skip to page content
Secretary of Labor Thomas E. Perez
     DOL Home > Federal Register > Notices > EBSA
EBSA Notices

Grant of Individual Exemptions; Hanson Operating Company, et al.   [7/16/1999]
[PDF]
WAIS Document Retrieval
[Federal Register: July 16, 1999 (Volume 64, Number 136)]
[Notices]               
[Page 38480-38481]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16jy99-118]                         

-----------------------------------------------------------------------

DEPARTMENT OF LABOR

Pension and Welfare Benefits Administration
[Prohibited Transaction Exemption 99-26; Exemption Application No. D-
10702, et al.]

 
Grant of Individual Exemptions; Hanson Operating Company, et al.

AGENCY: Pension and Welfare Benefits Administration, Labor.

ACTION: Grant of Individual Exemptions.

-----------------------------------------------------------------------

SUMMARY: This document contains exemptions issued by the Department of 
Labor (the Department) from certain of the prohibited transaction 
restrictions of the Employee Retirement Income Security Act of 1974 
(the Act) and/or the Internal Revenue Code of 1986 (the Code).
    Notices were published in the Federal Register of the pendency 
before the Department of proposals to grant such exemptions. The 
notices set forth a summary of facts and representations contained in 
each application for exemption and referred interested persons to the 
respective applications for a complete statement of the facts and 
representations. The applications have been available for public 
inspection at the Department in Washington, DC. The notices also 
invited interested persons to submit comments on the requested 
exemptions to the Department. In addition the notices stated that any 
interested person might submit a written request that a public hearing 
be held (where appropriate). The applicants have represented that they 
have complied with the requirements of the notification to interested 
persons. No public comments and no requests for a hearing, unless 
otherwise stated, were received by the Department.
    The notices of proposed exemption were issued and the exemptions 
are being granted solely by the Department because, effective December 
31, 1978, section 102 of Reorganization Plan No. 4 of 1978 (43 FR 
47713, October 17, 1978) transferred the authority of the Secretary of 
the Treasury to issue exemptions of the type proposed to the Secretary 
of Labor.

Statutory Findings

    In accordance with section 408(a) of the Act and/or section 
4975(c)(2) of the Code and the procedures set forth in 29 CFR Part 
2570, Subpart B (55 FR 32836, 32847, August 10, 1990) and based upon 
the entire record, the Department makes the following findings:
    (a) The exemptions are administratively feasible;
    (b) They are in the interests of the plans and their participants 
and beneficiaries; and
    (c) They are protective of the rights of the participants and 
beneficiaries of the plans.

Hanson Operating Company, Inc., Defined Benefit Pension Plan (the 
Plan), Located in Roswell, New Mexico

[Prohibited Transaction Exemption 99-26; Exemption Application No. D-
10702]

Exemption

    The restrictions of sections 406(a), 406(b)(1) and (b)(2) of the 
Act and the sanctions resulting from the application of section 4975 of 
the Code, by reason of section 4975(c)(1)(A) through (E) of the Code, 
shall not apply to the proposed sale by the Plan of certain closely-
held stock (the Stock) to Douglas L. McBride and Basil R. Willis, 
parties in interest with respect to the Plan, provided that the 
following conditions are satisfied: (a) The sale is a one-time 
transaction for cash; (b) the Plan pays no commissions nor other 
expenses relating to the sale; and (c) the Plan receives an amount that 
is no less than the fair market value of the Stock as of

[[Page 38481]]

the date of the sale, as determined by a qualified, independent 
appraiser.
    For a more complete statement of the facts and representations 
supporting the Department's decision to grant this exemption, refer to 
the notice of proposed exemption published on April 22, 1999 at 64 FR 
19815.

Written Comments

    The Department received no written comments or requests for a 
public hearing with respect to the notice of proposed exemption (the 
Notice). However, the applicants informed the Department that they 
inadvertently failed to inform interested persons of the deadline for 
making written comments or requests for a public hearing with respect 
to the Notice, which was provided by personal delivery. The applicants 
state that, therefore, an additional memorandum extending the comment 
period to June 20, 1999 was circulated by personal delivery to all 
interested persons.
    The Department believes that the required procedure for notifying 
interested persons was satisfied. Accordingly, based upon the 
information contained in the entire record, the Department has 
determined to grant the exemption as proposed.

FOR FURTHER INFORMATION CONTACT: Ms. Karin Weng of the Department, 
telephone (202) 219-8881. (This is not a toll-free number.)

Western Petroleum Company Profit Sharing Plan (the Plan), Located 
in Eden Prairie, Minnesota

[Prohibited Transaction Exemption 99-27; Exemption Application No. D-
10743]

Exemption

    The restrictions of sections 406(a), 406(b)(1) and (b)(2) of the 
Act and the sanctions resulting from the application of section 4975 of 
the Code, by reason of section 4975(c)(1)(A) through (E) of the Code, 
shall not apply to the proposed sale by the individual account (the 
Account) of James W. Emison in the Plan of certain closely-held stock 
(the Stock) to Mr. Emison, a party in interest with respect to the 
Plan, provided that the following conditions are satisfied: (a) the 
sale is a one-time transaction for cash; (b) the Account pays no 
commissions nor other expenses relating to the sale; and (c) the 
Account receives an amount that is no less than the fair market value 
of the Stock as of the date of the sale, as determined by a qualified, 
independent appraiser.
    For a more complete statement of the facts and representations 
supporting the Department's decision to grant this exemption, refer to 
the notice of proposed exemption published on May 27, 1999 at 64 FR 
28836.

FOR FURTHER INFORMATION CONTACT: Ms. Karin Weng of the Department, 
telephone (202) 219-8881. (This is not a toll-free number.)

Gaetano Lombardo Individual Retirement Account (the IRA), Located 
in St. Louis, Missouri

[Prohibited Transaction Exemption 99-28; Exemption Application No. D-
10749]

Exemption

    The sanctions resulting from the application of section 4975 of the 
Code, by reason of section 4975(c)(1)(A) through (E) of the the Code, 
shall not apply to the proposed sale by the IRA of 26,306 shares of 
stock (the Stock) of Courtesy Manufacturing Company (Courtsey) to 
Courtesy, a disqualified person with respect to the IRA, provided that 
the following conditions are satisfied: (1) The sale of Stock by the 
IRA is a one-time transaction for cash; (2) no commissions or other 
expenses are paid by the IRA in connection with the sale; and (3) the 
IRA receives the greater of: (a) The fair market value of the Stock as 
determined by a qualified independent appraiser as of October 31, 1998, 
or (b) the fair market value of the Stock as of the time of the sale. 
\1\
---------------------------------------------------------------------------

    \1\ Pursuant to 29 CFR 2510.3-2(d), the IRA is not within the 
jurisdiction of Title I of the Act. However, there is jurisdiction 
under Title II of the Act pursuant to section 4975 of the Code.
---------------------------------------------------------------------------

    For a more complete statement of the facts and representations 
supporting the Department's decision to grant this exemption refer to 
the notice of proposed exemption published on June 3, 1999.

FOR FURTHER INFORMATION CONTACT: Gary H. Lefkowitz of the Department, 
telephone (202) 219-8881. (This is not a toll-free number.)

General Information

    The attention of interested persons is directed to the following:
    (1) The fact that a transaction is the subject of an exemption 
under section 408(a) of the Act and/or section 4975(c)(2) of the Code 
does not relieve a fiduciary or other party in interest or disqualified 
person from certain other provisions to which the exemptions does not 
apply and the general fiduciary responsibility provisions of section 
404 of the Act, which among other things require a fiduciary to 
discharge his duties respecting the plan solely in the interest of the 
participants and beneficiaries of the plan and in a prudent fashion in 
accordance with section 404(a)(1)(B) of the Act; nor does it affect the 
requirement of section 401(a) of the Code that the plan must operate 
for the exclusive benefit of the employees of the employer maintaining 
the plan and their beneficiaries;
    (2) These exemptions are supplemental to and not in derogation of, 
any other provisions of the Act and/or the Code, including statutory or 
administrative exemptions and transactional rules. Furthermore, the 
fact that a transaction is subject to an administrative or statutory 
exemption is not dispositive of whether the transaction is in fact a 
prohibited transaction; and
    (3) The availability of these exemptions is subject to the express 
condition that the material facts and representations contained in each 
application are true and complete and accurately describe all material 
terms of the transaction which is the subject of the exemption. In the 
case of continuing exemption transactions, if any of the material facts 
or representations described in the application change after the 
exemption is granted, the exemption will cease to apply as of the date 
of such change. In the event of any such change, application for a new 
exemption may be made to the Department.

    Signed at Washington, DC, this 12th day of July, 1999.
Ivan Strasfeld,
Director of Exemption Determinations, Pension and Welfare Benefits, 
Administration, Department of Labor.
[FR Doc. 99-18122 Filed 7-15-99; 8:45 am]
BILLING CODE 4510-29-M