and contribute to the recovery of total institutional costs assigned to
competitive products. Id. at 4.
III. Commission Analysis
The Commission's statutory responsibilities in this instance entail
assigning Parcel Service Return Contract 1 to either the Market
Dominant Product List or the Competitive Product List. 39 U.S.C. 3642.
As part of this responsibility, the Commission also reviews the
proposals for compliance with the Postal Accountability and Enhancement
Act (PAEA) requirements. This includes, for proposed competitive
products, a review of the provisions applicable to rates for
competitive products. 39 U.S.C. 3633.
Product list assignment. 39 U.S.C. 3642 governs the assignment of
new products to the Market Dominant or Competitive Product List. In
this case, Parcel Return Service Contract 1 is being proposed by the
Postal Service to be added to the Competitive Product List.
The statutory standard that the Commission must consider is whether
the Postal Service exercises sufficient market power that it can
effectively set the price of such product substantially above costs,
raise prices significantly, decrease quality, or decrease output,
without risk of losing a significant level of business to other
firms offering similar products.
39 U.S.C. 3642(b)(1). If so, the product must be categorized as market
dominant. The competitive category of products shall consist of all
other products.
The Commission is further required to consider the availability and
nature of enterprises in the private sector engaged in the delivery of
the product, the views of those that use the product, and the likely
impact on small business concerns. 39 U.S.C. 3642(b)(3).
The Postal Service asserts that its bargaining position is
constrained by the existence of other shippers who can provide similar
services. Thus, the market precludes the Postal Service from taking
unilateral action to increase prices without the risk of losing volume
to private companies. Request, Attachment D, at 2-3. The Postal Service
also contends that the Postal Service may not decrease quality or
output without risking the loss of business to competitors that offer
similar expedited delivery services. Id. at 2. It further states that
the contract partner supports the addition of the contract to the
product list to effectuate the negotiated contractual terms. Id. at 3.
Finally, the Postal Service states that due to the fact that the market
for ground shipping services requires a substantial infrastructure to
support a national network, only large shippers serve the market under
consideration. Accordingly, the Postal Service is unaware of any small
business concerns that could offer comparable service for this
customer. Id.
No commenter opposes the proposed classification of Parcel Return
Service Contract 1 as competitive. Having considered the statutory
requirements and the support offered by the Postal Service and the
public comment, the Commission finds that Parcel Return Service
Contract 1 is appropriately classified as a competitive product and
[[Page 67395]]
should be added to the Competitive Product List.
Cost considerations. The Commission has reviewed the contract, the
financial analysis provided under seal that accompanies the agreement
including the responses to the questions posed in PRC Order No. 119, as
well as the comments by the Public Representative. Based on an analysis
of the information submitted, the cost accounting methods proposed in
Docket No. RM2008-6 are to be used for updating costs for subsequent
years of the contract.\8\ The analysis of the Commission is included as
part of the record of these proceedings in Library Reference PRC-
CP2009-2-NP-LR-1.
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\8\ In its supplemental filing, the Postal Service indicated its
intent to do so. See Response of the United States Postal Service to
Commission's Inquiries in Order No. 119, section IV, October 27,
2008.
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Library Reference PRC-CP2009-2-NP-LR-1 is the analysis of the
Postal Service data which updates the original data with the
supplemental data filed by the Postal Service on October 27, 2008, and
provides calculations for revenue per piece for each of the negotiated
service agreement's rate categories. The analysis finds that the
updated data do not cause financial results to vary significantly.
Based on the data submitted, the Commission finds that Parcel
Return Service Contract 1 should cover its attributable costs (39
U.S.C. 3633(a)(2)); should not lead to the subsidization of competitive
products by market dominant products (39 U.S.C. 3633(a)(1)), and should
have a positive effect on competitive products' contribution to
institutional costs (39 U.S.C. 3633(a)(3)). Thus, a preliminary review
of the proposed Parcel Return Service Contract 1 indicates that it
comports with the provisions applicable to rates for competitive
products.
The Postal Service shall promptly notify the Commission when the
contract terminates, but no later than the actual termination date. The
Commission will then remove the contract from the Mail Classification
Schedule at the earliest possible opportunity.
In conclusion, the Commission approves Parcel Return Service
Contract 1 as a new product. The revision to the Competitive Product
List is shown below the signature of this Order and is effective upon
issuance of this Order.
It is ordered:
1. Parcel Return Service Contract 1 (MC2009-1 and CP2009-2) is
added to the Competitive Product List as a new product under Negotiated
Service Agreement, Domestic.
2. The Postal Service shall notify the Commission of the
termination date of the contract as discussed in this Order.
3. The Secretary shall arrange for the publication of this Order in
the Federal Register.
List of Subjects in 39 CFR Part 3020
Administrative practice and procedure, Postal Service.
By the Commission.
Steven W. Williams,
Secretary.
0
For the reasons stated in the preamble, under the authority at 39
U.S.C. 503, the Postal Regulatory Commission amends 39 CFR part 3020 as
follows:
PART 3020--PRODUCT LISTS
0
1. The authority citation for part 3020 continues to read as follows:
Authority: 39 U.S.C. 503; 3622; 3631; 3642; 3682.
0
2. Revise Appendix A to subpart A of part 3020--Mail Classification to
read as follows:
Appendix A to Subpart A of Part 3020--Mail Classification Schedule
Part A--Market Dominant Products
1000 Market Dominant Product List
First-Class Mail
Single-Piece Letters/Postcards
Bulk Letters/Postcards
Flats
Parcels
Outbound Single-Piece First-Class Mail International
Inbound Single-Piece First-Class Mail International
Standard Mail (Regular and Nonprofit)
High Density and Saturation Letters
High Density and Saturation Flats/Parcels
Carrier Route
Letters
Flats
Not Flat-Machinables (NFMs)/Parcels
Periodicals
Within County Periodicals
Outside County Periodicals
Package Services
Single-Piece Parcel Post
Inbound Surface Parcel Post (at UPU rates)
Bound Printed Matter Flats
Bound Printed Matter Parcels
Media Mail/Library Mail
Special Services
Ancillary Services
International Ancillary Services
Address List Services
Caller Service
Change-of-Address Credit Card Authentication
Confirm
International Reply Coupon Service
International Business Reply Mail Service
Money Orders
Post Office Box Service
Negotiated Service Agreements
HSBC North America Holdings Inc. Negotiated Service Agreement
Bookspan Negotiated Service Agreement
Bank of America Corporation Negotiated Service Agreement
The Bradford Group Negotiated Service Agreement
Market Dominant Product Descriptions
First-Class Mail [Reserved for Class Description]
Single-Piece Letters/Postcards [Reserved for Product
Description]
Bulk Letters/Postcards [Reserved for Product Description]
Flats [Reserved for Product Description]
Parcels [Reserved for Product Description]
Outbound Single-Piece First-Class Mail International [Reserved
for Product Description]
Inbound Single-Piece First-Class Mail International [Reserved
for Product Description]
Standard Mail (Regular and Nonprofit) [Reserved for Class
Description]
High Density and Saturation Letters [Reserved for Product
Description]
High Density and Saturation Flats/Parcels [Reserved for Product
Description]
Carrier Route [Reserved for Product Description]
Letters [Reserved for Product Description]
Flats [Reserved for Product Description]
Not Flat-Machinables (NFMs)/Parcels [Reserved for Product
Description]
Periodicals [Reserved for Class Description]
Within County Periodicals [Reserved for Product Description]
Outside County Periodicals [Reserved for Product Description]
Package Services [Reserved for Class Description]
Single-Piece Parcel Post [Reserved for Product Description]
Inbound Surface Parcel Post (at UPU rates) [Reserved for Product
Description]
Bound Printed Matter Flats [Reserved for Product Description]
Bound Printed Matter Parcels [Reserved for Product Description]
Media Mail/Library Mail [Reserved for Product Description]
Special Services [Reserved for Class Description]
Ancillary Services [Reserved for Product Description]
Address Correction Service [Reserved for Product Description]
Applications and Mailing Permits [Reserved for Product
Description]
Business Reply Mail [Reserved for Product Description]
Bulk Parcel Return Service [Reserved for Product Description]
Certified Mail [Reserved for Product Description]
Certificate of Mailing [Reserved for Product Description]
Collect on Delivery [Reserved for Product Description]
Delivery Confirmation [Reserved for Product Description]
Insurance [Reserved for Product Description]
Merchandise Return Service [Reserved for Product Description]
Parcel Airlift (PAL) [Reserved for Product Description]
[[Page 67396]]
Registered Mail [Reserved for Product Description]
Return Receipt [Reserved for Product Description]
Return Receipt for Merchandise [Reserved for Product
Description]
Restricted Delivery [Reserved for Product Description]
Shipper-Paid Forwarding [Reserved for Product Description]
Signature Confirmation [Reserved for Product Description]
Special Handling [Reserved for Product Description]
Stamped Envelopes [Reserved for Product Description]
Stamped Cards [Reserved for Product Description]
Premium Stamped Stationery [Reserved for Product Description]
Premium Stamped Cards [Reserved for Product Description]
International Ancillary Services [Reserved for Product
Description]
International Certificate of Mailing [Reserved for Product
Description]
International Registered Mail [Reserved for Product Description]
International Return Receipt [Reserved for Product Description]
International Restricted Delivery [Reserved for Product
Description]
Address List Services [Reserved for Product Description]
Caller Service [Reserved for Product Description]
Change-of-Address Credit Card Authentication [Reserved for
Product Description]
Confirm [Reserved for Product Description]
International Reply Coupon Service [Reserved for Product
Description]
International Business Reply Mail Service [Reserved for Product
Description]
Money Orders [Reserved for Product Description]
Post Office Box Service [Reserved for Product Description]
Negotiated Service Agreements [Reserved for Class Description]
HSBC North America Holdings Inc. Negotiated Service Agreement
[Reserved for Product Description]
Bookspan Negotiated Service Agreement [Reserved for Product
Description]
Bank of America Corporation Negotiated Service Agreement
The Bradford Group Negotiated Service Agreement
Part B--Competitive Products
Competitive Product List
Express Mail
Express Mail
Outbound International Expedited Services
Inbound International Expedited Services
Inbound International Expedited Services 1 (CP2008-7)
Priority Mail
Priority Mail
Outbound Priority Mail International
Inbound Air Parcel Post
Parcel Select
Parcel Return Service
International
International Priority Airlift (IPA)
International Surface Airlift (ISAL)
International Direct Sacks--M-Bags
Global Customized Shipping Services
Inbound Surface Parcel Post (at non-UPU rates)
International Money Transfer Service
International Ancillary Services
Special Services
Premium Forwarding Service
Negotiated Service Agreements
Domestic
Express Mail Contract 1 (MC2008-5)
Express Mail Contract 2 (MC2009-3 and CP2009-4)
Parcel Return Service Contract 1 (MC2009-1 and CP2009-2)
Priority Mail Contract 1 (MC2008-8 and CP2008-26)
Outbound International
Global Expedited Package Services (GEPS) Contracts
GEPS 1 (CP2008-5, CP2008-11, CP2008-12, and CP2008-13, CP2008-
18, CP2008-19, CP2008-20, CP2008-21, CP2008-22, CP2008-23, and
CP2008-24)
Global Plus Contracts
Global Plus 1 (CP2008-9 and CP2008-10)
Global Plus 2 (MC2008-7, CP2008-16 and CP2008-17)
Inbound Direct Entry Contracts with Foreign Postal
Administrations (MC2008-6, CP2008-14 and CP2008-15)
Competitive Product Descriptions
Express Mail [Reserved for Group Description]
Express Mail [Reserved for Product Description]
Outbound International Expedited Services [Reserved for Product
Description]
Inbound International Expedited Services [Reserved for Product
Description]
Priority [Reserved for Product Description]
Priority Mail [Reserved for Product Description]
Outbound Priority Mail International [Reserved for Product
Description]
Inbound Air Parcel Post [Reserved for Product Description]
Parcel Select [Reserved for Group Description]
Parcel Return Service [Reserved for Group Description]
International [Reserved for Group Description]
International Priority Airlift (IPA) [Reserved for Product
Description]
International Surface Airlift (ISAL) [Reserved for Product
Description]
International Direct Sacks--M-Bags [Reserved for Product
Description]
Global Customized Shipping Services [Reserved for Product
Description]
International Money Transfer Service [Reserved for Product
Description]
Inbound Surface Parcel Post (at non-UPU rates) [Reserved for
Product Description]
International Ancillary Services [Reserved for Product
Description]
International Certificate of Mailing [Reserved for Product
Description]
International Registered Mail [Reserved for Product Description]
International Return Receipt [Reserved for Product Description]
International Restricted Delivery [Reserved for Product
Description]
International Insurance [Reserved for Product Description]
Negotiated Service Agreements [Reserved for Group Description]
Domestic [Reserved for Product Description]
Outbound International [Reserved for Group Description]
Part C--Glossary of Terms and Conditions [Reserved]
Part D--Country Price Lists for International Mail [Reserved]
[FR Doc. E8-26960 Filed 11-13-08; 8:45 am]
BILLING CODE 7710-FW-P
