This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

43955

Vol. 62, No. 159

Monday, August 18, 1997

DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1446

RIN 0560–AFO1

Proposed Method for Setting the Sales

Price Level for 1998-Crop Commodity

Credit Corporation (CCC) Contract

Additional Peanuts for Export Edible

Use

AGENCY: Commodity Credit Corporation,

USDA.

ACTION: Advanced notice of proposed

rulemaking with request for comments.

SUMMARY: The purpose of this notice is

to solicit comments concerning the

method for determining the minimum

export edible sales price for sales by the

CCC of price support loan inventory of

additional peanuts and the actual CCC

sales price for export edible use.

Increasing competition in the world

edible peanut market and lack of

consensus within the peanut industry

about the minimum export edible sales

price level require an evaluation of

future levels and procedures for

establishing export edible sales prices.

DATES: Comments concerning the

method of establishing the level of the

minimum export edible sales price for

additional peanuts must be received by

September 30, 1997, in order to be

assured consideration.

ADDRESSES: Comments must be

submitted to the Director, Tobacco and

Peanuts Division, USDA, Farm Service

Agency (FSA), STOP 0514, 1400

Independence Avenue, S.W.,

Washington, D.C. 20250–0514. All

written submissions will be made

available for public inspection from 8:15

a.m. to 4:45 p.m.; Monday through

Friday, except holidays, in room 5750-

South Building, 1400 Independence

Avenue, S.W., Washington, DC 20250–

0514.

FOR FURTHER INFORMATION CONTACT:

Kenneth M. Robison, FSA, USDA, STOP

0514, 1400 Independence Avenue, S.W.,

Washington, DC 20250–0514, telephone

202–720–9255.

SUPPLEMENTARY INFORMATION: The

establishment of a minimum price at

which additional peanuts owned or

controlled by CCC may be sold for use

as edible peanuts in export markets is a

discretionary action. The announcement

of that price provides producers and

handlers with information to facilitate

the negotiation of private contracts for

the sale of additional peanuts for export.

An overly high price may discourage

private sales. If too low, the minimum

price could have an unnecessary,

adverse effect on prices paid to

producers for additional peanuts. The

minimum price at which 1997 crop

additional peanuts owned or controlled

by CCC may be sold for use as edible

peanuts in export markets was

established at $400 per short ton (st) on

April 30, 1997. This price was designed

to encourage exports while providing

price stability for additional peanuts

sold under contract. It was also

designed to assure handlers that CCC

would not undercut their export

contracting efforts with offerings of

additional peanuts for export edible

sales below the minimum sales price.

During the 1997-crop comment period

seven comments were received

concerning the minimum export edible

sales price. Four suggested keeping the

price at $400 per st, and three suggested

lowering it to between $300 and $375

per st. Producer groups preferred

keeping the minimum price at $400 per

ton while shellers preferred lowering it.

Since the 1997-crop comment period

closed, several parties have requested

that USDA study the method of setting

the export edible sales price and its

level. Competition in the world edible

peanut market has increased markedly

in recent years. Production in Argentina

rose about 65 percent between 1992 and

1996 and South African production is

expanding. With increased imports and

annual reductions in domestic use of

peanuts, until the recent anticipated

small increase, the competitiveness of

U.S. peanuts in world markets becomes

more important.

Because of these requests and the

increasing competitiveness in world

edible peanut markets, industry and

other comments are being solicited

before setting the 1998 marketing year

(MY) minimum sales price for

additional peanuts sold for export use.

Several options exist for establishing

the additional peanut export edible

sales price in 1998 and future years.

These include: (1) Maintaining the $400

per st level that has been in effect since

1986; (2) lowering the level of the

minimum export edible sales price; (3)

basing the minimum export edible sales

price solely on some fixed percentage of

the average price for ‘‘Segregation 1’’

additional peanuts delivered under

contract for such MY; (4) establishing a

minimum level and setting the export

edible price at the lower of an absolute

number or some percentage of the

average price for ‘‘Segregation 1’’

additional peanuts delivered under

contract for such MY; (5) basing the

export edible minimum price on a

calculated ‘‘world’’ price of edible

peanuts; (6) basing the export edible

price on the lower of an absolute

number and a calculated ‘‘world’’ price

of edible peanuts; or (7) some

combination of the above.

Setting the minimum export edible

sales price as an absolute number is the

simplest and most straightforward.

However, this method may not

adequately consider the effect of supply

and demand variations in the world

marketplace.

Basing the minimum export edible

sales price on the basis of the average

contract price for Segregation 1 peanuts

delivered under contract would capture

some of the effects of change in the

world edible market. However, this

technique could create greater

uncertainty and could complicate

recordkeeping. This method of

establishing the minimum export edible

sales price was used briefly in 1986 and

could be reestablished with or without

modification for 1998 and subsequent

years. In 1986, in a February 14 press

release and a March 5 press release

clarification, the original determination

for the 1986 crop was that the 1986–

1990 crops of additional peanuts would

be sold by CCC for export edible use at

no less than the lower of (1) $400 per

ton, or (2) 102 percent of the average

contract price by type for Segregation 1

additional peanuts delivered under

contract, plus cost, including

inspection, warehousing, and shrinkage

for such MYs as determined by CCC.

However, after this policy was

announced early contracting of 1986
43956 Federal Register / Vol. 62, No. 159 / Monday, August 18, 1997 / Proposed Rules

peanuts slowed. For that reason, on

April 22, 1986, the policy was changed

to a minimum price of $400 per ton and

this level has remained in effect for 12

consecutive years.

A world price method of establishing

the minimum export edible sales price

could be ideal for capturing the effects

of change in supply and demand in the

world market. However, a lack of data

for calculating world prices could limit

USDA’s ability to accurately capture the

world price.

Comments on absolute levels for the

minimum export sales price and the

method of calculating the price are

being sought. Comments should address

whether USDA should continue to

announce an absolute number, or

should a formula be used, or should an

absolute number be used in

combination with a formula. If a

formula is recommended, comments

should address what components

should be included and how should the

components be weighed.

Following the receipt of comments, a

proposed rule for the 1998 crop and for

subsequent crops, if deemed

appropriate, will be issued which will

allow for additional comment.

Comments are sought in particular on

the following questions:

(1) Should the minimum CCC sales

price for additional peanuts to be sold

from the price support loan inventory

for export edible use from the 1998 and

future crops be changed?

(2) Should the $400 per st level that

has been in effect since 1986 be

changed?

(3) Should USDA switch to a formula

to determine the minimum price for

additional loan peanuts sold for export

edible use?

(4) Should the formula be based on a

set percentage of the weighted average

contract price for additional peanuts for

the current year?

(5) Should the formula be based on a

set percentage of the world price of

peanuts converted to a ‘‘Farmer Stock

Basis’?

(6) Should a formula and absolute

number both be used for setting the

export edible sales price?

(7) Should the formula be based on a

combination of contract prices and the

world price for peanuts, and if so, what

weight should contract additional prices

and world peanut prices be given in the

formula?

Signed at Washington, DC, on August 7,

1997.

Bruce R. Weber,

Acting Executive Vice President, Commodity

Credit Corporation.

[FR Doc. 97–21795 Filed 8–15–97; 8:45 am]

BILLING CODE 3410–05–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 97–CE–34–AD]

RIN 2120–AA64

Airworthiness Directives; Aerospace

Technologies of Australia Pty Ltd.

(Formerly Government Aircraft

Factory) Models N22B, N22S, and

N24A Airplanes

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Notice of proposed rulemaking

(NPRM).

SUMMARY: This document proposes to

adopt a new airworthiness directive

(AD) that would apply to Aerospace

Technologies of Australia Pty Ltd.

(ASTA) Models N22B, N22S, and N24A

airplanes. The proposed action would

require repetitively inspecting the aft

wing break connectors for arcing

damage, deposits between contacts, and

looseness of contacts; and removing

deposits between contacts, tightening

any loose contacts, and replacing any aft

wing break connectors with arcing

damage. The proposed AD results from

several reports of uncommanded flap

extensions and displays of incorrect

stall warning indications on the affected

airplanes. The actions specified by the

proposed AD are intended to prevent

contamination in the aft wing break

connectors, which could result in

uncommanded flap extensions and

incorrect stall warning indications with

consequent loss of airplane control.

DATES: Comments must be received on

or before October 17, 1997.

ADDRESSES: Submit comments in

triplicate to the Federal Aviation

Administration (FAA), Central Region,

Office of the Assistant Chief Counsel,

Attention: Rules Docket No. 97–CE–34–

AD, Room 1558, 601 E. 12th Street,

Kansas City, Missouri 64106. Comments

may be inspected at this location

between 8 a.m. and 4 p.m., Monday

through Friday, holidays excepted.

Service information that applies to the

proposed AD may be obtained from

Aerospace Technologies of Australia Pty

Ltd., ASTA DEFENCE, Private Bag No.

4, Beach Road Lara 3212, Victoria,

Australia. This information also may be

examined at the Rules Docket at the

address above.

FOR FURTHER INFORMATION CONTACT: Mr.

Ron Atmur, Aerospace Engineer, FAA,

Los Angeles Aircraft Certification

Office, 3960 Paramount Boulevard,

Lakewood, California 90712; telephone

(562) 627–5224; facsimile (562) 627–

5210.

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

should 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

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 that

summarizes 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 No. 97–CE–34–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, Central Region, Office of the

Assistant Chief Counsel, Attention:

Rules Docket No. 97–CE–34–AD, Room

1558, 601 E. 12th Street, Kansas City,

Missouri 64106.

Discussion

The Civil Aviation Safety Authority

(CASA), which is the airworthiness

authority for Australia, recently notified

the FAA that an unsafe condition may

exist on certain ASTA Models N22B,

N22S, and N24A airplanes. The CASA

reports several uncommanded flap

extensions and displays of incorrect

stall warning indications on the

referenced airplanes. Contamination in

the aft wing break connectors can cause

such occurrences. These conditions, if

not detected and corrected, could lead

to loss of airplane control.