Federal Register / Vol. 69, No. 203 / Thursday, October 21, 2004 / Rules and Regulations 61755

Done in Washington, DC, this 14th day of 

October 2004. 

Bill Hawks, 

Under Secretary for Marketing and Regulatory 

Programs.

[FR Doc. 04–23416 Filed 10–20–04; 8:45 am] 

BILLING CODE 3410–34–P

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service 

7 CFR Part 985 

[Docket No. FV04–985–2 IFR] 

Marketing Order Regulating the 

Handling of Spearmint Oil Produced in 

the Far West; Revision of the Salable 

Quantity and Allotment Percentage for 

Class 3 (Native) Spearmint Oil for the 

2004–2005 Marketing Year

AGENCY: Agricultural Marketing Service, 

USDA.

ACTION: Interim final rule with request 

for comments. 

SUMMARY: This rule revises the quantity 

of Class 3 (Native) spearmint oil 

produced in the Far West that handlers 

may purchase from, or handle for, 

producers during the 2004–2005 

marketing year by increasing the salable 

quantity from 773,474 pounds to 

1,095,689 pounds, and the allotment 

percentage from 36 percent to 51 

percent. The Spearmint Oil 

Administrative Committee (Committee), 

the agency responsible for local 

administration of the marketing order 

for spearmint oil produced in the Far 

West, unanimously recommended this 

rule to avoid extreme fluctuations in 

supplies and prices and to help 

maintain stability in the Far West 

spearmint oil market.

DATES: Effective June 1, 2004, through 

May 31, 2005; comments received by 

December 20, 2004 will be considered 

prior to issuance of a final rule.

ADDRESSES: Interested persons are 

invited to submit written comments 

concerning this rule. Comments must be 

sent to the Docket Clerk, Marketing 

Order Administration Branch, Fruit and 

Vegetable Programs, AMS, USDA, 1400 

Independence Avenue SW., STOP 0237, 

Washington, DC 20250–0237; Fax: (202) 

720–8938; E-mail: 

moab.docketclerk@usda.gov; or Internet: 

http://www.regulations.gov. All 

comments should reference the docket 

number and the date and page number 

of this issue of the Federal Register and 

will be made available for public 

inspection in the Office of the Docket 

Clerk during regular business hours, or 

can be viewed at: http://

www.ams.usda.gov/fv/moab.html.

FOR FURTHER INFORMATION CONTACT:

Susan M. Hiller, Northwest Marketing 

Field Office, Marketing Order 

Administration Branch, Fruit and 

Vegetable Programs, AMS, USDA, 1220 

SW. Third Avenue, suite 385, Portland, 

Oregon 97204; telephone: (503) 326–

2724, Fax: (503) 326–7440; or George 

Kelhart, Technical Advisor, Marketing 

Order Administration Branch, Fruit and 

Vegetable Programs, AMS, USDA, 1400 

Independence Avenue SW., STOP 0237, 

Washington, DC 20250–0237; telephone: 

(202) 720–2491, Fax: (202) 720–8938.

Small businesses may request 

information on complying with this 

regulation by contacting Jay Guerber, 

Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA, 1400 Independence 

Avenue SW., STOP 0237, Washington, 

DC 20250–0237; telephone: (202) 720–

2491, Fax: (202) 720–8938, or E-mail: 

Jay.Guerber@usda.gov.

SUPPLEMENTARY INFORMATION: This rule 

is issued under Marketing Order No. 

985, as amended (7 CFR part 985), 

regulating the handling of spearmint oil 

produced in the Far West (Washington, 

Idaho, Oregon, and designated parts of 

Nevada and Utah), hereinafter referred 

to as the ‘‘order.’’ The order is effective 

under the Agricultural Marketing 

Agreement Act of 1937, as amended (7 

U.S.C. 601–674), hereinafter referred to 

as the ‘‘Act.’’

The Department of Agriculture 

(USDA) is issuing this rule in 

conformance with Executive Order 

12866. 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. This rule is not intended to 

have retroactive effect. This rule will 

not preempt any State or local laws, 

regulations, or policies, unless they 

present an irreconcilable conflict with 

this rule. 

The Act provides that administrative 

proceedings must be exhausted before 

parties may file suit in court. Under 

section 608c(15)(A) of the Act, any 

handler subject to an order may file 

with USDA a petition stating that the 

order, any provision of the order, or any 

obligation imposed in connection with 

the order is not in accordance with law 

and request a modification of the order 

or to be exempted therefrom. A handler 

is afforded the opportunity for a hearing 

on the petition. After the hearing USDA 

would rule on the petition. The Act 

provides that the district court of the 

United States in any district in which 

the handler is an inhabitant, or has his 

or her principal place of business, has 

jurisdiction to review USDA’s ruling on 

the petition, provided an action is filed 

not later than 20 days after the date of 

the entry of the ruling. 

This rule revises the quantity of 

Native spearmint oil that handlers may 

purchase from, or handle for, producers 

during the 2004–2005 marketing year, 

which ends on May 31, 2005. 

Specifically, this rule increases the 

salable quantity from 773,474 pounds to 

1,095,689 pounds, and the allotment 

percentage from 36 percent to 51 

percent for Native spearmint oil for the 

2004–2005 marketing year. 

The salable quantity is the total 

quantity of each class of oil that 

handlers may purchase from, or handle 

for, producers during a marketing year. 

The total salable quantity is divided by 

the total industry allotment base to 

determine an allotment percentage. 

Each producer is allotted a share of the 

salable quantity by applying the 

allotment percentage to the producer’s 

individual allotment base for the 

applicable class of spearmint oil. 

The initial salable quantity and 

allotment percentages for Scotch and 

Native spearmint oils for the 2004–2005 

marketing year were recommended by 

the Committee at its October 8, 2003, 

meeting. The Committee recommended 

salable quantities of 766,880 pounds 

and 773,474 pounds, and allotment 

percentages of 40 percent and 36 

percent, respectively, for Scotch and 

Native spearmint oils. A proposed rule 

was published in the Federal Register

on January 23, 2004 (69 FR 3272). 

Comments on the proposed rule were 

solicited from interested persons until 

February 23, 2004. No comments were 

received. Subsequently, a final rule 

establishing the salable quantities and 

allotment percentages for Scotch and 

Native spearmint oils for the 2004–2005 

marketing year was published in the 

Federal Register on March 22, 2004 (69 

FR 13213). 

Pursuant to authority contained in 

§§ 985.50, 985.51, and 985.52 of the 

order, at its September 13, 2004, 

meeting, the Committee unanimously 

recommended that the allotment 

percentage for Native spearmint oil for 

the 2004–2005 marketing year be 

increased by 12 percent from 36 percent 

to 48 percent. The Committee held 

another meeting on October 6, 2004, 

where, based on an unanticipated 

increase in demand, they unanimously 

recommended that the allotment 

percentage for Native spearmint oil for 

the 2004–2005 marketing year be 

increased by an additional 3 percent 

from 48 percent to 51 percent. Taking 

into consideration the following 

discussion on adjustments to the Native 

61756 Federal Register / Vol. 69, No. 203 / Thursday, October 21, 2004 / Rules and Regulations 

spearmint oil salable quantity, the 

2004–2005 marketing year salable 

quantity of 773,474 pounds will 

therefore be increased to 1,095,689 

pounds.

The original total industry allotment 

base for Native spearmint oil for the 

2004–2005 marketing year was 

established at 2,148,539 pounds and 

was revised at the beginning of the 

2004–2005 marketing year to 2,148,410 

pounds to reflect a 2003–2004 

marketing year loss of 129 pounds of 

base due to non-production of some 

producers’ total annual allotments. 

When the revised total allotment base of 

2,148,410 pounds is applied to the 

originally established allotment 

percentage of 36 percent, the 2004–2005 

marketing year salable quantity of 

773,474 pounds is effectively modified 

to 773,428 pounds. 

By increasing the salable quantity and 

allotment percentage, this rule makes an 

additional amount of Native spearmint 

oil available by releasing oil from the 

reserve pool. When applied to each 

individual producer, the 15 percent 

allotment percentage increase allows 

each producer to take up to an amount 

equal to 15 percent of their allotment 

base from their Native spearmint oil 

reserve. Before November 1, 2004, a 

producer may also transfer excess oil to 

another producer to enable that 

producer to fill a deficiency in that 

producer’s annual allotment. After 

November 1, 2004, if a producer does 

not have any reserve pool oil, or has less 

than 15 percent of their allotment base 

in the reserve pool, the increase in 

allotment percentage will actually make 

less than such amount available to the 

market. 

The following table summarizes the 

Committee recommendation: 

Native Spearmint Oil Recommendation 

(A) Estimated 2004–2005 Allotment 

Base—2,148,539 pounds. This is the 

estimate that the original 2004–2005 

Native spearmint oil salable quantity 

and allotment percentage was based on. 

(B) Revised 2004–2005 Allotment 

Base—2,148,410 pounds. This is 129 

pounds less than the estimated 

allotment base of 2,148,539 pounds. 

This is less because some producers 

failed to produce all of their previous 

year’s allotment. 

(C) Initial 2004–2005 Allotment 

Percentage—36 percent.

(D) Initial 2004–2005 Salable 

Quantity—773,474. This figure is 36 

percent of 2,148,539 pounds. 

(E) Initial Adjustment to the 2004–

2005 Salable Quantity—773,428 

pounds. This figure reflects the salable 

quantity initially available after the 

beginning of the 2004–2005 marketing 

year due to the 129 pound reduction in 

the industry allotment base to 2,148,410 

pounds. 

(F) Increase in Allotment 

Percentage—15 percent. The Committee 

recommended a 12 percent increase at 

its September 13, 2004, meeting and an 

additional 3 percent increase at its 

October 6, 2004, meeting, for a total 

increase of 15 percent. 

(G) Revised 2004–2005 Allotment 

Percentage—51 percent. This figure is 

derived by adding the 15 percent 

increase to the initial 2004–2005 

allotment percentage of 36 percent. 

(H) Calculated Revised 2004–2005 

Salable Quantity—1,095,689 pounds. 

This figure is 51 percent of the revised 

2004–2005 allotment base of 2,148,410 

pounds. 

(I) Computed Increase in the 2004–

2005 Salable Quantity—322,262 

pounds. This figure is 15 percent of the 

revised 2004–2005 allotment base of 

2,148,410 pounds. 

In making this recommendation, the 

Committee considered all available 

information on price, supply, and 

demand. The Committee also 

considered reports and other 

information from handlers and 

producers in attendance at the meetings 

and reports given by the Committee 

manager from handlers who were not in 

attendance. The 2004–2005 marketing 

year began on June 1, 2004. Handlers 

have reported purchases of 602,895 

pounds of Native spearmint oil for the 

period of June 1, 2004, through 

September 30, 2004. This amount 

exceeds the five-year average of 553,067 

pounds for this period by 49,828 

pounds. On average, handlers indicated 

that the estimated total demand for the 

2004–2005 marketing year could be 

1,105,000 pounds. This amount exceeds 

the five-year average for an entire 

marketing year of 973,456 pounds by 

131,544 pounds. Therefore, based on 

past history, the industry may not be 

able to meet market demand without 

this increase. When the Committee 

made its initial recommendation for the 

establishment of the Native spearmint 

oil salable quantity and allotment 

percentage for the 2004–2005 marketing 

year, it had anticipated that the year 

would end with an ample available 

supply. 

Based on its analysis of available 

information, USDA has determined that 

the salable quantity and allotment 

percentage for Native spearmint oil for 

the 2004–2005 marketing year should be 

increased to 1,095,689 pounds and 51 

percent, respectively. 

This rule relaxes the regulation of 

Native spearmint oil and will allow for 

market needs and improve producer 

returns. In conjunction with the 

issuance of this rule, the Committee’s 

revised marketing policy statement for 

the 2004–2005 marketing year has been 

reviewed by USDA. The Committee’s 

marketing policy statement, a 

requirement whenever the Committee 

recommends implementing volume 

regulations or recommends revisions to 

existing volume regulations, meets the 

intent of § 985.50 of the order. During its 

discussion of revising the 2004–2005 

salable quantities and allotment 

percentages, the Committee considered: 

(1) The estimated quantity of salable oil 

of each class held by producers and 

handlers; (2) the estimated demand for 

each class of oil; (3) prospective 

production of each class of oil; (4) total 

of allotment bases of each class of oil for 

the current marketing year and the 

estimated total of allotment bases of 

each class for the ensuing marketing 

year; (5) the quantity of reserve oil, by 

class, in storage; (6) producer prices of 

oil, including prices for each class of oil; 

and (7) general market conditions for 

each class of oil, including whether the 

estimated season average price to 

producers is likely to exceed parity. 

Conformity with USDA’s ‘‘Guidelines 

for Fruit, Vegetable, and Specialty Crop 

Marketing Orders’’ has also been 

reviewed and confirmed. 

The increase in the Native spearmint 

oil salable quantity and allotment 

percentage allows for anticipated market 

needs for this class of oil. In 

determining anticipated market needs, 

consideration by the Committee was 

given to historical sales, and changes 

and trends in production and demand.

Initial Regulatory Flexibility Analysis 

Pursuant to requirements set forth in 

the Regulatory Flexibility Act (RFA), the 

Agricultural Marketing Service (AMS) 

has considered the economic impact of 

this action on small entities. 

Accordingly, AMS has prepared this 

initial regulatory flexibility analysis. 

The purpose of the RFA is to fit 

regulatory actions to the scale of 

business subject to such actions in order 

that small businesses will not be unduly 

or disproportionately burdened. 

Marketing orders issued pursuant to the 

Act, and the rules issued thereunder, are 

unique in that they are brought about 

through group action of essentially 

small entities acting on their own 

behalf. Thus, both statutes have small 

entity orientation and compatibility. 

There are approximately 8 handlers of 

spearmint oil who are subject to 

regulation under the marketing order 

and approximately 98 producers of 

Class 3 (Native) spearmint oil in the 

Federal Register / Vol. 69, No. 203 / Thursday, October 21, 2004 / Rules and Regulations 61757

regulated area. Small agricultural 

service firms are defined by the Small 

Business Administration (SBA) (13 CFR 

121.201) as those having annual receipts 

of less than $5,000,000, and small 

agricultural producers are defined as 

those having annual receipts of less than 

$750,000. 

Based on SBA’s definition of small 

entities, the Committee estimates that 2 

of the 8 handlers regulated by the order 

could be considered small entities. Most 

of the handlers are large corporations 

involved in the international trading of 

essential oils and the products of 

essential oils. In addition, the 

Committee estimates that 15 of the 98 

Native spearmint oil producers could be 

classified as small entities under the 

SBA definition. Thus, a majority of 

handlers and producers of Far West 

spearmint oil may not be classified as 

small entities. 

The Far West spearmint oil industry 

is characterized by producers whose 

farming operations generally involve 

more than one commodity, and whose 

income from farming operations is not 

exclusively dependent on the 

production of spearmint oil. A typical 

spearmint oil-producing operation has 

enough acreage for rotation such that 

the total acreage required to produce the 

crop is about one-third spearmint and 

two-thirds rotational crops. Thus, the 

typical spearmint oil producer has to 

have considerably more acreage than is 

planted to spearmint during any given 

season. Crop rotation is an essential 

cultural practice in the production of 

spearmint oil for weed, insect, and 

disease control. To remain economically 

viable with the added costs associated 

with spearmint oil production, most 

spearmint oil-producing farms fall into 

the SBA category of large businesses.

Small spearmint oil producers 

generally are not as extensively 

diversified as larger ones and as such 

are more at risk to market fluctuations. 

Such small producers generally need to 

market their entire annual crop and do 

not have the luxury of having other 

crops to cushion seasons with poor 

spearmint oil returns. Conversely, large 

diversified producers have the potential 

to endure one or more seasons of poor 

spearmint oil markets because income 

from alternate crops could support the 

operation for a period of time. Being 

reasonably assured of a stable price and 

market provides small producing 

entities with the ability to maintain 

proper cash flow and to meet annual 

expenses. Thus, the market and price 

stability provided by the order 

potentially benefit the small producer 

more than such provisions benefit large 

producers. Even though a majority of 

handlers and producers of spearmint oil 

may not be classified as small entities, 

the volume control feature of this order 

has small entity orientation. 

This rule increases the quantity of 

Native spearmint oil that handlers may 

purchase from, or handle for, producers 

during the 2004–2005 marketing year, 

which ends on May 31, 2005. Pursuant 

to authority contained in §§ 985.50, 

985.51, and 985.52 of the order, at its 

September 13, 2004, meeting, the 

Committee unanimously recommended 

that the allotment percentage for Native 

spearmint oil for the 2004–2005 

marketing year be increased by 12 

percent from 36 percent to 48 percent. 

The Committee held another meeting on 

October 6, 2004, where, based on an 

unanticipated increase in demand, they 

unanimously recommended that the 

allotment percentage for Native 

spearmint oil for the 2004–2005 

marketing year be increased by an 

additional 3 percent from 48 percent to 

51 percent. Therefore, the salable 

quantity for Native spearmint oil 

increases from 773,474 pounds to 

1,095,689 pounds for the 2004–2005 

marketing year. 

An econometric model was used to 

assess the impact that volume control 

has on the prices producers receive for 

their commodity. Without volume 

control, spearmint oil markets would 

likely be over-supplied, resulting in low 

producer prices and a large volume of 

oil stored and carried over to the next 

crop year. The model estimates how 

much lower producer prices would 

likely be in the absence of volume 

controls. 

The recommended salable 

percentages, upon which 2004–2005 

producer allotments are based, are 40 

percent for Scotch and 51 percent for 

Native (a 15 percentage point increase 

from the original salable percentage of 

36 percent). Without volume controls, 

producers would not be limited to these 

allotment levels, and could produce and 

sell additional spearmint. The 

econometric model estimated a $1.45 

decline in the season average producer 

price per pound (from both classes of 

spearmint oil) resulting from the higher 

quantities that would be produced and 

marketed if volume controls were not 

used (i.e., if the salable percentages were 

set at 100 percent). 

Loosening the volume control 

restriction (by increasing the Native 

salable percentage from 36 percent to 51 

percent) resulted in this revised price 

decline estimate of $1.45 per pound if 

volume controls were not used. A 

previous price decline estimate of $1.71 

per pound was based on the 2004–2005 

salable percentages (40 percent for 

Scotch and 36 percent for Native) 

published in the Federal Register on 

March 22, 2004 (69 FR 13213). 

The 2003 Far West producer price for 

both classes of spearmint oil was $9.50 

per pound, which is below the average 

of $11.33 for the period of 1980 through 

2002, based on National Agricultural 

Statistics Service data. The surplus 

situation for the spearmint oil market 

that would exist without volume 

controls in 2004–2005 also would likely 

dampen prospects for improved 

producer prices in future years because 

of the buildup in stocks. 

The use of volume controls allows the 

industry to fully supply spearmint oil 

markets while avoiding the negative 

consequences of over-supplying these 

markets. The use of volume controls is 

believed to have little or no effect on 

consumer prices of products containing 

spearmint oil and will not result in 

fewer retail sales of such products. 

Based on projections available at the 

meetings, the Committee considered 

alternatives to the 15 percent increase. 

The Committee not only considered 

leaving the salable quantity and 

allotment percentage unchanged, but 

also looked at various increases ranging 

from 10 percent to 20 percent. The 

Committee reached its recommendation 

to increase the salable quantity and 

allotment percentage for Native 

spearmint oil after careful consideration 

of all available information, and 

believes that the level recommended 

will achieve the objectives sought. 

Without the increase, the Committee 

believes the industry would not be able 

to meet market needs. 

This rule will not impose any 

additional reporting or recordkeeping 

requirements on either small or large 

spearmint oil handlers. As with all 

Federal marketing order programs, 

reports and forms are periodically 

reviewed to reduce information 

requirements and duplication by 

industry and public sector agencies. 

In addition, USDA has not identified 

any relevant Federal rules that 

duplicate, overlap or conflict with this 

rule.

Further, the Committee meetings were 

widely publicized throughout the 

spearmint oil industry and all interested 

persons were invited to attend the 

meetings and participate in Committee 

deliberations. Like all Committee 

meetings, the September 13, 2004, 

meeting and the October 6, 2004, 

meeting were public meetings and all 

entities, both large and small, were able 

to express their views on this issue. 

Finally, interested persons are invited 

to submit information on the regulatory 

61758 Federal Register / Vol. 69, No. 203 / Thursday, October 21, 2004 / Rules and Regulations 

and informational impacts of this action 

on small businesses. 

A small business guide on complying 

with fruit, vegetable, and specialty crop 

marketing agreements and orders may 

be viewed at: http://www.ams.usda.gov/

fv/moab.html. Any questions about the 

compliance guide should be sent to Jay 

Guerber at the previously mentioned 

address in the FOR FURTHER INFORMATION

CONTACT section. 

This rule invites comments on a 

revision to the salable quantity and 

allotment percentage for Native 

spearmint oil for the 2004–2005 

marketing year. A 60-day comment 

period is provided. Any comments 

received will be considered prior to 

finalization of this rule. 

After consideration of all relevant 

material presented, including the 

Committee’s recommendation, and 

other information, it is found that this 

interim final rule, as hereinafter set 

forth, will tend to effectuate the 

declared policy of the Act. 

Pursuant to 5 U.S.C. 553, it is also 

found and determined upon good cause 

that it is impracticable, unnecessary, 

and contrary to the public interest to 

give preliminary notice prior to putting 

this rule into effect and that good cause 

exists for not postponing the effective 

date of this rule until 30 days after 

publication in the Federal Register

because: (1) This rule increases the 

quantity of Native spearmint oil that 

may be marketed during the marketing 

year which ends on May 31, 2005; (2) 

the current quantity of Native spearmint 

oil may be inadequate to meet demand 

for the remainder of the marketing year, 

thus making the additional oil available 

as soon as is practicable is beneficial to 

both handlers and producers; (3) the 

Committee unanimously recommended 

these changes at public meetings and 

interested parties had an opportunity to 

provide input; and (4) this rule provides 

a 60-day comment period and any 

comments received will be considered 

prior to finalization of this rule.

List of Subjects in 7 CFR Part 985 

Marketing agreements, Oils and fats, 

Reporting and recordkeeping 

requirements, Spearmint oil.

■ For the reasons set forth in the 

preamble, 7 CFR part 985 is amended as 

follows:

PART 985—MARKETING ORDER 

REGULATING THE HANDLING OF 

SPEARMINT OIL PRODUCED IN THE 

FAR WEST

■ 1. The authority citation for 7 CFR part 

985 continues to read as follows:

Authority: 7 U.S.C. 601–674.

■ 2. In § 985.223, paragraph (b) is revised 

to read as follows:

Note: This section will not appear in the 

annual Code of Federal Regulations.

§ 985.223 Salable quantities and allotment 

percentages—2004–2005 marketing year.

* * * * *

(b) Class 3 (Native) oil—a salable 

quantity of 1,095,689 pounds and an 

allotment percentage of 51 percent.

Dated: October 15, 2004. 

A.J. Yates, 

Administrator, Agricultural Marketing 

Service.

[FR Doc. 04–23628 Filed 10–18–04; 4:40 pm] 

BILLING CODE 3410–02–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. 2004–CE–02–AD; Amendment 

39–13827; AD 2004–21–06] 

RIN 2120–AA64 

Airworthiness Directives; deHavilland 

Inc. Models DHC–2 Mk. I and DHC–2 

Mk. II Airplanes and Bombardier Inc. 

Model (Otter) DHC–3 Airplanes

AGENCY: Federal Aviation 

Administration (FAA), DOT.

ACTION: Final rule.

SUMMARY: The FAA adopts a new 

airworthiness directive (AD) for all 

deHavilland Inc. Models DHC–2 Mk. I 

and DHC–2 Mk. II airplanes and for all 

Bombardier Inc. Model (Otter) DHC–3 

airplanes powered by radial engines. 

This AD requires you to visually inspect 

the firewall connector plugs for proper 

lockwire security and replace or modify 

as appropriate. This AD is the result of 

mandatory continuing airworthiness 

information (MCAI) issued by the 

airworthiness authority for Canada. We 

are issuing this AD to prevent loss of 

ignition systems during flight caused by 

improper lockwire security, which 

could result in engine failure. This 

failure could lead to a forced landing of 

the airplane.

DATES: This AD becomes effective on 

December 6, 2004. 

As of December 6, 2004, the Director 

of the Federal Register approved the 

incorporation by reference of certain 

publications listed in the regulation.

ADDRESSES: You may get the service 

information identified in this AD from 

Bombardier Commercial Service Center, 

Plant 9, C.P. 6087 Succurale Centreville, Montreal QC H3C 3G9, Canada. 

You may view the AD docket at FAA, 

Central Region, Office of the Regional 

Counsel, Attention: Rules Docket No. 

2004–CE–02–AD, 901 Locust, Room 

506, Kansas City, Missouri 64106. Office 

hours are 8 a.m. to 4 p.m., Monday 

through Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT:

Mazdak Hobbi, Aerospace Engineer, 

New York Aircraft Certification Office 

(ACO), FAA, 1600 Stewart Avenue, 

Suite 410, Westbury, New York 11590; 

telephone: (516) 228–7330; facsimile: 

(516) 794–5531.

SUPPLEMENTARY INFORMATION: 

Discussion 

What events have caused this AD?

Transport Canada, which is the 

airworthiness authority for Canada, 

recently notified FAA that an unsafe 

condition may exist on all deHavilland 

DHC–2 Mk. I and DHC–2 Mk. II 

airplanes and all Bombardier (Otter) 

DHC–3 airplanes powered by radial 

engines. Transport Canada reports that a 

DHC–3 airplane lost both ignition 

systems during flight. 

The lockwire hole in the connector 

plug on the firewall broke and the plug 

vibrated loose. Both magnetos then 

grounded through a spring-loaded 

center pin in the plug (a maintenance 

safety feature). 

The DHC–2 Mk. I and DHC–2 Mk. II 

airplanes have a similar ignition system. 

What is the potential impact if FAA 

took no action? If not detected and 

corrected, failure of the lockwire hole 

could result in engine failure. This 

failure could lead to a forced landing of 

the airplane. 

Has FAA taken any action to this 

point? We issued a proposal to amend 

part 39 of the Federal Aviation 

Regulations (14 CFR part 39) to include 

an AD that would apply to all 

deHavilland Inc. Models DHC–2 Mk. I 

and DHC–2 Mk. II airplanes, and all 

Bombardier Inc. (Otter) DHC–3 

airplanes powered by radial engines of 

the same type. This proposal was 

published in the Federal Register as a 

notice of proposed rulemaking (NPRM) 

on April 12, 2004 (69 FR19132). The 

NPRM proposed to require you to 

visually inspect the firewall connector 

plugs for proper lockwire security and 

replace or modify as appropriate. 

Comments 

Comment Issue No. 1: Incorporate 

Revision ‘‘B’’ of the Applicable Service 

Bulletins 

What is the commenter’s concern?

The manufacturer has revised the 

applicable service bulletins to clarify 

the information presented in the