2238 Federal Register / Vol. 77, No. 10 / Tuesday, January 17, 2012 / Proposed Rules 

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 

Avenue SW., Washington, DC 20591, Attn: 

Information Collection Clearance Officer, 

AES–200. 

(h) Related Information 

Refer to MCAI EASA AD No.: 2011–0191, 

dated September 30, 2011; DG Flugzeugbau 

GmbH Technical Note No. 500/05, dated 

September 19, 2011; and DG Flugzeugbau 

GmbH Working Instruction No. 1 for TN348/ 

20, Issue 3, dated September 13, 2011, for 

related information. For service information 

related to this AD, contact DG Flugzeugbau 

GmbH, Otto-Lilienthal-Weg 2, 76646 

Bruchsal, Federal Republic of Germany; 

telephone: +49 (0) 7251 3020140; fax: +49 (0) 

7251 3020149; Internet: http://www.dgflugzeugbau.de/tech-mitteilungen-e.html; 

email: dirks@dg-flugzeugbau.de. You may 

review copies of the 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. 

Issued in Kansas City, Missouri, on January 

10, 2012. 

John Colomy, 

Acting Manager, Small Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. 2012–745 Filed 1–13–12; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2011–0018; Directorate 

Identifier 2011–CE–042–AD] 

RIN 2120–AA64 

Airworthiness Directives; Pilatus 

Aircraft Ltd. Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: We propose to adopt a new 

airworthiness directive (AD) for Pilatus 

Aircraft Ltd. Models PC–6, PC–6–H1, 

PC–6–H2, PC–6/350, PC–6/350–H1, PC– 

6/350–H2, PC–6/A, PC–6/A–H1, PC–6/ 

A–H2, PC–6/B–H2, PC–6/B1–H2, PC–6/ 

B2–H2, PC–6/B2–H4, PC–6/C–H2, and 

PC–6/C1–H2 airplanes. This proposed 

AD results from mandatory continuing 

airworthiness information (MCAI) 

originated by an aviation authority of 

another country to identify and correct 

an unsafe condition on an aviation 

product. The MCAI describes the unsafe 

condition as loose elevator and rudder 

hinge bolts caused by incorrect torquing 

and locking of the bolts could lead to inflight failure of the elevator or rudder 

attachment. If not corrected, this failure 

could result in loss of control of the 

airplane. We are issuing this proposed 

AD to require actions to address the 

unsafe condition on these products. 

DATES: We must receive comments on 

this proposed AD by March 2, 2012. 

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 proposed AD, contact PILATUS 

AIRCRAFT LTD., Customer Liaison 

Manager, CH–6371 STANS, 

Switzerland; telephone: +41 (0) 41 619 

65 80; fax: +41 (0) 41 619 65 76; 

Internet: http://www.pilatusaircraft.com. You may review copies of 

the 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; 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 proposed 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: 

Doug Rudolph, Aerospace Engineer, 

FAA, Small Airplane Directorate, 901 

Locust, Room 301, Kansas City, 

Missouri 64106; telephone: (816) 329– 

4059; fax: (816) 329–4090; email: 

doug.rudolph@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Comments Invited 

We invite you to send any written 

relevant data, views, or arguments about 

this proposed AD. Send your comments 

to an address listed under the 

ADDRESSES section. Include ‘‘Docket No. 

FAA–2011–0018; Directorate Identifier 

2011–CE–042–AD’’ at the beginning of 

your comments. We specifically invite 

comments on the overall regulatory, 

economic, environmental, and energy 

aspects of this proposed AD. We will 

consider all comments received by the 

closing date and may amend this 

proposed AD because of those 

comments. 

We will post all comments we 

receive, without change, to http:// 

regulations.gov, including any personal 

information you provide. We will also 

post a report summarizing each 

substantive verbal contact we receive 

about this proposed AD. 

Discussion 

The European Aviation Safety Agency 

(EASA), which is the Technical Agent 

for the Member States of the European 

Community, has issued EASA AD No. 

2011–0230, dated December 9, 2011 

(referred to after this as ‘‘the MCAI’’), to 

correct an unsafe condition for the 

specified products. The MCAI states: 

A case of loss of elevator and rudder hinge 

bolts on a PC–6 aeroplane has been reported. 

The results of the investigations indicate 

that the elevator and rudder hinge bolt loss 

are suspected to have been caused by an 

incorrect torque and locking of the bolts. 

This condition, if not detected and 

corrected, could lead to in-flight failure of the 

elevator or rudder attachment, possibly 

resulting in loss of control of the aeroplane. 

For the reasons described above, this AD 

requires the installation of a new locking 

screw and the modification of the installation 

of the hinge bolt. 

You may obtain further information by 

examining the MCAI in the AD docket. 

Relevant Service Information 

Pilatus Aircraft Ltd. has issued PC–6 

Service Bulletin No. 55–001, Rev. No. 1, 

dated November 25, 2011. 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 Proposed AD 

This product has been approved by 

the aviation authority of another 

country, and is approved for operation 

WREIER-aviles on DSK5TPTVN1PROD with PROPOSALS

Federal Register / Vol. 77, No. 10 / Tuesday, January 17, 2012 / Proposed Rules 2239 

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 proposing this 

AD because we evaluated all 

information and determined the unsafe 

condition exists and is likely to exist or 

develop on other products of the same 

type design. 

Costs of Compliance 

We estimate that this proposed AD 

will affect 50 products of U.S. registry. 

We also estimate that it would take 

about 5 work-hours per product to 

comply with the basic requirements of 

this proposed AD. The average labor 

rate is $85 per work-hour. Required 

parts would cost about $100 per 

product. 

Based on these figures, we estimate 

the cost of the proposed AD on U.S. 

operators to be $26,250, or $525 per 

product. 

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 proposed AD 

would not have federalism implications 

under Executive Order 13132. This 

proposed AD would 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 this proposed regulation: 

(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. 

The Proposed Amendment 

Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA proposes to amend 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: 

Pilatus Aircraft Ltd.: Docket No. FAA–2011– 

0018; Directorate Identifier 2011–CE– 

042–AD. 

(a) Comments Due Date 

We must receive comments by March 2, 

2012. 

(b) Affected ADs 

None. 

(c) Applicability 

This AD applies to Pilatus Aircraft Ltd. 

Models PC–6, PC–6–Hl, PC–6–H2, PC–6/350, 

PC–6/350–Hl, PC–6/350–H2, PC–6/A, PC–6/ 

A–Hl, PC–6/A–H2, PC–6/B–H2, PC–6/Bl-H2, 

PC–6/B2–H2, PC–6/B2–H4, PC–6/C–H2, and 

PC–6/Cl-H2 airplanes, all manufacturer serial 

numbers (MSN), and MSN 2001 through 

2092, certificated in any category. These 

airplanes are also identified as Fairchild 

Republic Company PC–6 airplanes, Fairchild 

Industries PC–6 airplanes, Fairchild Heli 

Porter PC–6 airplanes, or Fairchild-Hiller 

Corporation PC–6 airplanes. 

(d) Subject 

Air Transport Association of America 

(ATA) Code 55: Stabilizer. 

(e) Reason 

This AD was prompted by loose elevator 

and rudder hinge bolts caused by incorrect 

torquing and locking of the bolts. We are 

issuing this AD to prevent in-flight failure of 

the elevator or rudder attachment, which 

could result in loss of control of the airplane. 

(f) Actions and Compliance 

Unless already done, do the following 

actions: 

(1) For airplanes that have not been 

modified before the effective date of this AD 

following Pilatus Aircraft Ltd. PC–6 Service 

Bulletin No. 55–001 at initial issue, within 2 

months after the effective date of this AD, 

install new elevator and rudder hinge bolt 

locking screws and modify the installation of 

the hinge bolt following the Accomplishment 

Instructions in Pilatus Aircraft Ltd. PC–6 

Service Bulletin No. 55–001, Rev. No. 1, 

dated November 25, 2011. 

(2) For airplanes that have been modified 

before the effective date of this AD following 

Pilatus Aircraft Ltd. PC–6 Service Bulletin 

No. 55–001 at initial issue, within 6 months 

after the effective date of this AD, install new 

elevator and rudder hinge bolt locking screws 

following the Accomplishment Instruction of 

Pilatus Aircraft Ltd. PC–6 Service Bulletin 

No. 55–001, Rev. No. 1, dated November 25, 

2011. 

(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: Doug Rudolph, Aerospace Engineer, 

FAA, Small Airplane Directorate, 901 Locust, 

Room 301, Kansas City, Missouri 64106; 

telephone: (816) 329–4059; fax: (816) 329– 

4090; email: doug.rudolph@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 

(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 European Aviation Safety 

Agency (EASA) AD No. 2011–0230, dated 

December 9, 2011, and Pilatus Aircraft Ltd. 

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2240 Federal Register / Vol. 77, No. 10 / Tuesday, January 17, 2012 / Proposed Rules 

PC–6 Service Bulletin No. 55–001, Rev. No. 

1, dated November 25, 2011, for related 

information. For service information related 

to this AD, contact PILATUS AIRCRAFT 

LTD., Customer Liaison Manager, CH–6371 

STANS, Switzerland; telephone: +41 (0) 41 

619 65 80; fax: +41 (0) 41 619 65 76; Internet: 

http://www.pilatus-aircraft.com. You may 

review copies of the 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. 

Issued in Kansas City, Missouri on January 

10, 2012. 

John Colomy, 

Acting Manager, Small Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. 2012–746 Filed 1–13–12; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[REG–113903–10] 

RIN 1545–BJ59 

Allocation and Apportionment of 

Interest Expense 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Notice of proposed rulemaking 

by cross-reference to temporary 

regulations and notice of public hearing. 

SUMMARY: In the Rules and Regulations 

section in this issue of the Federal 

Register, the IRS is issuing temporary 

regulations that provide guidance 

relating to the allocation and 

apportionment of interest expense. The 

temporary regulations provide guidance 

concerning the allocation and 

apportionment of interest expense by 

corporations owning a 10 percent or 

greater interest in a partnership, as well 

as the allocation and apportionment of 

interest expense using the fair market 

value asset method. The temporary 

regulations also update the interest 

allocation regulations to conform to the 

changes made to the applicable law by 

the legislation commonly referred to as 

the Education Jobs and Medicaid 

Assistance Act (EJMAA), enacted on 

August 10, 2010 (Pub. L. 111–226, 124 

Stat. 2389 (2010)), which affect 

corporations owning certain foreign 

corporations engaged in the conduct of 

a trade or business in the United States. 

The text of those temporary regulations 

published in this issue of the Federal 

Register also serves as the text of these 

proposed regulations. This document 

also provides a notice of public hearing 

on these proposed regulations. 

DATES: Written or electronic comments 

must be received by March 13, 2012. 

Outlines of topics to be discussed at the 

public hearing scheduled for April 3, 

2012, at 10 a.m. must be received by 

March 13, 2012. 

ADDRESSES: Send submissions to 

CC:PA:LPD:PR (REG–113903–10), room 

5203, Internal Revenue Service, PO Box 

7604, Ben Franklin Station, Washington, 

DC 20044. Submissions may be hand 

delivered Monday through Friday 

between the hours of 8 a.m. and 4 p.m. 

to CC:PA:LPD:PR (REG–113903–10), 

Courier’s desk, Internal Revenue 

Service, 1111 Constitution Avenue NW., 

Washington, DC 20044, or sent 

electronically, via the Federal 

eRulemaking Portal at 

www.regulations.gov (IRS REG–113903– 

10). The public hearing will be held in 

the IRS Auditorium, Internal Revenue 

Building, 1111 Constitution Avenue 

NW., Washington, DC. 

FOR FURTHER INFORMATION CONTACT: 

Concerning the regulations, Jeffrey L. 

Parry, (202) 622–3850; concerning 

submissions of comments, the hearing, 

and/or to be placed on the building 

access list to attend the hearing 

Oluwfunmilayo Taylor (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 contain 

amendments to the Income Tax 

Regulations (26 CFR part 1) which 

provide rules under section 861 relating 

to the affiliation of certain foreign 

corporations for purposes of section 

864, the allocation and apportionment 

of interest expense by corporations 

owning a 10 percent or greater interest 

in a partnership, and the allocation and 

apportionment of interest expense using 

the fair market value method. 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. The 

regulations affect taxpayers that allocate 

and apportion interest expense under 

section 864. 

Special Analyses 

It has been determined that this notice 

of proposed rulemaking is not a 

significant regulatory action as defined 

in Executive Order 12866. Therefore, a 

regulatory assessment is not required. It 

has also 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 

regulations do 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), these regulations have 

been submitted to the Chief Counsel for 

Advocacy of the Small Business 

Administration for comment on its 

impact on small business. 

Comments and Public Hearing 

Before these proposed regulations are 

adopted as final regulations, 

consideration will be given to any 

electronic or written comments (a 

signed original and eight (8) copies) that 

are submitted timely to the IRS. The IRS 

and the Treasury Department request 

comments on all aspects of the proposed 

rules. All comments will be available for 

public inspection and copying. 

A public hearing has been scheduled 

for April 3, 2012, in the IRS auditorium, 

Internal Revenue Building, 1111 

Constitution Avenue NW., Washington, 

DC. Due to building security 

procedures, visitors must enter at the 

Constitution Avenue entrance. In 

addition, all visitors must present photo 

identification to enter the building. 

Because of access restrictions, visitors 

will not be admitted beyond the 

immediate entrance more than 30 

minutes before the hearing starts. For 

information about having your name 

placed on the building access list to 

attend the hearing, see the FOR FURTHER

INFORMATION CONTACT section of this 

preamble. 

The rules of 26 CFR 601.601(a)(3) 

apply to the hearing. Persons who wish 

to present oral comments at the hearing 

must submit electronic or written 

comments by March 13, 2012, and an 

outline of the topics to be discussed and 

the time to be devoted to each topic 

(signed original and eight (8) copies) by 

March 13, 2012. A period of 10 minutes 

will be allotted to each person for 

making comments. 

An agenda showing the scheduling of 

the speakers will be prepared after the 

deadline for receiving outlines has 

passed. Copies of the agenda will be 

available free of charge at the hearing. 

Drafting Information 

The principal author of these 

regulations is Jeffrey L. Parry of the 

Office of Chief Counsel (International). 

However, other personnel from the IRS 

and the Treasury Department 

participated in their development. 

WREIER-aviles on DSK5TPTVN1PROD with PROPOSALS