[Federal Register Volume 59, Number 150 (Friday, August 5, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-19083]


[[Page Unknown]]

[Federal Register: August 5, 1994]


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DELAWARE RIVER BASIN COMMISSION

18 CFR Part 420

 

Proposed Amendments to Comprehensive Plan and Basin Regulations--
Water Supply Charges; Proposed Rule and Public Hearing

AGENCY: Delaware River Basin Commission.

ACTION: Proposed rule and public hearing.

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SUMMARY: Notice is hereby given that the Delaware River Basin 
Commission will hold a public hearing to receive comments on proposed 
amendments to its Comprehensive Plan and Basin Regulations--Water 
Supply Charges concerning the transfer of Certificates of Entitlement. 
Holders of Certificates of Entitlement are exempted from the payment of 
water charges until such Certificates are transferred. The amendments 
would 1) define ``transfer''; 2) delete two categories of exemptions 
from the existing general rule that terminates Certificates of 
Entitlement upon transfer and 3) revise a third such category.

DATES: The public hearing will be held on October 26, 1994 at 3:00 p.m. 
Persons wishing to testify are requested to register with the Secretary 
in advance.

ADDRESSES: The hearing will be held in the Goddard Conference Room of 
the Commission's offices at 25 State Police Drive, West Trenton, New 
Jersey. Written comments should be submitted to Susan M. Weisman, 
Delaware River Basin Commission, P. O. Box 7360, West Trenton, New 
Jersey 08628.

FOR FURTHER INFORMATION CONTACT: Susan M. Weisman, Commission 
Secretary, Telephone (609) 883-9500 ext. 203.

SUPPLEMENTARY INFORMATION:

Background

    The regulations of the Delaware River Basin Commission require, 
upon transfer, the termination of certificates of entitlement which 
permit the withdrawal of water from the basin without charge. The U.S. 
Court of Appeals for the Third Circuit has confirmed the Commission's 
power under its Compact to terminate certificates of entitlement when a 
transfer has occurred. The court also ruled that the Commission's 
interpretation of its existing regulation that limited the extent to 
which certain transfers were exempt from termination was not consistent 
with the specific wording of the regulations.
    Pursuant to the court ruling, the Commission proposes to amend its 
Basin Regulations--Water Supply Charges, so that transfer exceptions 
are consistent with existing Commission policy to terminate 
certificates of entitlement when a transfer of ownership and/or control 
of a water using facility occurs.
    The amendments inter alia define a transfer to include the sale of 
corporate stock. They also delete existing exceptions to the transfer 
rule for corporate merger transactions and certain transactions under 
the Internal Revenue Code.
    The subject of the hearing will be as follows: Amendments to the 
Comprehensive Plan and Basin Regulations--Water Supply Charges.

List of Subjects in 18 CFR Part 420

    Water supply policy.
    Part 420 is proposed to be amended as follows:

PART 420--[AMENDED]

    1. The Authority citation for Part 420 continues to read as 
follows:

    Authority: Pub. L. 87-328 [75 Stat.688].

    2. In section 420.31 paragraphs (d) and (f) are revised to read as 
follows:
* * * * *
    (d) A certificate of entitlement is not transferable, except as 
provided in paragraphs (e) and (f) of this section. For the purposes of 
this section, ``transfer'' shall mean any sale or other conveyance by a 
holder of a certificate of entitlement involving a specific facility 
and shall include any transfer which results in a change of ownership 
and/or control of the facility or of the stock, or other indicia of 
ownership of a corporation which holds title to the facility.
* * * * *
    (f) A certificate of entitlement may be transferred in connection 
with a corporate reorganization within any of the following categories:
    (1) Whenever property is transferred to a corporation by one or 
more persons solely in exchange for stock or securities of the same 
corporation, provided that immediately after the exchange the same 
person or persons are in control of the transferee corporation; that 
is, they own 80 percent of the voting stock and 80 percent of all other 
stock of the corporation.
    (2) Where such transfer is merely a result of a change of the name, 
identity, internal corporate structure or place of organization of a 
corporate holder of a certificate of entitlement and does not affect 
ownership and/or control.

Delaware River Basin Compact, 75 Stat. 688.

    Dated: July 29, 1994.
Susan M. Weisman,
Secretary.
[FR Doc. 94-19083 Filed 8-4-94; 8:45 am]
BILLING CODE 6360-01-P