41000 Federal Register / Vol. 65, No. 128 / Monday, July 3, 2000 / Rules and Regulations

distributions attributable to the interest

income in the hands of A’s interest holders

is determined as if realized directly from the

source from which realized by A, under

Country X law the interest holders in A do

not have to take into account their respective

share of the interest income received by A on

a current basis whether or not distributed.

Accordingly, A derives the U.S. source

interest income for purpose of the U.S.-X

treaty.

Example 11. Treatment of charitable

organizations. (i) Facts. Entity A is a

corporation organized under the laws of

Country X that has an income tax treaty in

effect with the United States. Entity A is

established and operated exclusively for

religious, charitable, scientific, artistic,

cultural, or educational purposes. Entity A

receives U.S. source dividend income from

U.S. sources. A provision of Country X law

generally exempts Entity A’s income from

Country X tax due to the fact that Entity A

is established and operated exclusively for

religious, charitable, scientific, artistic,

cultural, or educational purposes. But for

such provision, Entity A’s income would be

subject to tax by Country X.

(ii) Analysis. Entity A is not fiscally

transparent under paragraph (d)(3)(ii) of this

section with respect to the U.S. source

dividend income because, under Country X

law, the dividend income is treated as an

item of income of A and no other persons are

required to take into account their respective

share of the item of income on a current

basis, whether or not distributed.

Accordingly, Entity A is treated as deriving

the U.S. source dividend income.

Example 12. Treatment of pension trusts.

(i) Facts. Entity A is a trust established and

operated in Country X exclusively to provide

pension or other similar benefits to

employees pursuant to a plan. Entity A

receives U.S. source dividend income. A

provision of Country X law generally

exempts Entity A’s income from Country X

tax due to the fact that Entity A is established

and operated exclusively to provide pension

or other similar benefits to employees

pursuant to a plan. Under the laws of

Country X, the beneficiaries of the trust are

not required to take into account their

respective share of A’s income on a current

basis, whether or not distributed and the

character and source of the income in the

hands of A’s interest holders are not

determined as if realized directly from the

source from which realized by A.

(ii) Analysis. A is not fiscally transparent

under paragraph (d)(3)(ii) of this section with

respect to the U.S. source dividend income

because under the laws of Country X, the

beneficiaries of A are not required to take

into account their respective share of A’s

income on a current basis, whether or not

distributed. A is also not fiscally transparent

under paragraph (d)(3)(ii) of this section with

respect to the U.S. source dividend income

because under the laws of Country X, the

character and source of the income in the

hands of A’s interest holders are not

determined as if realized directly from the

source from which realized by A.

Accordingly, A derives the U.S. source

dividend income for purposes of the U.S.-X

income tax treaty.

(6) Effective date. This paragraph (d)

applies to items of income paid on or

after June 30, 2000.

Robert E. Wenzel,

Deputy Commissioner of Internal Revenue.

Approved: June 28, 2000.

Jonathan Talisman,

Deputy Assistant Secretary of the Treasury

(Tax Policy).

[FR Doc. 00–16761 Filed 6–30–00; 8:45 am]

BILLING CODE 4830–01–P

DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Part 250

RIN 1010–AC–73

Oil and Gas and Sulphur Operations in

the Outer Continental Shelf—

Production Measurement Document

Incorporated by Reference

AGENCY: Minerals Management Service

(MMS), Interior.

ACTION: Final rule.

SUMMARY: MMS is adding a production

measurement document incorporated by

reference to the regulations governing

oil, gas, and sulphur operations in the

Outer Continental Shelf (OCS). The

document will continue to ensure that

lessees are able to use the best available

and most accurate technologies while

operating in the OCS. The document is

from the American Petroleum Institute’s

Manual of Petroleum Measurement

Standards.

DATES: This rule is effective August 2,

2000. The incorporation by reference of

publications listed in the regulation is

approved by the Director of the Federal

Register as of August 2, 2000.

FOR FURTHER INFORMATION CONTACT:

Sharon Buffington, Engineering and

Research Branch, at (703) 787–1147.

SUPPLEMENTARY INFORMATION: MMS uses

standards, specifications, and

recommended practices developed by

standard-setting organizations and the

oil and gas industry as a means of

establishing requirements for activities

in the OCS. This practice, known as

incorporation by reference, allows MMS

to incorporate the requirements of

technical documents into the

regulations without increasing the

volume of the Code of Federal

Regulations (CFR). MMS currently

incorporates by reference approximately

85 documents into the offshore

operating regulations.

The regulations found at 1 CFR part

51 govern how MMS and other Federal

agencies incorporate various documents

by reference. Agencies can only

incorporate by reference through

publication in the Federal Register.

Agencies must also gain approval from

the Director of the Federal Register for

each publication incorporated by

reference.

Incorporation by reference of a

document or publication is limited to

the edition of the document or

publication cited in the regulations.

This means that newer editions,

amendments, or revisions to documents

already incorporated by reference in

regulations are not part of MMS’s

regulations.

This rule adds the following API

document to those currently

incorporated by reference into MMS

regulations:

• API Manual of Petroleum

Measurement Standards (MPMS),

Chapter 10, Section 9, Standard Test

Method for Water in Crude Oils by

Coulometric Karl Fischer Titration, First

Edition, November 1993.

MMS has reviewed this document

and has determined that it must be

incorporated into regulations to ensure

that industry is able to use the best

available and most accurate

technologies. Our review shows that the

option to use this standard will not

impose additional costs on the offshore

oil and gas industry. In fact, industry

will still have the option to use the

other procedures in current documents

incorporated, as approved. Therefore,

MMS is including this document via a

final rule. MMS has determined under

the Administrative Procedure Act (5

U.S.C. 553(b)(3)(B)) that publishing this

rule as a notice of proposed rulemaking

would be contrary to the public interest.

The regulations found at 30 CFR

250.198(a)(2) allow updating documents

without opportunity to comment when

MMS determines that the revisions to a

document result in safety improvements

or represent new industry standard

technology and do not impose undue

costs on the affected parties.

A summary of MMS’s review of the

document is provided below:

API MPMS Chapter 10, Section 9,

Standard Test Method for Water in

Crude Oils by Coulometric Karl Fischer

Titration, First Edition, November, 1993.

This document lists the method for

directly determining water in crude oils

by volume and weight. It represents an

industry standard that would be newly

used in the OCS. The MMS will retain

the documents from MPMS, Chapter 10,

Sediment and Water, that describe the

other methods of determining water in

crude oils.

Federal Register / Vol. 65, No. 128 / Monday, July 3, 2000 / Rules and Regulations 41001

Procedural Matters

This is a very simple rule. The rule’s

purpose is to add a document to those

that are currently incorporated by

reference in the regulations. If MMS did

not give the option to use the other

techniques incorporated into the

regulations, MMS could not add this

document via a final rule. The

document will not cause any economic

effect on any entity (small or large). It

simply gives industry standards for

using an alternate method to determine

sediment and water.

Federalism (Executive Order 13132)

According to Executive Order 13132,

the rule does not have

Federalism implications because it

does not affect the relationship between

the Federal and State governments.

The rule simply provides the option

and guidance to use new technology. It

does not prevent any lessee, operator, or

drilling contractor from performing

operations on the OCS, provided they

follow the regulations. This rule will not

impose costs on States or localities.

Regulatory Planning and Review

(Executive Order 12866)

This document is not a significant

rule and is not subject to review by the

Office of Management and Budget

(OMB) under Executive Order 12866.

(1) This rule will not have an effect of

$100 million or more on the economy.

It will not adversely affect in a material

way the economy, productivity,

competition, jobs, the environment,

public health or safety, or State, local,

or tribal governments or communities.

This rule does not have new

requirements. This rule will not create

an inconsistency or otherwise interfere

with an action taken or planned by

another agency.

(2) This rule will not create a serious

inconsistency or otherwise interfere

with an action taken or planned by

another agency. The standards only

apply to those lessees who choose to use

the new technology. Either way, the

costs will be the same.

(3) This rule does not alter the

budgetary effects or entitlements, grants,

user fees, or loan programs or the rights

or obligations of their recipients. There

are no new costs. The standards contain

guidance if lessees use the new

measurement technology. They do have

the option to use current technology.

Therefore, the costs will be the same.

(4) This rule does not raise novel legal

or policy issues. The requirements are

based on the legal authority of the OCS

Lands Act and other laws.

Civil Justice Reform (Executive Order

12988)

According to Executive Order 12988,

the Office of the Solicitor has

determined that this rule does not

unduly burden the judicial system and

meets the requirements of §§ 3(a) and

3(b)(2) of the Order.

Unfunded Mandate Reform Act

(UMRA) of 1995 (Executive Order

12866)

This rule does not impose an

unfunded mandate on State, local, or

tribal governments or the private sector

of more than $100 million per year. The

document was added to give lessees the

option to use new technology. If they

choose to do so, the cost will be the

same. It does not contain new

requirements, and it will not have a

significant or unique effect on State,

local, or tribal governments or the

private sector. Therefore, a statement

containing the information required by

the UMRA (2 U.S.C. 1531 et seq.) is not

required.

National Environmental Policy Act

(NEPA) of 1969

This rule does not constitute a major

Federal action significantly affecting the

quality of the human environment. A

detailed statement under the NEPA is

not required.

Takings Implication Assessment

According to Executive Order 12630,

the proposed rule does not represent a

governmental action capable of

interference with constitutionally

protected property rights. The standards

are optional. Thus, a Takings

Implication Assessment need not be

prepared according to Executive Order

12630, Government Action and

Interference with Constitutionally

Protected Property Rights.

Regulatory Flexibility (RF) Act

The Department certifies that this

document will not have a significant

economic effect on a substantial number

of small entities under the RF Act (5

U.S.C. 601 et seq.). The optional

standards will not have a significant

economic effect on offshore lessees and

operators, including those that are

classified as small businesses. The

Small Business Administration (SBA)

defines a small business as having:

• Annual revenues of $5 million or

less for exploration service and field

service companies.

• Fewer than 500 employees for

drilling companies and for companies

that extract oil, gas, or natural gas

liquids.

Under the Standard Industrial

Classification code, 1381, Drilling Oil

and Gas Wells, MMS estimates that

there is a total of 1,380 firms that drill

oil and gas wells onshore and offshore.

Of these, approximately 130 companies

are offshore lessees/operators, based on

current estimates. According to SBA

estimates, 39 companies qualify as large

firms, leaving 91 companies qualified as

small firms with fewer than 500

employees. This rule imposes no new

operational requirements, reporting

burdens, or other measures that would

increase costs to lessees/operators, large

or small. Therefore, this rule has no

significant economic impact on small

entities.

Your comments are important. The

Small Business and Agriculture

Regulatory Enforcement Ombudsman

and 10 Regional Fairness boards were

established to receive comments from

small businesses about Federal agency

enforcement actions. The Ombudsman

will annually evaluate the enforcement

activities and rate each agency’s

responsiveness to small businesses. If

you wish to comment on the

enforcement actions of MMS, call tollfree (888) 734–3247.

Small Business Regulatory Enforcement

Fairness Act (SBREFA)

This rule is not a major rule under (5

U.S.C. 804(2)) the SBREFA. This rule:

(a) Does not have an annual effect on

the economy of $100 million or more.

The main purpose of this rule is to add

industry standards to give lessees the

option to use new measurement

technology and the guidance if they

choose to do so. The rule does not have

new requirements.

(b) Will not cause a major increase in

costs or prices for consumers,

individual industries, Federal, State, or

local government agencies, or

geographic regions. The cost to comply

with the rule is the same as current

requirements.

(c) Does not have a significant adverse

effect on competition, employment,

investment, productivity, innovation, or

ability of United States-based

enterprises to compete with foreignbased enterprises. The rule does not

contain new requirements.

Paperwork Reduction Act (PRA) of

1995

The Department of the Interior has

determined that this regulation does not

contain information collection

requirements pursuant to PRA (44

U.S.C. 3501 et seq.). We will not be

submitting an information collection

request to OMB.

41002 Federal Register / Vol. 65, No. 128 / Monday, July 3, 2000 / Rules and Regulations

List of Subjects in 30 CFR Part 250

Continental shelf, Environmental

impact statements, Environmental

protection, Government contracts,

Incorporation by reference,

Investigations, Mineral royalties, Oil

and gas development and production,

Oil and gas exploration, Oil and gas

reserves, Penalties, Pipelines, Public

lands—mineral resources, Public

lands—rights-of-way, Reporting and

recordkeeping requirements, Sulphur

development and production, Sulphur

exploration, Surety bonds.

Dated: June 7, 2000.

Sylvia V. Baca,

Assistant Secretary, Land and Minerals

Management.

For the reasons stated in the

preamble, MMS amends 30 CFR Part

250 as follows:

PART 250—OIL AND GAS AND

SULPHUR OPERATIONS IN THE

OUTER CONTINENTAL SHELF

1. The authority citation for part 250

continues to read as follows:

Authority: 43 U.S.C. 1331, et seq.

2. In § 250.198, in the table in

paragraph (e), add the following in

alpha-numerical order:

§ 250.198 Documents incorporated by

reference.

* * * * *

(e) * * *

Title of documents Incorporated by reference

at

*******

API MPMS, Chapter 10, Section 9, Standard Test Method for Water in Crude Oils by Coulometric Karl Fischer Titration, First Edition, November 1993, API Stock No. 852–30210.§ 250.1202(a)(3), (l)(4)

*******

[FR Doc. 00–15659 Filed 6–30–00; 8:45 am]

BILLING CODE 4310–MR–P

DEPARTMENT OF DEFENSE

Office of the Secretary

32 CFR Part 199

TRICARE; Civilian Health and Medical

Program of the Uniformed Services

(CHAMPUS); Bonus Payments in

Medically Underserved Areas

AGENCY: Office of the Secretary, DoD.

ACTION: Interim final rule.

SUMMARY: This interim final rule

implements a bonus payment, in

addition to the amount normally paid

under the allowable charge

methodology, to providers in medically

underserved areas. For purposes of this

rule, medically underserved areas are

the same as those determined by the

Secretary of Health and Human Services

for the Medicare program. Such bonus

payments shall be equal to the bonus

payments authorized by Medicare,

except as necessary to recognize any

unique or distinct characteristics or

requirements of the CHAMPUS

program, and as described in

instructions issued by the Director,

OCHAMPUS. Due to the urgency for

such bonus payments in medically

underserved areas to alleviate problems

of access to healthcare coverage caused

by lower payments, the interim final

rule making process has been utilized.

This rule promotes a reimbursement

enhancement to a limited number of

providers designed to increase

CHAMPUS beneficiary access to care,

which also supports the use of the

interim final rule.

DATES: This rule is effective August 2,

2000. Written comments will be

accepted until September 1, 2000.

ADDRESSES: Forward comments to

Medical Benefits and Reimbursement

Systems, TRICARE Management

Activity, 16401 East Centretech

Parkway, Aurora, CO 80011–9043.

FOR FURTHER INFORMATION CONTACT: Stan

Regensberg, Medical Benefits and

Reimbursement Systems, TRICARE

Management Activity, telephone (303)

676–3742.

SUPPLEMENTARY INFORMATION: 32 CFR

Part 199, ‘‘Civilian Health and Medical

Program of the Uniformed Services

(CHAMPUS),’’ was published in the

Federal Register on July 1, 1986. This

interim final rule implements a bonus

payment, in addition to the amount

normally paid under the allowable

charge methodology, to providers in

medically underserved areas. For

purposes of this rule, medically

underserved areas are the same as those

determined by the Secretary of Health

and Human Services for the Medicare

program. Such bonus payments shall be

equal to the bonus payments authorized

by Medicare, except as necessary to

recognize any unique or distinct

characteristics or requirements of the

CHAMPUS program, and as described

in instructions issued by the Director,

OCHAMPUS. If the Department of

Health and Human Services acts to

amend or remove the provision for

bonus payments under Medicare,

CHAMPUS likewise may follow

Medicare in amending or removing

provision for such payments. To

expedite access to healthcare coverage

that has been impacted by lower

payments in such medically

underserved areas, the interim final rule

process is being utilized. Additionally,

it provides a reimbursement

enhancement that favors providers in

underserved areas, thus alleviating

healthcare access problems experienced

by beneficiaries residing in such areas.

Finally, because Medicare previously

established a bonus payment

reimbursement mechanism in these

areas, our emulation of this well

established mechanism complies with

existing statutory mandates that

CHAMPUS follow Medicare

reimbursement policy wherever

practicable. This rule will not

unilaterally increase payments to all

providers, but just those residing in

these underserved areas. Due to the

urgency for additional payments to

ensure beneficiary access to care in

these areas, it would be impracticable

and contrary to the public’s interest not

to use the interim final rule process. To

do otherwise would prevent

OCHAMPUS from fulfilling its duty to

beneficiaries in these underserved areas.

Regulatory Procedure

Executive Order 12866 requires

certain regulatory assessments for any

significant regulatory action, defined as

one which would result in an annual

effect on the economy of $100 million

or more, or have other substantial

impacts. The Regulatory Flexibility Act

(RFA) requires that each Federal agency

prepare, and make available for public