Federal Register / Vol. 65, No. 98 / Friday, May 19, 2000 / Proposed Rules 31839

Boeing: Docket 99–NM–163–AD. Supersedes

AD 97–10–11, Amendment 39–10023.

Applicability: All Model 777 series

airplanes, certificated in any category.

Note 1: This AD applies to each airplane

identified in the preceding applicability

provision, regardless of whether it has been

modified, altered, or repaired in the area

subject to the requirements of this AD. For

airplanes that have been modified, altered, or

repaired so that the performance of the

requirements of this AD is affected, the

owner/operator must request approval for an

alternative method of compliance in

accordance with paragraph (e) of this AD.

The request should include an assessment of

the effect of the modification, alteration, or

repair on the unsafe condition addressed by

this AD; and, if the unsafe condition has not

been eliminated, the request should include

specific proposed actions to address it.

Compliance: Required as indicated, unless

accomplished previously.

To prevent damage to the engine fire

shutoff switch (EFSS) solenoid and to the

override mechanism, and consequent failure

of the EFSS, which could result in the

inability of the flightcrew to discharge the

fire extinguishing agent in the event of an

engine fire, accomplish the following:

Restatement of Actions Required by AD 97–

10–11

Repetitive Testing of the EFSS

(a) For all airplanes: Within 14 days after

May 27, 1997 (the effective date of AD 97–

10–11, amendment 39–10023), perform a test

of the EFSS of both the left-and right-hand

engines to determine if the override

mechanism and the switch handle are

operational, in accordance with Boeing Alert

Service Bulletin 777–26A0012, dated May 1,

1997.

(1) If the override mechanism and the

switch handle of the EFSS are operational,

prior to further flight, accomplish the

requirements of paragraph (a)(1)(i) or (a)(1)(ii)

of this AD, as applicable, in accordance with

the alert service bulletin.

(i) For Group 1 airplanes identified in the

alert service bulletin: Install a collar on

circuit breaker C26612 of panel P310 of the

standby power management panel. Following

accomplishment of this installation, prior to

further flight, install placards near the EFSS

of both engines and near the auxiliary power

unit (APU) EFSS to advise the flightcrew that

the override mechanism must be pushed in

order to pull the fire switch.

(ii) For Group 2 airplanes identified in the

alert service bulletin: Ensure that a collar is

installed on circuit breaker C26612 of panel

P310 of the standby power management

panel. If a collar is not installed, prior to

further flight, install a collar on circuit

breaker C26612 of panel P310 of the standby

power management panel.

(2) If the override mechanism or the switch

handle of the EFSS is not operational, prior

to further flight, replace the EFSS with a new

or serviceable EFSS, in accordance with the

alert service bulletin.

(b) For all airplanes: Repeat the

requirements of paragraph (a) of this AD

thereafter at intervals not to exceed 500 flight

hours.

New Actions Required by This AD

Terminating Action

(c) For all airplanes: Within 2 years after

the effective date of this AD, accomplish the

actions specified in paragraphs (c)(1), (c)(2),

and (c)(3) of this AD in accordance with

Boeing Alert Service Bulletin 777–26A0009,

dated October 23, 1997. Accomplishment of

all three actions constitutes terminating

action for the repetitive testing requirements

of paragraph (b) of this AD.

(1) Replace the engine fire control module.

(2) Activate the circuit breaker C26612 in

the P310 panel.

(3) Remove the placards in the flight

compartment.

Spares

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

person shall install an engine fire control

module, part number (P/N) 233W6201–1, or

engine fire switches P/N S231W263–1 or –2,

on any airplane.

Alternative Methods of Compliance

(e) An alternative method of compliance or

adjustment of the compliance time that

provides an acceptable level of safety may be

used if approved by the Manager, Seattle

Aircraft Certification Office (ACO), FAA,

Transport Airplane Directorate. Operators

shall submit their requests through an

appropriate FAA Principal Maintenance

Inspector, who may add comments and then

send it to the Manager, Seattle ACO.

Note 2: Information concerning the

existence of approved alternative methods of

compliance with this AD, if any, may be

obtained from the Seattle ACO.

Special Flight Permits

(f) Special flight permits may be issued in

accordance with §§ 21.197 and 21.199 of the

Federal Aviation Regulations (14 CFR 21.197

and 21.199) to operate the airplane to a

location where the requirements of this AD

can be accomplished.

Issued in Renton, Washington, on May 15,

2000.

Donald L. Riggin,

Acting Manager, Transport Airplane

Directorate, Aircraft Certification Service.

[FR Doc. 00–12674 Filed 5–18–00; 8:45 am]

BILLING CODE 4910–13–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 2000–NM–12–AD]

RIN 2120–AA64

Airworthiness Directives; Short

Brothers Model SD3–60 Series

Airplanes

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Notice of proposed rulemaking

(NPRM).

SUMMARY: This document proposes the

adoption of a new airworthiness

directive (AD) that is applicable to

certain Short Brothers Model SD3–60

series airplanes. This proposal would

require affixing a label containing

revised engine limitations on the

ditching hatch, and revising the airplane

flight manual to reflect the revised

engine limitations. This proposal is

prompted by issuance of mandatory

continuing airworthiness information by

a foreign civil airworthiness authority.

The actions specified by the proposed

AD are intended to prevent the use of

incorrect engine limitations, which

could result in an overspeed of the

propellers and potential for blade

failure.

DATES: Comments must be received by

June 19, 2000.

ADDRESSES: Submit comments in

triplicate to the Federal Aviation

Administration (FAA), Transport

Airplane Directorate, ANM–114,

Attention: Rules Docket No. 2000–NM–

12–AD, 1601 Lind Avenue, SW.,

Renton, Washington 98055–4056.

Comments may be inspected at this

location between 9 a.m. and 3 p.m.,

Monday through Friday, except Federal

holidays.

The service information referenced in

the proposed rule may be obtained from

Short Brothers, Airworthiness &

Engineering Quality, P.O. Box 241,

Airport Road, Belfast BT3 9DZ,

Northern Ireland. This information may

be examined at the FAA, Transport

Airplane Directorate, 1601 Lind

Avenue, SW., Renton, Washington.

FOR FURTHER INFORMATION CONTACT:

Norman B. Martenson, Manager,

International Branch, ANM–116, FAA,

Transport Airplane Directorate, 1601

Lind Avenue, SW., Renton, Washington

98055–4056; telephone (425) 227–2110;

fax (425) 227–1149.

SUPPLEMENTARY INFORMATION:

Comments Invited

Interested persons are invited to

participate in the making of the

proposed rule by submitting such

written data, views, or arguments as

they may desire. Communications shall

identify the Rules Docket number and

be submitted in triplicate to the address

specified above. All communications

received on or before the closing date

for comments, specified above, will be

considered before taking action on the

proposed rule. The proposals contained

in this notice may be changed in light

of the comments received.

Comments are specifically invited on

the overall regulatory, economic,

environmental, and energy aspects of

31840 Federal Register / Vol. 65, No. 98 / Friday, May 19, 2000 / Proposed Rules

the proposed rule. All comments

submitted will be available, both before

and after the closing date for comments,

in the Rules Docket for examination by

interested persons. A report

summarizing each FAA-public contact

concerned with the substance of this

proposal will be filed in the Rules

Docket.

Commenters wishing the FAA to

acknowledge receipt of their comments

submitted in response to this notice

must submit a self-addressed, stamped

postcard on which the following

statement is made: ‘‘Comments to

Docket Number 2000–NM–12–AD.’’ The

postcard will be date stamped and

returned to the commenter.

Availability of NPRMs

Any person may obtain a copy of this

NPRM by submitting a request to the

FAA, Transport Airplane Directorate,

ANM–114, Attention: Rules Docket No.

2000–NM–12–AD, 1601 Lind Avenue,

SW., Renton, Washington 98055–4056.

Discussion

The Civil Aviation Authority (CAA),

which is the airworthiness authority for

the United Kingdom, notified the FAA

that an unsafe condition may exist on

certain Short Brothers Model SD3–60

series airplanes. The CAA advises that

the manufacturer has revised the engine

limitations to reflect amended propeller

speed tolerance. The display of old,

incorrect engine limitations could result

in an overspeed of the propellers and

potential for blade failure.

Explanation of Relevant Service

Information

The manufacturer has issued Shorts

Service Bulletin SD360–11–23, dated

November 17, 1998, which describes

procedures for affixing a label

containing revised engine limitations on

the ditching hatch. The new label will

ensure that the flight crew observes the

new engine limitations and amended

propeller speed tolerance.

Accomplishment of the actions

specified in the service bulletin is

intended to adequately address the

identified unsafe condition. The CAA

classified this service bulletin as

mandatory and issued British

airworthiness directive 015–11–98 in

order to ensure the continued

airworthiness of these airplanes in the

United Kingdom.

Service Bulletin SD360–11–23 refers

to certain revisions to the Aircraft Flight

Manual (AFM), which also contain the

revised engine limitations and propeller

speed tolerances. These AFM revisions

include Doc. No. SB 4.8, amendment P9;

Doc. No. SB 4.9, amendment P12; and

Doc. No. SB 4.10, amendment P7.

FAA’s Conclusions

This airplane model is manufactured

in the United Kingdom and is type

certificated for operation in the United

States under the provisions of § 21.29 of

the Federal Aviation Regulations (14

CFR 21.29) and the applicable bilateral

airworthiness agreement. Pursuant to

this bilateral airworthiness agreement,

the CAA has kept the FAA informed of

the situation described above. The FAA

has examined the findings of the CAA,

reviewed all available information, and

determined that AD action is necessary

for products of this type design that are

certificated for operation in the United

States.

Explanation of Requirements of

Proposed Rule

Since an unsafe condition has been

identified that is likely to exist or

develop on other airplanes of the same

type design registered in the United

States, the proposed AD would require

accomplishment of the actions specified

in the service bulletin described

previously.

Cost Impact

The FAA estimates that 15 airplanes

of U.S. registry would be affected by this

proposed AD, that it would take

approximately 1 work hour per airplane

to accomplish the proposed actions, and

that the average labor rate is $60 per

work hour. Required parts would be

provided by the manufacturer at no cost

to the operators. Based on these figures,

the cost impact of the proposed AD on

U.S. operators is estimated to be $900,

or $60 per airplane.

The cost impact figure discussed

above is based on assumptions that no

operator has yet accomplished any of

the proposed requirements of this AD

action, and that no operator would

accomplish those actions in the future if

this AD were not adopted.

Regulatory Impact

The regulations proposed herein

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. Therefore,

it is determined that this proposal

would not have federalism implications

under Executive Order 13132.

For the reasons discussed above, I

certify that 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) 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. A copy of the draft

regulatory evaluation prepared for this

action is contained in the Rules Docket.

A copy of it may be obtained by

contacting the Rules Docket at the

location provided under the caption

ADDRESSES.

List of Subjects in 14 CFR Part 39

Air transportation, Aircraft, Aviation

safety, Safety.

The Proposed Amendment

Accordingly, pursuant to the

authority delegated to me by the

Administrator, the Federal Aviation

Administration proposes to amend part

39 of the Federal Aviation Regulations

(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. Section 39.13 is amended by

adding the following new airworthiness

directive:

Short Brothers PLC: Docket 2000–NM–12–

AD.

Applicability: Model SD3–60 series

airplanes, certificated in any category, serial

numbers SH3716 through SH3763 inclusive.

Note 1: This AD applies to each airplane

identified in the preceding applicability

provision, regardless of whether it has been

modified, altered, or repaired in the area

subject to the requirements of this AD. For

airplanes that have been modified, altered, or

repaired so that the performance of the

requirements of this AD is affected, the

owner/operator must request approval for an

alternative method of compliance in

accordance with paragraph (b) of this AD.

The request should include an assessment of

the effect of the modification, alteration, or

repair on the unsafe condition addressed by

this AD; and, if the unsafe condition has not

been eliminated, the request should include

specific proposed actions to address it.

Compliance: Required as indicated, unless

accomplished previously.

To prevent the display of incorrect engine

limitations, which could result in an

overspeed of the propellers and potential for

blade failure, accomplish the following:

Label Replacement and AFM Revision

(a) Within 6 months after the effective date

of this AD: Replace the existing enginelimitations label with a new label containing

revised engine limitations, and revise the

Federal Register / Vol. 65, No. 98 / Friday, May 19, 2000 / Proposed Rules 31841

Limitations section of the FAA-approved

airplane flight manual to reflect the revised

engine limitations; in accordance with Shorts

Service Bulletin SD360–11–23, dated

November 17, 1998.

Alternative Methods of Compliance

(b) An alternative method of compliance or

adjustment of the compliance time that

provides an acceptable level of safety may be

used if approved by the Manager,

International Branch, ANM–116, FAA,

Transport Airplane Directorate. Operators

shall submit their requests through an

appropriate FAA Principal Maintenance

Inspector, who may add comments and then

send it to the Manager, International Branch,

ANM–116.

Note 2: Information concerning the

existence of approved alternative methods of

compliance with this AD, if any, may be

obtained from the International Branch,

ANM–116.

Special Flight Permits

(c) Special flight permits may be issued in

accordance with 21.197 and 21.199 of the

Federal Aviation Regulations (14 CFR 21.197

and 21.199) to operate the airplane to a

location where the requirements of this AD

can be accomplished.

Note 3: The subject of this AD is addressed

in British airworthiness directive 015–11–98.

Issued in Renton, Washington, on May 15,

2000.

Donald L. Riggin,

Acting Manager, Transport Airplane

Directorate, Aircraft Certification Service.

[FR Doc. 00–12673 Filed 5–18–00; 8:45 am]

BILLING CODE 4910–13–U

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG–107644–98]

RIN 1545–AX20

Dollar-Value LIFO Regulations;

Inventory Price Index Computation

Method

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Notice of proposed rulemaking

and notice of public hearing.

SUMMARY: This document contains

proposed regulations under section 472

of the Internal Revenue Code that relate

to accounting for inventories under the

last-in, first-out (LIFO) method. The

proposed regulations provide guidance

regarding methods of valuing dollarvalue LIFO pools and affect persons

who elect to use the dollar-value LIFO

and inventory price index computation

(IPIC) methods. This document also

provides notice of a public hearing on

these proposed regulations.

DATES: Written and electronic comments

must be received by August 17, 2000.

Requests to speak (with outlines of oral

comments) at a public hearing

scheduled for September 15, 2000, at 10

a.m., must be received by August 25,

2000.

ADDRESSES: Send submissions to:

CC:DOM:CORP:R (REG–107644–98),

room 5226, Internal Revenue Service,

POB 7604, Ben Franklin Station,

Washington, DC 20044. Submissions

may be hand delivered Monday through

Friday between the hours of 8 a.m. and

5 p.m. to:

CC:DOM:CORP:R (REG–107644–98),

Courier’s Desk, Internal Revenue

Service, 1111 Constitution Avenue,

NW., Washington, DC.

Alternatively, taxpayers may submit

comments electronically via the Internet

by selecting the ‘‘Tax Regs’’ option on

the IRS Home Page, or by submitting

comments directly to the IRS Internet

site at http://www.irs.ustreas.gov/

tax_regs/regslist.html. The public

hearing will be held in room 4718,

Internal Revenue Building, 1111

Constitution Avenue, NW., Washington,

DC.

FOR FURTHER INFORMATION CONTACT:

Concerning the proposed regulations,

Jeffery G. Mitchell, (202)622–4970;

concerning submissions of comments,

the hearing, and/or to be placed on the

building access list to attend the

hearing, Guy Traynor of the Regulations

Unit at (202) 622–7180 (not toll-free

calls).

SUPPLEMENTARY INFORMATION:

Background

This document contains proposed

amendments to the Income Tax

Regulations (26 CFR part 1) that relate

to the last-in, first-out (LIFO) inventory

accounting method under section 472 of

the Internal Revenue Code (Code). The

LIFO method of accounting for goods

treats inventories on hand at the end of

the year as consisting first of inventory

on hand at the beginning of the year and

then of inventories acquired during the

year.

Under § 1.472–8, a taxpayer is

permitted to use the dollar-value LIFO

method of accounting for inventories,

which accounts for inventories in terms

of dollars of cost rather than specific

goods. The dollar-value LIFO method

measures increases or decreases in

inventory quantities by comparing the

total cost of the quantity of goods on

hand at the beginning and end of the

taxable year in terms of equivalent-value

dollars, i.e., base-year cost. The currentyear dollar cost of beginning and ending

inventory may be converted into a baseyear dollar cost using price indexes.

Then, the quantity of base-year cost in

beginning and ending inventory can be

compared and the increase (increment)

or decrease (liquidation) can be

measured.

Section 472(f) directs the Secretary to

prescribe regulations that permit the use

of suitable published governmental

price indexes for purposes of the LIFO

method. The IRS and Treasury

Department prescribed the inventory

price index computation (IPIC) method

in § 1.472–8(e)(3) (TD 7814, 47 FR

11271, 1982–1 C.B. 84), pursuant to

authority contained in sections 472 and

7805. Under the IPIC method, inventory

price indexes are computed with

reference to consumer or producer price

indexes published by the United States

Bureau of Labor Statistics (BLS). The

IPIC method was intended to simplify

the use of the dollar-value LIFO method

so that the LIFO method could be used

by more taxpayers and would be easier

to use by taxpayers already using the

dollar-value LIFO method.

Explanation of Provisions

This document contains proposed

amendments to the IPIC method

provided in § 1.472–8(e)(3) of

computing the LIFO value of a dollarvalue inventory pool that are intended

to simplify and clarify certain aspects of

the IPIC method as well as to modify the

computational methodology so that the

IPIC method produces a more accurate

and suitable inventory price index. In

addition, the proposed regulations

provide rules for computing the LIFO

value of a dollar-value pool when a

taxpayer receives LIFO inventories in

certain nonrecognition transactions.

1. Elimination of Requirement To Use

10 Percent Categories and BLS Weights

Section 1.472–8(e)(3)(iii) of the

regulations provides detailed rules for

assigning inventory items to index

categories published by the BLS in the

‘‘CPI Detailed Report’’ or the ‘‘PPI

Detailed Report’’ for purposes of

computing an inventory price index.

Items are first assigned to the most

detailed index category listed in the

appropriate table of the ‘‘CPI Detailed

Report’’ or the ‘‘PPI Detailed Report’’

that contains those items. If the total

current-year cost of the items in a single

detailed index category equals or

exceeds 10 percent of the total inventory

value, the taxpayer must use the

published index for that selected index

category for all items that are included

in that detailed index category. If the

total current-year cost of items in a