4 Federal Register / Vol. 63, No. 1 / Friday, January 2, 1998 / Rules and Regulations

‘‘of this chapter’’ both times they

appear.

Done in Washington, DC, this 23rd day of

December 1997.

Craig A. Reed,

Acting Administrator, Animal and Plant

Health Inspection Service.

[FR Doc. 97–34179 Filed 12–31–97; 8:45 am]

BILLING CODE 3410–34–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 97–NM–271–AD; Amendment

39–10230; AD 97–25–06]

RIN 2120–AA64

Airworthiness Directives; Boeing

Model 747 Series Airplanes

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Final rule; correction.

SUMMARY: This document corrects

information that appeared in

airworthiness directive (AD) 97–25–06,

amendment 39–10230, that was

published in the Federal Register on

December 1, 1997 (62 FR 63622). The

error resulted in an advertent omission

in reference to acceptable replacement

components. This AD, applicable to

certain Boeing Model 747 series

airplanes, requires disconnection of the

electrical connector to the scavenge

pump of the center wing tank. This AD

also requires a one-time inspection to

identify the part number of the electrical

connector; and replacement of the pump

with a new or serviceable pump, if

necessary.

DATES: Effective December 16, 1997.

The incorporation by reference of

certain publications listed in the

regulations was previously approved by

the Director of the Federal Register as of

December 16, 1997 (62 FR 63622,

December 1, 1997).

FOR FURTHER INFORMATION CONTACT:

Chris Hartonas, Aerospace Engineer,

Systems and Equipment Branch, ANM–

130S; or G. Michael Collins, Aerospace

Engineer, Propulsion Branch, ANM–

140S; FAA, Transport Airplane

Directorate, Seattle Aircraft Certification

Office, 1601 Lind Avenue, SW., Renton,

Washington 98055–4056; telephone

(425) 227–2864 or (425) 227–2689; fax

(425) 227–1181.

SUPPLEMENTARY INFORMATION: On

November 26, 1997, the FAA issued AD

97–25–06, amendment 39–10230 (62 FR

63622, December 1, 1997). The AD

requires disconnection of the electrical

connector to the scavenge pump of the

center wing tank; and a one-time

inspection to identify the part number

of the electrical connector, and

replacement of the pump with a new

pump, if necessary.

As published, that AD contained an

inadvertent omission in reference to

acceptable replacement components.

Throughout the preamble and in

paragraph (a)(2) of the AD, the FAA

required that a replacement scavenge

pump be new. However, the FAA

intended that a serviceable scavenge

pump also be specified as an acceptable

replacement component. In all other

respects, the original document is

correct.

Since no other part of the regulatory

information has been changed, the

entire final rule is not being

republished.

The effective date of the AD remains

December 16, 1997.

§ 39.13 [Corrected]

On page 63623, in the second column,

paragraph (a)(2) of AD 97–25–06 is

corrected to read as follows:

* * * * *

(2) If an electrical connector having a

part number other than the correct part

number (as specified in the alert service

bulletin) is installed: Prior to further

flight, replace the scavenge pump with

a new or serviceable scavenge pump

with an electrical connector having the

correct part number (as specified in the

alert service bulletin) in accordance

with the Accomplishment Instructions

of the alert service bulletin.

* * * * *

Issued in Renton, Washington, on

December 24, 1997.

Darrell M. Pederson,

Acting Manager, Transport Airplane

Directorate, Aircraft Certification Service.

[FR Doc. 97–34180 Filed 12–31–97; 8:45 am]

BILLING CODE 4910–13–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Parts 119, 121, and 135

Compliance With Parts 119, 121, and

135 by Alaskan Hunt and Fish Guides

Who Transport Persons by Air for

Compensation or Hire

AGENCY: Federal Aviation

Administration (FAA), DOT.

ACTION: Notice to operators.

SUMMARY: Operators transporting

persons or property by air from one

location to another for compensation or

hire must comply with the regulatory

requirements for air carriers and

commercial operators. The FAA has not

enforced these regulatory requirements

consistently throughout the country. In

particular, it has not enforced them

adequately against Alaskan guides, and

many Alaskan guides conducting such

operations are not properly certificated

under applicable regulations. The FAA

expects to provide those guides who do

not currently hold the necessary

certification a fair opportunity to

achieve compliance with the applicable

regulations. During 1998, the FAA

intends to offer certification clinics for

these guides in three Alaskan cities in

order to expedite the necessary

certification process for the influx of

these new operators. This notice is

published to emphasize these regulatory

requirements.

EFFECTIVE DATE: This notice is effective

December 24, 1997.

FOR FURTHER INFORMATION CONTACT:

Jerry Paterson, Technical Standards

Branch Manager, AAL–230, Federal

Aviation Administration, Alaskan

Region Headquarters, 222 West 7th

Avenue, #14, Anchorage, Alaska 99513,

Telephone 907–271–5514 or Kathleen

Yodice, Office of the Chief Counsel,

AGC–300, Federal Aviation

Administration, 800 Independence

Avenue, S.W., Washington, D.C. 20591,

Telephone 202–267–9956.

SUPPLEMENTARY INFORMATION:

History

In Alaska there are organizations

generally referred to as ‘‘guides,’’ that

offer commercial packages for persons

seeking to hunt, fish, and engage in

other similar sport activities within the

state of Alaska. This industry has grown

to be a major economic activity in

Alaska contributing directly and

indirectly to the livelihood of a

significant percentage of the state’s

population. The use of an aircraft plays

a key role in these operations because it

is often the guide’s only reasonable

means of transporting customers. In

some instances, these guides transport

people by aircraft from airports within

the state of Alaska to lodges within the

state of Alaska. They often transport

persons and supplies to and from lodges

and remote hunting and fishing sites

within the state of Alaska. As a general

rule, the hunting and fishing sites are

not easily accessible by any

conventional mode of surface

transportation. Charges for the flights

are usually not separately itemized on a

bill, but are usually included in the

‘‘package price.’’ Many of the guides

conduct only day, VFR operations and
Federal Register / Vol. 63, No. 1 / Friday, January 2, 1998 / Rules and Regulations 5

employ only one pilot. Some of these

pilots hold the minimum airman

certification for flying passengers not for

compensation, i.e., a private pilot

certificate without an instrument rating,

which is not valid for commercial

operations. This transportation of

persons from one location to another

location is transportation by air for

compensation or hire, and requirements

contained in part 119, and parts 121 or

135, are applicable.

Part 119 contains the certification

requirements for operations conducted

under part 121 and for operations

conducted under part 135. Operation

conducted under part 121 or part 135

provide a higher level of safety than

those conducted solely under part 91.

Alaskan guides providing transportation

by air to persons form one point to

another point for compensation or hire

are acting as air carriers or commercial

operators, and each must comply with

the applicable requirements of part 121

or part 135, including proper

certification of pilots, proper training of

pilots, and proper maintenance of

aircraft.

In the past, the FAA’s Alaskan Region

has not enforced part 121 or part 135,

as applicable, against those guides who

provide transportation by air to persons

patronizing their lodges. The Alaskan

Region’s enforcement, inconsistent with

enforcement in the rest of the country,

was apparently based, in part, upon a

misunderstanding of when an aircraft

operation is ‘‘merely incidental’’ to the

guide services and upon incorrect

analysis of circumstances in which it

might be concluded that ‘‘no charge’’

was made for the flight. On the ‘‘merely

incidental’’ issue, there appears to have

been a misinterpretation of the scope

and effect of a 1963 enforcement case

involving a registered hunting guide,

Administrator v. Marshall, 39 CAB 948

(1963) (decided on an extremely narrow

set of facts that involved a registered

guide’s single flight from base camp to

spot game from the air and return to

base camp, with no landing at a point

other than the point of takeoff).

This local misunderstanding was not

based on any agency interpretation or

policy, and it must be corrected. The

use of aircraft by a guide who transports

customers to and from hunting or

fishing sites and from their lodge may

not reasonably be viewed as ‘‘merely

incidental’’ to the guide’s business, even

when no separate charge is made for the

flights. Rather, it is an integral part of

the guide’s business to transport the

customer to the remote fishing or

hunting sites. It is, in fact,

transportation of persons from point to

point and those persons are paying

compensation for the transportation,

either by separate charge or by an

amount included in a ‘‘package price.’’

The transportation by air is itself an

integral, major part of the enterprise for

profit. Without the transportation by air,

the business arrangement would likely

not exist. Furnishing transportation by

air is a crucial part of the guide’s

package because there is no alternative,

practical, or commercially acceptable

way for the customers to get to the lodge

or to the remote hunting or fishing sites.

The lack of proper enforcement in this

situation is contrary to the FAA’s

consistent interpretation that

transportation of persons from point to

point, even to remote sites and even

when no separate charge is made, is

transportation of persons by air for

compensation or hire requiring the

appropriate commercial FAA

certification.

It should not be assumed that all

guides operating within the state of

Alaska have been operating under part

91 only. On the contrary, many guides

have obtained part 121 or part 135

certification and have been operating in

compliance with those standards. This

notice is intended to ensure

improvement in consistently enforcing

compliance with, and that all of the

guides operate under the stricter and

safer aviation standards of, parts 119,

121, and 135, as applicable. As a result,

all of the guides will operate under

similar high standards and will receive

fair and consistent treatment under the

Federal Aviation Regulations.

The FAA’s statutory and regulatory

provisions require that commercial air

transportation services are to be

conducted under a higher standard of

care than air operations that are not

conducted for compensation or hire.

However, wholly apart from the legal

requirements that require operators

transporting persons from point to point

to comply with parts 119, 121, and 135,

as applicable, there are safety concerns

as well.

On December 31, 1992, the FAA’s

Alaskan Regional Flight Standards

Division released a Study of Aviation

Commercial Guiding Activities Within

the State of Alaska. The purpose of the

study was to assess the safety of

transportation by air associated with

commercial hunting, fishing, and

guiding activities within the state of

Alaska. In that study, the Alaskan

Regional Flight Standards Division

concluded that those guides who

conducted transportation by air solely

under part 91 experienced a higher

number of accidents and violations of

the Federal Aviation Regulations,

indicating a lower level of safety

associated with those operations.

Accordingly, the Alaskan Regional

Flight Standards Division recommended

taking action to ensure the higher level

of aviation safety that is required for

commercial operations involving

transportation by air that is engaged in

by guides.

In May 1994, the National

Transportation Safety Board (NTSB)

made several safety recommendations to

the FAA based on its own study of the

Alaskan guide operations. See NTSB

recommendations A–94–99 and A–94–

100. The NTSB studied 29 aircraft

accidents involving pilots working in

guide operations in Alaska who had

been operating only under part 91 and

not also under the more stringent

standards of part 135. Specifically, the

NTSB considered those aircraft

accidents that had occurred over a twoyear period, from July 4, 1991, to August

31, 1993. The NTSB concluded that

because of the large number of accidents

and causal factors revealed by the study,

there are serious safety problems

associated with guides who

commercially transport persons from

point to point solely under part 91, and

that the number of accidents and a

review of the legal issues involved

warrant action to enhance the level of

passenger safety by ensuring that these

operations are operated under part 135.

THe NTSB observed that ‘‘the overall

[Alaska flying] operation requires a high

degree of knowledge, skill,

professionalism, respect for the

elements, and a keen awareness of the

limitation of the aircraft and one’s self.’’

In November 1995, the NTSB released

a Safety Study that superseded its

earlier safety recommendations. See

NTSB Safety Study NTSB/SS–95–03.

The NTSB reaffirmed its belief that the

requirements of part 135 are needed to

provide an enhanced level of safety to

guide operations by introducing safety

improvements and by facilitating FAA

oversight. The NTSB recommended

that, by December 31, 1996, the FAA

take action that would ensure that the

transportation by air services provided

by Alaskan guides are conducted under

a part 135 level of safety. See NTSB

recommendation A–95–134.

Regulatory Compliance

To promote uniform compliance

under parts 119, 121, and 135, as

applicable, those guides carrying

persons and/or cargo by air for

compensation or hire, who have not

done so, must apply for and obtain an

air carrier or commercial operating

certificate and appropriate operations

specifications. 14 CFR 119.5, 119.21,

119.33. These guides are required to
6 Federal Register / Vol. 63, No. 1 / Friday, January 2, 1998 / Rules and Regulations

seek and obtain certification under part

119 for operations under part 121 or

part 135, as applicable. The FAA

anticipates that most guides

transporting persons from point to point

for compensation or hire will conduct

those operations in accordance with the

requirements contained within part 135.

Qualification to obtain the appropriate

part 119 certification principally

includes the following:

—Level of airman certification; pilots

conducting operations under part 135

must hold, at a minimum, a

commercial pilot certificate and a

Class II medical certificate. 14 CFR

61.3, 135.95, and 135.243. In addition,

pilots may be required to hold an

instrument rating, except where such

a rating is not required under 14 CFR

135.243(d).

—Training and testing: each part 135

operator must properly test and keep

current the pilots who are used in

these operations. 14 CFR 135.97.

Subpart G of 14 CFR part 135

prescribes the tests and checks each

operator must perform. Subpart H of

14 CFR part 135 prescribes the

requirements for establishing and

maintaining an approved training

program. Those part 135 operators

who employ more than one pilot will

be required to provide training to

those pilots. 14 CFR 135.341.

—Aircraft requirements: each part 135

operator must have exclusive use of at

least one aircraft, 14 CFR 135.25, and

must accomplish annual and 100-

hour inspections or comply with an

approved inspection program on each

of these aircraft, 14 CFR 135.71 and

135.421. Subpart C of 14 CFR part 135

sets forth aircraft and equipment

requirements, which must be

complied with in addition to those

aircraft and equipment requirements

under 14 CFR part 91.

—Maintenance requirements: each part

135 operator using an aircraft that is

type certificated with a seating

configuration of 9 seats or less,

excluding any pilot seat, shall

maintain that aircraft in accordance

with 14 CFR parts 43 and 91, and

those requirements set forth in

subpart J of 14 CFR part 135. Each

operator shall comply with the

aircraft manufacturer’s recommended

maintenance program or a program

approved by the FAA. 14 CFR

135.421.

—Periodic surveillance: each part 135

operator may be subject to periodic

inspections of its required records and

its facilities. 14 CFR 135.73 and

135.75.

—Airplane operator security: each part

135 operator must comply with the

applicable security requirements

contained within 14 CFR part 108. 14

CFR 135.125.

—Drug and alcohol testing

requirements: each part 135 operator

must establish a drug and alcohol

testing program under 14 CFR 135.251

and 135.255.

Compliance Plan

The FAA intends to implement a plan

to aid guides and other new part 121 or

part 135 operators in obtaining the

appropriate part 119 certification in an

efficient, expeditious manner.

Implementation of this plan is expected

to occur during the 1998 calendar year.

During the year, the FAA may, of

necessity, devote the bulk of its

available resources to securing

compliance by processing certification

applications submitted by persons

under this plan. Accordingly, resources

that would normally be devoted toward

investigation and enforcement may be

constrained. The FAA does not expect

enforcement actions related to guides

operating without proper certification to

be a major focus during implementation

of the certification plan. However,

following this period, FAA resources

will be available for a strong

enforcement response regarding any

guides providing transportation by air

for compensation or hire without proper

certification. In addition, the FAA

expects that resources will be available

at that time to permit a special emphasis

on investigation and enforcement of

compliance with the appropriate

certification and operational

requirements for those guides who

transport persons by air for

compensation or hire.

The Alaskan Regional Flight

Standards District Offices (FSDOs)

intend to hold two informational

meetings in three different locations

within the State of Alaska. The three

Alaskan locations are Anchorage,

Fairbanks, and Juneau. The meetings

will be held in the spring and in the fall

of 1998 in each location, most likely

over a weekend. In addition, the FSDOs

will provide information and guidance

to those guides who contact or visit the

FSDOs in Anchorage, Fairbanks, and

Juneau. Information concerning the

technical requirements will be available

at the meetings and at the FSDOs.

During the weekend meetings, the

FSDOs will be providing personnel who

will conduct flight tests and examine

documentation and aircraft.

The FAA expects to accept and

consider part 119 certification

applications from guides during these

weekend meetings. The FAA further

expects to issue air carrier operating

certificates or commercial operating

certificates and appropriate operations

specifications to the guides when they

are determined to be qualified.

Issued in Washington, DC on December 24,

1997.

Guy Gardner,

Associate Administrator for Regulation and

Certification.

[FR Doc. 97–34164 Filed 12–31–97; 8:45 am]

BILLING CODE 4910–13–M

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 1 and 602

[TD 8750]

RIN 1545–AV40

General Rules for Making and

Maintaining Qualified Electing Fund

Elections

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Temporary and final

regulations.

SUMMARY: This document contains

temporary regulations that provide

guidance to a passive foreign investment

company (PFIC) shareholder that makes

the election under section 1295 (section

1295 election) to treat the PFIC as a

qualified electing fund (QEF). This

document also contains temporary

regulations that provide guidance for

shareholders that wish to make a section

1295 election that will apply on a

retroactive basis (retroactive election).

In addition, this document contains a

temporary regulation that provides

guidance under section 1291 to a PFIC

shareholder that is a tax-exempt

organization. Temporary regulations are

needed to provide taxpayers additional

time to satisfy certain requirements to

make the section 1295 election. The text

of these temporary regulations also

serves as the text of proposed

regulations set forth in the notice of

proposed rulemaking on this subject in

the Proposed Rules section of this issue

of the Federal Register. In addition, this

document removes § 1.1291–9(i)(1) of

the final regulations, and amends

§ 1.1297–3T. References to sections

1296 and 1297 in this document are

references to sections 1296 and 1297 as

in effect before the effective date of

section 1122(a) of the Tax Relief Act of

1997.

DATES: These regulations are effective

January 2, 1998.

For dates of applicability, see

§§ 1.1291–1T(e)(2), 1.1293–1T(a)(2)(ii),