Federal Register / Vol. 69, No. 191 / Monday, October 4, 2004 / Rules and Regulations 59129

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration 

14 CFR Part 71

[Docket No. FAA–2004–18826; Airspace 

Docket No. 04–ACE–52] 

Modification of Class E Airspace; 

Lamar, MO

AGENCY: Federal Aviation 

Administration (FAA), DOT.

ACTION: Direct final rule; request for 

comments. 

SUMMARY: This action amends title 14 

Code of Federal Regulations, part 71 (14 

CFR 71) by revising Class E airspace at 

Lamar, MO. A review of the Class E 

airspace area extending upward from 

700 feet above the surface at Lamar, MO 

revealed it does not reflect the current 

Lamar Municipal Airport airport 

reference point (ARP) and is not in 

compliance with established airspace 

criteria. This airspace area is enlarged 

and modified to conform to FAA 

Orders.

DATES: This direct final rule is effective 

on 0901 UTC, January 20, 2005. 

Comments for inclusion in the Rules 

Docket must be received on or before 

November 9, 2004.

ADDRESSES: Send comments on this 

proposal to the Docket Management 

System, U.S. Department of 

Transportation, Room Plaza 401, 400 

Seventh Street, SW., Washington, DC 

20590–0001. You must identify the 

docket number FAA–2004–18826/

Airspace Docket No. 04–ACE–52, at the 

beginning of your comments. You may 

also submit comments on the Internet at 

http://dms.dot.gov. You may review the 

public docket containing the proposal, 

any comments received, and any final 

disposition in person in the Dockets 

Office between 9 a.m. and 6 p.m., 

Monday through Friday, except Federal 

holidays. The Docket Office (telephone 

1–800–647–5527) is on the plaza level 

of the Department of Transportation 

NASSIF Building at the above address.

FOR FURTHER INFORMATION CONTACT:

Brenda Mumper, Air Traffic Division, 

Airspace Branch, ACE–520A, DOT 

Regional Headquarters Building, Federal 

Aviation Administration, 901 Locust 

Kansas City, MO 64106; telephone: 

(816) 329–2524.

SUPPLEMENTARY INFORMATION: This 

amendment to 14 CFR part 71 modifies 

the Class E airspace area extending 

upward from 700 feet above the surface 

at Lamar, MO. An examination of 

controlled airspace for Lamar, MO 

revealed that the Lamar Municipal 

Airport ARP used in the legal 

description for this Class E airspace area 

is incorrect and that the airspace area 

does not comply with airspace 

requirements for diverse departures as 

set forth in FAA Order 7400.2E, 

Procedures for Handling Airspace 

Matters. The examination also identified 

that the dimensions of the extension to 

the Class E airspace area are not in 

compliance with FAA Order 8260.19C, 

Flight Procedures and Airspace. This 

action expands the Lamar, MO Class E 

airspace area extending upward from 

700 feet above the surface from a 6-mile 

radius to a 6.3-mile radius of Lamar 

Municipal Airport, corrects the ARP in 

the legal description, decreases the 

length and width of the extension from 

7.4 to 7 miles and from 2.6 to 2.5 miles 

respectively and brings the legal 

description of the airspace area into 

compliance with FAA Orders 7400.2E 

and 8260.19C. This area will be 

depicted on appropriate aeronautical 

charts. Class E airspace areas extending 

upward from 700 feet or more above the 

surface of the earth are published in 

paragraph 6005 of FAA Order 7400.9M, 

Airspace Designations and Reporting 

Points, dated August 30, 2004, and 

effective September 16, 2004, which is 

incorporated by reference in 14 CFR 

71.1. The Class E airspace designation 

listed in this document will be 

published subsequently in the Order. 

The Direct Final Rule Procedure 

The FAA anticipates that this 

regulation will not result in adverse or 

negative comment and, therefore, is 

issuing it as a direct final rule. Previous 

actions of this nature have not been 

controversial and have not resulted in 

adverse comments or objections. Unless 

a written adverse or negative, comment, 

or a written notice of intent to submit 

an adverse or negative comment is 

received within the comment period, 

the regulation will become effective on 

the date specified above. After the close 

of the comment period, the FAA will 

publish a document in the Federal 

Register indicating that no adverse or 

negative comments were received and 

confirming the date on which the final 

rule will become effective. If the FAA 

does receive, within the comment 

period, an adverse or negative comment, 

or written notice of intent to submit 

such a comment, a document 

withdrawing the direct final rule will be 

published in the Federal Register, and 

a notice of proposed rulemaking may be 

published with a new comment period. 

Comments Invited 

Interested parties are invited to 

participate in this rulemaking by 

submitting such written data, views, or 

arguments, as they may desire. 

Comments that provide the factual basis 

supporting the views and suggestions 

presented are particularly helpful in 

developing reasoned regulatory 

decisions on the proposal. Comments 

are specifically invited on the overall 

regulatory, aeronautical, economic, 

environmental, and energy-related 

aspects of the proposal. 

Communications should identify both 

docket numbers and be submitted in 

triplicate to the address listed above. 

Commenters wishing the FAA to 

acknowledge receipt of their comments 

on this notice must submit with those 

comments a self-addressed, stamped 

postcard on which the following 

statement is made: ‘‘Comments to 

Docket No. FAA–2004–18826/Airspace 

Docket No. 04–ACE–52.’’ The postcard 

will be date/time stamped and returned 

to the commenter. 

Agency Findings 

The regulations adopted herein will 

not have a substantial direct effect on 

the States, on the relationship between 

the national Government and the States, 

or on the distribution of power and 

responsibilities among the various 

levels of government. Therefore, it is 

determined that this final rule does not 

have federalism implications under 

Executive Order 13132. 

The FAA has determined that this 

regulation is noncontroversial and 

unlikely to result in adverse or negative 

comments. For the reasons discussed in 

the preamble, I certify that this 

regulation (1) is not a ‘‘significant 

regulatory action’’ under Executive 

Order 12866; (2) is not a ‘‘significant 

rule’’ under Department of 

Transportation (DOT) Regulatory 

Policies and Procedures (44 FR 11034, 

February 26, 1979); and (3) if 

promulgated, will not have a significant 

economic impact, positive or negative, 

on a substantial number of small entities 

under the criteria of the Regulatory 

Flexibility Act.

List of Subjects in 14 CFR Part 71

Airspace, Incorporated by reference, 

Navigation (air)

Adoption of the Amendment

■ Accordingly, the Federal Aviation 

Administration amends 14 CFR part 71 

as follows:

59130 Federal Register / Vol. 69, No. 191 / Monday, October 4, 2004 / Rules and Regulations 

1Statement of Financial Accounting Standards 

No. 143 (Statement 143), Accounting for Asset 

Retirement Obligations, is effective for financial 

statements issued for fiscal years beginning after 

June 15, 2002.

2 If an obligation for expected asset retirement 

costs has not been accrued under Statement 143 for 

certain asset retirement costs required to be 

included in the full cost ceiling calculation under 

Rule 4–10(c)(4), such costs should continue to be 

included in the full cost ceiling calculation. 3This approach is consistent with the guidance 

in paragraph 12 of Statement 143 on testing for 

impairment under Statement of Financial 

Accounting Standards No. 144, Accounting for the 

Impairment or Disposal of Long-Lived Assets. 

Under that guidance, the asset tested should 

include capitalized asset retirement costs. The 

estimated cash flows related to the associated ARO 

that has been recognized in the financial statements 

are to be excluded from both the undiscounted cash 

flows used to test for recoverability and the 

discounted cash flows used to measure the asset’s 

fair value.

PART 71—DESIGNATION OF CLASS A, 

CLASS B, CLASS C, CLASS D, AND 

CLASS E AIRSPACE AREAS; 

AIRWAYS; ROUTES; AND REPORTING 

POINTS

■ 1. The authority citation for part 71 

continues to read as follows:

Authority: 49 U.S.C. 106(g), 40103, 40113, 

40120; E.O. 10854, 24 FR 9565, 3 CFR 1959–

1963 Comp., p. 389.

§ 71.1 [Amended]

■ 2. The incorporation by reference in 14 

CFR 71.1 of Federal Aviation 

Administration Order 7400.9M, dated 

August 30, 2004, and effective 

September 16, 2004, is amended as 

follows:

* * * * *

Paragraph 6005 Class E airspace areas 

extending upward from 700 feet or more 

above the surface of the earth.

* * * * *

ACE MO E5 Lamar, MO 

Lamar Municipal Airport, MO 

(Lat. 37°29′22′′ N., long. 94°18′41′′ W.) 

Spring River NDB 

(Lat. 37°29′13′′ N., long. 94°18′37′′ W.)

That airspace extending upward from 700 

feet above the surface within a 6.3-mile 

radius of Lamar Municipal Airport and 

within 2.5 miles each side of the 221° bearing 

from the Spring River NDB extending from 

the 6.3-mile radius of the airport to 7 miles 

southwest of the NDB.

* * * * *

Dated: Issued in Kansas City, MO on 

September 21, 2004. 

Elizabeth S. Wallis, 

Acting Manager, Air Traffic Division, Central 

Region.

[FR Doc. 04–22278 Filed 10–1–04; 8:45 am] 

BILLING CODE 4910–13–M

SECURITIES AND EXCHANGE 

COMMISSION 

17 CFR Part 211 

[Release No. SAB 106] 

Staff Accounting Bulletin No. 106

AGENCY: Securities and Exchange 

Commission.

ACTION: Publication of staff accounting 

bulletin. 

SUMMARY: The interpretations in this 

staff accounting bulletin express the 

staff’s views regarding the application of 

FASB Statement No. 143, Accounting 

for Asset Retirement Obligations, by oil 

and gas producing companies following 

the full cost accounting method.

DATES: Effective September 28, 2004.

FOR FURTHER INFORMATION CONTACT:

Cathy J. Cole or John W. Albert, Office 

of the Chief Accountant (202) 942–4400 

or Leslie A. Overton, Division of 

Corporation Finance (202) 942–2960, 

Securities and Exchange Commission, 

450 Fifth Street, NW., Washington, DC 

20549–1103.

SUPPLEMENTARY INFORMATION: The 

statements in staff accounting bulletins 

are not rules or interpretations of the 

Commission, nor are they published as 

bearing the Commission’s official 

approval. They represent interpretations 

and practices followed by the Division 

of Corporation Finance and the Office of 

the Chief Accountant in administering 

the disclosure requirements of the 

Federal securities laws.

Dated: September 28, 2004. 

Margaret H. McFarland, 

Deputy Secretary.

PART 211—[AMENDED]

■ Accordingly, part 211 of title 17 of the 

Code of Federal Regulations is amended 

by adding Staff Accounting Bulletin No. 

106 to the table found in subpart B.

Note: The text of SAB 106 will not appear 

in the Code of Federal Regulations.

Staff Accounting Bulletin No. 106 

The staff hereby adds Section 4 to 

Topic 12–D of the staff accounting 

bulletin series. Topic 12–D.4 provides 

guidance regarding the interaction of 

Statement of Financial Accounting 

Standards No. 143, Accounting for Asset 

Retirement Obligations, with the full 

cost accounting rules in Article 4–10 of 

Regulation S–X.

Topic 12: Oil and Gas Producing 

Activities

* * * * *

D. Application of Full Cost Method of 

Accounting

* * * * *

4. Interaction of Statement 143 1 and the 

Full Cost Rules

a. Impact of Statement 143 on the Full 

Cost Ceiling Test 

Facts: A company following the full 

cost method of accounting under Rule 

4–10(c) of Regulation S–X must 

periodically calculate a limitation on 

capitalized costs, i.e., the full cost 

ceiling. Prior to adopting Statement 143, 

in calculating the full cost ceiling a 

company reduced the expected future 

revenues from proved oil and gas 

reserves by the estimated future 

expenditures to be incurred in 

developing and producing such reserves 

discounted using a factor specified in 

the rule. While expected future cash 

flows related to the asset retirement 

obligation (ARO) were included in the 

calculation of the ceiling test, no 

associated asset was recorded. Under 

Statement 143, a company must 

recognize a liability for an asset 

retirement obligation at fair value in the 

period in which the obligation is 

incurred, if a reasonable estimate of fair 

value can be made. The company also 

must initially capitalize the associated 

asset retirement costs by increasing 

long-lived oil and gas assets by the same 

amount as the liability. Any asset 

retirement costs capitalized pursuant to 

Statement 143 are subject to the full cost 

ceiling limitation under Rule 4–10(c)(4) 

of Regulation S–X. If after adoption of 

Statement 143, a company were to 

continue calculating the full cost ceiling 

by reducing expected future net 

revenues by the cash flows required to 

settle the ARO, then the effect would be 

to ‘‘double-count’’ such costs in the 

ceiling test. The assets that must be 

recovered would be increased while the 

future net revenues available to recover 

the assets continue to be reduced by the 

amount of the ARO settlement cash 

flows. 

Question 1: After adopting Statement 

143, how should a company compute 

the full cost ceiling to avoid doublecounting the expected future cash 

outflows associated with asset 

retirement costs? 

Interpretive Response: After adoption 

of Statement 143, the future cash 

outflows associated with settling AROs 

that have been accrued on the balance 

sheet should be excluded from the 

computation of the present value of 

estimated future net revenues for 

purposes of the full cost ceiling 

calculation.2 3

Question 2: What disclosures should 

the company provide on the interaction 

of Statement 143 and the full cost rules? 

Interpretive Response: In order to 

inform financial statement users on the 

interaction of Statement 143 and the full 

cost rules, a company following such 

rules is expected to provide appropriate 

disclosures in the financial statement 

footnotes and Management’s Discussion 

and Analysis explaining in detail how