Federal Register / Vol. 71, No. 150 / Friday, August 4, 2006 / Proposed Rules 44247 

percent of the capital and profits of D, an 

entity organized in country M. D is a 

partnership for U.S. income tax purposes, but 

is a corporation for country M tax purposes. 

D uses the ‘‘u’’ as its functional currency and 

the calendar year as its taxable year for both 

U.S. tax purposes and country M tax 

purposes. Country M imposes an income tax 

described in paragraph (a)(1) of this section 

at a rate of 30 percent at the entity level on 

the taxable income of D. On September 30, 

2008, A sells its 50 percent interest in D to 

C. A’s sale of its partnership interest results 

in a termination of the partnership under 

section 708(b) for U.S. tax purposes. As a 

result of the termination, ‘‘old’’ D’s taxable 

year closes on September 30, 2008 for U.S. 

tax purposes. New D also has a short U.S. 

taxable year, beginning on October 1, 2008, 

and ending on December 31, 2008. The sale 

of A’s interest does not close D’s taxable year 

for country M tax purposes. D has 400u of 

taxable income for its 2008 foreign taxable 

year with respect to which country M 

imposes 120u equal to $120 of income tax. 

(ii) Result. Under paragraph (f)(3)(i) of this 

section, hybrid partnership D is legally liable 

for the $120 of country M income tax 

imposed on its net income. Because D’s 

taxable year closes on September 30, 2008, 

for U.S. tax purposes, but does not close for 

country M tax purposes, under paragraph 

(f)(3)(i) of this section the $120 of country M 

tax must be allocated under the principles of 

§ 1.1502–76(b) between the short U.S. taxable 

years of terminating D and new D. See 

§ 1.704–1(b)(4)(viii) for rules relating to the 

allocation of terminating D’s country M taxes 

between A and B and the allocation of new 

D’s country M taxes between B and C. 

Example 9. (i) Facts. A, a United States 

person engaged in construction activities in 

country X, is subject to the country X income 

tax. Country X has contracted with A for A 

to construct a naval base. A is a dual capacity 

taxpayer (as defined in paragraph (a)(2)(ii)(A) 

of this section) and, in accordance with 

paragraphs (a)(1) and (c)(1) of § 1.901–2A, A 

has established that the country X income tax 

as applied to dual capacity persons and the 

country X income tax as applied to persons 

other than dual capacity persons together 

constitute a single levy. A has also 

established that that levy is an income tax 

within the meaning of paragraph (a)(1) of this 

section. Pursuant to the terms of the contract, 

country X has agreed to assume any country 

X income tax liability that A may incur with 

respect to A’s income from the contract. 

(ii) Result. For U.S. income tax purposes, 

A’s income from the contract includes the 

amount of tax that is imposed by country X 

on A with respect to its income from the 

contract and that is assumed by country X; 

and the amount of the tax liability assumed 

by country X is considered to be paid by A. 

By reason of paragraph (f)(5) of this section, 

country X is not considered to provide a 

subsidy, within the meaning of section 901(i) 

and paragraph (e)(3) of this section, to A. 

* * * * * 

(h) Effective Date. Paragraphs (a) 

through (e) and paragraph (g) of this 

section, § 1.901–2A and § 1.903–1 apply 

to taxable years beginning after 

November 14, 1983. Paragraph (f) of this 

section is effective for foreign taxes paid 

or accrued during taxable years of the 

taxpayer beginning on or after January 1, 

2007. 

Mark E. Matthews, 

Deputy Commissioner for Services and 

Enforcement. 

[FR Doc. E6–12358 Filed 8–3–06; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Parts 1 and 31 

[REG–146893–02; REG–115037–00; REG–

138603–03] 

RIN 1545–BB31, 1545–AY38, 1545–BC52 

Treatment of Services Under Section 

482 Allocation of Income and 

Deductions From Intangibles 

Stewardship Expense 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Notice of proposed rulemaking 

by cross-reference to temporary 

regulations, notice of proposed 

rulemaking, and notice of public 

hearing. 

SUMMARY: In a separate part to this issue 

of the Federal Register, the IRS is 

issuing temporary regulations relating to 

the treatment of controlled services 

transactions under section 482. These 

temporary regulations also provide 

guidance regarding the allocation of 

income from intangibles, in particular 

with respect to contribution by a 

controlled party to the value of an 

intangible owned by another controlled 

party as it relates to controlled services 

transactions and modify the regulations 

under section 861 concerning 

stewardship expenses to be consistent 

with the changes made to the 

regulations under section 482. The text 

of those regulations also serves as the 

text of these proposed regulations. 

These proposed regulations also contain 

a coordination rule with global dealing 

operations. The Treasury Department 

and the IRS are presently working on 

new global dealing regulations and 

intend that when final regulations are 

issued, those regulations, not § 1.482–

9T, will govern the evaluation of the 

activities performed by a global dealing 

operation within the scope of those 

regulations. Pending finalization of the 

global dealing regulations, taxpayers 

may rely on the proposed global dealing 

regulations, not the temporary services 

regulations, to govern financial 

transactions entered into in connection 

with a global dealing operation as 

defined in proposed § 1.482–8. 

Therefore, proposed regulations under 

§ 1.482–9(m)(5) clarify that a controlled 

services transaction does not include a 

financial transaction entered into in 

connection with a global dealing 

operation. These proposed regulations 

potentially affect controlled taxpayers 

within the meaning of section 482. This 

document also provides notice of a 

public hearing on these proposed 

regulations. 

DATES: Written or electronic comments 

must be received by November 2, 2006. 

ADDRESSES: Send submissions to: 

CC:PA:LPD:PR (REG–146893–02, REG–

115037–00, and REG–138603–03), 

Internal Revenue Service, PO Box 7604, 

Ben Franklin Station, Washington, DC 

20044. Submissions may be sent 

electronically, via the IRS Internet site 

at http://www.irs.gov/regs or via Federal 

eRulemaking Portal at http:// 

www.regulations.gov (IRS REG–146893–

02, REG–115037–00, and REG–138603–

03). 

FOR FURTHER INFORMATION CONTACT: 

Concerning the proposed regulations, 

Thomas A. Vidano, (202) 435–5265, or 

Carol B. Tan, (202) 435–5265 for matters 

relating to section 482, or David 

Bergkuist (202) 622–3850 for matters 

relating to stewardship expenses; 

concerning submission of comments, 

the hearing, and/or, to be placed on the 

building access list to attend the 

hearing, [Insert Name], (202) 622–7180 

(not toll-free numbers). 

SUPPLEMENTARY INFORMATION: 

Background and Explanation of 

Provisions 

Temporary regulations in the Rules 

and Regulations section of this issue of 

the Federal Register amend the Income 

Tax Regulations (26 CFR parts 1 and 31) 

relating to section 482. The temporary 

regulations set forth guidance on the 

treatment of controlled services 

transactions, the allocation from 

intangibles under section 482, and 

stewardship expenses under section 

861. The text of those regulations also 

serves as the text of these proposed 

regulations. The preamble to the 

temporary regulations explains the 

temporary regulations and these 

proposed regulations. These proposed 

regulations potentially affect controlled 

taxpayers within the meaning of section 

482. 

Special Analyses 

It has been determined that this notice 

of proposed rulemaking is not a 

significant regulatory action as defined 


gechino on PROD1PC61 with PROPOSALS
44248 Federal Register / Vol. 71, No. 150 / Friday, August 4, 2006 / Proposed Rules 

in Executive Order 12866. Therefore, a 

regulatory assessment is not required. It 

also has been determined that section 

553(b) of the Administrative Procedure 

Act (5 U.S.C. chapter 5) does not apply 

to these regulations, and because the 

regulation does not impose a collection 

of information on small entities, the 

Regulatory Flexibility Act (5 U.S.C. 

chapter 6) does not apply. Pursuant to 

section 7805(f) of the Internal Revenue 

Code (Code), this regulation has been 

submitted to the Chief Counsel for 

Advocacy of the Small Business 

Administration for comment on their 

impact on small business. 

Comments and Public Hearing 

Before these proposed regulations are 

adopted as final regulations, 

consideration will be given to any 

written comments (a signed original and 

eight (8) copies) or electronic comments 

that are submitted timely to the IRS. The 

IRS and Treasury Department 

specifically request comments on the 

clarity of the proposed rule and how it 

may be made easier to understand. All 

comments will be available for public 

inspection and copying. 

A public hearing will be scheduled if 

requested in writing by any person that 

timely submits written comments. If a 

public hearing is scheduled, notice of 

the date, time, and place for the public 

hearing will be published in the Federal 

Register. 

Drafting Information 

The principal authors of these 

regulations are Thomas A. Vidano and 

Carol B. Tan, Office of Associate Chief 

Counsel (International). 

List of Subjects 

26 CFR Part 1 

Income taxes, Reporting and 

recordkeeping requirements. 

26 CFR Part 31 

Employment taxes, Income taxes, 

Penalties, Pensions, Railroad retirement, 

Reporting and recordkeeping 

requirements, Social Security and 

Unemployment compensation. 

Proposed Amendments to the 

Regulations 

Accordingly, 26 CFR parts 1 and 31 

are proposed to be amended as follows: 

PART 1—INCOME TAXES 

Paragraph. 1. The authority citation 

for part 1 is amended by adding an entry 

in numerical order to read in part as 

follows: 

Authority: 26 U.S.C. 7805 * * * 

Section 1.482–9 also issued under 26 

U.S.C. 482. * * * 

Par. 2. Section 1.482–0 is amended as 

follows: 

1. The section heading is revised. 

2. The entries for § 1.482–2(b) are 

revised. 

3. The entries for § 1.482–4(f)(3), (f)(4) 

and (f)(5) are revised and new entries for 

§ 1.482–4(f)(6) are added. 

4. New entries for §§ 1.482–

6T(c)(3)(i)(B)(1) and (2) and 1.482–9T 

are added. 

The revisions and additions read as 

follows: 

§ 1.482–0 Outline of regulations under 

section 482. 

* * * * * 

[The text of the proposed amendment 

to § 1.482–0 is the same as the text of 

§ 1.482–0T published elsewhere in this 

issue of the Federal Register]. 

Par. 3. Section 1.482–1 is amended as 

follows: 

1. Paragraphs (a)(1), (b)(2)(i), 

(d)(3)(ii)(C) Example 3, (d)(3)(v), 

(f)(2)(ii)(A), (f)(2)(iii)(B), (g)(4)(i), 

(g)(4)(iii) and paragraph (i) are revised. 

2. Paragraphs (d)(3)(ii)(C), Example 4 

and Example 5 and (j) are added. 

The additions and revisions read as 

follows: 

§ 1.482–1 Allocation of income and 

deductions among taxpayers. 

(a)(1) [The text of the proposed 

amendment to § 1.482–1(a)(1) is the 

same as the text of § 1.482–1T(a)(1) 

published elsewhere in this issue of the 

Federal Register]. 

* * * * * 

(b) * * * 

(1) * * * 

(b)(2)(i) [The text of the proposed 

amendment to § 1.482–1(b)(2)(i) is the 

same as the text of § 1.482–1T(b)(2)(i) 

published elsewhere in this issue of the 

Federal Register]. 

* * * * * 

(d) * * * 

(3) * * * 

(ii) * * * 

(C) * * * 

Example 3. [The text of the proposed 

amendment to § 1.482–1(d)(3)(ii)(C), Example 

3 is the same as the text of § 1.482–

1T(d)(3)(ii)(C) Example 3 published 

elsewhere in this issue of the Federal 

Register]. 

Example 4. [The text of the proposed 

amendment to § 1.482–1(d)(3)(ii)(C) Example 

4 is the same as the text of § 1.482–

1T(d)(3)(ii)(C) Example 4 published 

elsewhere in this issue of the Federal 

Register]. 

Example 5. [The text of the proposed 

amendment to § 1.482–1(d)(3)(ii)(C) Example 

5 is the same as the text of § 1.482–

1T(d)(3)(ii)(C) Example 5 published 

elsewhere in this issue of the Federal 

Register]. 

Example 6. [The text of the proposed 

amendment to § 1.482–1(d)(3)(ii)(C) Example 

6 is the same as the text of § 1.482–

1T(d)(3)(ii)(C) Example 6 published 

elsewhere in this issue of the Federal 

Register]. 

(v) Property or services. [The text of 

the proposed amendment to § 1.482–

1(d)(3)(v) is the same as the text of 

§ 1.482–1T(d)(3)(v) published elsewhere 

in this issue of the Federal Register]. 

* * * * * 

(f) * * * 

(2) * * * 

(ii)(A) [The text of the proposed 

amendment to § 1.482–1(f)(2)(ii)(A) is 

the same as the text of § 1.482–

1T(f)(2)(ii)(A) published elsewhere in 

this issue of the Federal Register]. 

(iii) * * * 

(B) [The text of the proposed 

amendment to § 1.482–1(f)(3)(iii)(B) is 

the same as the text of § 1.482–

1T(f)(3)(iii)(B) published elsewhere in 

this issue of the Federal Register]. 

* * * * * 

(g) * * * 

(4) * * * 

(i) * * * [The text of the proposed 

amendment to § 1.482–1(g)(4)(i) is the 

same as the text of § 1.482–1T(g)(4)(i) 

published elsewhere in this issue of the 

Federal Register]. 

(iii) * * * 

Example 1. [The text of the proposed 

amendment to § 1.482–1(g)(4)(iii) Example 1 

is the same as the text of § 1.482–1T(g)(4)(iii) 

Example 1 published elsewhere in this issue 

of the Federal Register]. 

* * * * * 

(i) [The text of the proposed 

amendment to § 1.482–1(i) is the same 

as the text of § 1.482–1T(i) published 

elsewhere in this issue of the Federal 

Register]. 

* * * * * 

(j) [The text of the proposed 

amendment to § 1.482–1(j) is the same 

as the text of § 1.482–1T(j)(1) and (2) 

published elsewhere in this issue of the 

Federal Register]. 

Par. 4. Section 1.482–2 is amended as 

follows: 

1. Paragraph (b) is revised. 

2. Paragraph (e) is added. 

The revision and addition reads as 

follows: 

§ 1.482–2 Determination of taxable income 

in specific situations. 

* * * * * 

(b) [The text of the proposed 

amendment to § 1.482–2(b) is the same 

as the text of § 1.482–2T(b) published 

elsewhere in this issue of the Federal 

Register]. 

* * * * * 


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Federal Register / Vol. 71, No. 150 / Friday, August 4, 2006 / Proposed Rules 44249 

(e) [The text of the proposed 

amendment to § 1.482–2(e) is the same 

as the text of § 1.482–2T(e)(1) and (2) 

published elsewhere in this issue of the 

Federal Register]. 

Par. 5. Section 1.482–4 is amended as 

follows: 

1. Paragraph (f)(3) is revised. 

2. Paragraphs (f)(4) and (f)(5) are 

redesignated as paragraphs (f)(5) and 

(f)(6), respectively. 

3. New paragraphs (f)(4) and (f)(7) are 

added. 

The revision and addition read as 

follows: 

§ 1.482–4 Methods to determine taxable 

income in connection with a transfer of 

intangible property. 

* * * * * 

(f) * * * 

(3) [The text of the proposed 

amendment to § 1.482–4(f)(3) is the 

same as the text of § 1.482–4T(f)(3) 

published elsewhere in this issue of the 

Federal Register]. 

* * * * * 

(4) [The text of the proposed 

amendment to § 1.482–4(f)(4) is the 

same as the text of § 1.482–4T(f)(4) 

published elsewhere in this issue of the 

Federal Register]. 

* * * * * 

(7) [The text of the proposed 

amendment to § 1.482–4(f)(7) is the 

same as the text of § 1.482–4T(f)(7)(i) 

and (ii) published elsewhere in this 

issue of the Federal Register]. 

* * * * * 

Par. 6. Section 1.482–6 is amended by 

revising paragraphs (c)(2)(ii)(B)(1), 

(c)(2)(ii)(D), (c)(3)(i)(A), (c)(3)(i)(B), and 

(c)(3)(ii)(D), and adding paragraph (d) to 

read as follows: 

§ 1.482–6 Profit split method. 

* * * * * 

(c) * * * 

(2) * * * 

(ii) * * * 

(B) * * * (1) * * * [The text of the 

proposed amendment to § 1.482–

6(c)(2)(ii)(B)(1) is the same as the text of 

§ 1.482–6T(c)(2)(ii)(B)(1) published 

elsewhere in this issue of the Federal 

Register]. 

* * * * * 

(D) [The text of the proposed 

amendment to § 1.482–6(c)(2)(ii)(D) is 

the same as the text of § 1.482–

6T(c)(2)(ii)(D) published elsewhere in 

this issue of the Federal Register]. 

* * * * * 

(3) * * * 

(i) * * * (A) [The text of the proposed 

amendment to § 1.482–6(c)(3)(i)(A) is 

the same as the text of § 1.482–

6T(c)(3)(i)(A) published elsewhere in 

this issue of the Federal Register]. 

(B) [The text of the proposed 

amendment to § 1.482–6(c)(3)(i)(B) is 

the same as the text of § 1.482–

6T(c)(3)(i)(B) published elsewhere in 

this issue of the Federal Register]. 

* * * * * 

(ii) * * * 

(D) [The text of the proposed 

amendment to § 1.482–6(c)(3)(ii)(D) is 

the same as the text of § 1.482–

6T(c)(3)(ii)(D) published elsewhere in 

this issue of the Federal Register]. 

* * * * * 

(d) [The text of the proposed 

amendment to § 1.482–6(d) is the same 

as the text of § 1.482–6T(d)(1) and (2) 

published elsewhere in this issue of the 

Federal Register]. 

Par. 7. Section 1.482–8 is amended by 

adding Examples 10 through 12 to read 

as follows: 

§ 1.482–8 Examples of the best method 

rule. 

* * * * * 

(a) Example 10. Cost of services plus 

method preferred to other methods. [The text 

of the proposed amendment to § 1.482–8(a) 

Example 10 is the same as the text of § 1.482–

8T(a) Example 10 published elsewhere in 

this issue of the Federal Register]. 

Example 11. CPM for services preferred to 

other methods. [The text of the proposed 

amendment to § 1.482–8(a) Example 11 is the 

same as the text of § 1.482–8T(a) Example 11 

published elsewhere in this issue of the 

Federal Register]. 

Example 12. Residual profit split preferred 

to other methods. [The text of the proposed 

amendment to § 1.482–8(a) Example 12 is the 

same as the text of § 1.482–8T(a) Example 12 

published elsewhere in this issue of the 

Federal Register]. 

(b) [The text of the proposed amendment 

to § 1.482–8(b) is the same as the text of 

§ 1.482–8T(b)(1) and (2) published elsewhere 

in this issue of the Federal Register]. 

Par. 8. A new § 1.482–9 is added to 

read as follows: 

§ 1.482–9 Methods to determine taxable 

income in connection with a controlled 

services transaction. 

(a) through (m)(5) [The text of the 

proposed § 1.482–9(a) through (m)(5) is 

the same as the text of § 1.482–9T(a) 

through (m)(5) published elsewhere in 

this issue of the Federal Register]. 

(m)(6) Global dealing operations. A 

controlled services transaction does not 

include a financial transaction entered 

into in connection with a global dealing 

operation as defined in § 1.482–8. 

(n) [The text of the proposed § 1.482–

9(n) is the same as the text of § 1.482–

9T(n)(1) and (n)(2) published elsewhere 

in this issue of the Federal Register]. 

Par. 9. Section 1.861–8 is amended by 

revising paragraphs (a)(5), the fifth and 

sixth sentences in paragraph (b)(3), 

(e)(4), (f)(4)(i), (g) Examples 17, 18, and 

30, and the first sentence in paragraph 

(h) introductory text to read as follows: 

§ 1.861–8 Computation of taxable income 

from sources within the United States and 

from other sources and activities. 

(a) * * * 

(5) [The text of the proposed 

amendment to § 1.861–8(a)(5) is the 

same as the text of § 1.861–8T (a)(5) 

published elsewhere in this issue of the 

Federal Register] 

(b) * * * 

(3) * * * [The text of the proposed 

amendment to § 1.861–8(b)(3) is the 

same as the text in § 1.861–8T(b)(3) 

published elsewhere in this issue of the 

Federal Register]. * * * 

* * * * * 

(e) * * * 

(4) [The text of the proposed 

amendment to § 1.861–8(e)(4) is the 

same as the text of § 1.861–8T(e)(4) 

published elsewhere in this issue of the 

Federal Register]. 

(f) * * * 

(4) * * * (i) [The text of the proposed 

amendment to § 1.861–8(f)(4)(i) is the 

same as the text of § 1.861–8T(e)(4)(i) 

published elsewhere in this issue of the 

Federal Register]. 

(g) * * * 

Example 17. [The text of the proposed 

amendment to § 1.861–8(g) Example 17 is the 

same as the text of § 1.861–8T(g) Example 17, 

published elsewhere in this issue of the 

Federal Register]. 

Example 18. [The text of the proposed 

amendment to § 1.861–8(g) Example 18 is the 

same as the text of § 1.861–8T(g) Example 18, 

published elsewhere in this issue of the 

Federal Register]. 

* * * * * 

Example 30. [The text of the proposed 

amendment to § 1.861–8(g) Example 30 is the 

same as the text of § 1.861–8T(g) Example 30, 

published elsewhere in this issue of the 

Federal Register]. 

(h) [The text of the proposed 

amendment to § 1.861–8(h) is the same 

as the text of § 1.861–8T(h)(1) published 

elsewhere in this issue of the Federal 

Register]. * * * 

* * * * * 

Par. 10. Section 1.6038A–3(a)(3) is 

amended by revising paragraph (a)(3) 

Example 4 and (i) to read: 

§ 1.6038A–3 Record maintenance. 

(a) * * * 

(3) * * * 

Example 4. [The text of the proposed 

amendment to § 1.6038A–3, Example 4 is the 

same as the text of § 1.6038A–3T, Example 4 

published elsewhere in this issue of the 

Federal Register]. 

* * * * * 

(i) [The text of the proposed 

amendment to § 1.6038A–3(i) is the 


gechino on PROD1PC61 with PROPOSALS
44250 Federal Register / Vol. 71, No. 150 / Friday, August 4, 2006 / Proposed Rules 

same as the text of § 1.6038A–3T(i)(1) 

and (2) published elsewhere in this 

issue of the Federal Register]. 

Par. 11. Section 1.6662–6 is amended 

by revising paragraphs (d)(2)(ii)(B), 

(d)(2)(iii)(B)(4), (d)(2)(iii)(B)(6) and (g) to 

read as follows: 

§ 1.6662–6 Transactions between persons 

described in section 482 and net section 

482 transfer price adjustments. 

* * * * * 

(d) * * * 

(2) * * * 

(ii) * * * 

(B) [The text of the proposed 

amendment to § 1.6662–6(d)(2)(ii)(B) is 

the same as the text of § 1.6662–

6T(d)(2)(ii)(B) published elsewhere in 

this issue of the Federal Register]. 

* * * * * 

(iii) * * * 

(B) * * * (4) [The text of the proposed 

amendment to § 1.6662–6(d)(2)(iii)(B)(4) 

is the same as the text of § 1.6662–

6T(d)(2)(iii)(B)(4) published elsewhere 

in this issue of the Federal Register]. 

* * * * * 

(6) [The text of the proposed 

amendment to § 1.6662–6(d)(2)(iii)(B)(6) 

is the same as the text of § 1.6662–

6T(d)(2)(iii)(B)(6) published elsewhere 

in this issue of the Federal Register]. 

* * * * * 

(g) [The text of the proposed 

amendment to § 1.6662–6(g) is the same 

as the text of § 1.6662–6T(g)(1) and (2) 

published elsewhere in this issue of the 

Federal Register]. 

PART 31—EMPLOYMENT TAXES AND 

COLLECTION OF INCOME TAX AT THE 

SOURCE 

Par. 12. The authority citation for part 

31 continues to read as follows: 

Authority: 26 U.S.C. 7805 * * * 

Par. 13. Section 31.3121(s)–1 is 

amended by revising paragraphs 

(c)(2)(iii) and (d) to read as follows: 

§ 31.3121(s)–1 Concurrent employment by 

related corporations with common 

paymaster. 

* * * * * 

(c) * * * 

(2) * * * 

(iii) [The text of the proposed 

amendment to § 31.3121(s)–1(c)(2)(iii) is 

the same as the text of § 31.3121(s)–

1T(c)(2)(iii) published elsewhere in this 

issue of the Federal Register]. 

* * * * * 

(d) [The text of the proposed 

amendment to § 31.3121(s)–1(d) is the 

same as the text of § 31.3121(s)–1T(d)(1) 

and (2) published elsewhere in this 

issue of the Federal Register]. 

* * * * * 

Mark E. Matthews, 

Deputy Commissioner for Services and 

Enforcement. 

[FR Doc. 06–6674 Filed 7–31–06; 4:40 pm] 

BILLING CODE 4830–01–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[CGD09–06–122] 

RIN 1625–AA00 

Safety Zone; St. Louis River/Duluth/ 

Interlake Tar Remediation Site, Duluth, 

MN 

AGENCY: Coast Guard, DHS. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The Coast Guard proposes to 

establish a safety zone on the St. Louis 

River in Duluth, Minnesota. The 

purpose of the safety zone is to protect 

the boating public from dangers 

associated with the cleanup operation in 

and around Stryker Bay. Entry into this 

zone will be prohibited unless 

authorized by the Captain of the Port or 

his duly appointed representative. 

DATES: Comments and related materials 

must reach the Coast Guard on or before 

September 30, 2006. 

ADDRESSES: You may mail comments 

and related material to Coast Guard 

Marine Safety Unit Duluth, 600 S. Lake 

Ave., Duluth, MN 55802. Coast Guard 

Marine Safety Unit (MSU) Duluth 

maintains the public docket for this 

rulemaking. Comments and material 

received from the public are part of the 

docket [CGD09–06–122] and are 

available for inspection or copying at 

U.S. Coast Guard Marine Safety Unit 

Duluth at the above address between the 

hours of 7:30 a.m. and 3:30 p.m., 

Monday through Friday, except Federal 

holidays. 

FOR FURTHER INFORMATION CONTACT: 

LCDR Scott Stoermer, U.S. Coast Guard 

Marine Safety Unit Duluth, at (218) 

720–5286, ext. 111. 

SUPPLEMENTARY INFORMATION: 

Request for Comments 

We encourage you to participate in 

this rulemaking by submitting 

comments and related material. If you 

do so, please include your name and 

address, identify the docket number for 

this rulemaking (CGD09–06–122), 

indicate the specific section of this 

document to which each comment 

applies, and give the reason for each 

comment. Please submit all comments 

and related material in an unbound 

format, no larger than 81⁄2 by 11 inches, 

suitable for copying. If you would like 

to know that they reached us, please 

enclose a stamped, self-addressed 

postcard or envelope. We will consider 

all comments and material received 

during the comment period. We may 

change this proposed rule in view of 

them. 

Public Meeting 

We do not plan to hold a public 

meeting. But you may submit a request 

for a meeting by writing to MSU Duluth 

at the address under ADDRESSES

explaining why one would be 

beneficial. If we determine that one 

would aid this rulemaking, we will hold 

one at a time and place announced by 

a later notice in the Federal Register. 

Background and Purpose 

On June 23, 2006, the Captain of the 

Port Duluth issued a Temporary Final 

Rule (71 FR 36012, CGD9–06–031, 33 

CFR 165.T09–031) establishing a safety 

zone in Stryker Bay and Hallett Slips 6 

& 7, which expires on November 30, 

2003. The Coast Guard, through this 

action, intends to continue to ensure the 

safety of the public and boating traffic 

in the Stryker Bay area during the 

course of an environmental remediation 

project by establishing a permanent 

safety zone. This safety zone is intended 

to restrict vessel traffic from the portion 

of St. Louis River where construction 

and dredging are occurring. The size of 

the zone was determined by placing the 

boundaries approximately 50 feet 

beyond the outermost extent of dredging 

operations, encompassing all of Stryker 

Bay and Hallett Slips 6&7. The Coast 

Guard intends to cancel this safety zone 

upon completion of the mediation 

which is currently anticipated to last for 

three years. 

Discussion of Proposed Rule 

The Coast Guard proposes a safety 

zone to ensure the safety of boaters 

transiting this portion of the St. Louis 

River. This proposed safety zone is 

identical to the current safety zone 

established by the temporary final rule 

discussed above. 

The proposed safety zone would 

encompass all waters of Stryker Bay and 

Hallett Slips 6 & 7 which are located 

north of a boundary line delineated by 

the following points: From the shoreline 

at 46°43′10.00′′ N, 092°10′31.66′′ W, 

then south to 46°43′06.24′′ N, 

092°10′31.66′′ W, then east to 


gechino on PROD1PC61 with PROPOSALS