Administrative Practice and Procedure, Postal Service, 68345-68348 [E8-27323]
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Federal Register / Vol. 73, No. 223 / Tuesday, November 18, 2008 / Rules and Regulations
regulation did not impose an unfunded
mandate.
Dated: October 9, 2008.
Allen D. Klein,
Regional Director, Western Region.
68345
Authority: 30 U.S.C. 1201 et seq.
■
§ 931.15 Approval of New Mexico
regulatory program amendments
1. The authority citation for part 931
continues to read as follows:
Intergovernmental relations, Surface
mining, Underground mining.
2. Section 931.15 is amended in the
table by adding a new entry in
chronological order by ‘‘Date of Final
Publication’’ to read as follows:
PART 931—New Mexico
List of Subjects in 30 CFR Part 931
*
■
For the reasons set out in the
preamble, 30 CFR part 931 is amended
as set forth below:
■
*
*
*
*
Original amendment
submission date
Date of final
publication
Citation/description
*
November 28, 2007 ...
*
November 18, 2008 ..
*
*
*
*
*
19 NMAC Parts 1 through 35 (recodification), 19.8.1.7.G(1); 19.8.11.1100.D(1); 19.8.11.1102.A;
19.8.11.1103.A; 19.8.11.1109.B and C; 19.8.13.1301.E(1) and E(2)(b); 19.8.13.1307.B(2);
19.8.14.1412.A(2)(f); 19.8.14.1412.F; 19.8.20.2065.A and B(1); 19.8.20.2068; 19.8.30.3000;
19.8.31.3108.B; 19.8.31.3110.B; 19.8.5.504.D; 19.8.7.701.F; 19.8.8.812.D; 19.8.11.1100.B(1),
(2), (3), and (4), D(5), E(3), and F; 19.8.11.1103.B, E, and F; 19.8.13.1301.E(2)(a);
19.8.31.3106.B(3)(a).
[FR Doc. E8–27360 Filed 11–17–08; 8:45 am]
BILLING CODE 4310–05–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 117
[USCG–2008–1104]
RIN 1625–AA09
Drawbridge Operation Regulations;
Elizabeth River—Eastern Branch, at
Norfolk, VA, Maintenance
Coast Guard, DHS.
ACTION: Notice of temporary deviation
from regulations.
AGENCY:
SUMMARY: The Commander, Fifth Coast
Guard District, has approved a
temporary deviation from the
regulations governing the operation of
the Norfolk Southern Railroad (NS#
V2.8) Bridge, at mile 2.7, across the
Elizabeth River—Eastern Branch at
Norfolk, VA. Under this temporary
deviation, the drawbridge may remain
in the closed position on specific dates
and times to facilitate mechanical
repairs.
This deviation is effective from
7 a.m. on December 8, 2008, to 11 p.m.
on December 19, 2008.
ADDRESSES: Documents indicated in this
preamble as being available in the
docket are part of docket USCG–2008–
1104 and are available online at
www.regulations.gov. They are also
available for inspection or copying at
two locations: The Docket Management
Facility (M–30), U.S. Department of
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DATES:
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Transportation, West Building Ground
Floor, Room W12–140, 1200 New Jersey
Avenue, SE., Washington, DC 20590,
between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays,
and the Commander (dpb), Fifth Coast
Guard District, Federal Building, 1st
Floor, 431 Crawford Street, Portsmouth,
VA 23704–5004 between 8 a.m. and 4
p.m., Monday through Friday, except
Federal holidays.
FOR FURTHER INFORMATION CONTACT: Mr.
Bill H. Brazier, Bridge Management
Specialist, Fifth Coast Guard District, at
(757) 398–6422.
SUPPLEMENTARY INFORMATION: The
Norfolk Southern Corporation, who
owns and operates this single-leaf
bascule drawbridge, has requested a
temporary deviation from the current
operating regulations set out in 33 CFR
117.1007(a) to facilitate mechanical
repairs.
The NS# V2.8 Bridge, a swing-type
drawbridge, has a vertical clearance in
the closed position to vessels of six feet,
above mean high water
To facilitate repairs to the center
wedge machinery of the swing span, the
drawbridge will be maintained in the
closed-to-navigation position from 7
a.m. on December 8, 2008, until and
including 11 p.m. on December 19,
2008.
The Coast Guard will inform the users
of the waterway through our Local and
Broadcast Notices to Mariners of the
opening restrictions of the draw span to
minimize transiting delays caused by
the temporary deviation.
In accordance with 33 CFR 117.35(e),
the drawbridge must return to its regular
operating schedule immediately at the
end of the designated time period. This
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deviation from the operating regulations
is authorized under 33 CFR 117.35.
Dated: November 5, 2008.
Waverly W. Gregory, Jr.,
Chief, Bridge Administration Branch Fifth
Coast Guard District.
[FR Doc. E8–27266 Filed 11–17–08; 8:45 am]
BILLING CODE 4910–15–P
POSTAL REGULATORY COMMISSION
39 CFR Part 3020
[Docket Nos. MC2009–4 and CP2009–5;
Order No. 131]
Administrative Practice and Procedure,
Postal Service
Postal Regulatory Commission.
Final rule.
AGENCY:
ACTION:
SUMMARY: The Commission is adding
Priority Mail Contract 3 (MC2009–4 and
CP2009–5) to the Competitive Product
List. It is also noticing a related contract.
These actions are consistent with
changes in a recent law governing postal
operations and a related Postal Service
request. Republication of the lists of
market dominant and competitive
products is also consistent with new
requirements in the law.
DATES: Effective November 18, 2008.
FOR FURTHER INFORMATION CONTACT:
Stephen L. Sharfman, General Counsel,
202–789–6820 and
stephen.sharfman@prc.gov.
Regulatory
History, 73 FR 66075 (November 6,
2008).
The Postal Service seeks to add a new
product identified as Priority Mail
Contract 3 to the Competitive Product
SUPPLEMENTARY INFORMATION:
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Federal Register / Vol. 73, No. 223 / Tuesday, November 18, 2008 / Rules and Regulations
List. For the reasons discussed below,
the Commission approves the Request.
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I. Background
On October 27, 2008, the Postal
Service filed a formal request pursuant
to 39 U.S.C. 3642 and 39 CFR 3020.30
et seq. to add Priority Mail Contract 3
to the Competitive Product List.1 The
Postal Service asserts that the Priority
Mail Contract 3 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. MC2009–4.
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. CP2009–5.
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
Priority Mail Contract 3 and
certification of the Governors’ vote; 2 (2)
a redacted version of the contract
which, among other things, provides
that the contract will expire 1 year 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, Kim Parks, Manager, Sales
and Communications, Expedited
Shipping, 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. 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 Priority Mail Contract 3 to Competitive
Product List and Notice of Establishment of Rates
and Class Not of General Applicability, October 27,
2008 (Request).
2 Attachment A to the Request. The analysis that
accompanies the Governors’ Decision notes, among
other things, that the contract is not risk free, but
concludes that the risks are manageable. See also
Errata to Request of the United States Postal Service
to Add Priority Mail Contract 3 to Competitive
Product List and Notice of Establishment of Rates
and Class Not of General Applicability, October 30,
2008.
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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13:43 Nov 17, 2008
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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
Priority Mail Contract 3, 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. 123, the Commission
gave notice of the two dockets,
appointed a public representative, and
provided the public with an opportunity
to comment.7
II. Comments
Comments were filed by the Public
Representative.8 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 2–3.
The Public Representative states that
a sufficient rationale for maintaining the
confidentiality of the documents under
seal has been provided by the Postal
Service. The Public Representative
reviewed the cost savings measures for
the purposes of this contract and
determines that the contract is
advantageous to the Postal Service and
beneficial to the general public. Id. 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 3–4.
III. Commission Analysis
The Commission has reviewed the
contract, the financial analysis provided
under seal that accompanies it, and the
comments filed by the Public
Representative.
Statutory requirements. The
Commission’s statutory responsibilities
in this instance entail assigning Priority
Mail Contract 3 to either the Market
Dominant Product List or to the
Competitive Product List. 39 U.S.C.
3642. As part of this responsibility, the
Commission also reviews the proposal
for compliance with the Postal
7 PRC Order No. 123, Notice and Order
Concerning Priority Mail Contract 3 Negotiated
Service Agreement, October 31, 2008 (Order No.
123).
8 Public Representative Comments in Response to
United States Postal Service Request to Add Priority
Mail Contract 3 to Competitive Product List,
November 6, 2008 (Public Representative
Comments).
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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. In
determining whether to assign Priority
Mail Contract 3 as a product to the
Market Dominant Product List or the
Competitive Product List, the
Commission must consider 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 or
offering similar products.
39 U.S.C. 3642(b)(1). If so, the product
will 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 who 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
precluding it 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 it may not decrease quality or
output without risking the loss of
business to competitors that offer
similar expedited delivery services. Id.
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 the
market for expedited delivery services is
highly competitive and requires a
substantial infrastructure to support a
national network. It indicates that large
carriers serve this market. Accordingly,
the Postal Service states that it is
unaware of any small business concerns
that could offer comparable service for
this customer. Id.
No commenter opposes the proposed
classification of Priority Mail Contract 3
as competitive. Having considered the
statutory requirement and the support
offered by the Postal Service, the
Commission finds that Priority Mail
Contract 3 is appropriately classified as
a competitive product and should be
added to the Competitive Product List.
Cost considerations. The Postal
Service’s filing seeks to establish a new
domestic Priority Mail product. The
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Federal Register / Vol. 73, No. 223 / Tuesday, November 18, 2008 / Rules and Regulations
contract is predicated on unit costs for
major mail functions, e.g., window
service, mail processing, and
transportation, based on the shipper’s
mail characteristics.
The Postal Service contends that
adding the Priority Mail Contract 3
product will result in processing
Priority Mail pieces that are less costly
for the Postal Service than the average
Priority Mail piece. See Id. Attachment
A. It believes that its financial analysis
shows that these cost savings can be
accomplished while ensuring that the
contract covers its attributable costs,
does not result in subsidization of
competitive products by market
dominant products, and increases
contribution from competitive products.
Id., Attachment E, at 1.
Based on the data submitted and the
comments received, the Commission
finds that Priority Mail Contract 3
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, an
initial review of the proposed Priority
Mail Contract 3 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 Priority Mail Contract 3 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. Priority Mail Contract 3 (MC2009–
4 and CP2009–5) is added to the
Competitive Product List as a new
product under Negotiated Service
Agreements, 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.
VerDate Aug<31>2005
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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
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]
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68347
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]
Registered Mail
[Reserved for Product Description]
Return Receipt
[Reserved for Product Description]
Return Receipt for Merchandise
[Reserved for Product Description]
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dwashington3 on PRODPC61 with RULES
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)
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Jkt 217001
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)
Priority Mail Contract 2 (MC2009–2 and
CP2009–3)
Priority Mail Contract 3 (MC2009–4 and
CP2009–5)
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
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[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. E8–27323 Filed 11–17–08; 8:45 am]
BILLING CODE 7710–FW–P
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
50 CFR Part 223
[Docket No. 080219211–81123–01]
RIN 0648–AU98
Sea Turtle Conservation; Fishing Gear
Inspection Program
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Final rule.
AGENCY:
SUMMARY: NMFS establishes an
inspection program for modified pound
net leaders in the Virginia waters of the
mainstem Chesapeake Bay. Current
regulations require modified pound net
leaders, as defined in the regulations, in
a portion of the Virginia Chesapeake
Bay while also allowing them to be used
in a different portion of the Chesapeake
Bay. This action would help ensure that
leaders used in those areas do in fact
meet the definition of a modified pound
net leader. This action, taken under the
Endangered Species Act of 1973 (ESA),
as amended, is intended to facilitate
compliance with the existing regulation,
which is designed to help protect
threatened and endangered sea turtles.
DATES: Effective December 18, 2008.
FOR FURTHER INFORMATION CONTACT:
Carrie Upite (ph. 978–281–9300 x6525,
fax 978–281–9394), or Barbara
Schroeder (ph. 301–713–2322, fax 301–
427–2522).
SUPPLEMENTARY INFORMATION:
Background
Based upon documented sea turtle
interactions with pound net leaders,
NMFS issued a final rule on May 5,
2004 (69 FR 24997), that prohibited the
use of offshore pound net leaders from
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]]>Agencies
[Federal Register Volume 73, Number 223 (Tuesday, November 18, 2008)]
[Rules and Regulations]
[Pages 68345-68348]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-27323]
=======================================================================
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POSTAL REGULATORY COMMISSION
39 CFR Part 3020
[Docket Nos. MC2009-4 and CP2009-5; Order No. 131]
Administrative Practice and Procedure, Postal Service
AGENCY: Postal Regulatory Commission.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Commission is adding Priority Mail Contract 3 (MC2009-4
and CP2009-5) to the Competitive Product List. It is also noticing a
related contract. These actions are consistent with changes in a recent
law governing postal operations and a related Postal Service request.
Republication of the lists of market dominant and competitive products
is also consistent with new requirements in the law.
DATES: Effective November 18, 2008.
FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel,
202-789-6820 and stephen.sharfman@prc.gov.
SUPPLEMENTARY INFORMATION: Regulatory History, 73 FR 66075 (November 6,
2008).
The Postal Service seeks to add a new product identified as
Priority Mail Contract 3 to the Competitive Product
[[Page 68346]]
List. For the reasons discussed below, the Commission approves the
Request.
I. Background
On October 27, 2008, the Postal Service filed a formal request
pursuant to 39 U.S.C. 3642 and 39 CFR 3020.30 et seq. to add Priority
Mail Contract 3 to the Competitive Product List.\1\ The Postal Service
asserts that the Priority Mail Contract 3 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. MC2009-4.
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\1\ Request of the United States Postal Service to Add Priority
Mail Contract 3 to Competitive Product List and Notice of
Establishment of Rates and Class Not of General Applicability,
October 27, 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. CP2009-5.
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 Priority
Mail Contract 3 and certification of the Governors' vote; \2\ (2) a
redacted version of the contract which, among other things, provides
that the contract will expire 1 year 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 Governors' Decision notes, among other things, that the contract
is not risk free, but concludes that the risks are manageable. See
also Errata to Request of the United States Postal Service to Add
Priority Mail Contract 3 to Competitive Product List and Notice of
Establishment of Rates and Class Not of General Applicability,
October 30, 2008.
\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, Kim Parks, Manager,
Sales and Communications, Expedited Shipping, 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. 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 Priority Mail
Contract 3, 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. 123, the Commission gave notice of the two dockets,
appointed a public representative, and provided the public with an
opportunity to comment.\7\
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\7\ PRC Order No. 123, Notice and Order Concerning Priority Mail
Contract 3 Negotiated Service Agreement, October 31, 2008 (Order No.
123).
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II. Comments
Comments were filed by the Public Representative.\8\ 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 2-3.
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\8\ Public Representative Comments in Response to United States
Postal Service Request to Add Priority Mail Contract 3 to
Competitive Product List, November 6, 2008 (Public Representative
Comments).
---------------------------------------------------------------------------
The Public Representative states that a sufficient rationale for
maintaining the confidentiality of the documents under seal has been
provided by the Postal Service. The Public Representative reviewed the
cost savings measures for the purposes of this contract and determines
that the contract is advantageous to the Postal Service and beneficial
to the general public. Id. 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 3-4.
III. Commission Analysis
The Commission has reviewed the contract, the financial analysis
provided under seal that accompanies it, and the comments filed by the
Public Representative.
Statutory requirements. The Commission's statutory responsibilities
in this instance entail assigning Priority Mail Contract 3 to either
the Market Dominant Product List or to the Competitive Product List. 39
U.S.C. 3642. As part of this responsibility, the Commission also
reviews the proposal 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. In determining whether to assign Priority
Mail Contract 3 as a product to the Market Dominant Product List or the
Competitive Product List, the Commission must consider 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 or offering similar products.
39 U.S.C. 3642(b)(1). If so, the product will 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 who 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 precluding it 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 it may not
decrease quality or output without risking the loss of business to
competitors that offer similar expedited delivery services. Id. 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 the market for
expedited delivery services is highly competitive and requires a
substantial infrastructure to support a national network. It indicates
that large carriers serve this market. Accordingly, the Postal Service
states that it is unaware of any small business concerns that could
offer comparable service for this customer. Id.
No commenter opposes the proposed classification of Priority Mail
Contract 3 as competitive. Having considered the statutory requirement
and the support offered by the Postal Service, the Commission finds
that Priority Mail Contract 3 is appropriately classified as a
competitive product and should be added to the Competitive Product
List.
Cost considerations. The Postal Service's filing seeks to establish
a new domestic Priority Mail product. The
[[Page 68347]]
contract is predicated on unit costs for major mail functions, e.g.,
window service, mail processing, and transportation, based on the
shipper's mail characteristics.
The Postal Service contends that adding the Priority Mail Contract
3 product will result in processing Priority Mail pieces that are less
costly for the Postal Service than the average Priority Mail piece. See
Id. Attachment A. It believes that its financial analysis shows that
these cost savings can be accomplished while ensuring that the contract
covers its attributable costs, does not result in subsidization of
competitive products by market dominant products, and increases
contribution from competitive products. Id., Attachment E, at 1.
Based on the data submitted and the comments received, the
Commission finds that Priority Mail Contract 3 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, an initial review of the proposed Priority Mail Contract 3
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 Priority Mail Contract 3 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. Priority Mail Contract 3 (MC2009-4 and CP2009-5) is added to the
Competitive Product List as a new product under Negotiated Service
Agreements, 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]
Registered Mail
[Reserved for Product Description]
Return Receipt
[Reserved for Product Description]
Return Receipt for Merchandise
[Reserved for Product Description]
[[Page 68348]]
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)
Priority Mail Contract 2 (MC2009-2 and CP2009-3)
Priority Mail Contract 3 (MC2009-4 and CP2009-5)
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. E8-27323 Filed 11-17-08; 8:45 am]
BILLING CODE 7710-FW-P
