Federal Register / Vol. 62, No. 34 / Thursday, February 20, 1997 / Rules and Regulations 7663

Finally, the rule was made available

through the Internet by the Office of the

Federal Register.

A 15-day comment period was

provided to allow interested persons to

respond to the proposal. Fifteen days

was deemed appropriate because a rule

finalizing the action would need to be

in place as soon as possible since

handlers are already shipping dates

from the 1996–97 crop.

Two comments were received during

the comment period in response to the

proposal. The commenters, both

representing the same producer

operation, opposed the proposed

relaxation. The points made by the

commenters were thoroughly discussed

prior to the committee vote.

The commenters disagreed with the

statement in the proposed rule that the

relaxation would benefit both producers

and handlers. They claimed that the

increased returns to the handlers would

not be passed down to the producers.

While this may differ between and

among individual handlers and

producers, it is the Department’s

understanding that growers are paid for

their dates by handlers either on a

weight basis (so much money per pound

of dates delivered) or on a packout basis

(so much money per pound of U.S.

Grade B or U.S. Grade C dates).

Committee members indicated at the

meeting that, when growers are paid

based on packout, such growers receive

about $.30 more per pound for U.S.

Grade B dates than U.S. Grade C dates.

As previously mentioned, the

committee anticipates that increasing

the tolerance for smaller size fruit will

allow more dates to meet U.S. Grade B

and be sold as DAC and FP dates and

thus, will benefit handlers and

producers in the industry.

The commenters also contend that the

proposed relaxation will lower industry

quality standards at a time when the

industry should be striving for higher

standards. However, as discussed by the

committee and specified in the

proposed rule, the 5 percent increase in

the number of smaller size dates should

result in an average of only 2 additional

smaller sized dates in each package of

approximately 60 dates. The majority of

the committee members felt such a

relaxation would not significantly affect

the overall quality of each date package.

One commenter claimed that the

estimate of 450,000 to 750,000 pounds

of additional dates made available by

the proposed rule is not accurate

because the industry’s carryin inventory

was 14 million pounds. While the total

inventory is, indeed, estimated at 14.7

million pounds, the inventory of DAC

dates—those dates affected by the

relaxation—is only 5.7 million pounds,

which is less than normal. The

committee’s estimate of an additional

450,000 to 750,000 pounds of DAC dates

is accurate.

The commenter also suggested that

smaller dates would not necessarily

come only from the 1996 crop. The

commenter stated that the rule’s

expiration date of October 31, 1997,

overlaps the 1997 crop harvest. The

commenter contends that smaller dates

from the 1997 crop could be packed

with the 1996 crop. However, harvest

usually begins in mid to late October

and only a small amount of dates are

harvested and processed before the end

of the month. Also, it is common

industry practice to store dates for up to

10 months prior to processing,

packaging and shipment. Therefore, the

October 1997 time period would allow

stored 1996 crop dates to be used.

The commenter also claimed that the

relaxation is a short term solution and

questioned whether other commodities

lower quality standards because of

adverse weather conditions. Such action

has been recommended by other

marketing order committees and

approved by the Secretary for some

commodities. Such recommendations

have helped marketing order industries

to fully utilize available production

when harvests are diminished by

adverse weather or other disasters.

Accordingly, no changes will be made

to the rule as proposed, based on the

comments received.

After consideration of all relevant

matter presented, including the

information and recommendation

submitted by the committee and other

available information, it is hereby found

that this rule, as hereinafter set forth,

will tend to effectuate the declared

policy of the Act.

It is further found that good cause

exists for not postponing the effective

date of this rule until 30 days after

publication in the Federal Register (5

U.S.C. 553) because handlers are already

shipping dates from the 1996–97 crop

and handlers want to take advantage of

the relaxation as soon as possible.

Further, handlers are aware of this rule,

which was recommended at a public

meeting. Also, a 15-day comment period

was provided for in the proposed rule.

List of Subjects in 7 CFR Part 987

Dates, Marketing agreements,

Reporting and recordkeeping

requirements.

For the reasons set forth in the

preamble, 7 CFR part 987 is amended as

follows:

1. The authority citation for 7 CFR

part 987 continues to read as follows:

Authority: 7 U.S.C. 601–674.

PART 987—DOMESTIC DATES

PRODUCED OR PACKED IN

RIVERSIDE COUNTY, CALIFORNIA

§ 987.112a [Amended]

2. In § 987.112a, paragraphs (b)(2) and

(c)(2), the words ‘‘December 29, 1992,

and ending October 31, 1993,’’ are

removed and the words ‘‘February 21,

1997, and ending October 31, 1997,’’ are

added in their place.

Dated: February 14, 1997.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 97–4335 Filed 2–18–97; 2:02 pm]

BILLING CODE 3410–02–P

Rural Utilities Service

7 CFR Part 1710

RIN 0572–AB30

Pre-Loan Procedures for Electric

Loans

AGENCY: Rural Utilities Service, USDA.

ACTION: Direct final rule.

SUMMARY: The Rural Utilities Service

(RUS) is issuing a minor amendment to

its pre-loan procedures that will clarify

that use of a conventional utility

indenture as a security instrument for

loans to power supply borrowers is

permissible. This amendment will give

these borrowers and RUS the flexibility

to address the complex issues

surrounding power supply loans in the

rapidly changing electric industry. The

rule will also enhance loan security and,

by conforming more closely to private

lending practice, allow easier access to

private sector financing.

In the proposed rules section of this

Federal Register, RUS is proposing

approval of and soliciting comments on

this action. If adverse comments are

received on this action, RUS will

withdraw this final rule prior to its

effective date and address the comments

recieved in response to this action in a

final rule on the related proposed rule,

which is published in the proposed

rules section of this Federal Register. A

second public comment period will not

be held. Parties interested in

commenting on this action should do so

at this time.

DATES: This rule will become effective

on April 7, 1997, unless we receive

written adverse comments or notice of

intent to submit adverse comments on

or before March 24, 1997. If the effective

date is delayed, timely notice will be

published in the Federal Register.
7664 Federal Register / Vol. 62, No. 34 / Thursday, February 20, 1997 / Rules and Regulations

ADDRESSES: Submit any adverse

comments or notice of intent to submit

adverse comments to F. Lamont Heppe,

Jr., Director, Program Support and

Regulatory Analysis, Rural Utilities

Service, U.S. Department of Agriculture,

Room 2230–S, 1400 Independence

Avenue, SW., STOP 1522, Washington,

DC 20250–1522. RUS requires, in hard

copy, a signed original and 3 copies of

all comments (7 CFR 1700.30(e)).

Comments will be available for public

inspection during regular business

hours at Room 4034, South Building,

U.S. Department of Agriculture,

Washington, DC 20250 between 8:00

a.m. and 4:00 p.m. (7 CFR part 1.27(b)).

FOR FURTHER INFORMATION CONTACT: F.

Lamont Heppe, Jr., Director, Program

Support and Regulatory Analysis, Rural

Utilities Service, U.S. Department of

Agriculture, Room 2230–S, 1400

Independence Avenue, SW., STOP

1522, Washington, DC 20250–1522.

Telephone: 202–720–0736. FAX: 202–

720–4120. E-mail: fheppe@rus.usda.gov.

SUPPLEMENTARY INFORMATION: This

regulatory action has been determined

to be not significant for the purposes of

Executive Order 12866, Regulatory

Planning and Review, and, therefore has

not been reviewed by the Office of

Management and Budget (OMB). The

Administrator of RUS has determined

that a rule relating to the RUS electric

loan program is not a rule as defined in

the Regulatory Flexibility Act (5 U.S.C.

601 et seq.) for which RUS published a

general notice of proposed rulemaking

pursuant to 5 U.S.C. 553(b), or any other

law. Therefore, the Regulatory

Flexibility Act does not apply to this

action. The Administrator of RUS has

determined that this rule will not

significantly affect the quality of the

human environment as defined by the

National Environmental Policy Act of

1969 (42 U.S.C. 4321 et seq.). Therefore,

this action does not require an

environmental impact statement or

assessment. This rule is excluded from

the scope of Executive Order 12372,

Intergovernmental Consultation, which

may require consultation with State and

local officials. A Notice of Final Rule

titled Department Programs and

Activities Excluded from Executive

Order 12372 (50 FR 47034) exempts

RUS electric loans and loan guarantees

from coverage under this Order. This

rule has been reviewed under Executive

Order 12988, Civil Justice Reform. RUS

has determined that this rule meets the

applicable standards provided in Sec. 3.

of the Executive Order.

The program described by this rule is

listed in the Catalog of Federal Domestic

Assistance Programs under number

10.850 Rural Electrification Loans and

Loan Guarantees. This catalog is

available on a subscription basis from

the Superintendent of Documents, the

United States Government Printing

Office, Washington, DC 20402–9325.

Information Collection and

Recordkeeping Requirements

The recordkeeping and reporting

burdens contained in this rule were

approved by the Office of Management

and Budget (OMB) pursuant to the

Paperwork Reduction Act of 1995 (44

U.S.C. Chapter 35, as amended) under

control number 0572–0032.

Background

RUS recognizes that power supply

borrowers (also known as generation

and transmission borrowers or ‘‘G&T’s’’)

generally have a far more complex

corporate structure and face more

complex financing issues than

distribution borrowers. In order to meet

the financing needs of these borrowers

more efficiently, RUS is amending its

regulations to specifically allow the use

of a conventional utility indenture in

lieu of a mortgage as security

instruments for loans to these

borrowers.

Although current RUS regulations do

not preclude the use of trust indentures

as security instruments for RUS loans,

the Agency believes that it would be

useful to clarify how RUS regulations in

7 CFR Chapter XVII will be reconciled

with any conflicting provisions

contained in conventional utility

indentures and related loan contracts

which the Agency may accept in lieu of

typical RUS mortgages and mortgages as

loan instruments. The Agency

anticipates that otherwise some of the

provisions in such indentures and loan

contracts might conflict with provisions

in this chapter that were developed to

implement or interpret the traditional

standard forms of RUS loan instruments

which were designed for use under

different circumstances.

On July 18, 1995, at 60 FR 36882, and

December 29, 1995, at 60 FR 67396,

RUS substantially revised the forms of

loan instruments it uses in making loans

to electric distribution borrowers.

Because of the differing situations of

power supply borrowers, RUS did not

attempt to prescribe corresponding

forms of those new documents for

power supply borrowers. Nevertheless,

RUS recognizes that many of the reasons

underlying the modernization effort

apply to its power supply borrowers.

Thus, RUS believes that the option of

using trust indentures represents a

balanced approach to increasing

borrowers’ access to private capital

markets and reducing RUS operational

controls while simultaneously

enhancing RUS loan security by

appropriately adapting to the changing

cooperative electric industry.

RUS is willing to consider the use of

an indenture when RUS and the power

supply borrower mutually agree that it

is appropriate. The terms of each

indenture and related loan agreement

will be negotiated on a case by case

basis to best meet the needs of the

individual borrower and the

Government as the electric industry

undergoes a period of drastic change.

RUS believes that ultimately this

approach will enhance loan security by

addressing the individual circumstances

of each borrower; will allow RUS greater

flexibility in dealing with the more

complex structures of most power

supply borrowers; and will allow these

borrowers easier access to private

sources of credit, thus reducing their

dependence on RUS financing. RUS

recognizes that this approach may

conflict from time to time with some

provisions of 7 CFR Chapter XVII. This

regulation provides that the terms of any

indenture or associated loan contract

control in such circumstances.

RUS is publishing this action without

prior proposal because the Agency

views this as a noncontroversial

amendment and anticipates no adverse

comments. However, in a separate

document in the proposed rules section

of this Federal Register publication,

RUS is proposing to amend 7 CFR part

1710 should adverse or critical

comments be filed.

If RUS receives such comments, RUS

will publish a subsequent document

that will withdraw this direct final rule

before the effective date. All public

comments received will be addressed in

a subsequent final rule based on the

proposed rule. RUS will not institue a

second comment period on this action.

Any parties interested in commenting

on this action should do so at this time.

List of Subjects in 7 CFR Part 1710

Electric power, Electric utilities, Loan

programs—energy, Reporting and

recordkeeping requirements, Rural

areas.

For the reasons set out in the

preamble, and under the authority of 7

U.S.C. 901 et seq., RUS amends 7 CFR

Part 1710 as follows:

PART 1710—GENERAL AND PRELOAN POLICIES AND PROCEDURES

COMMON TO INSURED AND

GUARANTEED ELECTRIC LOANS

1. The authority citation for part 1710

continues to read as follows:
Federal Register / Vol. 62, No. 34 / Thursday, February 20, 1997 / Rules and Regulations 7665

Authority: 7 U.S.C. 901–950(b); Pub. L. 99–

591, 100 Stat. 3341; Pub. L. 103–354, 108

Stat. 3178 (7 U.S.C. 6941 et seq.).

2. Section 1710.113 is amended by

redesignating the existing paragraph (c)

as paragraph (c)(1) and adding a new

paragraph (c)(2) to read as follows:

§ 1710.113 Loan security.

* * * * *

(c)(1) * * *

(2) The Administrator, at his or her

discretion, may approve the use of an

indenture patterned after those

indentures commonly used by utilities

engaged in private market financing, in

lieu of a mortgage as the security

instrument for loans to power supply

borrowers. The use of an indenture will

be by mutual agreement of the borrower

and the Administrator. The terms of

each indenture and related loan

agreement will be negotiated on a case

by case basis to best meet the needs of

the individual borrower and the

Government. The provisions of the

indenture and loan contract shall

control, notwithstanding any provisions

of 7 CFR Chapter XVII which may be in

conflict therewith.

* * * * *

Dated: February 10, 1997.

Jill Long Thompson,

Under Secretary, Rural Development.

[FR Doc. 97–3990 Filed 2–19–97; 8:45 am]

BILLING CODE 3410–15–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 97–NM–24–AD; Amendment

39–9933; AD 97–04–09]

RIN 2120–AA64

Airworthiness Directives; Aerospatiale

Model ATR42–300 and ATR42–320

Series Airplanes

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Final rule; request for

comments.

SUMMARY: This amendment adopts a

new airworthiness directive (AD) that is

applicable to certain Aerospatiale Model

ATR42–300 and ATR42–320 series

airplanes. This action requires repetitive

ultrasonic inspections to detect fatigue

cracks of the lower lugs of the barrel of

the main landing gear (MLG); and

replacement of cracked lower lugs with

new or serviceable ones and a follow-on

inspection. This amendment is

prompted by reports indicating that, due

to fatigue cracking in the lower lugs of

the barrel, the MLG collapsed. The

actions specified in this AD are

intended to detect and correct such

fatigue cracking, which could lead to

the collapse of the MLG.

DATES: Effective March 7, 1997.

The incorporation by reference of

certain publications listed in the

regulations is approved by the Director

of the Federal Register as of March 7,

1997.

Comments for inclusion in the Rules

Docket must be received on or before

April 21, 1997.

ADDRESSES: Submit comments in

triplicate to the Federal Aviation

Administration (FAA), Transport

Airplane Directorate, ANM–103,

Attention: Rules Docket No. 97–NM–

24–AD, 1601 Lind Avenue, SW.,

Renton, Washington 98055–4056.

The service information referenced in

this AD may be obtained from

Aerospatiale, 316 Route de Bayonne,

31060 Toulouse, Cedex 03, France. This

information may be examined at the

FAA, Transport Airplane Directorate,

1601 Lind Avenue, SW., Renton,

Washington; or at the Office of the

Federal Register, 800 North Capitol

Street, NW., suite 700, Washington, DC.

FOR FURTHER INFORMATION CONTACT: Gary

Lium, Aerospace Engineer,

Standardization Branch, ANM–113,

FAA, Transport Airplane Directorate,

1601 Lind Avenue, SW., Renton,

Washington 98055–4056; telephone

(206) 227–1112; fax (206) 227–1149.

SUPPLEMENTARY INFORMATION: The

Direction Ge ́ne ́rale de l’Aviation Civile

(DGAC), which is the airworthiness

authority for France, recently notified

the FAA that an unsafe condition may

exist on certain Aerospatiale Model

ATR42–300 and ATR42–320 series

airplanes. The DGAC advises that it has

received reports indicating that the

main landing gear (MLG) collapsed on

two airplanes; one incident occurred

during taxi and the other during landing

roll. Investigation revealed that,

following normal overhaul or repair

procedures, moisture may enter the joint

between the fixed barrel and the shock

absorbing portion of the trailing arm of

the MLG. Such moisture could result in

corrosion and consequent fatigue

cracking in the lower lugs of the barrel

of the MLG, which is the main

attachment point for the joint.

Fatigue cracking in the lower lugs of

the barrel of the MLG, if not detected

and corrected in a timely manner, could

lead to the collapse of the MLG.

Explanation of Relevant Service

Information

Messier-Dowty has issued Service

Bulletin No. 631–32–132, dated January

21, 1997, which describes procedures

for performing repetitive ultrasonic

inspections to detect fatigue cracks of

the barrel lower lugs of MLG. The

service bulletin also describes

procedures for replacement of cracked

barrel lower lugs with new or

serviceable ones and a follow-on

inspection. The DGAC classified this

service bulletin as mandatory and

issued French airworthiness directive

96–294(B), dated January 15, 1997, in

order to assure the continued

airworthiness of these airplanes in

France.

FAA’s Conclusions

This airplane model is manufactured

in France and is type certificated for

operation in the United States under the

provisions of section 21.29 of the

Federal Aviation Regulations (14 CFR

21.29) and the applicable bilateral

airworthiness agreement. Pursuant to

this bilateral airworthiness agreement,

the DGAC has kept the FAA informed

of the situation described above. The

FAA has examined the findings of the

DGAC, reviewed all available

information, and determined that AD

action is necessary for products of this

type design that are certificated for

operation in the United States.

Explanation of Requirements of Rule

Since an unsafe condition has been

identified that is likely to exist or

develop on other airplanes of the same

type design registered in the United

States, this AD is being issued to detect

and correct fatigue cracking in the lower

lugs of the barrel, which could result in

collapse of the MLG. This AD requires

repetitive ultrasonic inspections to

detect fatigue cracks of the lower lugs of

the barrel of MLG. This AD also requires

replacement of cracked lower lugs with

new or serviceable ones and a follow-on

inspection. The actions are required to

be accomplished in accordance with the

service bulletin described previously.

Interim Action

The FAA is considering further

rulemaking action to supersede this AD

to require modification of the lower lugs

of the barrel of the MLG, which will

constitute terminating action for the

repetitive inspections required by this

AD action. However, the planned

compliance time for these actions is

sufficiently long so that prior notice and

time for public comment will be

practicable.