[Federal Register Volume 70, Number 55 (Wednesday, March 23, 2005)]
[Proposed Rules]
[Pages 14607-14612]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-5678]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Part 250

RIN 1010-AC99


Oil and Gas and Sulphur Operations in the Outer Continental Shelf 
(OCS); Data Release and Definitions

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Proposed rule.

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SUMMARY: This proposed rulemaking would revise certain existing 
definitions, add a first production notice requirement, and make some 
administrative changes. MMS recently redesigned and renamed some of its 
forms to aid submission and streamline data. MMS also discovered 
inconsistent practices in first production reporting, which is a prime 
parameter in determining inspection and testing schedules for safety 
system devices. This proposed rulemaking would correspond to recently 
revised forms, provide clarity and explanation of definitions and 
forms, and correct form submittal with first production notices. It 
would also clarify the basis upon which the Regional Director invokes 
the requirement for an archaeological survey on a lease area.

DATES: We will consider all comments received by June 21, 2005. We will 
begin reviewing comments then and may not fully consider comments we 
receive after June 21, 2005.

ADDRESSES: You may submit comments on the rulemaking by any of the 
following methods listed below. Please use 1010-AC99 as an identifier 
in your message. See also Public Comment Procedures under Procedural 
Matters.
    MMS's Public Connect on-line commenting system, https://ocsconnect.mms.gov. Follow the instructions on the Web site for 
submitting comments.
    Federal eRulemaking Portal: http://www.regulations.gov. Follow the 
instructions on the Web site for submitting comments.
    E-mail MMS at [email protected]. Identify the Regulation 
Identifier Number (RIN) in the subject line.
    Fax: 703-787-1093. Identify the RIN.
    Mail or hand-carry comments to the Department of the Interior; 
Minerals Management Service; Mail Stop 4024; 381 Elden Street; Herndon, 
Virginia 20170-4817; Attention: Rules Processing Team (RPT). Please 
reference ``Oil and Gas and Sulphur Operations in the Outer Continental 
Shelf (OCS), 30 CFR 250 Subpart A, General-Data Release and 
Definitions.'' in your comments.
    You may also send comments on the information collection aspects of 
this rule directly to the Office of Management and Budget (OMB), Office 
of Information and Regulatory Affairs, OMB Attention: Desk Officer for 
the Department of the Interior via OMB e-mail ([email protected]) or by fax (202) 395-6566; identify with 1010-AC99. 
Please also send a copy to MMS.

FOR FURTHER INFORMATION CONTACT: Kumkum Ray, Rules Processing Team, 
Regulations and Standards Branch, (703) 787-1600.

SUPPLEMENTARY INFORMATION: MMS proposes to make the following

[[Page 14608]]

amendments to its regulations in Title 30 CFR Part 250:
    1. Amend the definition of the term ``Person'' in Sec.  250.105 to 
include joint ventures as an example of an association.
    2. Amend the definition of the term ``You'' at Sec.  250.105 to 
include the words ``designated operator.'' Under Sec.  250.143, a 
designated operator is authorized to act on behalf of, and to fulfill 
the obligations of, a lessee under the Outer Continental Shelf Lands 
Act, the lease, and the regulations in Part 250. Therefore, a 
designated operator is an entity that must comply with applicable 
requirements, and hence is a part of the regulated community covered by 
the word ``You.''
    3. Clarify in Sec.  250.194(a) the basis upon which the Regional 
Director invokes the requirement for an archaeological survey on a 
lease area. Because it cannot be determined whether it is ``likely'' 
that an archaeological resource exists on a specific lease area until 
the archaeological survey has first been conducted, the wording would 
be changed to state, ``if the Regional Director has reason to believe 
that an archaeological resource may exist.'' The ``reason to believe'' 
is established by a technical analysis of existing archaeological, 
geological, and other pertinent environmental data. To more closely 
reflect the wording of the new Subpart B regulations, and to clarify 
that the archaeological report accompanies, but is not part of, the 
Exploration Plan (EP) or Development and Production Plan (DPP), we 
propose to modify the second part of this sentence to state that ``* * 
* the Regional Director will request in writing that your EP or DPP be 
accompanied by an archaeological report.''
    4. Redesignate Sec. Sec.  250.195 and 250.196 as Sec. Sec.  250.196 
and 250.197, respectively, and add a new Sec.  250.195 requiring the 
lessee or operator to notify MMS when a well has actually begun 
producing. When the lessee or operator files a form MMS-125 (OMB 
Approval No. 1010-0046), End of Operations Report (formerly Well 
Summary Report), the well status is often shown as ``shut in'' since 
production facilities are not ready. Therefore, a ``first production 
notice'' often will be the only indication MMS receives that a well has 
actually begun producing. Such a notice is not currently required by 
our regulations, but has become standard practice. MMS is proposing to 
add this requirement because this information has become one of the 
prime parameters in determining inspection and testing schedules for 
safety system devices.
    5. Reorganize the forms data release table in the proposed 
redesignated Sec.  250.197(a), and add entries for the new forms MMS-
123S, Supplemental APD Information Sheet; MMS-137, OCS Plan 
Information; MMS-133, Well Activity Report; and MMS-140, Bottomhole 
Pressure Survey Report. The Office of Management and Budget (OMB) has 
approved the use of these new forms, all of which contain proprietary 
data. MMS also proposes deleting the entry for form MMS-128, Semiannual 
Well Test Report, because no proprietary information is reported on 
this form. The reorganization of the table does not change the current 
data release timeframe for any of the other forms included in the 
table.
    It should be noted that MMS very recently redesigned and renamed 
some of its forms. This is part of a separate process to provide a 
future option for electronic submission and streamlining of the data 
collected on MMS forms. In addition to any actual data element changes 
we made to the forms, we completely renumbered all of the data elements 
on most of the forms. The form and item numbers shown in the table at 
proposed
    Sec.  250.197(a) correspond to the revised forms. You may obtain 
copies of the forms listed in the table from any of the OCS regional 
offices or at the Web site: http://www.gomr.mms.gov/homepg/mmsforms/frmindx.html
    6. Revise Sec.  250.197(b)(8) to clarify existing requirements by 
including release times for certain data and information submitted on 
well operations, and adding special provisions for the release of 
directional surveys.
    7. Insert a new form MMS-144, Rig Movement in the table at existing 
Sec.  250.199.
    8. Remove the definitions of ``I, me, or you'' and ``Person'' at 
Sec.  250.1402, because the definitions for these terms are found at 
Sec.  250.105.

Procedural Matters

Public Comment Procedure

    All submissions received must include the agency name and docket 
number or Regulation Identifier Number (RIN) for this rulemaking. Our 
practice is to make comments, including names and addresses of 
respondents, available for public review during regular business hours. 
Individual respondents may request that we withhold their address from 
the record, which we will honor to the extent allowable by law. There 
may be circumstances in which we would withhold from the record a 
respondent's identity, as allowable by the law. If you wish us to 
withhold your name and/or address, you must state this prominently at 
the beginning of your comment. However, we will not consider anonymous 
comments. We will make all submissions from organizations or 
businesses, and from individuals identifying themselves as 
representatives or officials of organizations or businesses, available 
for public inspection in their entirety.

Regulatory Planning and Review (Executive Order (E.O.) 12866)

    This document is not a significant rule and is not subject to 
review by the Office of Management and Budget (OMB) under Executive 
Order 12866. This proposed rule:
    1. Would not have an annual economic effect of $100 million or more 
on the economy. It would not adversely affect in a material way the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or 
communities. A cost-benefit and economic analysis is not required 
because:
    a. The proposed changes to the definitions and data release tables 
would have no financial impact on the oil and gas industry.
    b. The proposed requirements would minimally increase the paperwork 
burden for submitting first production notices under newly proposed 
Sec.  250.195. At an average cost of $50 per hour, the increase of 
approximately 250 hours each year would result in an hour burden impact 
of $12,500. (Refer to the Paperwork Reduction Act section later in the 
preamble.)
    2. Would not create a serious inconsistency or otherwise interfere 
with an action taken or planned by another agency. It would not affect 
how lessees or operators interact with other agencies.
    3. Would not alter the budgetary effects or entitlements, grants, 
user fees, or loan programs or the rights or obligations of their 
recipients. It would have no effect on the rights of the recipients of 
entitlements, grants, user fees, or loan programs.
    4. Does not raise novel legal or policy issues.

Regulatory Flexibility (RF) Act

    The Department of Interior (DOI) certifies that this proposed rule 
would not have a significant economic effect on a substantial number of 
small entities under the RF Act (5 U.S.C. 601 et seq.). It would apply 
to all lessees operating on the OCS. Small lessees would fall under the 
Small Business Administration's (SBA) North American

[[Page 14609]]

Industry Classification System Codes 211111, which includes companies 
that extract crude petroleum and natural gas. Under this code, a small 
company is one with fewer than 500 employees. Based on these criteria, 
MMS estimates that about 70 percent of these companies are considered 
small. The proposed requirements would minimally increase the paperwork 
burden for submitting first production notices under newly proposed 
Sec.  250.195. At an average cost of $50 per hour, the increase of 
approximately 250 hours each year would result in an hour burden impact 
of $12,500. (Refer to the Paperwork Reduction Act section later in the 
preamble.) Thus, based on 130 lessees/operators, the average increase 
would be $100, for both large and small entities. Since 70 percent of 
the companies are small businesses, the total paperwork burden for 
small companies would be approximately 175 man hours, representing an 
annual hour cost burden of $8,750.
    Your comments are important. The Small Business and Agriculture 
Regulatory Enforcement Ombudsman and 10 Regional Fairness Boards were 
established to receive comments from small businesses about Federal 
agency enforcement actions. The Ombudsman will annually evaluate the 
enforcement activities and rate each agency's responsiveness to small 
business. If you wish to comment on the enforcement actions of MMS, 
call toll-free at (888) 734-3247. You may comment to the SBA without 
fear of retaliation. Disciplinary action for retaliation by an MMS 
employee may include suspension or termination from employment with the 
DOI.

Small Business Regulatory Enforcement Fairness Act (SBREFA)

    This proposed rule is not a major rule under the SBREFA (5 U.S.C. 
804(2)). This proposed rule:
    1. Would not have an annual effect on the economy of $100 million 
or more. As described above, we estimate an annual increase of $100 per 
respondent. These costs will not cause an annual effect on the economy 
of $100 million.
    2. Would not cause a major increase in costs or prices for 
consumers; individual industries; Federal, State, or local government 
agencies; or geographic regions. The minor increase in cost would not 
change the way the oil and gas industry conducts business, nor would it 
affect regional oil and gas prices. Therefore, it would not cause major 
cost increases for consumers, the oil and gas industry, or any 
government agencies.
    3. Would not have significant adverse effects on competition, 
employment, investment, productivity, innovation, or ability of United 
States (U.S.)-based enterprises to compete with foreign-based 
enterprises. All lessees and drilling contractors, regardless of 
nationality, would have to comply with the requirements of this 
proposed rule, so it would not affect competition, employment, 
investment, productivity, innovation, or the ability of U.S.-based 
enterprises to compete with foreign-based enterprises.

Paperwork Reduction Act (PRA) of 1995

    The proposed rule would require a new information collection (IC), 
and an IC request (form OMB 83-I) has been submitted to OMB for review 
and approval under section 3507(d) of the PRA. The title of the 
collection of information is ``30 CFR 250, Subpart A, General, Data 
Release and Definitions.'' The PRA provides that an agency may not 
conduct or sponsor a collection of information unless it displays a 
currently valid OMB control number. Until OMB approves the collection 
of information and assigns a control number, you are not required to 
respond.
    Respondents include approximately 130 Federal OCS oil and gas 
lessees. The frequency of reporting and recordkeeping is generally on 
occasion. Responses are mandatory. The IC does not include questions of 
a sensitive nature. MMS will protect information considered proprietary 
according to 30 CFR Sec.  250.196, ``Data and information to be made 
available to the public,'' 30 CFR Part 252, ``OCS Oil and Gas 
Information Program,'' and the Freedom of Information Act (5 U.S.C. 
552) and its implementing regulations (43 CFR Part 2).
    The proposed rule addresses several reports and forms required by 
current regulations. All the burdens for the individual reports and 
forms have been approved by OMB and assigned OMB control numbers 
according to their associated subparts.
    Proposed Sec.  250.195 would require the lessee or operator to 
notify MMS when a well has actually begun producing. When the lessee or 
operator files a form MMS-125, End of Operations Report (formerly the 
Well Summary Report), the well status is often shown as ``shut in'' 
since production facilities are not ready. Currently there is no 
regulatory requirement for lessees or operators to formally notify MMS 
of ``first production,'' although most companies already notify MMS 
when a well begins to produce. This practice serves to alert both MMS 
and the operator of the requirements pertaining to the inspection, 
installation, and maintenance of safety systems. We estimate 250 annual 
notifications would be submitted, requiring about 1 hour each to 
prepare and submit.
    The proposed rule would increase the total paperwork hour burden of 
the 30 CFR Part 250, Subpart A, regulations by 250 hours. Based on a 
cost factor of $50 per hour, the hour burden of the new paperwork 
requirements would be $12,500. When this rulemaking becomes effective, 
MMS will consolidate the 250 burden hours with the primary information 
collection for 30 CFR 250, Subpart A (OMB control number 1010-0114, 
expiration date October 31, 2007).
    As part of our continuing effort to reduce paperwork and respondent 
burdens, MMS invites the public and other Federal agencies to comment 
on any aspect of the reporting burden in the proposed rule.
    1. We specifically solicit comments on the following questions:
    a. Is the proposed collection of information necessary for MMS to 
properly perform its functions, and will it be useful?
    b. Are the estimates of the burden hours of the proposed collection 
reasonable?
    c. Do you have any suggestions that would enhance the quality, 
clarity, or usefulness of the information to be collected?
    d. Is there a way to minimize the information collection burden on 
those who are to respond, including the use of appropriate automated 
electronic, mechanical, or other forms of information technology?
    2. In addition, the PRA requires agencies to estimate the total 
annual reporting and recordkeeping ``non-hour'' cost burden resulting 
from the collection of information. We have not identified any non-hour 
cost burden and solicit your comments on this item. For reporting and 
recordkeeping only, your response should split the cost estimate into 
two components: (a) the total capital and startup cost component and 
(b) the annual operation, maintenance, and purchase of services 
component. Your estimates should consider the costs to generate, 
maintain, and disclose or provide the information. You should describe 
the methods you use to estimate major cost factors, including system 
and technology acquisition, expected useful life of capital equipment, 
discount rate(s), and the period over which you incur costs. Generally, 
your estimates should not include equipment or services purchased 
before October 1, 1995; to comply with requirements not

[[Page 14610]]

associated with the information collection; for reasons other than to 
provide information or keep records for the Government; or as part of 
customary and usual business or private practice.
    If you wish to comment on the hour burdens in response to this 
notice, you may send your comments to OMB, with a copy to MMS (see the 
ADDRESSES section of this notice). OMB is required to make its decision 
on the information collection aspects of this proposed rule between 30 
to 60 days after publication in the Federal Register. Therefore, a 
comment to OMB is best assured of having its full effect if OMB 
receives it by April 22, 2005. This does not affect the deadline for 
the public to comment to MMS on the proposed regulations.

Federalism (E.O. 13132)

    According to E.O. 13132, this proposed rule does not have 
Federalism implications. This proposed rule would not substantially and 
directly affect the relationship between Federal and State Governments. 
This proposed rule would clarify and require information from lessees/
operators on the OCS, which is outside State jurisdiction. States have 
no role in this activity with or without this proposed rule, and this 
proposed rule would not impose costs on States or localities.

Takings Implication Assessment (E.O. 12630)

    According to E.O. 12630, the proposed rule does not have 
significant Takings Implications. A Takings Implication Assessment is 
not required. The rulemaking is not a governmental action capable of 
interfering with constitutionally protected property rights.

Civil Justice Reform (E.O. 12988)

    According to E.O. 12988, the Office of the Solicitor has determined 
that this proposed rule would not unduly burden the judicial system and 
does meet the requirements of sections 3(a) and 3(b)(2) of the Order.

National Environmental Policy Act

    The rule does not constitute a major Federal action significantly 
affecting the quality of the human environment. An environmental impact 
statement is not required.

Unfunded Mandates Reform Act (UMRA) of 1995 (E.O. 12866)

    This proposed rule would not impose an unfunded mandate on State, 
local, or tribal governments or the private sector of more than $100 
million per year. It does not have any Federal mandates, nor a 
significant or unique effect on State, local, or tribal governments or 
the private sector. A statement containing the information required by 
the UMRA (2 U.S.C. 1531 et seq.) is not required.

Consultation and Coordination With Indian Tribal Governments (E.O. 
13175)

    In accordance with E.O. 13175, this proposed rule would not have 
tribal implications that impose substantial direct compliance costs on 
Indian tribal governments.

List of Subjects in 30 CFR Part 250

    Environmental impact statements, Environmental protection, 
Government contracts, Investigations, Mineral royalties, Oil and gas 
development and production, Oil and gas exploration, Oil and gas 
reserves, Outer continental shelf, Penalties, Pipelines, Public lands-
mineral resources, Public lands-rights-of-way, Reporting and 
recordkeeping requirements, Sulphur development and production, Sulphur 
exploration, Surety bonds.

    Dated: February 16, 2005.
Chad Calvert,
Acting Assistant Secretary, Land and Minerals Management.
    For the reasons stated in the preamble, the Minerals Management 
Service proposes to amend 30 CFR Part 250 as follows:

PART 250--OIL AND GAS AND SULPHUR OPERATIONS IN THE OUTER 
CONTINENTAL SHELF

    1. The authority citation for part 250 continues to read as 
follows:

    Authority: 43 U.S.C. 1331 et seq.

    2. In Sec.  250.105, revise the definitions of the terms, 
``Person'' and ``You,'' to read as follows:


Sec.  250.105  Definitions.

* * * * *
    Person includes, in addition to a natural person, an association 
(including partnerships, joint ventures, and trusts), a State, a 
political subdivision of a State, or a private, public, or municipal 
corporation.
* * * * *
    You means a lessee, the owner or holder of operating rights, a 
designated operator or agent of the lessee(s), a pipeline right-of-way 
holder, or a State lessee granted a right-of-use and easement.
* * * * *
    3. In Sec.  250.194 revise the introductory text of paragraph (a) 
to read as follows:


Sec.  250.194  What archaeological reports and surveys must I submit?

    (a) If the Regional Director has reason to believe that an 
archaeological resource may exist in the lease area, the Regional 
Director will request in writing that your EP or DPP be accompanied by 
an archaeological report. If the archaeological report suggests that an 
archaeological resource may be present, you must either:
* * * * *


Sec. Sec.  250.195 and 250.196  [Redisignated]

    4. Redesignate Sec.  250.195 and Sec.  250.196 as Sec.  250.196 and 
Sec.  250.197 respectively.
    5. Add new Sec.  250.195 to read as follows:


Sec.  250.195  What notification does MMS require on the production 
status of wells?

    You must notify the appropriate MMS District Manager when you 
successfully complete or recomplete a well for production as follows:
    (a) Make the notification on the date you place the well in a 
production status. You may provide the notification orally if confirmed 
in writing by telefax or by e-mail.
    (b) Include the following information in your notification:
    (1) Operator name;
    (2) Well number, lease number, area, and block;
    (3) Date you place the well on production (indicate whether or not 
this is first production on the lease);
    (4) Type of production; and
    (5) Depth (measured depth) of production interval.
    6. In newly redesignated Sec.  250.197 the following changes are 
made:
    A. Revise the introductory text and paragraph (a) to read as set 
forth below.
    B. Revise paragraph (8) in the table in paragraph (b) to read as 
set forth below.


Sec.  250.197  Data and information to be made available to the public.

    MMS will protect data and information you submit under this part. 
MMS will make certain data and information available to the public 
without the consent of the lessee. The tables in paragraphs (a) and (b) 
of this section specify when MMS will make data available to the public 
without the consent of the lessee, and describe the data and 
information that MMS will make available.
    (a) All data and information you submit on MMS forms will be made 
available to the public upon submission except as specified in the 
following table:

[[Page 14611]]



------------------------------------------------------------------------
                                       Data and
                                    information not      Excepted data
          On form. . .                immediately        will be made
                                   available are . .    available . . .
                                           .
------------------------------------------------------------------------
(1) MMS-123, Application for      Items 13, 14, 20,   When the well goes
 Permit to Drill.                  21, and 22.         on production or
                                                       according to the
                                                       table in
                                                       paragraph (b) of
                                                       this section,
                                                       whichever is
                                                       earlier.
(2) MMS-123S, Supplemental APD    Items 4, 13, 14,    When the well goes
 Information Sheet.                15 and 20.          on production or
                                                       according to the
                                                       table in
                                                       paragraph (b) of
                                                       this section,
                                                       whichever is
                                                       earlier.
(3) MMS-124, Application for      Item 22...........  When the well goes
 Permit to Modify.                                     on production or
                                                       according to the
                                                       table in
                                                       paragraph (b) of
                                                       this section,
                                                       whichever is
                                                       earlier.
(4) MMS-125, End of Operations    Items 12, 13, 17,   When the well goes
 Report.                           18, 23, 24          on production or
                                   through 29, and     according to the
                                   33 through 38.      table in
                                                       paragraph (b) of
                                                       this section,
                                                       whichever is
                                                       earlier. However,
                                                       items 33 through
                                                       38 will not be
                                                       released when the
                                                       well goes on
                                                       production unless
                                                       the period of
                                                       time in the table
                                                       in paragraph (b)
                                                       has expired.
(5) MMS-126, Well Potential Test  Item 101..........  2 years after you
 Report.                                               submit it.
(6) MMS-127, Sensitive Reservoir  Items 124 through   2 years after the
 Information Report.               168.                effective date of
                                                       the Sensitive
                                                       Reservoir
                                                       Information
                                                       Report.
(7) MMS-133 Well Activity Report  Item 10 Fields      When the well goes
                                   [WELLBORE, START    on production or
                                   DATE, TD DATE, OP   according to the
                                   STATUS, END DATE,   table in
                                   MD, TVD AND MW      paragraph (b) of
                                   PPG] Item 11        this section,
                                   Fields [WELLBORE    whichever is
                                   START DATE, TD      earlier.
                                   DATE, PLUGBACK
                                   DATE, FINAL MD,
                                   AND FINAL TVD].
                                   and Items 12
                                   through 15.
(8) MMS-137, OCS Plan             Items providing     When the well goes
 Information.                      the bottomhole      on production or
                                   location, true      according to the
                                   vertical depth,     table in
                                   and measured        paragraph (b) of
                                   depth of wells.     this section,
                                                       whichever is
                                                       earlier.
(9) MMS-140, Bottomhole Pressure  All items.........  2 years after the
 Survey Report.                                        date of the
                                                       survey.
------------------------------------------------------------------------

    (b) * * *

----------------------------------------------------------------------------------------------------------------
               If . . .                 MMS will release . . .     At this time . . .       Special provisions
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
(8) Data or information is submitted   Descriptions of          When the well goes on    Directional survey data
 on well operations.                    downhole locations,      production or            may be released
                                        operations, and          geological data is       earlier to the owner
                                        equipment.               released according to    of an adjacent lease
                                                                 Sec.  Sec.               according to Subpart D
                                                                 250.197(b)(6) and        of this part.
                                                                 (b)(7), whichever is
                                                                 earlier.
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------

    7. Amend the table at Sec.  250.199(e), by adding paragraph (26) to 
read as follows:


Sec.  250.199  Paperwork Reduction Act statements--information 
collection.

* * * * *
    (e) * * *

------------------------------------------------------------------------
30 CFR 250 subpart/title (OMB    Reasons for collecting information and
       control number)                          how used
------------------------------------------------------------------------
 
                              * * * * * * *
(26) Form MMS-144, Rig         The rig notification requirement is
 Movement (used in GOM          essential for MMS inspection scheduling
 region), Subparts D, E, F      and to verify that the equipment being
 (1010-0150).                   used complies with approved permits.
------------------------------------------------------------------------


[[Page 14612]]

Sec.  250.1402  [Amended]

    8. In Sec.  250.1402, remove the definitions of ``I, me, or you'' 
and ``Person.''
[FR Doc. 05-5678 Filed 3-22-05; 8:45 am]
BILLING CODE 4310-MR-P