51088 Federal Register / Vol. 79, No. 166 / Wednesday, August 27, 2014 / Rules and Regulations 

Issued in Renton, Washington, on August 

4, 2014. 

Jeffrey E. Duven, 

Manager, Transport Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. 2014–19708 Filed 8–26–14; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2014–0616; Directorate 

Identifier 2014–CE–018–AD; Amendment 

39–17954; AD 2014–17–01] 

RIN 2120–AA64 

Airworthiness Directives; Viking Air 

Limited Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule; request for 

comments. 

SUMMARY: We are adopting a new 

airworthiness directive (AD) for Viking 

Air Limited Model DHC–3 airplanes. 

This AD results from mandatory 

continuing airworthiness information 

(MCAI) issued by the aviation authority 

of another country to identify and 

correct an unsafe condition on an 

aviation product. The MCAI describes 

the unsafe condition as looseness of the 

horizontal stabilizer actuator mounting 

block in the forward-aft and side-to-side 

directions. We are issuing this AD to 

require actions to address the unsafe 

condition on these products. 

DATES: This AD is effective September 

16, 2014. 

The Director of the Federal Register 

approved the incorporation by reference 

of a certain publication listed in the AD 

as of September 16, 2014. 

We must receive comments on this 

AD by October 14, 2014. 

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 AD, contact Viking Air Limited 

Technical Support, 1959 De Havilland 

Way, Sidney, British Columbia, Canada, 

V8L 5V5; Fax: 250–656–0673; 

telephone: (North America) 1–800–663– 

8444; email: technical.support@

vikingair.com; Internet: http://www.

vikingair.com/content.aspx?id=358. You 

may view this referenced service 

information at the FAA, Small Airplane 

Directorate, 901 Locust, Kansas City, 

Missouri 64106. For information on the 

availability of this material at the FAA, 

call (816) 329–4148. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http://

www.regulations.gov by searching for 

and locating Docket No. FAA–2014– 

0616; 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 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: 

Cesar Gomez, Aerospace Safety Enginer, 

FAA, New York Aircraft Certification 

Office, 1600 Steward Avenue, Suite 410, 

Westbury, New York 11590; telephone: 

(516) 228–7318; fax: (516) 794–5531; 

email: cesar.gomez@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Discussion 

Transport Canada, which is the 

aviation authority for Canada, has 

issued AD No. CF–2014–14, dated June 

5, 2014 (referred to after this as ‘‘the 

MCAI’’), to correct an unsafe condition 

for Viking Air Limited Model DHC–3 

airplanes. The MCAI states: 

A horizontal stabilizer actuator (trim jack) 

mounting block, part number C3FS79–5, was 

found loose in the forward-aft and side-toside directions. The trim jack mounting block 

fastens the stabilizer actuator (trim jack) 

which allows the angle of incidence of the 

stabilizer to be varied. The stabilizer actuator 

(trim jack) also functions as the rear 

mounting point for the stabilizer. 

Failure of the mounting block through 

breakage or detachment may cause loss of 

control of the horizontal stabilizer and 

subsequent loss of control of the aeroplane. 

Therefore, this AD mandates a one-time 

inspection of the stabilizer actuator (trim 

jack) mounting block. 

You may examine the MCAI on the 

Internet at http://www.regulations.gov 

by searching for and locating Docket No. 

FAA–2014–0616. 

Relevant Service Information 

Viking Air Limited has issued Viking 

Service Bulletin No. V3/0005, Revision 

‘A’, dated May 27, 2014. The actions 

described in this service information are 

intended to correct the unsafe condition 

identified in the MCAI. 

FAA’s Determination and Requirements 

of the AD 

This product has been approved by 

the aviation authority of another 

country, and is approved for operation 

in the United States. Pursuant to our 

bilateral agreement with this State of 

Design Authority, they have notified us 

of the unsafe condition described in the 

MCAI and service information 

referenced above. We are issuing this 

AD because we evaluated all 

information provided by the State of 

Design Authority and determined the 

unsafe condition exists and is likely to 

exist or develop on other products of the 

same type design. 

Interim Action 

We consider this AD interim action. 

After the State of Design reviews and 

evaluates the reporting data, we may 

take further rulemaking action in the 

future. 

FAA’s Determination of the Effective 

Date 

An unsafe condition exists that 

requires the immediate adoption of this 

AD. The FAA has found that the risk to 

the flying public justifies waiving notice 

and comment prior to adoption of this 

rule because failure of the mounting 

block through breakage or detachment 

may cause loss of control of horizontal 

stabilizer and subsequent loss of 

control. Therefore, we determined that 

notice and opportunity for public 

comment before issuing this AD are 

impracticable and that good cause exists 

for making this amendment effective in 

fewer than 30 days. 

Comments Invited 

This AD is a final rule that involves 

requirements affecting flight safety, and 

we did not precede it by notice and 

opportunity for public comment. We 

invite you to send any written relevant 

data, views, or arguments about this AD. 

Send your comments to an address 

listed under the ADDRESSES section. 

Include ‘‘Docket No. FAA–2014–0616; 

Directorate Identifier 2014–CE–018– 

AD’’ at the beginning of your comments. 

We specifically invite comments on the 

overall regulatory, economic, 

environmental, and energy aspects of 

this AD. We will consider all comments 

received by the closing date and may 

mstockstill on DSK4VPTVN1PROD with RULES

Federal Register / Vol. 79, No. 166 / Wednesday, August 27, 2014 / Rules and Regulations 51089 

amend this 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 AD. 

Costs of Compliance 

We estimate that this AD will affect 

35 products of U.S. registry. We also 

estimate that it would take about 3 

work-hours per product to comply with 

the basic requirements of this AD. The 

average labor rate is $85 per work-hour. 

Based on these figures, we estimate 

the cost of the AD on U.S. operators to 

be $8,925, or $255 per product. 

The scope of damage found in the 

inspections could vary from airplane to 

airplane. We have no way of 

determining how much damage may be 

found on each airplane or the cost to 

repair or replace damaged parts on each 

airplane or the number of airplanes that 

may require repair or replacements. 

Paperwork Reduction Act 

A federal agency may not conduct or 

sponsor, and a person is not required to 

respond to, nor shall a person be subject 

to penalty for failure to comply with a 

collection of information subject to the 

requirements of the Paperwork 

Reduction Act unless that collection of 

information displays a current valid 

OMB control number. The control 

number for the collection of information 

required by this AD is 2120–0056. The 

paperwork cost associated with this AD 

has been detailed in the Costs of 

Compliance section of this document 

and includes time for reviewing 

instructions, as well as completing and 

reviewing the collection of information. 

Therefore, all reporting associated with 

this AD is mandatory. Comments 

concerning the accuracy of this burden 

and suggestions for reducing the burden 

should be directed to the FAA at 800 

Independence Ave. SW., Washington, 

DC 20591. ATTN: Information 

Collection Clearance Officer, AES–200. 

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 AD will not 

have federalism implications under 

Executive Order 13132. This AD will 

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 that this AD: 

(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), 

(3) Will not affect intrastate aviation 

in Alaska, and 

(4) 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. 

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Incorporation by reference, 

Safety. 

Adoption of the Amendment 

Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA amends 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: 

2014–17–01. Viking Air Limited: 

Amendment 39–17954; Docket No. 

FAA–2014–0616; Directorate Identifier 

2014–CE–018–AD. 

(a) Effective Date 

This airworthiness directive (AD) becomes 

effective September 16, 2014. 

(b) Affected ADs 

None. 

(c) Applicability 

This AD applies to Viking Air Limited 

Models DHC–3 airplanes, all serial numbers, 

certificated in any category. 

(d) Subject 

Air Transport Association of America 

(ATA) Code 55: Stabilizers. 

(e) Reason 

This AD was prompted by mandatory 

continuing airworthiness information (MCAI) 

issued by the aviation authority of another 

country to identify and correct an unsafe 

condition on an aviation product. The MCAI 

describes the unsafe condition as looseness 

of the horizontal stabilizer actuator mounting 

block in the forward-aft and side-to-side 

directions. We are issuing this AD to prevent 

breakage or detachment of the horizontal 

stabilizer actuator mounting block, which 

could lead to failure of the horizontal 

stabilizer with subsequent loss of control. 

(f) Actions and Compliance 

Unless already done, do the following 

actions in paragraphs (f)(1) and (f)(2). 

(1) Within the next 100 hours time-inservice after September 16, 2014 (the 

effective date of this AD) or within the next 

90 days after September 16, 2014 (the 

effective date of the this AD), whichever 

occurs first, inspect the horizontal stabilizer 

actuator (trim jack) for movement or defects 

following the Accomplishment Instructions 

in Viking Service Bulletin No. V3/0005, 

Revision ‘A’, dated May 27, 2014. 

(2) If any movement or defects are found 

during the inspection required by paragraph 

(f)(1) of this AD, before further flight, you 

must contact Viking Air Limited to obtain 

FAA-approved repair instructions approved 

specifically for compliance with this AD and 

incorporate those instructions. You can find 

contact information for Viking Air Limited in 

paragraph (i)(3) of this AD. Use the Service 

Bulletin V3/0005—Operator Reply Form 

found in Viking Service Bulletin No. V3/

0005, Revision ‘A’, dated May 27, 2014, to 

report details of the inspection findings. 

(g) Other FAA AD Provisions 

The following provisions also apply to this 

AD: 

(1) Alternative Methods of Compliance 

(AMOCs): The Manager, Standards Office, 

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: Cesar Gomez, Aerospace Safety 

Enginer, FAA, New York Aircraft 

Certification Office (ACO), 1600 Steward 

Avenue, Suite 410, Westbury, New York 

11590; telephone: (516) 228–7318; fax: (516) 

794–5531; email: cesar.gomez@faa.gov. 

Before using any approved AMOC on any 

airplane to which the AMOC applies, notify 

your appropriate principal inspector (PI) in 

the FAA Flight Standards District Office 

(FSDO), or lacking a PI, your local FSDO. 

(2) Airworthy Product: For any requirement 

in this AD to obtain corrective actions from 

a manufacturer or other source, use these 

actions if they are FAA-approved. Corrective 

actions are considered FAA-approved if they 

are approved by the State of Design Authority 

mstockstill on DSK4VPTVN1PROD with RULES

51090 Federal Register / Vol. 79, No. 166 / Wednesday, August 27, 2014 / Rules and Regulations 

(or their delegated agent). You are required 

to assure the product is airworthy before it 

is returned to service. 

(3) Reporting Requirements: For any 

reporting requirement in this AD, a federal 

agency may not conduct or sponsor, and a 

person is not required to respond to, nor 

shall a person be subject to a penalty for 

failure to comply with a collection of 

information subject to the requirements of 

the Paperwork Reduction Act unless that 

collection of information displays a current 

valid OMB Control Number. The OMB 

Control Number for this information 

collection is 2120–0056. Public reporting for 

this collection of information is estimated to 

be approximately 5 minutes per response, 

including the time for reviewing instructions, 

completing and reviewing the collection of 

information. All responses to this collection 

of information are mandatory. Comments 

concerning the accuracy of this burden and 

suggestions for reducing the burden should 

be directed to the FAA at: 800 Independence 

Ave. SW., Washington, DC 20591, Attn: 

Information Collection Clearance Officer, 

AES–200. 

(h) Related Information 

Refer to MCAI, Transport Canada AD No. 

CF–2014–14, dated June 5, 2014, and Viking 

Service Bulletin No. V3/0005, Revision ‘A’, 

dated May 27, 2014, for related information. 

You may examine the MCAI on the Internet 

at http://www.regulations.gov by searching 

for and locating Docket No. FAA–2014–0616. 

(i) Material Incorporated by Reference 

(1) The Director of the Federal Register 

approved the incorporation by reference 

(IBR) of the service information listed in this 

paragraph under 5 U.S.C. 552(a) and 1 CFR 

part 51. 

(2) You must use this service information 

as applicable to do the actions required by 

this AD, unless the AD specifies otherwise. 

(i) Viking Service Bulletin No. V3/0005, 

Revision ‘A’, dated May 27, 2014. 

(ii) Reserved. 

(3) For Viking Air Limited service 

information identified in this AD, contact 

Viking Air Limited Technical Support, 1959 

De Havilland Way, Sidney, British Columbia, 

Canada, V8L 5V5; Fax: 250–656–0673; 

telephone: (North America) 1–800–663–8444; 

email: technical.support@vikingair.com; 

Internet: http://www.vikingair.com/content.

aspx?id=358. 

(4) You may view this referenced service 

information at the FAA, Small Airplane 

Directorate, 901 Locust, Kansas City, 

Missouri 64106. For information on the 

availability of this material at the FAA, call 

(816) 329–4148. 

(5) You may view this service information 

that is incorporated by reference at the 

National Archives and Records 

Administration (NARA). For information on 

the availability of this material at NARA, call 

202–741–6030, or go to: http://www.archives.

gov/federal-register/cfr/ibr-locations.html 

Issued in Kansas City, Missouri on August 

18, 2014. 

Earl Lawrence, 

Manager, Small Airplane Directorate, Aircraft 

Certification Service. 

[FR Doc. 2014–19973 Filed 8–26–14; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9691] 

RIN 1545–BL24 

Debt That Is a Position in Personal 

Property That Is Part of a Straddle 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final regulations and removal of 

temporary regulations. 

SUMMARY: This document contains final 

regulations relating to the application of 

the straddle rules to a debt instrument. 

The final regulations clarify that a 

taxpayer’s obligation under a debt 

instrument can be a position in personal 

property that is part of a straddle. The 

final regulations primarily affect 

taxpayers that issue debt instruments 

that provide for one or more payments 

that reference the value of personal 

property or a position in personal 

property. 

DATES: Effective Date: These regulations 

are effective on August 27, 2014. 

Applicability Dates: For dates of 

applicability, see § 1.1092(d)–1(e). 

FOR FURTHER INFORMATION CONTACT: 

Mary Brewer, (202) 317–6895 (not a tollfree number). 

SUPPLEMENTARY INFORMATION: 

Background And Explanation Of 

Provisions 

1. Summary of Prior Notices of 

Proposed Rule Making and Temporary 

Regulations 

This document contains amendments 

to 26 CFR Part 1. On January 18, 2001, 

a notice of proposed rulemaking (REG– 

105801–00) (the 2001 NPRM) was 

published in the Federal Register (66 

FR 4746). The 2001 NPRM broadly 

addressed the application of the 

straddle rules and section 263(g), and it 

included proposed regulation 

§ 1.1092(d)–1(d) to clarify the 

circumstances under which an issuer’s 

position under a debt instrument is 

treated as a position in personal 

property that is part of a straddle under 

section 1092 of the Internal Revenue 

Code. No public hearing was requested 

or held. Written and electronic 

comments responding to the 2001 

NPRM were received, and the only 

commenter that substantively addressed 

proposed § 1.1092(d)–1(d) urged its 

adoption. 

On September 5, 2013, temporary and 

final regulations (TD 9635) were 

published in the Federal Register (78 

FR 54568). In § 1.1092(d)–1T(d), the 

temporary regulations adopted the text 

of proposed § 1.1092(d)–1(d), as 

published in the 2001 NPRM. As had 

been proposed in the 2001 NPRM, to 

make room for a substantive paragraph 

(d), the 2013 final regulations 

redesignated as paragraph (e)(1) the 

section’s effective/applicability date 

provisions, which had formerly been 

designated as § 1.1092(d)–1(d). The 

temporary regulations added a new 

paragraph (e)(2) containing the 

applicability date that had been 

proposed in the 2001 NPRM. A notice 

of proposed rulemaking (REG–111753– 

12) (the 2013 NPRM) cross-referencing 

the temporary regulations was 

published in the same issue of the 

Federal Register (78 FR 54598). No 

public hearing was requested or held. 

No written or electronic comments 

responding to the notice of proposed 

rulemaking were received. 

This Treasury decision adopts the 

provisions in the 2013 NPRM without 

substantive change. In addition, this 

Treasury decision amends the effective/ 

applicability date provisions in 

§ 1.1092(d)–1(e) to provide explicitly 

the dates for those portions of 

§ 1.1092(d)–1 that were added by a 1993 

Treasury decision (TD 8491) as 

discussed further in section 3 of this 

preamble. 

The corresponding temporary 

regulations are removed. The remainder 

of the 2001 NPRM remains proposed. 

2. Overview of the Final Regulations 

The final regulations provide 

guidance under section 1092 regarding 

the circumstances in which an issuer’s 

obligation under a debt instrument may 

be a position in actively traded personal 

property and, therefore, part of a 

straddle. 

Section 1092(d)(1) defines ‘‘personal 

property’’ to mean ‘‘personal property of 

a type that is actively traded.’’ A debt 

or obligation generally is not property of 

the debtor or obligor. Nevertheless, if a 

debt instrument provides for payments 

that are (or are reasonably expected to 

be) linked to the value of personal 

property as so defined, then the obligor 

on the instrument has a position in the 

personal property referenced by the debt 

instrument. Therefore, as was proposed 

mstockstill on DSK4VPTVN1PROD with RULES