This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

49827 

Vol. 74, No. 187 

Tuesday, September 29, 2009 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2009–0795; Directorate 

Identifier 2009–NM–083–AD] 

RIN 2120–AA64 

Airworthiness Directives; Boeing 

Model 757 Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: We propose to adopt a new 

airworthiness directive (AD) for certain 

Boeing Model 757 airplanes. This 

proposed AD would require inspecting 

to verify the part number of the lowpressure flex-hoses of the flightcrew and 

supernumerary oxygen system installed 

under the oxygen mask stowage box at 

a flightcrew and supernumerary oxygen 

mask location, and replacing with a new 

non-conductive low-pressure flex-hose 

of the oxygen system if necessary. This 

proposed AD results from reports of a 

low-pressure flex-hose of a flightcrew 

oxygen system that burned through due 

to inadvertent electrical current from a 

short circuit in an adjacent audio select 

panel. We are proposing this AD to 

prevent inadvertent electrical current 

which can cause the low-pressure flexhose of a flightcrew or supernumerary 

oxygen system to melt or burn, resulting 

in oxygen system leakage and smoke or 

fire. 

DATES: We must receive comments on 

this proposed AD by November 13, 

2009. 

ADDRESSES: You may send comments by 

any of the following methods: 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov. Follow the 

instructions for submitting comments. 

• Fax: 202–493–2251. 

• Mail: U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue, SE., 

Washington, DC 20590. 

• Hand Delivery: U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue, SE., 

Washington, DC 20590, between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. 

For service information identified in 

this proposed AD, contact Boeing 

Commercial Airplanes, Attention: Data 

& Services Management, P.O. Box 3707, 

MC 2H–65, Seattle, Washington 98124– 

2207; telephone 206–544–5000, 

extension 1; fax 206–766–5680; e-mail 

me.boecom@boeing.com; Internet 

https://www.myboeingfleet.com. You 

may review copies of the referenced 

service information at the FAA, 

Transport Airplane Directorate, 1601 

Lind Avenue, SW., Renton, Washington. 

For information on the availability of 

this material at the FAA, call 425–227– 

1221 or 425–227–1152. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http:// 

www.regulations.gov; or in person at the 

Docket Management Facility between 9 

a.m. and 5 p.m., Monday through 

Friday, except Federal holidays. The AD 

docket contains this proposed AD, the 

regulatory evaluation, any comments 

received, and other information. The 

street address for the Docket Office 

(telephone 800–647–5527) is in the 

ADDRESSES section. Comments will be 

available in the AD docket shortly after 

receipt. 

FOR FURTHER INFORMATION CONTACT: 

Robert Hettman, Aerospace Engineer, 

Cabin Safety and Environmental 

Systems Branch, ANM–150S, FAA, 

Seattle Aircraft Certification Office, 

1601 Lind Avenue, SW., Renton, 

Washington 98057–3356; telephone 

(425) 917–6457; fax (425) 917–6590. 

SUPPLEMENTARY INFORMATION: 

Comments Invited 

We invite you to send any written 

relevant data, views, or arguments about 

this proposed AD. Send your comments 

to an address listed under the 

ADDRESSES section. Include ‘‘Docket No. 

FAA–2009–0795; Directorate Identifier 

2009–NM–083–AD’’ at the beginning of 

your comments. We specifically invite 

comments on the overall regulatory, 

economic, environmental, and energy 

aspects of this proposed AD. We will 

consider all comments received by the 

closing date and may amend this 

proposed AD because of those 

comments. 

We will post all comments we 

receive, without change, to http:// 

www.regulations.gov, including any 

personal information you provide. We 

will also post a report summarizing each 

substantive verbal contact we receive 

about this proposed AD. 

Discussion 

We have received reports of a lowpressure flex-hose of a flightcrew 

oxygen system that burned through due 

to inadvertent electrical current from a 

short circuit in an adjacent audio select 

panel. An electrical current went 

through the support structure to a 

flightcrew mask stowage box. This 

caused the spring inside the lowpressure oxygen hose to act as an 

electrical conductor and heat up, 

causing the hose to burn through. This 

condition, if not corrected, could cause 

the low-pressure flex-hose of the 

flightcrew or supernumerary oxygen 

system to melt or burn, resulting in 

oxygen system leakage and smoke or 

fire. 

Relevant Service Information 

We have reviewed Boeing Service 

Bulletins 757–35A0015, Revision 2; and 

757–35A0016, Revision 1; both dated 

June 15, 2000. The service bulletins 

describe procedures for replacing the 

existing low-pressure flex-hoses of the 

flightcrew and supernumerary oxygen 

system installed under the oxygen mask 

stowage box at the flightcrew and 

supernumerary oxygen mask location 

with new non-conductive low-pressure 

flex-hoses of the oxygen system. 

FAA’s Determination and Requirements 

of This Proposed AD 

We are proposing this AD because we 

evaluated all relevant information and 

determined the unsafe condition 

described previously is likely to exist or 

develop in other products of these same 

type designs. This proposed AD would 

require accomplishing the actions 

specified in the service information 

described previously, except as 

discussed under ‘‘Differences Between 

the Proposed AD and the Service 

Bulletins.’’ 


CPrice-Sewell on DSKGBLS3C1PROD with PROPOSALS
49828 Federal Register / Vol. 74, No. 187 / Tuesday, September 29, 2009 / Proposed Rules 

Differences Between the Proposed AD 

and the Service Bulletins 

Although Boeing Service Bulletins 

757–35A0015, Revision 2; and 757– 

35A0016, Revision 1; both dated June 

15, 2000; recommend accomplishing the 

replacement ‘‘at the earliest opportunity 

when manpower, material and facilities 

are available,’’ we have determined that 

this imprecise compliance time would 

not address the identified unsafe 

condition in a timely manner. In 

developing an appropriate compliance 

time for this proposed AD, we 

considered not only the manufacturer’s 

recommendation, but the degree of 

urgency associated with addressing the 

subject unsafe condition, the average 

utilization of the affected fleet, and the 

time necessary to perform the 

modifications. In light of all of these 

factors, we find a compliance time of 36 

months for completing the required 

actions to be warranted, in that it 

represents an appropriate interval of 

time for affected airplanes to continue to 

operate without compromising safety. 

This difference has been coordinated 

with Boeing. 

Boeing Service Bulletin 757– 

35A0015, Revision 2, dated June 15, 

2000, lists Boeing Model 757–200C in 

the Effectivity paragraph; however, we 

have confirmed with Boeing that its 

intent was to list Boeing Model 757– 

200CB. We have included Model 757– 

200CB in the Applicability paragraph of 

this proposed AD. 

Other Rulemaking 

The oxygen mask installations on 

certain Boeing Model 737, 747, and 767 

airplanes are almost identical to those 

on the affected 757 airplanes. Therefore, 

all of these airplanes may be subject to 

the identified unsafe condition. We are 

considering similar rulemaking related 

to the identified unsafe condition for 

certain Boeing Model 737, 747, and 767 

airplanes. 

Costs of Compliance 

We estimate that this proposed AD 

would affect 485 airplanes of U.S. 

registry. We also estimate that it would 

take 1 work-hour per product to comply 

with this proposed AD. The average 

labor rate is $80 per work-hour. Based 

on these figures, we estimate the cost of 

this proposed AD to the U.S. operators 

to be $38,800, or $80 per product. 

Authority for This Rulemaking 

Title 49 of the United States Code 

specifies the FAA’s authority to issue 

rules on aviation safety. Subtitle I, 

section 106, describes the authority of 

the FAA Administrator. ‘‘Subtitle VII: 

Aviation Programs,’’ describes in more 

detail the scope of the Agency’s 

authority. 

We are issuing this rulemaking under 

the authority described in ‘‘Subtitle VII, 

Part A, Subpart III, Section 44701: 

General requirements.’’ Under that 

section, Congress charges the FAA with 

promoting safe flight of civil aircraft in 

air commerce by prescribing regulations 

for practices, methods, and procedures 

the Administrator finds necessary for 

safety in air commerce. This regulation 

is within the scope of that authority 

because it addresses an unsafe condition 

that is likely to exist or develop on 

products identified in this rulemaking 

action. 

Regulatory Findings 

We determined that this proposed AD 

would not have federalism implications 

under Executive Order 13132. This 

proposed AD would 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. 

For the reasons discussed above, I 

certify this proposed regulation: 

1. Is not a ‘‘significant regulatory 

action’’ under Executive Order 12866, 

2. Is not a ‘‘significant rule’’ under the 

DOT Regulatory Policies and Procedures 

(44 FR 11034, February 26, 1979), and 

3. 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. 

You can find our regulatory 

evaluation and the estimated costs of 

compliance in the AD Docket. 

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Incorporation by reference, 

Safety. 

The Proposed Amendment 

Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA proposes to amend 14 CFR part 

39 as follows: 

PART 39—AIRWORTHINESS 

DIRECTIVES 

1. The authority citation for part 39 

continues to read as follows: 

Authority: 49 U.S.C. 106(g), 40113, 44701. 

§ 39.13 [Amended] 

2. The FAA amends § 39.13 by adding 

the following new AD: 

Boeing: Docket No. FAA–2009–0795; 

Directorate Identifier 2009–NM–083–AD. 

Comments Due Date 

(a) We must receive comments by 

November 13, 2009. 

Affected ADs 

(b) None. 

Applicability 

(c) This AD applies to Boeing Model 757– 

200, –200CB, –200PF, and –300 series 

airplanes, certificated in any category; as 

identified in the service bulletins listed in 

Table 1 of this AD. 

TABLE 1—APPLICABILITY

Boeing service bulletin— Revision— Dated— Applicable model/series— 

757–35A0015 ............................................ 2 June 15, 2000 ........................................... 757–200, 757–200CB, 757–200PF 

757–35A0016 ............................................ 1 June 15, 2000 ........................................... 757–300 

Subject 

(d) Air Transport Association (ATA) of 

America Code 35: Oxygen. 

Unsafe Condition 

(e) This AD results from reports of a lowpressure flex-hose of a flightcrew oxygen 

system that burned through due to 

inadvertent electrical current from a short 

circuit in an adjacent audio select panel. We 

are issuing this AD to prevent inadvertent 

electrical current which can cause the lowpressure flex-hoses used in the flightcrew 

and supernumerary oxygen system to melt or 

burn, resulting in oxygen system leakage and 

smoke or fire. 

Compliance 

(f) You are responsible for having the 

actions required by this AD performed within 

the compliance times specified, unless the 

actions have already been done. 

Inspection 

(g) Within 36 months after the effective 

date of this AD, do an inspection to 

determine whether any low-pressure flexhose of the flightcrew and supernumerary 

oxygen systems installed under the oxygen 

mask stowage location has a part number 

identified in Table 2 of this AD. A review of 

airplane maintenance records is acceptable in 

lieu of this inspection if the part number of 


CPrice-Sewell on DSKGBLS3C1PROD with PROPOSALS
Federal Register / Vol. 74, No. 187 / Tuesday, September 29, 2009 / Proposed Rules 49829 

the low-pressure flex-hoses of the flightcrew 

and supernumerary oxygen system can be 

conclusively determined from that review. 

(1) For any hose having a part number 

identified in Table 2 of this AD, before 

further flight, replace the hose with a new or 

serviceable part, in accordance with the 

Accomplishment Instructions of the 

applicable service bulletin identified in Table 

1 of this AD. 

(2) For any hose not having a part number 

identified in Table 2 of this AD, no further 

action is required by this paragraph. 

Parts Installation 

(h) As of the effective date of this AD, no 

person may install a flightcrew or 

supernumerary oxygen hose with a part 

number identified in Table 2 of this AD on 

any airplane. 

TABLE 2—APPLICABLE PART NUMBERS

Boeing specification part No.— 

Equivalent Boeing supplier part Nos.— 

Sierra Engineering Spencer Fluid Puritan Bennett Hydraflow AVOX (formerly Sierra Engineering) 

60B50059–70 ............................... 835–01–70 9513–20S5–18.0 ZH784–20 38001–70 9513–835–01–70 

60B50059–81 ............................... 835–01–81 9513–20S5–24.0 ZH784–81 38001–81 9513–835–01–81 

Actions Accomplished According to 

Previous Issue of Service Bulletin 

(i) Actions accomplished before the 

effective date of this AD in accordance with 

Boeing Alert Service Bulletin 757–35A0015, 

dated September 2, 1999, or Revision 1, 

dated November 11, 1999; or Boeing Alert 

Service Bulletin 757–35A0016, dated 

November 11, 1999; are considered 

acceptable for compliance with the 

corresponding actions specified in this AD. 

Alternative Methods of Compliance 

(AMOCs) 

(j)(1) The Manager, Seattle Aircraft 

Certification Office (ACO), FAA, has the 

authority to approve AMOCs for this AD, if 

requested using the procedures found in 14 

CFR 39.19. Send information to ATTN: 

Robert Hettman, Aerospace Engineer, Cabin 

Safety and Environmental Systems Branch, 

ANM–150S, FAA, Seattle ACO, 1601 Lind 

Avenue, SW., Renton, Washington 98057– 

3356; telephone (425) 917–6457; fax (425) 

917–6590. Or, e-mail information to 9-ANMSeattle-ACO-AMOC-Requests@faa.gov. 

(2) To request a different method of 

compliance or a different compliance time 

for this AD, follow the procedures in 14 CFR 

39.19. Before using any approved AMOC on 

any airplane to which the AMOC applies, 

notify your principal maintenance inspector 

(PMI) or principal avionics inspector (PAI), 

as appropriate, or lacking a principal 

inspector, your local Flight Standards District 

Office. The AMOC approval letter must 

specifically reference this AD. 

Issued in Renton, Washington, on 

September 18, 2009. 

Ali Bahrami, 

Manager, Transport Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. E9–23421 Filed 9–28–09; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[REG–135005–07] 

RIN 1545–BG94 

Clarification of Controlled Group 

Qualification Rules 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: This document contains a 

proposed regulation to clarify which 

corporations are included in a 

controlled group of corporations. The 

regulation clarifies that a corporation 

that satisfies the controlled group rules 

for stock ownership and qualification is 

a member of such group, without regard 

to its status as a component member. 

DATES: Written or electronic comments 

and request for a public hearing must be 

received by December 28, 2009. 

ADDRESSES: Send submissions to: 

CC:PA:LPD:PR (REG–135005–07), room 

5205, Internal Revenue Service, P.O. 

Box 7604, Ben Franklin Station, 

Washington, DC 20044. Submissions 

may be hand-delivered Monday through 

Friday between the hours of 8 a.m. and 

4 p.m. to CC:PA:LPD:PR (REG–135005– 

07), Courier’s Desk, Internal Revenue 

Service, 1111 Constitution Avenue, 

NW., Washington, DC, or sent 

electronically via the Federal 

eRulemaking Portal at http:// 

www.regulations.gov (IRS REG–135005– 

07). 

FOR FURTHER INFORMATION CONTACT: 

Concerning the proposed regulations, 

Grid Glyer (202) 622–7930; concerning 

submissions of comments, 

Oluwafunmilayo Taylor (202) 622–7180 

(not toll-free numbers). 

SUPPLEMENTARY INFORMATION: 

Background 

Section 1563(a) defines four types of 

controlled groups of corporations. This 

definition is relevant for purposes of 

allocating certain tax benefits under 

section 1561, as well as other provisions 

of the Internal Revenue Code that 

incorporate the concept of a controlled 

group of corporations. In order for a 

corporation to be included in one of 

these controlled groups under section 

1563(a), it must satisfy the stock 

ownership test for that type of group. In 

addition, other rules in section 1563 

may also apply in order to determine 

whether a corporation satisfies the 

applicable stock ownership test. For 

example, section 1563(c) excludes 

certain stock of a corporation (for 

example, nonvoting stock that is limited 

and preferred as to dividends) from the 

definition of stock, section 1563(d) 

determines when to take into account 

the stock owned by a corporation, and 

section 1563(e) determines when stock 

of a corporation is constructively 

owned. 

Section 1563(b) describes which 

corporations are ‘‘component members’’ 

of a section 1563(a) controlled group of 

corporations for purposes of section 

1561 and section 1563, in part by 

excluding certain corporations under 

section 1563(b)(2). For example, certain 

special purpose corporations, such as 

tax-exempt corporations, are treated as 

excluded members and not as 

component members. See sections 

1563(b)(2)(B) through 1563(b)(2)(E). 

Notwithstanding that a corporation is 

not a ‘‘component member,’’ however, 

the IRS has consistently taken the 

position that the determination of 

whether a corporation is included in a 

controlled group under section 1563(a) 

is determined without applying section 

1563(b). 

Explanation of Provisions 

The Treasury Department and the IRS 

propose to amend § 1.1563–1 to clarify 


CPrice-Sewell on DSKGBLS3C1PROD with PROPOSALS