The size of a data set is limited to 65,535 tracks per volume except for
the following types of data sets: - Hierarchical File System (HFS) - Extended format sequential - Partitioned data set extended (PDSE) - VSAM - Large format
-----

There is also LBI (Large Block Interface), and if this bit is turned on
(in the Format 1 DSCB?), then it may also exceed the 65,535 (64K) Track
limitation.
You copied it slightly wrong.  the last line should be
  - VSAM
 - Large Format

the last one is the key. In z/OS 1.7, they introduced Large Format sequential datasets, which work even on non-SMS volumes. You request with DSNTYPE=LARGE in JCL or the data class. In this format, a normal sequential dataset can exceed 65,535 tracks on a volume, up to the volume size. Some things, like NOTE and POINT are affected but most programs don't use them. I imagine that this is what you meant by LBI, which is actually something quite different (large blocks on TAPE, nothing to do with disk).
--
Bruce Black
Senior Software Developer
Innovation Data Processing

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