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					3670                           Federal Register / Vol. 65, No. 15 / Monday, January 24, 2000 / Notices

members at both LCH and LIFFE, or (2)                    submitted by CME may be available                         Dated: January 18, 2000.
have affiliates that are clearing members                upon request pursuant to the Freedom                    Sadye E. Dunn,
at both LCH and LIFFE,4 would be                         of Information Act, 5 U.S.C. § 552, and                 Secretary.
eligible to cross-margin proprietary                     the Commission’s regulations                            [FR Doc. 00–1563 Filed 1–21–00;8:45am]
positions that they maintain in Euro                     thereunder, 17 CFR § 145 (1987), except                 BILLING CODE 6355–01–M
Euribor and Euro Libor futures and                       to the extent they are entitled to
option contracts at LIFFE and                            confidential treatment as set forth in 17
Eurodollar futures and option contracts                  CFR §§ 145.5, 145.9. Requests for copies                CONSUMER PRODUCT SAFETY
at CME. This program would take the                      of such materials should be made to the                 COMMISSION
‘‘two-pot’’ approach to cross-margining,                 FOIA, Privacy Act, and Sunshine Act
                                                                                                                 [CPSC Docket NO. 00–C0004]
whereby performance bond and                             Compliance Staff of the Office of
positions of participants are held in                    Secretariat at the Commission’s                         Lancaster Colony Corporation, a
separate accounts by the CME Clearing                    headquarters in accordance with 17 CFR                  Corporation; Settlement Agreement
House and by LCH, rather than a ‘‘one-                   §§ 145.7, 145.8.                                        and Order
pot’’ approach in which cross-margined                     Issued in Washington, D.C. on January 14,
positions and performance bond are                       2000 by the Commission.
                                                                                                                    1. This Settlement Agreement and
maintained by the participating clearing                                                                         Order, entered into between Lancaster
                                                         Alan L. Seifert,
organizations in jointly-held accounts.                                                                          Colony Corporation, a corporation
                                                         Deputy Director.                                        (hereinafter, ‘‘Lancaster Colony’’ or
The CME Clearing House and LCH, by
the terms of the Cross-Margining                         [FR Doc. 00–1569 Filed 1–21–00; 8:45 am]                ‘‘Respondent’’), and the staff of the
Agreement, would calculate daily the                     BILLING CODE 6351–01–U                                  Consumer Product Safety Commission
amount that each participant in the                                                                              (hereinafter, ‘‘staff’’), pursuant to the
program could, with cross-margining,                                                                             procedures set forth in 16 C.F.R.
reduce its margin levels at LCH and                                                                              § 1118.20, is a compromise resolution of
CME. LCH and the CME Clearing House                      CONSUMER PRODUCT SAFETY                                 the matter described herein, without a
would then provide each other with                       COMMISSION                                              hearing or determination of issues of
cross-guaranties in the amount of the                                                                            law and fact.
associated margin reductions to protect                  [CPSC Docket No. 00–C0004]
                                                                                                                 The Parties
each clearing organization in the event
of default by a clearing member of the                   Lancaster Colony Corporation;                              2. The staff is the staff of the
other clearing organization. CME’s                       Provisional Acceptance of a                             Consumer Product Safety Commission
proposal is unique in that, unlike the                   Settlement Agreement and Order                          (hereinafter, ‘‘Commission’’), an
‘‘two-pot’’ guaranteed cross-margining                                                                           independent federal regulatory agency
                                                         AGENCY: Consumer Product Safety
arrangement between the Government                                                                               of the United States government,
                                                         Commission                                              established by Congress pursuant to
Securities Clearing Corporation and the
New York Clearing Corporation                            ACTION: Notice.                                         section 4 of the Consumer Product
(‘‘NYCC’’) recently deemed approved by                                                                           Safety Act (hereinafter, ‘‘CPSA’’), as
                                                         SUMMARY: It is the policy of the                        amended, 15 U.S.C. § 2053.
the Commission,5 the current proposal
raises issues of transnational insolvency                Commission to publish settlements                          3. Respondent Lancaster Colony is a
which have not been previously                           which it provisionally accepts under the                corporation organized and existing
considered in the cross-margining                        Consumer Product Safety Act in the                      under the laws of the State of Ohio with
context.                                                 Federal Register in accordance with the                 its principal corporate offices located in
                                                         terms of 16 CFR 1118.20(e). Published                   Columbus, Ohio. Lancaster Colony has
III. Request for Comment                                 below is a provisionally-accepted                       an operating division named Candle-lite
   The Commission requests comment                       Settlement Agreement Lancaster Colony                   located in Cincinnati, Ohio, which
from interested persons concerning any                   Corporation, a corporation, containing a                manufactures and sells candles.
aspect of CME’s proposed cross-                          civil penalty of $150,000.
margining program. The Commission is                                                                             Staff Allegations
                                                         DATES: Any interested person may ask
especially interested in comments                        the Commission not to accept this                          4. Section 15(b) of the CPSA, 15
regarding the cross-border bankruptcy                    agreement or otherwise comment on its                   U.S.C. § 2064(b), requires a
aspects of this proposal.                                contents by filing a written request with               manufacturer of a consumer product
   Copies of CME’s proposed rule                         the Office of the Secretary by February                 who, inter alia, obtains information that
amendments and certain other materials                   8, 2000.                                                reasonably supports the conclusion that
are available for inspection at the Office                                                                       the product contains a defect which
                                                         ADDRESSES: Persons wishing to
of the Secretariat, Commodity Futures                                                                            could create a substantial product
                                                         comment on this Settlement Agreement
Trading Commission, Three Lafayette                                                                              hazard or creates an unreasonable risk
                                                         should send written comments to the
Centre, 1155 21st Street NW,                                                                                     of serious injury or death, to
                                                         Comment 00–C0004, Office of the
Washington, DC 20581. Copies of the                                                                              immediately inform the Commission of
                                                         Secretary, Consumer Product Safety
proposed amendments and related                                                                                  the defect or risk.
                                                         Commission, Washington, D.C. 20207.
materials may also be obtained through                                                                              5. Between August 1995 and February
the Office of the Secretariat by mail at                 FOR FURTHER INFORMATION CONTACT:                        1996, Lancaster Colony through its
the above address, by telephone at (202)                 Ronald G. Yelenik, Trial Attorney,                      Candle-lite division, manufactured and
418–5100, or by electronic mail at                       Office of Compliance and Enforcement,                   sold nationwide, approximately three
secretary@cftc.gov. Other materials                      Consumer Product Safety Commission,                     million Clearfire De-lite Candles
                                                         Washington, D.C. 20207; telephone                       (hereinafter the ‘‘Candles’’ or the
  4 All LIFFE clearing members must also be              (301) 504–0626, 1351.                                   ‘‘product’’). A candle is a ‘‘consumer
members of LCH.
  5 July 2, 1999, letter to George F. Haase, Jr., NYCC
                                                         SUPPLEMENTARY INFORMATION: The text of                  product and Lancaster Colony is a
President, from David P. Van Wagner, Associate           the Agreement and Order appears                         ‘‘manufacturer’’ of a ‘‘consumer
Director of the Division of Trading and Markets.         below.                                                  product,’’ which is ‘‘distributed in


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                           Federal Register / Vol. 65, No. 15 / Monday, January 24, 2000 / Notices                                                    3671

commerce’’ as those terms are defined                section 15(b) of the CPSA, 15 U.S.C.                    through 14 herein, and to the issuance
in sections 3(a)(1), (4), (11) of the CPSA,          § 2064(b), and further denies the other                 of a complaint, (ii) to judicial review or
15 U.S.C. §§ 2052(a)(1), (4), (11).                  allegations of the CPSC staff as stated                 other challenge or contest of the validity
   6. The product is a candle made of a              herein.                                                 of the Commission’s Order, (iii) to a
clear gel-like substance which is                       16. Lancaster Colony did not have                    determination by the Commission as to
packaged in a textured glass jar.                    reason to believe that these candles                    whether a violation of Section 15(b) of
   7. The Candles are defective because              posed a substantial product hazard.                     the CPSA, has occurred, (iv) to a
they could flare up unexpectedly during              Lancaster Colony believed the                           statement of findings of fact and
use, causing the Candles’ glass holders              information available did not reasonably                conclusions of law with, and (v) to any
to overheat and break. If this occurs,               support the conclusion that the                         claims under the Equal Access to Justice
consumers could be burned or injured                 products were defective within the                      Act.
by broken glass.                                     meaning of the CPSA or that they                           22. Upon provisional acceptance of
   8. On or about November 20, 1995,                 created an unreasonable risk of serious                 this Settlement Agreement and Order by
Lancaster Colony first received a report             injury or death, and, therefore, no report              the Commission, the Commission shall
of an incident involving Candle flare-               was required under section 15(b) of the                 place this Agreement and Order on the
up.                                                  Act.                                                    public record and shall publish it in the
   9. By December 31, 1995, Lancaster                   17. During the time period in which                  Federal Register in accordance with the
Colony was aware of approximately                    the CPSC alleges Lancaster Colony                       procedure set forth in 16 C.F.R.
forty four incidents involving Candle                wrongfully failed to file a report, it                  § 1118.20(e). If the Commission does not
flare-up, resulting in reports alleging              conducted its own internal testing as                   receive any written request not to accept
five personal injuries and twenty one                well as independent testing at four                     the Settlement Agreement and Order
occurrences of property damage.                      different laboratories of 4,500 candles.                within 15 days, the Agreement and
   10. In January 1996, with the                     Neither the in-house nor outside                        Order shall be deemed finally accepted
incidents continuing to mount,                       laboratories were able to recreate the                  on the 16th day after the date it is
Respondent stopped manufacture of the                scenario about which some consumers                     published in the Federal Register, in
Candles.                                             complained. These test results suggested                accordance with 16 C.F.R. § 1118.20(f).
   11. In February 1996, Respondent                  to Lancaster Colony that no defect was                     23. This Settlement Agreement and
revised the formulation of its original              present. Likewise, the extremely low                    Order becomes effective only upon its
Candle, in part, to address the flare-up             complaint rate (0.00020) suggested to                   final acceptance by the Commission and
problem, and introduced a new candle                 Lancaster Colony that any flare ups                     service upon Respondent. Compliance
in its place.                                        were due to consumer misuse and/or                      by Lancaster Colony with this Final
   12. On or about May 2, 1996, the date             environmental contamination rather                      Settlement Agreement and Order
the staff conducted an establishment                 than an inherent product defect. Finally,               releases it from liability arising from any
inspection of the firm, Respondent was               based upon the nature of the complaints                 allegations of violation of section 15(b)
aware of at least 142 incidents involving            received by Lancaster Colony, the firm                  of the CPSA regarding the specific
candle flare-ups, including reports of               did not believe that the candles could                  candles described in paragraphs 5 and
approximately 20 incidents involving                 create a substantial product hazard or                  6 above.
personal injury and reports of more than             create an unreasonable risk of serious                     24. Upon final acceptance of this
55 incidents involving property damage.              injury or death. For these reasons,                     Settlement Agreement, the Commission
   13. Although Lancaster Colony                     Lancaster Colony concluded, and                         may publicize the terms of the
through its Candle-lite division, had                outside counsel concurred, that it was                  Settlement Agreement and Order.
obtained sufficient information to                   not required to submit a report to the                     25. Lancaster Colony agrees to pay to
reasonably support the conclusion that               CPSC.                                                   the Commission a civil penalty in the
these Candles contained a defect which                  18. Nevertheless, Lancaster Colony                   amount of one hundred fifty thousand
could create a substantial product                   cooperated fully with the Commission                    dollars ($150,000), in settlement of this
hazard, or created an unreasonable risk              staff in designing and implementing a                   matter, payable within twenty (20) days
of serious injury or death, it failed to             voluntary recall of the candles described               after service of the Final Order of the
report such information to the                       in paragraphs 5 and 6 above.                            Commission accepting this Settlement
Commission prior to the inspection, as                  19. By entering into this Settlement                 Agreement.
required by section 15(b) of the CPSA.               Agreement and Order, Lancaster Colony                      26. This Settlement Agreement and
This is a violation of section 19(a)(4) of           does not admit any liability or                         Order are entered into for settlement
the CPSA, 15 U.S.C. § 2068(a)(4).                    wrongdoing. This Settlement Agreement                   purposes only and shall not constitute
   14. Respondent’s failure to report to             and Order is agreed to by Lancaster                     an admission or determination arising
the Commission, as required by section               Colony solely for the purposes of                       from the allegations that the candles
15(b) of the CPSA, was committed                     avoiding the cost of litigation and does                contain a defect which could create a
‘‘knowingly,’’ as that term is defined in            not constitute, and is not evidence of, an              substantial product hazard or create an
Section 20(d) of the CPSA, 15 U.S.C.                 admission of liability or wrongdoing by                 unreasonable risk of serious injury or
§ 2069(d), and Lancaster Colony is                   Lancaster Colony.                                       death.
subject to civil penalties under Section                                                                        27. The provisions of this Settlement
20 of the CPSA.                                      Agreement of the Parties                                Agreement and Order shall apply to
                                                        20. The Commission has jurisdiction                  Lancaster Colony and its successors and
Response of Lancaster Colony                         in this matter under the CPSA, U.S.C.                   assigns, agents, representatives and
   15. Lancaster Colony denies the                   §§ 2051–2084.                                           employees, directly or through any
allegations of the staff that the Clearfire             21. Lancaster Colony knowingly,                      corporation, subsidiary, division, or
De-lite candles contain a defect which               voluntarily and completely waives any                   other business entity, or through any
could create a substantial product                   rights it may have (i) to an                            agency, device or instrumentality.
hazard pursuant to section 15(a) of the              administrative or judicial hearing with                    28. This Settlement Agreement may
CPSA, 15 U.S.C. § 2065(a); denies that it            respect to the Commission staff’s                       be used in interpreting the Order.
violated the reporting requirements of               allegations discussed in paragraphs 4                   Agreements, understandings,


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3672                        Federal Register / Vol. 65, No. 15 / Monday, January 24, 2000 / Notices

representations, or interpretations made                 The mission of the Defense Science                   (Acquisition), SAF/GCQ, 1500 Wilson
outside of this Settlement Agreement                  Board is to advise the Secretary of                     Blvd., Suite 304, Arlington, VA 22209–
and Order may not be used to vary or                  Defense and the Under Secretary of                      2310. Mr. Heald can be reached at 703–
to contradict its terms.                              Defense for Acquisition, Technology &                   588–5091 or by fax at 703–588–8037.
  Dated: December 10, 1999.                           Logistics on scientific and technical
                                                                                                              Janet A. Long,
John L. Boylan,
                                                      matters as they affect the perceived
                                                      needs of the Department of Defense. At                  Air Force Federal Register Liaison Officer.
Treasurer, Lancaster Colony Corporation.                                                                      [FR Doc. 00–1601 Filed 1–21–00; 8:45 am]
                                                      these meetings, the Defense Science
The Consumer Product Safety Commission.               Board Task Force will receive briefings                 BILLING CODE 5001–05–U
Alan H. Schoem,                                       and discuss interim findings and
Associate Executive Director, Office of               tentative recommendations resulting
Compliance.                                           from ongoing activities.                                DELAWARE RIVER BASIN
Eric L. Stone,                                           In accordance with Section 10(d) of                  COMMISSION
Director, Legal Division, Office of                   the Federal Advisory Committee Act,
Compliance.                                           P.L. No. 92–463, as amended (5 U.S.C.                   Notice of Commission Meeting and
                                                      App. II, (1994)), it has been determined                Public Hearing
  Dated: December 17, 1999.
                                                      that these Defense Science Board                           Notice is hereby given that the
Ronald G. Yelenik,
                                                      meetings, concern matters listed in 5                   Delaware River Basin Commission will
Trial Attorney, Legal Division, Office of
                                                      U.S.C. 552b(c) (1) (1994), and that                     hold an informal conference followed
Compliance.
                                                      accordingly these meetings will be                      by a public hearing on Wednesday,
Order                                                 closed to the public. However, due to                   January 26, 2000. The hearing will be
                                                      critical mission requirements for a                     part of the Commission’s regular
  Upon consideration of the Settlement                report by the end of January, the Task
Agreement between Respondent                                                                                  business meeting. Both the conference
                                                      force is unable to provide timely notice                and business meeting are open to the
Lancaster Colony Corporation, a                       of the above mentioned meetings.
corporation, and the staff of the                                                                             public and will be held in the Goddard
Consumer Product Safety Commission,                     Dated: January 14, 2000.                              Conference Room of the Commission’s
and the Commission having jurisdiction                L.M. Bynum,                                             offices at 25 State Police Drive, West
over the subject matter and over                      Alternate OSD Federal Register Liaison                  Trenton, New Jersey.
Lancaster Colony Corporation, and it                  Officer, Department of Defense.                            The conference among the
appearing the Settlement Agreement is                 [FR Doc. 00–1545 Filed 1–21–00; 8:45 am]                Commissioners and staff will begin at
in the public interest, it is                         BILLING CODE 5001–10–M                                  10:00 a.m. and will include a report on
  Ordered, that the Settlement                                                                                the agency’s budget for 2001; a
Agreement be and hereby is accepted,                                                                          discussion of the Basin comprehensive
and it is                                             DEPARTMENT OF DEFENSE                                   planning process; an update on the U.S.
  Further Ordered, that within 20 days                                                                        Army Corps of Engineers proposal for
of service of the Final Order upon                    Department of the Air Force                             undertaking projects jointly with the
Respondent, Lancaster Colony                                                                                  Commission; a status report on progress
                                                      Notice of Intent To Grant an Exclusive                  toward an agreement between the Army
Corporation shall pay to the order of the             Patent License
U.S. Treasury a civil penalty in the                                                                          Corps and the Commission for storage at
amount of one hundred fifty thousand                     Pursuant to the provisions of Part 404               F.E. Walter Reservoir; a report on the
dollars ($150,000).                                   of Title 37, Code of Federal Regulations                status of a new basinwide flood
                                                      (CFRs), which implements Public Law                     coordination initiative; and a discussion
  Provisionally accepted and Provisional
Order issued on the 18th day of January,              96–517, the Department of the Air Force                 of plans for a two-day Commission
2000.                                                 announces its intention to grant                        meeting in Reading, Pennsylvania in
  By order of the Commission.                         Thorgersen ElectroLuminescence                          March.
                                                      Corporation, a company doing business                      In addition to the dockets listed
Sadye E. Dunn,
                                                      in Woodbury, CT, an exclusive license                   below, which are scheduled for public
Secretary, Consumer Product Safety                                                                            hearing, the Commission will address
Commission.
                                                      in any right, title and interest the Air
                                                      Force has in U.S. Patent No. 5,213,099.                 the following at its 1:00 p.m. business
[FR Doc. 00–1564 Filed 1–21–00; 8:45 am]                                                                      meeting: minutes of the December 8,
                                                      The inventor, Lloyd D. Tripp, was a
BILLING CODE 6355–01–M                                                                                        1999 business meeting; announcements;
                                                      government employee at the time of the
                                                      invention. The invention is entitled                    report on Basin hydrologic conditions;
                                                      ‘‘Ear Canal Pulse/Oxygen Saturation                     reports by the Executive Director and
DEPARTMENT OF DEFENSE                                 Measuring Device’’ and issued on May                    General Counsel; and public dialogue.
                                                      25, 1993.                                               The Commission also will conduct
Office of the Secretary                                  The license described above will be                  public hearings and consider a
                                                      granted unless an objection thereto,                    resolution to adopt the FY 2001 Budget
Defense Science Board
                                                      together with a request for an                          and the 2000 Water Resources Program.
ACTION: Notice of Advisory Committee                  opportunity to be heard, if desired, is                 It will consider additional resolutions
Meetings.                                             received in writing by the addressee set                to: authorize the Executive Director to
                                                      forth below within 60 days from the                     contract with Water Resources
SUMMARY: The Defense Science Board                    date of publication of this Notice.                     Management, Inc. for a flow needs study
Task Force on Global Positioning                      Information concerning the application                  for the Delaware River and major
Systems will meet in closed session on                may be obtained, on request, from the                   tributaries; and control toxic pollutants
January 12–13, January 20–21, and                     same addressee.                                         from point sources discharging to the
January 24–25, 2000, at 3601 Wilson                      All communications concerning this                   Delaware River Estuary.
Boulevard, Suite 600, Arlington,                      Notice should be sent to Mr. Randy                         The dockets scheduled for public
Virginia 22203.                                       Heald, Associate General Counsel                        hearing will be as follows:


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