4396 Federal Register / Vol. 63, No. 19 /Thursday, January 29, 1998 /Rules and Regulations

the Administrative Procedure Act (5

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

regulations, and because the regulation

does 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) of the Internal Revenue

Code, the notice of proposed rulemaking

preceding these regulations was

submitted to the Small Business

Administration for comment on its

impact on small business.

Drafting Information: The principal

author of the regulations concerning the

modifications of bad debts is Craig

Wojay, Office of the Assistant Chief

Counsel (Financial Institutions and

Products), IRS. The principal author of

the regulations concerning the dealer

assignments of notional principal

contracts is Thomas M. Preston, Office

of the Assistant Chief Counsel

(Financial Institutions and Products),

IRS. However, other personnel from the

IRS and Treasury Department

participated in their development.

List of Subjects in 26 CFR Part 1

Income taxes, Reporting and

recordkeeping requirements.

Adoption of Amendments to the

Regulations

Accordingly, 26 CFR part 1 is

amended as follows:

PART 1—INCOME TAXES

Paragraph 1. The authority citation

for part 1 continues to read in part as

follows:

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

Par. 2. In § 1.166–3, paragraph (a)(3)

is added to read as follows:

§ 1.166–3 Partial or total worthlessness.

(a) * * *

(3) Significantly modified debt—(i)

Deemed charge-off. If a significant

modification of a debt instrument

(within the meaning of § 1.1001–3)

during a taxable year results in the

recognition of gain by a taxpayer under

§ 1.1001–1(a), and if the requirements of

paragraph (a)(3)(ii) of this section are

met, there is a deemed charge-off of the

debt during that taxable year in the

amount specified in paragraph (a)(3)(iii)

of this section.

(ii) Requirements for deemed chargeoff. A debt is deemed to have been

charged off only if—

(A) The taxpayer (or, in the case of a

debt that constitutes transferred basis

property within the meaning of section

7701(a)(43), a transferor taxpayer) has

claimed a deduction for partial

worthlessness of the debt in any prior

taxable year; and

(B) Each prior charge-off and

deduction for partial worthlessness

satisfied the requirements of paragraphs

(a) (1) and (2) of this section.

(iii) Amount of deemed charge-off.

The amount of the deemed charge-off, if

any, is the amount by which the tax

basis of the debt exceeds the greater of

the fair market value of the debt or the

amount of the debt recorded on the

taxpayer’s books and records reduced as

appropriate for a specific allowance for

loan losses. The amount of the deemed

charge-off, however, may not exceed the

amount of recognized gain described in

paragraph (a)(3)(i) of this section.

(iv) Effective date. This paragraph

(a)(3) applies to significant

modifications of debt instruments

occurring on or after September 23,

1996.

* * * * *

§ 1.166–3T [Removed]

Par. 3. Section 1.166–3T is removed.

Par. 4. Section 1.1001–4 is added to

read as follows:

§ 1.1001–4 Modifications of certain

notional principal contracts.

(a) Dealer assignments. For purposes

of § 1.1001–1(a), the substitution of a

new party on an interest rate or

commodity swap, or other notional

principal contract (as defined in

§ 1.446–3(c)(1)), is not treated as a

deemed exchange by the nonassigning

party of the original contract for a

modified contract that differs materially

either in kind or in extent if—

(1) The party assigning its rights and

obligations under the contract and the

party to which the rights and obligations

are assigned are both dealers in notional

principal contracts, as defined in

§ 1.446–3(c)(4)(iii); and

(2) The terms of the contract permit

the substitution.

(b) Effective date. This section applies

to assignments of interest rate swaps,

commodity swaps, and other notional

principal contracts occurring on or after

September 23, 1996.

§ 1.1001–4T [Removed]

Par. 5. Section 1.1001–4T is removed.

Michael P. Dolan,

Deputy Commissioner of Internal Revenue.

Approved: January 14, 1998.

Donald C. Lubick,

Acting Assistant Secretary of the Treasury.

[FR Doc. 98–2093 Filed 1–28–98; 8:45 am]

BILLING CODE 4830–01–U

ENVIRONMENTAL PROTECTION

AGENCY

40 CFR Part 52

[LA–33–1–7374; FRL–5955–9]

Approval and Promulgation of State

Implementation Plans (SIP) for

Louisiana: Motor Vehicle Inspection

and Maintenance (I/M) Program;

Correction

AGENCY: Environmental Protection

Agency (EPA).

ACTION: Final rule; correction.

SUMMARY: This document corrects the

section number in subpart T of part 40

of the Code of Federal Regulations (CFR)

citation published in the Federal

Register (FR) of November 19, 1997,

regarding final disapproval of the

Louisiana I/M SIP. Section 52.994 was

inadvertently chosen for Disapprovals,

when it had previously been assigned to

Conditional Approvals. This document

changes the section number for

Disapprovals to 52.996.

DATES: Effective on January 29, 1998.

FOR FURTHER INFORMATION CONTACT: Ms.

Sandra G. Rennie, Air Planning Section

(6PD–L), EPA Region 6, 1445 Ross

Avenue, Dallas, Texas 75202–2733,

telephone (214)665–7367.

SUPPLEMENTARY INFORMATION:

I. Background

The EPA published document 97–

30376 in the November 19, 1997,

Federal Register (FR), finalizing

disapproval of the I/M program in the

Baton Rouge ozone nonattainment area.

See 62 FR 61633 for the background and

rulemaking for that action.

In amending part 52 of 40 CFR, a

section was added in subpart T—

Louisiana, for Disapprovals.

Inadvertently, the section number

chosen was already in use for

Conditional Approvals. The purpose of

this action is to change the section

number for Disapprovals from 52.994 to

52.996.

II. Administrative Requirements

Under Executive Order 12866 (58 FR

51735, October 4, 1993), this action is

not a ‘‘significant regulatory action’’ and

is, therefore, not subject to review by the

Office of Management and Budget. In

addition, this action does not impose

any enforceable duty or contain any

unfunded mandates as described in the

Unfunded Mandates Reform Act of 1995

(Pub. L. 104–4), or require prior

consultation with State officials as

specified by Executive Order 12898 (59

FR 7629, February 16, 1994).
Federal Register / Vol. 63, No. 19 /Thursday, January 29, 1998 /Rules and Regulations 4397

Because this action is not subject to

notice-and-comment requirements

under the Administrative Procedure Act

or any other statute, it is not subject to

the provisions of the Regulatory

Flexibility Act (5 U.S.C. 601 et seq.)

Under 5 U.S.C. 801(a)(1)(A) as added by

the Small Business Regulatory

Enforcement Fairness Act of 1996, EPA

submitted a report containing this rule

and other required information to the

U.S. Senate, the U.S. House of

Representatives and the Comptroller

General of the General Accounting

Office prior to publication of this rule in

today’s Federal Register. This rule is

not a ‘‘major rule’’ as defined by 5

U.S.C. 804(2).

List of Subjects in 40 CFR Part 52

Environmental protection, Air

pollution control, Carbon monoxide,

Conformity, Hydrocarbons, Nitrogen

dioxide, Ozone.

Dated: January 14, 1998.

Lynda F. Carroll,

Acting Regional Administrator, Region 6.

In rule FR Doc. 97–30376, published

on November 19, 1997 (62 FR 61633),

make the following correction:

1. On page 61634, in the third

column, the amendatory instruction is

corrected to read as follows:

2. Section 52.996 is added to read as

follows:

2. In the text, the section number is

changed from 52.994 to 52.996.

[FR Doc. 98–2087 Filed 1–28–98; 8:45 am]

BILLING CODE 6560–50–P

ENVIRONMENTAL PROTECTION

AGENCY

40 CFR Part 300

[FRL–5954–1]

National Oil and Hazardous

Substances Pollution Contingency

Plan; National Priorities List

AGENCY: Environmental Protection

Agency.

ACTION: Notice of partial deletion of the

Prewitt Abandoned Refinery Superfund

Site from the National Priorities List.

SUMMARY: The United States

Environmental Protection Agency (EPA)

Region 6 announces the deletion of the

surface portion of the Prewitt

Abandoned Refinery Superfund Site

(the Site) from the National Priorities

List (NPL). The NPL, promulgated

pursuant to section 105 of the

Comprehensive Environmental

Response, Compensation, and Liability

Act (CERCLA) of 1980, as amended, 42

U.S.C. 9605, is codified at Appendix B

of the National Oil and Hazardous

Substances Pollution Contingency Plan

(NCP), 40 CFR part 300. This partial

deletion is consistent with the EPA’s

Notice of Policy Change: Policy

Regarding Partial Deletion of Sites

Listed on the National Priorities List. 60

FR 55466 (November 1, 1995). This

partial deletion pertains to the surface

portion, which includes all surface

soils, and also includes the former

separator area. This partial deletion

does not pertain to the subsurface

portion of the Site including without

limitation ground water and subsurface

soils. The subsurface portion of the Site

will remain on the NPL, and response

activities will continue at that portion.

With the concurrence of the State of

New Mexico through the New Mexico

Environment Department (NMED), and

with the concurrence of the Navajo

Nation through the Navajo Nation

Superfund Office (NSO), the EPA has

determined that responsible parties

have implemented all appropriate

response actions required at the surface

portion of the Site (neither the CERCLArequired five-year reviews, nor

operation and maintenance of the

constructed remedy is considered

further response action for these

purposes), that all appropriate

Hazardous Substance Response Trust

Fund (Fund) financed response actions

under CERCLA have been implemented

at the surface portion of the Site, and

that no further response action by

responsible parties is appropriate for the

surface portion of the Site. Moreover,

the EPA, with State of New Mexico

concurrence through the NMED, and

with Navajo Nation concurrence

through the NSO, has determined that

Site investigations show that the surface

portion of the Site now poses no

significant threat to public health or the

environment; consequently, pursuant to

CERCLA section 105, and 40 CFR

300.425(e), the surface portion of the

Site is hereby deleted from the NPL.

EFFECTIVE DATE: January 29, 1998.

FOR FURTHER INFORMATION CONTACT: Greg

J. Lyssy, Remedial Project Manager,

(214) 665–8317, United States

Environmental Protection Agency,

Region 6, Mail Code: 6SF–LT, 1445 Ross

Avenue, Dallas, Texas 75202.

Information on the Site is available at

the local information repository located

at: Prewitt Fire House, PO Box 472,

Prewitt, New Mexico 87045, (505) 876–

4068. Requests for comprehensive

copies of documents should be directed

formally to the Regional Superfund

Management Branch, care of Steve

Wyman, (214) 665–2792, EPA Region 6,

Mail Code: 6SF–PO, 1445 Ross Avenue,

Dallas, Texas 75202.

SUPPLEMENTARY INFORMATION: The site to

be partially deleted from the NPL is the

Prewitt Abandoned Refinery Superfund

Site located near the town of Prewitt, in

McKinley County, New Mexico. This

partial deletion pertains to the surface

portion of the Site, which consists of all

surface soils and the former separator

area. This partial deletion does not

pertain to the subsurface portion of the

Site including without limitation

ground water and subsurface soils. This

Partial Deletion is in accordance with 40

CFR 300.425(e) and the Notice of Policy

Change: Partial Deletion of Sites Listed

on the National Priorities List, 60 FR

55466 (Nov. 1, 1995). A Notice of Intent

for Partial Deletion was published on

October 6, 1997 (62 FR 52074). The

closing date for comments on the Notice

of Intent for Partial Deletion was

November 5, 1997. The EPA received

two comment letters, both of which

supported the partial deletion.

The EPA identifies sites which appear

to present a significant risk to public

health, welfare, or the environment and

it maintains the NPL as the list of those

sites. Sites on the NPL may be the

subject of Fund-financed remedial

actions. Section 300.425(e)(3) of the

NCP, 40 CFR 300.425(e)(3), states that

Fund-financed actions may be taken at

sites deleted from the NPL in the

unlikely event that conditions at the site

warrant such action. Deletion of a site

from the NPL does not affect responsible

party liability or impede EPA efforts to

recover costs associated with response

efforts.

Lists of Subjects in 40 CFR Part 300

Environmental protection, Air

pollution control, Chemicals, Hazardous

substances, Hazardous waste,

Intergovernmental relations, Penalties,

Reporting and recordkeeping

requirements, Superfund, Water

pollution control, Water supply.

Dated: January 8, 1998.

Lynda F. Carroll,

Acting Regional Administrator (6RA), Region

6.

For the reasons set out in the

preamble, 40 CFR part 300 is amended

as follows:

PART 300—[AMENDED]

1. The authority citation for Part 300

continues to read as follows:

Authority: 33 U.S.C. 1321(c)(2); 42 U.S.C.

9601–9657; E.O. 12777, 56 FR 54757, 3 CFR

1991 Comp., p. 351; E.O. 12580, 52 FR 2923,

3 CFR 1987 Comp., p. 193.