Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations 35799

separately numbered, and each

numbered objection shall specify with

particularity the provisions of the

regulation to which objection is made

and the grounds for the objection. Each

numbered objection on which a hearing

is requested shall specifically so state.

Failure to request a hearing for any

particular objection shall constitute a

waiver of the right to a hearing on that

objection. Each numbered objection for

which a hearing is requested shall

include a detailed description and

analysis of the specific factual

information intended to be presented in

support of the objection in the event

that a hearing is held. Failure to include

such a description and analysis for any

particular objection shall constitute a

waiver of the right to a hearing on the

objection. Three copies of all documents

shall be submitted and shall be

identified with the docket number

found in brackets in the heading of this

document. Any objections received in

response to the regulation may be seen

in the Dockets Management Branch

between 9 a.m. and 4 p.m., Monday

through Friday.

The following references have been

placed on display in the Dockets

Management Branch (address above)

and may be seen by interested persons

between 9 a.m. and 4 p.m., Monday

through Friday.

1. Van Duuren, B. L., L. Langseth, B. M.

Goldschmidt, and L. Orris, ‘‘Carcinogenicity

of Epoxides, Lactones, and Epoxy

Compounds. VI. Structure and Carcinogenic

Activity,’’ Journal of the National Cancer

Institute, vol. 39, No. 6., pp. 1217–1228,

1967.

2. Memorandum from Executive Secretary

of the Cancer Assessment Committee, FDA,

to Quantitative Risk Assessment Committee,

FDA, concerning ‘‘Potential Carcinogenicity

of 1,2-epoxyhexadecane (EHD): Subject of

Food Additive Petition No. 7B4550

(Goldschmidt Chemical Corp.),’’ dated

January 8, 1998.

3. Tobin, Paul S. et al., ‘‘An Evaluation of

Skin Painting Studies as Determinants of

Tumorigenesis Potential Following Skin

Contact with Carcinogens,’’ Regulatory

Toxicology and Pharmacology, vol. 2, 22–37,

1982.

List of Subjects in 21 CFR Part 178

Food additives, Food packaging.

Therefore, under the Federal Food,

Drug, and Cosmetic Act and under

authority delegated to the Commissioner

of Food and Drugs, 21 CFR part 178 is

amended as follows:

PART 178—INDIRECT FOOD

ADDITIVES: ADJUVANTS,

PRODUCTION AIDS, AND SANITIZERS

1. The authority citation for 21 CFR

part 178 continues to read as follows:

Authority: 21 U.S.C. 321, 342, 348, 379e.

2. Section 178.3725 is amended in the

table by alphabetically adding an entry

under the headings ‘‘Substances’’ and

‘‘Limitations’’ to read as follows:

§ 178.3725 Pigment dispersants.

* * * * *

Substances Limitations

* * * * * * *

Siloxanes and silicones; cetylmethyl, dimethyl, methyl 11-methoxy-11-

oxoundecyl (CAS Reg. No. 155419–59–3).

For use only at levels not to exceed 0.5 percent by weight of the pigment. The pigmented polymers may contact all foods under conditions of use C, D, E, F, and G described in Table 2 of § 176.170(c)

of this chapter.

Dated: June 19, 1998.

William K. Hubbard,

Associate Commissioner for Policy

Coordination.

[FR Doc. 98–17412 Filed 6–30–98; 8:45 am]

BILLING CODE 4160–01–F

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 48, 145, and 602

[T.D. 8774]

RIN 1545–AW15

Kerosene Tax; Aviation Fuel Tax; Tax

on Heavy Trucks and Trailers

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Temporary regulations.

SUMMARY: This document contains

temporary regulations relating to the

kerosene and aviation fuel excise taxes

and the tax on the first retail sale of

certain tractors and truck, trailer, and

semitrailer chassis and bodies (heavy

vehicles). The regulations provide rules

for the kerosene tax, the refund

available to certain aviation producers,

and the tax on heavy vehicles. The

regulations relating to kerosene affect

the tax liability of certain industrial

users, refiners, terminal operators,

throughputters, and persons that sell,

buy, or use kerosene. The regulations

relating to aviation fuel affect certain

producers, retailers, and users of

aviation fuel. The regulations relating to

the tax on heavy vehicles affect vehicle

manufacturers and dealers. The text of

these regulations also serves as the text

of the 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.

DATES: These regulations are effective

July 1, 1998. For dates of applicability,

see §§ 48.4082–6T, 48.4082–7T(b),

48.4082–8T(f), 48.4082–9T(b), 48.4091–

3T(f), 48.4101–3T(e), 48.6427–10T(c),

48.6427–11T(g), and 145.4052–

1(a)(2)(ii).

FOR FURTHER INFORMATION CONTACT:

Frank Boland (202) 622–3130 (not a tollfree call).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

These temporary regulations are being

issued without prior notice and public

procedure pursuant to the

Administrative Procedure Act (5 U.S.C.

553). For this reason, the collection of

information contained in these

regulations has been reviewed and,

pending receipt and evaluation of

public comments, approved by the

Office of Management and Budget under

control number 1545–1608. Responses

to this collection of information are

required to obtain a tax benefit.

An agency may not conduct or

sponsor, and a person is not required to

respond to, a collection of information

unless the collection of information

displays a valid OMB control number.

For further information concerning

this collection of information, and

where to submit comments on the

collection of information and the

accuracy of the estimated burden, and

suggestions for reducing this burden,

please refer to the preamble to the

notice of proposed rulemaking in the

Proposed Rules section of this issue of

the Federal Register.
35800 Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations

Books or records relating to a

collection of information must be

retained as long as their contents may

become material in the administration

of any internal revenue law. Generally,

tax returns and tax return information

are confidential, as required by 26

U.S.C. 6103.

Background

This document contains amendments

to excise tax regulations (26 CFR parts

48 and 145) that implement certain

changes made by the Taxpayer Relief

Act of 1997 (the 1997 Act) relating to

taxes on kerosene, aviation fuel, and

heavy vehicles.

Kerosene; the 1997 Act

Section 4081 imposes a tax on certain

removals, entries, and sales of taxable

fuel. Before July 1, 1998, taxable fuel

means gasoline and diesel fuel. As of

that date, however, the definition of

taxable fuel is expanded by the 1997 Act

to include kerosene. Thus, after June 30,

1998, tax is imposed on the removal of

kerosene from a terminal at the terminal

rack.

In addition, the 1997 Act extends the

rules for the exemption of dyed diesel

fuel to dyed kerosene. Thus, tax is not

imposed on kerosene that (1) the IRS

determines is destined for a nontaxable

use (such as for heating), (2) is indelibly

dyed in accordance with IRS

regulations, and (3) meets any marking

requirements that may be prescribed in

regulations.

Also, the 1997 Act provides that

undyed kerosene that is destined for a

nontaxable use may be removed,

entered, or sold tax free in three

situations. First, in the case of aviationgrade kerosene, dyeing is not required if

the kerosene is received by a person that

is registered by the IRS for purposes of

the aviation fuel tax imposed by section

4091. Second, dyeing is not required for

feedstock kerosene that is received from

a pipeline or vessel by a registered

kerosene feedstock user. Kerosene used

as a feedstock by other persons is

exempt from the dyeing requirement to

the extent provided by regulations.

Finally, to the extent prescribed by

regulations, dyeing is not required if

kerosene is received by a registered

wholesale distributor that sells kerosene

exclusively to ultimate vendors that sell

kerosene from a pump that is not

suitable for use in fueling any dieselpowered highway vehicle or train (a

blocked pump).

The 1997 Act adds section 4101(e) to

provide that a terminal for kerosene or

diesel fuel cannot be an approved

terminal unless the operator of the

terminal offers dyed diesel fuel and

dyed kerosene for removal for

nontaxable use. This provision is not

applicable until July 1, 2000.

The 1997 Act generally applies to

kerosene the credit and refund rules that

apply to diesel fuel. Thus, a credit or

refund is allowable to a registered

ultimate vendor that sells taxed, undyed

kerosene for use on a farm for farming

purposes or for the exclusive use of a

state or local government. In addition, a

credit or refund is allowable to a

registered ultimate vendor that sells

taxed, undyed kerosene from a blocked

pump or, to the extent provided by the

Secretary of the Treasury, for blending

with heating oil to be used during

periods of extreme or unseasonable

cold.

Kerosene; Explanation of Provisions

Because kerosene is classified as a

taxable fuel as of July 1, 1998, the rules

(including definitions) in the existing

regulations that apply to taxable fuel

generally apply to kerosene.

The temporary regulations define

kerosene as the kerosene described in

ASTM Specification D 3699 (No. 1–K

and No. 2–K) and ASTM Specification

D 1655 (kerosene-type jet fuel).

Under the temporary regulations, tax

is not imposed on the removal, entry, or

sale of kerosene that is dyed with dye

of the same strength and composition

that is now required for diesel fuel.

Also, every retail pump where dyed

kerosene is sold must display a

prescribed notice similar to the one now

required on dyed diesel fuel pumps.

Under the temporary regulations, tax

generally is not imposed on aviationgrade kerosene if the person that

receives the kerosene in a transaction

otherwise subject to tax (such as a

person that buys kerosene at a terminal

rack) is registered with respect to the

section 4091 tax and, for sales after

September 30, 1998, certifies that the

kerosene will be used as a fuel in an

aircraft. These buyers include registered

aviation fuel producers (that is, persons

with IRS registration numbers with an

‘‘H’’ suffix) and registered commercial

airlines.

Transitional rules provide that tax

generally is not imposed on aviationgrade kerosene that is destined for use

as aviation fuel if an unregistered

person (such as a fixed-base operator)

receives the kerosene at a terminal rack

and certifies (for sales after September

30, 1998) that the kerosene will be used

as a fuel in an aircraft. The Treasury

Department is considering whether this

provision should be made a part of the

final regulations, or whether persons

that are presently unregistered should

be required to register in order to

receive aviation-grade kerosene tax free

and requests comments on this issue.

Comments may be submitted in the

manner described under the ADDRESSES

caption in the notice of proposed

rulemaking on these subjects in the

Proposed Rules section of this issue of

the Federal Register.

The temporary regulations describe

the conditions under which a registered

ultimate vendor may be eligible for a

credit or refund with respect to taxed

kerosene that it sells from a blocked

pump. A blocked pump is defined as a

fuel pump that is at a fixed location and

that cannot be used to fuel any dieselpowered highway vehicle or train. Also,

blocked pumps must display a

prescribed notice.

The temporary regulations do not

provide rules for the following: (1) the

exception from the dyeing requirement

for kerosene that is removed from a

terminal for use as a feedstock, (2) the

exception from the dyeing requirement

for kerosene that is received by a

registered wholesale distributor that

sells kerosene exclusively to ultimate

vendors that sell kerosene from a

blocked pump, (3) the availability of a

credit or refund to a registered ultimate

vendor that sells kerosene for blending

with heating oil to be used during

periods of extreme or unseasonable

cold, and (4) the requirement that a

terminal for kerosene or diesel fuel

cannot be an approved terminal unless

the operator of the terminal offers dyed

diesel fuel and dyed kerosene for

removal for nontaxable use. Comments

are also requested on these issues.

Comments may be submitted in the

manner described under the ADDRESSES

caption in the notice of proposed

rulemaking on these subjects in the

Proposed Rules section of this issue of

the Federal Register.

Aviation Fuel

The 1997 Act added section 4091(d),

which allows a registered aviation fuel

producer (including a registered

wholesale distributor) to obtain a refund

of tax previously paid on aviation fuel

that it buys. The temporary regulations

describe the procedures to be followed

for the allowance of this refund. These

procedures are similar to the procedures

under section 4081(e) for refunds

relating to taxable fuel on which two

taxes have been paid.

Registration of Heavy Vehicle

Manufacturers and Retailers

The tax on the sale of heavy vehicles

imposed by section 4051 is a tax that

applies to the first retail sale by the

manufacturer, importer, or retailer of a

vehicle. The tax is not imposed if a
Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations 35801

vehicle is sold for resale or for lease on

a long-term basis. Under existing

regulations, this tax-free treatment

applies only if both the seller and the

buyer are registered by the IRS. Under

the 1997 Act, however, the Treasury

Department is to revise those

regulations so that those sales may be

made tax free even if the parties have

not been registered by the IRS.

These temporary regulations generally

provide that a person, such as a vehicle

manufacturer, may sell a vehicle tax free

if it accepts from its buyer, such as a

vehicle retailer, a prescribed statement,

signed under penalties of perjury,

stating that the buyer will resell the

vehicle or lease it on a long-term basis.

Neither party will be required to be

registered.

The temporary regulations do not

affect the registration requirements for

tax-free sales under section 4221, such

as sales for the exclusive use of a state

or local government.

Special Analyses

It has been determined that this

Treasury decision is not a significant

regulatory action as defined in EO

12866. Therefore, a regulatory

assessment is not required. It also has

been determined that section 553(b) of

the Administrative Procedure Act (5

U.S.C. chapter 5) does not apply to these

regulations. It is hereby certified that the

collection of information in these

regulations will not have a significant

economic impact on a substantial

number of small entities. This

certification is based upon the fact that

the time required to prepare and submit

the exemption certificates described in

these regulations (many of which are

similar to certificates that are already in

use) is minimal and will not have a

significant impact on those small

entities that choose to provide the

certificates. Therefore, a Regulatory

Flexibility Analysis under the

Regulatory Flexibility Act (5 U.S.C.

chapter 6) is not required. Pursuant to

section 7805(f) of the Internal Revenue

Code, these temporary regulations will

be submitted to the Chief Counsel for

Advocacy of the Small Business

Administration for comment on their

impact on small business.

Drafting Information

The principal author of these

regulations is Frank Boland, Office of

the Assistant Chief Counsel

(Passthroughs and Special Industries),

IRS. However, other personnel from the

IRS and Treasury Department

participated in their development.

List of Subjects

26 CFR Parts 48 and 145

Excise taxes, Reporting and

recordkeeping requirements.

26 CFR Part 602

Reporting and recordkeeping

requirements.

Adoption of Amendments to the

Regulations

Accordingly, 26 CFR parts 48, 145,

and 602 are amended as follows:

PART 48—MANUFACTURERS AND

RETAILERS EXCISE TAX

REGULATIONS

Paragraph 1. The authority citation

for part 48 is amended by adding entries

in numerical order to read in part as

follows:

Authority: 26 U.S.C. 7805 * * *

Sections 48.4082–6T, 48.4082–7T, and

48.4082–8T also issued under 26 U.S.C. 4082

* * *

Section 48.4101–3 also issued under 26

U.S.C. 4101(a) * * *

Sections 48.6427–10T and 48.6427–11T

also issued under 26 U.S.C. 6427(n) * * *

Par. 2. Section 48.4081–1T is added

to read as follows:

§ 48.4081–1T Taxable fuel; definitions

(temporary).

(a) [Reserved]

(b) Definitions.

Kerosene means, after June 30,

1998,—

(1) The two grades of kerosene (No. 1–

K and No. 2–K) described in ASTM

Specification D 3699; and

(2) Kerosene-type jet fuel described in

ASTM Specification D 1655 and

military specifications MIL–T–5624R

and MIL–T–83133D (Grades JP–5 and

JP–8). For availability of ASTM and

military specification material, see

§ 48.4081–1(c)(2)(i).

Par. 3. Sections 48.4082–6T, 48.4082–

7T, 48.4082–8T, 48.4082–9T, and

48.4082–10T are added to read as

follows:

§ 48.4082–6T Kerosene; treatment as

diesel fuel in certain cases (temporary).

For purposes of §§ 48.4081–1(b) (the

definition of taxable fuel), 48.4081–2(c),

48.4082–1, 48.4082–4, and 48.4082–5,

after June 30, 1998, diesel fuel includes

kerosene.

§ 48.4082–7T Kerosene; notice required

with respect to dyed kerosene (temporary).

(a) In general. A legible and

conspicuous notice stating: ‘‘DYED

KEROSENE, NONTAXABLE USE ONLY,

PENALTY FOR TAXABLE USE’’ must

be posted by a seller on any retail pump

or other delivery facility where it sells

dyed kerosene for use by its buyer. Any

seller that fails to post the required

notice on any retail pump or other

delivery facility where it sells dyed

kerosene is, for purposes of the penalty

imposed by section 6715, presumed to

know that the fuel will not be used for

a nontaxable use.

(b) Effective date. This section is

applicable after June 30, 1998.

§ 48.4082–8T Kerosene; exemption for

aviation-grade kerosene (temporary).

(a) Overview. This section provides

rules for exempting aviation-grade

kerosene from the tax imposed by

section 4081. Generally, under

prescribed conditions, tax is not

imposed on a removal, entry, or sale of

aviation-grade kerosene if the kerosene

is destined for use as a fuel in an

aircraft.

(b) Definition.

Aviation-grade kerosene means

kerosene-type jet fuel described in

ASTM Specification D 1655 and

military specifications MIL–T–5624R

and MIL–T–83133D (Grades JP–5 and

JP–8). For availability of ASTM and

military specification material, see

§ 48.4081–1(c)(2)(i).

(c) Removals and entries not in

connection with sales. Tax is not

imposed by section 4081 on the removal

or entry not in connection with a sale

of aviation-grade kerosene if—

(1) The person otherwise liable for tax

is a taxable fuel registrant;

(2) In the case of a removal from a

terminal, the terminal is an approved

terminal; and

(3) The kerosene will be used as fuel

in an aircraft and—

(i) The person otherwise liable for tax

subsequently delivers the kerosene into

the fuel supply tank of an aircraft or is

registered under section 4101 with

respect to the tax imposed by section

4091; or

(ii) The section 4091 tax has been

imposed on the kerosene.

(d) Removals and entries in

connection with sales. Tax is not

imposed under section 4081 on the

removal or entry of aviation-grade

kerosene in connection with a sale if—

(1) The person otherwise liable for tax

is a taxable fuel registrant;

(2) In the case of a removal from a

terminal, the terminal is an approved

terminal; and

(3) The kerosene will be used as fuel

in an aircraft and—

(i) The buyer is registered under

section 4101 with respect to the tax

imposed by section 4091;

(ii) The buyer is buying for its use in

a nontaxable use (as defined in section

4092(a)); or
35802 Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations

(iii) The section 4091 tax is, or has

been, imposed on the kerosene.

(e) Evidence under paragraph (d)(3)—

(1) In general—(i) Sales before October

1, 1998. For sales before October 1,

1998, the requirements of paragraph

(d)(3) of this section will be considered

to have been met if the person otherwise

liable for tax has an unexpired

certificate (described in this paragraph

(e)) from the buyer and has no reason to

believe that any information in the

certificate is false.

(ii) Sales after September 30, 1998.

For sales after September 30, 1998, the

requirements of paragraph (d)(3) of this

section are met only if the person

otherwise liable for tax has an

unexpired certificate (described in this

paragraph (e)) from the buyer and has

no reason to believe that any

information in the certificate is false.

(2) Certificate. The certificate to be

provided by a buyer of aviation-grade

kerosene is a statement signed under

penalties of perjury by a person with

authority to bind the buyer, in

substantially the same form as the

model certificate provided in paragraph

(e)(4) of this section, and that contains

all information necessary to complete

the model certificate. A new certificate

or notice that the correct certificate is

invalid must be given if any information

in the current certificate changes. The

certificate may be included as part of

any business records normally used to

document a sale. The certificate expires

on the earliest of the following dates:

(i) The date one year after the effective

date of the certificate (which may be no

earlier than the date it is signed).

(ii) The date the buyer provides a new

certificate or notice that the current

certificate is invalid to the seller.

(iii) The date the seller is notified by

the Internal Revenue Service or the

buyer that the buyer’s right to provide

a certificate has been withdrawn.

(3) Withdrawal of the right to provide

a certificate. The Internal Revenue

Service may withdraw the right of a

buyer of aviation-grade kerosene to

provide a certificate under this section

if the buyer uses or disposes of aviationgrade kerosene to which a certificate

applies other than as a fuel in an

aircraft. The Internal Revenue Service

may notify any seller to whom the buyer

has provided a certificate that the

buyer’s right to provide a certificate has

been withdrawn.

(4) Model certificate.

Certificate of Person Buying Aviation-Grade

Kerosene for Use as a Fuel in an Aircraft

(To support tax-free removals and entries of

aviation-grade kerosene under section 4081

of the Internal Revenue Code.)

Name, address, and employer

identification number of seller (‘‘Buyer’’)

certifies the following under penalties of

perjury:

Name of Buyer: lllllllllllll

The aviation-grade kerosene to which this

certificate relates will be used as fuel in an

aircraft.

Buyer is (check one):

lll Registered under section 4101 of the

Internal Revenue Code with respect to the tax

imposed by section 4091 with a registration

number of llllllll.

lll Buying the kerosene for its use in

a nontaxable use (as defined in section

4092(a)).

lll Buying the kerosene for its use

(other than a nontaxable use) in commercial

aviation (as defined in section 4092(b)).

lll Buying the kerosene for its use

(other than a nontaxable use) in

noncommercial aviation (as defined in

section 4041(c)(2)).

lll Buying the kerosene for resale.

This certificate applies to the following

(complete as applicable):

If this is a single purchase certificate, check

here lll and enter:

1. Invoice or delivery ticket number

llllllll.

2. lll (number of gallons).

If this is a certificate covering all purchases

under a specified account or order number,

check here lll and enter:

1. Effective date llllllllllll

2. Expiration date lllllllllll

(period not to exceed 1 year after the effective

date)

3. Buyer account or order number

llllllll.

Buyer will provide a new certificate to the

seller if any information in this certificate

changes.

Buyer understands that if Buyer violates

the terms of this certificate, the Internal

Revenue Service may withdraw Buyer’s right

to provide a certificate.

Buyer has not been notified by the Internal

Revenue Service that its right to provide a

certificate has been withdrawn.

Buyer understands that the fraudulent use

of this certificate may subject Buyer and all

parties making any fraudulent use of this

certificate to a fine or imprisonment, or both,

together with the costs of prosecution.

lllllllllllllllllllll

Printed or typed name of person signing

lllllllllllllllllllll

Title of person signing

lllllllllllllllllllll

Employer identification number

lllllllllllllllllllll

Address of Buyer

lllllllllllllllllllll

Signature and date signed

(f) Effective date. This section is

applicable after June 30, 1998.

§ 48.4082–9T Kerosene; exemption for

non-fuel feedstock purposes (temporary).

(a) In general. Tax is not imposed

under section 4081 and § 48.4081–

3(e)(1) if, upon the removal of kerosene

from a pipeline or vessel, the kerosene

is received by a taxable fuel registrant

that is a kerosene feedstock user. For

this purpose, a kerosene feedstock user

is a person that receives kerosene by

bulk transfer for its own use in the

manufacture or production of any

substance (other than gasoline, diesel

fuel, or special fuels referred to in

section 4041).

(b) Effective date. This section is

applicable after June 30, 1998.

§ 48.4082–10T Kerosene; additional

exemption from floor stocks tax

(temporary).

The floor stocks tax imposed by

section 1032(g) of the Taxpayer Relief

Act of 1997 does not apply to kerosene

that satisfies the dyeing requirements of

§ 48.4082–1(b) by the earlier of—

(a) September 30, 1998; or

(b) The time the kerosene is sold by

the person otherwise liable for the floor

stocks tax.

Par. 4. Section 48.4091–3T is added

to read as follows:

§ 48.4091–3T Aviation fuel; conditions to

allowance of refunds of aviation fuel tax

under section 4091(d) (temporary).

(a) Overview. This section provides

the conditions under which a refund of

tax imposed by section 4091 is

allowable with respect to taxed aviation

fuel that is held by a registered aviation

fuel producer. No credit against any tax

imposed by the Internal Revenue Code

is allowed under section 4091(d).

(b) Conditions to allowance of refund.

A claim for refund of tax imposed by

section 4091 with respect to aviation

fuel is allowed under section 4091(d)

and this section only if—

(1) A tax imposed by section 4091

with respect to the aviation fuel was

paid to the government by an importer

or producer (the first producer) and the

tax has not been otherwise credited or

refunded;

(2) After imposition of the tax, the

aviation fuel is acquired by a person

that is a registered aviation fuel

producer (the second producer);

(3) The second producer has filed a

timely claim for refund that contains the

information required under paragraph

(d) of this section; and

(4) The first producer and any person

that owns the fuel after its sale by the

first producer and before its purchase by

the second producer (a subsequent

seller) have met the reporting

requirements of paragraph (c) of this

section.

(c) Reporting requirements—(1) In

general. The reporting requirements of

this paragraph (c)(1) are met if the first

producer files a report (the first

producer’s report) that—
Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations 35803

(i) Is in substantially the same form as

the model report provided in paragraph

(c)(2) of this section (or such other

model report as the Commissioner may

prescribe);

(ii) Contains all information necessary

to complete such model report; and

(iii) Is filed at the time and in the

manner prescribed by the

Commissioner.

(2) Model first producer’s report.

First Producer’s Report

lllllllllllllllllllll

lllllllllllllllllllll

First Producer’s name, address, and employer

identification number

lllllllllllllllllllll

lllllllllllllllllllll

Buyer’s name, address, and employer

identification number

lllllllllllllllllllll

Date and location of taxable sale

lllllllllllllllllllll

Volume and type of aviation fuel sold

lllllllllllllllllllll

Amount of federal excise tax paid on account

of the sale

Under penalties of perjury, First Producer

declares that First Producer has examined

this statement, including any accompanying

schedules and statements, and, to the best of

First Producer’s knowledge and belief, it is

true, correct and complete.

lllllllllllllllllllll

Printed or typed name of the person signing

lllllllllllllllllllll

Title of person signing

lllllllllllllllllllll

Signature and date signed

(3) Information provided to buyers.

The reporting requirements of this

paragraph (c)(3) are met if a first

producer that filed a first producer’s

report under paragraph (c)(1) of this

section gives a copy of the report to the

person to whom the first producer sells

the aviation fuel.

(4) Statement of subsequent seller—(i)

In general. The reporting requirements

of this paragraph (c)(4) are met if—

(ii)(A) Each subsequent seller gives to

its buyer a copy of a statement that

provides all information (whether or not

in the same format) necessary to

complete the model statement

prescribed in paragraph (c)(4)(ii) of this

section (or such other model statement

as the Commissioner may prescribe);

and

(B) The statement is provided at the

bottom or on the back of the copy of the

first producer’s report (or in an attached

document).

(iii) Model statement describing

subsequent sale.

Statement of Subsequent Seller (Aviation

Fuel)

lllllllllllllllllllll

lllllllllllllllllllll

Name, address, and employer identification

number of seller in subsequent sale

lllllllllllllllllllll

lllllllllllllllllllll

Name, address, and employer identification

number of buyer in subsequent sale

lllllllllllllllllllll

Date and location of subsequent sale

lllllllllllllllllllll

Volume and type of aviation fuel sold

The undersigned seller (the Seller) has

received the copy of the first producer’s

report provided with this statement in

connection with Seller’s purchase of the

aviation fuel described in this statement.

Under penalties of perjury, Seller declares

that Seller has examined this statement,

including any accompanying schedules and

statements, and, to the best of Seller’s

knowledge and belief, it is true, correct and

complete.

lllllllllllllllllllll

Printed or typed name of person signing

lllllllllllllllllllll

Title of person signing

lllllllllllllllllllll

Signature and date signed

(5) Sale to multiple buyers. If a first

producer’s report relates to aviation fuel

that is divided among more than one

buyer, multiple copies of the first

producer’s report should be made at the

stage that the aviation fuel is divided

and a copy given to each buyer. The

reporting requirements of this paragraph

(c) will be met only with respect to the

fuel purchased by buyers that are given

a copy of the report including any

statement required under paragraph

(c)(4) of this section.

(d) Form and content of claim—(1) In

general. The following rules apply to

claims for refund under section 4091(d):

(i) The claim must be made by the

second producer and must include all

the information described in paragraph

(d)(2) of this section.

(ii) The claim must be made on Form

8849 (or such other form as the

Commissioner may designate) in

accordance with the instructions on the

form. The form should be marked

Section 4091(d) Claim at the top.

Section 4091(d) claims must not be

included with a claim for a refund

under any other provision of the

Internal Revenue Code.

(2) Information to be included in the

claim. Each claim for a refund under

section 4091(d) must contain the

following information with respect to

the aviation fuel covered by the claim:

(i) Volume and type of aviation fuel.

(ii) Date on which the second

producer acquired the aviation fuel to

which the claim relates.

(iii) Amount of tax that the first

producer paid to the government and a

statement that the second producer has

not included the amount of that tax in

the sales price of the aviation fuel to

which the claim relates and has not

collected that amount from the person

that bought the aviation fuel from the

second producer, if any.

(iv) Name, address, and employer

identification number of the first

producer that paid the tax to the

government.

(v) A copy of the first producer’s

report that relates to the aviation fuel

covered by the claim.

(vi) A copy of any statement of a

subsequent seller that the second

producer received with respect to that

aviation fuel.

(e) Time for filing claim. A claim for

refund under section 4091(d) may be

filed any time after the first producer

has filed the return of the tax to which

the claim relates and before the end of

the period prescribed by section 6511

for the filing of a claim for refund of that

tax.

(f) Effective date. This section is

applicable with respect to refunds of tax

imposed by section 4091 after December

31, 1998.

Par. 5. Section 48.4101–2T is added

to read as follows:

§ 48.4101–2T Information reporting

(temporary).

(a)(1) through (a)(3) [Reserved]

(a)(4) Registered aviation fuel

producers. After June 30, 1999, each

person that is registered under section

4101 as a producer of aviation fuel must

make a return showing—

(i) The name and employer

identification number of each

unregistered person to whom it sold

aviation fuel for resale;

(ii) The volume of the aviation fuel

sold to such persons;

(iii) The date and location of such

sales; and

(iv) Any other information required

by the Commissioner.

(b) through (d) [Reserved]

Par. 6. Section 48.4101–3T is added

to read as follows:

§ 48.4101–3T Registration; special rules

for kerosene (temporary).

(a) Application of § 48.4101–1. The

references to diesel fuel in §§ 48.4101–

1(a)(1) and (f)(1)(ii) are treated as

references to either diesel fuel or

kerosene, and the references in

§§ 48.4101–1(b)(5)(i) and (f)(2) to

paragraphs (c)(1) or (d) of § 48.4101–1

are treated as references also to

paragraph (c) of this section.

(b) Transitional registration rule—(1)

In general. A person is treated as a

taxable fuel registrant if, on June 30,

1998, the person—
35804 Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations

(i) Is an enterer, refiner, terminal

operator, or throughputter of kerosene

and is registered under section 4101 as

a producer or importer of aviation fuel;

or

(ii) Operates one or more terminals

that store kerosene (and no other type of

taxable fuel) and each position holder at

each of its terminals is a taxable fuel

registrant.

(2) Termination. A person treated as

registered under this paragraph (b) is

treated as registered until the earlier

of—

(i) The effective date of a registration

issued under § 48.4101–1(g)(3) with

respect to kerosene;

(ii) The effective date of a revocation

or suspension of registration under

§ 48.4101–1(i); or

(iii) April 1, 1999.

(c) Persons that may, but are not

required to, be registered. A person may,

but is not required to, be registered

under section 4101 with respect to the

tax imposed by section 4081 if the

person is a kerosene feedstock user

(defined in § 48.4082–9T).

(d) Additional terms and conditions

of registration for certain terminal

operators. A legible and conspicuous

notice stating: ‘‘DYED KEROSENE,

NONTAXABLE USE ONLY, PENALTY

FOR TAXABLE USE’’ must be provided

by each terminal operator to any person

that receives dyed kerosene at a

terminal rack of that operator. This

notice must be provided by the time of

the removal and must appear on all

shipping papers, bills of lading, and

similar documents that are provided by

the terminal operator to accompany the

removal of the fuel.

(e) Effective date. This section is

applicable after June 30, 1998.

Par. 7. Sections 48.6427–10T and

48.6427–11T are added to read as

follows:

§ 48.6427–10T Claims with respect to

kerosene (temporary).

(a) Claims under § 48.6427–8—(1) In

general. For purposes of § 48.6427–8,

diesel fuel includes kerosene.

(2) Blocked pumps. Kerosene is

treated as satisfying the conditions of

§ 48.6427–8(b)(1) only if it was not sold

from a blocked pump (as described in

§ 48.6427–11T(b)).

(b) Claims under § 48.6427–9. For

purposes of § 48.6427–9, diesel fuel

includes kerosene.

(c) Effective date. This section is

applicable to kerosene taxed after June

30, 1998.

§ 48.6427–11T Special rules for claims by

registered ultimate vendors of kerosene

(blocked pump) (temporary).

(a) Overview. This section provides

rules relating to claims by registered

ultimate vendors for payments and

income tax credits with respect to

kerosene that is sold from a blocked

pump. For rules relating to claims by

registered ultimate vendors for kerosene

that is sold for farming use or use by a

State, see §§ 48.6427–9 and 48.6427–

10T.

(b) Definition; blocked pump. A

blocked pump is a fuel pump that meets

the following conditions:

(1) It is used to dispense undyed

kerosene that is sold at retail for use by

the buyer in a nontaxable use.

(2) It is at a fixed location and cannot

(because, for example, of its distance

from a road surface or train track or the

length of its delivery hose) be used to

dispense fuel directly into the fuel

supply tank of a diesel-powered

highway vehicle or train.

(3) It is identified with a legible and

conspicuous notice stating: ‘‘UNDYED

UNTAXED KEROSENE, NONTAXABLE

USE ONLY’’.

(c) Conditions to allowance of credit

or payment. Notwithstanding

§ 48.6427–9(c), a claim for a credit or

payment with respect to undyed

kerosene is allowable under section

6427(l)(5)(B)(i) if—

(1) Tax was imposed by section 4081

on the kerosene to which the claim

relates;

(2) The claimant sold the kerosene

from a blocked pump;

(3) The claimant is a registered

ultimate vendor of kerosene; and

(4) The claimant has filed a timely

claim for a credit or payment that

contains the information required under

paragraph

(e) of this section.

(d) Form of claim. The rules of

§ 48.6427–9(d) apply to claims filed

under this section.

(e) Content of claim. Each claim for

credit or payment under this section

must contain the following information

with respect to all the kerosene covered

by the claim:

(1) The total number of gallons

covered by the claim.

(2) A statement by the claimant that

tax has been imposed on the kerosene

covered by the claim.

(3) The claimant’s registration

number.

(4) A statement that the claimant has

not included the amount of the tax in

its sales price of the kerosene and has

not collected the amount of tax from its

buyer.

(f) Time and place for filing claim.

The rules of § 48.6427-9(f) apply to

claims filed under this section.

(g) Effective date. This section is

applicable June 30, 1998.

PART 145—TEMPORARY EXCISE TAX

REGULATIONS UNDER THE HIGHWAY

REVENUE ACT OF 1982 (PUB. L. 97–

424)

Par. 8. The authority citation for part

145 continues to read in part as follows:

Authority: 26 U.S.C. 7805 * * *

Par. 9. Section 145.4052–1 is

amended as follows:

1. Paragraph (a)(2)(ii) is redesignated

as paragraph (a)(2)(ii)(A).

2. Paragraph (a)(2)(ii)(A), as

redesignated, is amended by removing

the language ‘‘Both’’ and adding ‘‘For a

sale before July 1, 1998, both’’ in its

place and removing the language ‘‘or’’ at

the end.

3. Paragraph (a)(2)(ii)(B) is added to

read as follows:

§ 145.4052–1 Special rules and definitions.

(a) * * *

(2) * * *

(ii) * * *

(B) For a sale after June 30, 1998, and

regardless of the registration status of

the seller or the purchaser, the seller has

in good faith accepted from the

purchaser a statement that the purchaser

executed in good faith and that is in

substantially the same form as the

certificate described in paragraph (a)(6)

of this section, except that the statement

must be signed under penalties of

perjury and need not contain a

registration number, or

* * * * *

PART 602—OMB CONTROL NUMBERS

UNDER THE PAPERWORK

REDUCTION ACT

Par. 10. The authority citation for part

602 continues to read as follows:

Authority: 26 U.S.C. 7805.

Par. 11. In § 602.101, paragraph (c) is

amended by:

1. Removing the following entry from

the table:

§ 602.101 OMB Control numbers.

* * * * *

(c) * * *

CFR part or section where

identified and described

Current

OMB control number

* * * * *

145.4052–1 ............................... 1545–0120

1545–0745

1545–1076
Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations 35805

CFR part or section where

identified and described

Current

OMB control number

* * * * *

2. Adding entries in numerical order

to the table to read as follows:

§ 602.101 OMB Control numbers.

* * * * *

(c) * * *

CFR part or section where

identified and described

Current

OMB control number

* * * * *

48.4082–7T ............................... 1545–1608

48.4082–8T ............................... 1545–1608

48.4091–3T ............................... 1545–1608

* * * * *

48.4101–2T ............................... 1545–1608

48.4101–3T ............................... 1545–1608

* * * * *

48.6427–11T ............................. 1545–1608

* * * * *

145.4052–1 ............................... 1545–1608

1545–0120

1545–0745

1545–1076

* * * * *

Michael P. Dolan,

Deputy Commissioner of Internal Revenue.

Approved: June 17, 1998.

Donald C. Lubick,

Assistant Secretary of the Treasury.

[FR Doc. 98–17400 Filed 6–26–98; 2:02pm]

BILLING CODE 4830–01–P

DEPARTMENT OF THE INTERIOR

Office of Surface Mining Reclamation

and Enforcement

30 CFR Part 901

[SPATS No. AL–065–FOR]

Alabama Regulatory Program

AGENCY: Office of Surface Mining

Reclamation and Enforcement (OSM),

Interior.

ACTION: Final rule; approval of

amendment.

SUMMARY: OSM is approving an

amendment to the Alabama regulatory

program (hereinafter referred to as the

‘‘Alabama program’’) under the Surface

Mining Control and Reclamation Act of

1977 (SMCRA). Alabama’s revisions to

and additions of statutes pertain to the

small operator assistance program

(SOAP), the repair of homes and other

structures materially damaged by

underground coal mining, and the

replacement of affected water supplies.

The amendments is intended to revise

the Alabama program to be consistent

with SMCRA.

EFFECTIVE DATE: July 1, 1998.

FOR FURTHER INFORMATION CONTACT:

Arthur W. Abbs, Director, Birmingham

Field Office, Office of Surface Mining

Reclamation and Enforcement, 135

Gemini Circle, Suite 215, Homewood,

Alabama 35209, Telephone: (205) 290–

7282.

SUPPLEMENTARY INFORMATION:

I. Background on the Alabama Program

II. Submission of the Proposed Amendment

III. Director’s Findings

IV. Summary and Disposition of Comments

V. Director’s Decision

VI. Procedural Determinations

I. Background on the Alabama Program

On May 20, 1982, the Secretary of the

Interior conditionally approved the

Alabama program. Background

information on the Alabama program,

including the Secretary’s findings, the

disposition of comments, and the

conditions of approval can be found in

the May 20, 1982, Federal Register (47

FR 22062). Subsequent actions

concerning the conditions of approval

and program amendments can be found

at 30 CFR 901.15 and 901.16.

II. Submission of the Proposed

Amendment

By letter dated April 14, 1998

(Administrative Record No. AL–0579),

Alabama submitted an amendment to its

program pursuant to SMCRA. Alabama

submitted the amendment in response

to a May 20, 1996, letter (Administrative

Record No. AL–0555) that OSM sent to

Alabama in accordance with 30 CFR

732.17(c). OSM announced receipt of

the amendment in the April 29, 1998,

Federal Register (63 FR 23403), and in

the same document opened the public

comment period and provided an

opportunity for a public hearing or

meeting on the adequacy of the

proposed amendment. The public

comment period closed on May 29,

1998. Because no one requested a public

hearing or meeting, none was held.

III. Director’s Findings

Set forth below, pursuant to SMCRA

and the Federal regulations at 30 CFR

732.15 and 732.17, are the Director’s

findings concerning the amendment.

Revisions not specifically discussed

below concern nonsubstantive wording

changes, or revised cross-references and

paragraph notations to reflect

organizational changes resulting from

this amendment.

A. Section 9–16–83. Permits; Fee

1. Alabama proposed to revise

paragraph (c) to read as follows:

(c)(1) If the regulatory authority finds that

the probable total annual production at all

locations of any surface coal mining operator

will not exceed 300,000 tons, the cost of the

following activities, which shall be

performed by a qualified public or private

laboratory or such other public or private

qualified entity designated by the regulatory

authority, shall be assumed by the regulatory

authority upon the written request of the

operator in connection with a permit

application, provided that funds are made

available to the regulatory authority for such

purposes by the Secretary of the U.S.

Department of Interior.

(A) The determination of probable

hydrologic consequences required by

subsection (b)(10), including the engineering

analyses and designs necessary for the

determination.

(B) The development of cross-section maps

and plans required by subsection (b)(13).

(C) The geologic drilling and statement of

results of test borings and core samplings

required by subsection (b)(14).

(D) The collection of archaeological

information required by subsection (b)(12)

and any other archaeological and historical

information required by the regulatory

authority, and the preparation of plans

necessitated thereby.

(E) Pre-blast surveys required by

subsection 9–16–90(b)(15)e.

(F) The collection of site-specific resource

information and production of protection and

enhancement plans for fish and wildlife

habitats and other environmental values

required by the regulatory authority under

this Act.

(2) The regulatory authority shall provide

or assume the cost of training coal operators

that meet the qualifications stated in

paragraph (1) concerning the preparation of

permit applications and compliance with the

regulatory program, and shall ensure that

qualified coal operators are aware of the

assistance available under this subsection;

provided that funds for such purposes are

made available to the regulatory authority by

the Secretary of the U.S. Department of

Interior.

The Director is approving this

revision because it is no less stringent

than section 507(c)(1) of SMCRA.

2. Alabama proposed to add new

paragraph (h) to read as follows:

(h) A coal operator that has received

assistance pursuant to subsection (c) (1) or (2)

shall reimburse the regulatory authority for

the cost of the services rendered if the

program administrator finds that the

operator’s actual and attributed annual

production of coal for all locations exceeds

300,000 tons during the 12 months

immediately following the date on which the

operator is issued the surface coal mining

and reclamation permit.