21484 Federal Register / Vol. 60, No. 84 / Tuesday, May 2, 1995 / Proposed Rules

substantially diminishes A’s risk of loss from

holding the X stock, the X stock and the

equity swap are offsetting positions within

the meaning of section 1092(c). The

remaining question is whether these are

positions with respect to personal property.

(ii) The swap leg as a position with respect

to personal property. The equity swap

contract is a position with respect to personal

property as defined by section 1092(d)(1).

Although section 1092(d)(3)(A) generally

excludes stock from the definition of

personal property, this exclusion does not

apply to interests in stock. Therefore, stock

can be personal property when testing

whether an interest in the stock, other than

a direct interest in, or a short sale of, the

stock, is a position with respect to personal

property. Because the equity swap contract is

an interest in actively traded stock, the equity

swap contract is a position with respect to

personal property.

(iii) The stock leg as personal property. As

described below, ownership of the X stock is

also a position with respect to personal

property.

(A) The rule of section 1092(d)(3)(B)(i)(II).

Under section 1092(d)(3)(B)(i)(II) and

paragraph (a)(1)(ii) of this section, stock is

not excluded from the definition of personal

property if it is part of a straddle at least one

of the offsetting positions of which is a

position with respect to substantially similar

or related property (other than stock).

(B) The swap as a position with respect to

substantially similar or related property

(other than stock) for purposes of section

1092(d)(3)(B)(i)(II). Under paragraph (b) of

this section, the equity swap contract is a

position with respect to property that is

substantially similar or related to the X stock

because A is entitled to payments under the

equity swap contract that are attributable to

the decline in the value of the X stock. See

§ 1.246–5(c)(7). Under section

1092(d)(3)(B)(i)(II) and paragraph (c) of this

section, the equity swap contract is a position

with respect to substantially similar or

related property (other than stock) because it

is not direct ownership of stock or a short

sale of stock.

(C) The stock as part of a straddle for

purposes of the test of section

1092(d)(3)(B)(i)(II). In determining whether

the X stock is part of a straddle for purposes

of the test of section 1092(d)(3)(B)(i) and

paragraph (a)(1) of this section, section

1092(d)(3)(C) treats the X stock as personal

property. Because the stock is treated as

personal property for this purpose, because

the equity swap contract is a position with

respect to personal property (see paragraph

(d)(2)(ii) of this section), and because the X

stock and the equity swap contract are

offsetting positions (see paragraph (d)(2)(i) of

this section), the straddle test in section

1092(d)(3)(B)(i) and paragraph (a)(1) of this

section is satisfied. Accordingly, under

section 1092(d)(3)(B), the stock is personal

property for all purposes of section 1092.

(iv) The two legs as a straddle. Because

ownership of the X stock and the equity swap

contract are offsetting positions with respect

to personal property, the X stock and the

equity swap contract are a straddle to A

within the meaning of section 1092(c)(1).

(e) Effective dates—(1) In general.

Except as provided in paragraph (e)(2)

of this section, this section applies to

positions established on or after May 1,

1995.

(2) Special rules for substantially

similar or related property—(i) In

general. Paragraph (b) of this section

applies to positions established on or

after March 17, 1995.

(ii) Special rule for certain straddles.

Paragraph (b) of this section applies to

positions established after March 1,

1984, if the taxpayer substantially

diminished its risk of loss by holding

substantially similar or related property

involving the following types of

transactions—

(A) Holding offsetting positions

consisting of stock and a convertible

debenture of the same corporation

where the price movements of the two

positions are related; or

(B) Holding a short position in a stock

index regulated futures contract (or

alternatively an option on such a

regulated futures contract or an option

on the stock index) and stock in an

investment company whose principal

holdings mimic the performance of the

stocks included in the stock index (or

alternatively a portfolio of stocks whose

performance mimics the performance of

the stocks included in the stock index).

Margaret Milner Richardson,

Commissioner of Internal Revenue.

[FR Doc. 95–10755 Filed 5–1–95; 8:45 am]

BILLING CODE 4830–01–U

DEPARTMENT OF THE INTERIOR

Office of Surface Mining Reclamation

and Enforcement

30 CFR Part 934

North Dakota Regulatory Program

AGENCY: Office of Surface Mining

Reclamation and Enforcement (OSM),

Interior.

ACTION: Proposed rule; public comment

period and opportunity for public

hearing on proposed amendment.

SUMMARY: OSM is announcing receipt of

a proposed amendment to the North

Dakota regulatory program (hereinafter,

the ‘‘North Dakota program’’) under the

Surface Mining Control and

Reclamation Act of 1977 (SMCRA). The

proposed amendment consists of

revisions to and additions of statutory

provisions pertaining to the North

Dakota program’s Small Operator

Assistance Program and individual civil

penalties. The amendment is intended

to revise the North Dakota program to be

consistent with the corresponding

Federal regulations and SMCRA.

DATES: Written comments must be

received by 4:00 p.m., m.d.t., June 1,

1995. If requested, a public hearing on

the proposed amendment will be held

on May 30, 1995. Requests to present

oral testimony at the hearing must be

received by 4:00 p.m., m.d.t., on May

17, 1995.

ADDRESSES: Written comments should

be mailed or hand delivered to Guy

Padgett at the address listed below.

Copies of the North Dakota program,

the proposed amendment, and all

written comments received in response

to this document will be available for

public review at the addresses listed

below during normal business hours,

Monday through Friday, excluding

holidays. Each requester may receive

one free copy of the proposed

amendment by contacting OSM’s Casper

Field Office.

Guy Padgett, Director, Casper Field

Office, Office of Surface Mining

Reclamation and Enforcement, 100 E.

‘‘B’’ Street, Room 2128, Casper, WY

82601–1918, Telephone: (307) 261–

5776

North Dakota Public Service

Commission, Reclamation Division,

Capitol Building, Bismarck, ND

58505–0165, Telephone: (701) 224–

4092

FOR FURTHER INFORMATION CONTACT: Guy

Padgett, Telephone: (307) 261–5776.

SUPPLEMENTARY INFORMATION:

I. Background on the North Dakota

Program

On December 15, 1980, the Secretary

of the Interior conditionally approved

the North Dakota program. General

background information on the North

Dakota program, including the

Secretary’s findings, the disposition of

comments, and the conditions of

approval of the North Dakota program

can be found in the December 15, 1980,

Federal Register (45 FR 82214).

Subsequent actions concerning the

North Dakota program and program

amendments can be found at 30 CFR

934.12, 934.13, 934.15, 934.16, and

934.30.

II. Proposed Amendment

By letter dated April 12, 1995, North

Dakota submitted a proposed

amendment to its program pursuant to

SMCRA (30 U.S.C. 1201 et seq.)

(Amendment number XXII,

Administrative Record No. ND–W–01).

North Dakota submitted the proposed

amendment in response to the required

program amendment at 30 CFR

934.16(y) and in response to an
Federal Register / Vol. 60, No. 84 / Tuesday, May 2, 1995 / Proposed Rules 21485

inconsistency with SMCRA that was

identified in a July 22, 1994, rulemaking

action (59 FR 37426). The provisions of

the North Dakota Century Code (NDCC)

that North Dakota proposes to revise or

add are: NDCC 38–14.1–37(4) [SOAP,

reimbursement of costs], and NDCC 38–

12.1–08 [coal exploration, civil and

criminal penalties].

Specifically, North Dakota proposes to

revise NDCC 38–14.1–37(4) to require

an operator who has received SOAP

assistance under subsection 3 of the

provision (training in the preparation of

permit applications and compliance

with the regulatory program) to

reimburse the commission for the cost

of the services under certain

circumstances. North Dakota also

proposes to revise NDCC 38–12.1–08(2)

to allow the assessment of individual

civil penalties only for willful specified

violations. Finally, North Dakota

proposes to add at NDCC 38–12.1–08(3)

a new provision that any corporation or

person who controls the activity of a

corporation who violates NDCC Chapter

38–12.1 or any permit condition or rule

implementing that chapter is subject to

a civil penalty not to exceed five

thousand dollars per day of such

violation.

III. Public Comment Procedures

In accordance with the provisions of

30 CFR 732.17(h), OSM is seeking

comments on whether the proposed

amendment satisfies the applicable

program approval criteria of 30 CFR

732.15. If the amendment is deemed

adequate, it will become part of the

North Dakota program.

1. Written Comments

Written comments should be specific,

pertain only to the issues proposed in

this rulemaking, and include

explanations in support of the

commenter’s recommendations.

Comments received after the time

indicated under DATES or at locations

other than the Casper Field Office will

not necessarily be considered in the

final rulemaking or included in the

administrative record.

2. Public Hearing

Persons wishing to testify at the

public hearing should contact the

person listed under FOR FURTHER

INFORMATION CONTACT by 4:00 p.m.,

m.d.t., in May 17, 1995. Any disabled

individual who has need for a special

accommodation to attend a public

hearing should contact the individual

listed under FOR FURTHER INFORMATION

CONTACT. The location and time of the

hearing will be arranged with those

persons requesting the hearing. If no one

requests an opportunity to testify at the

public hearing, the hearing will not be

held.

Filing of a written statement at the

time of the hearing is requested as it

will greatly assist the transcriber.

Submission of written statements in

advance of the hearing will allow OSM

officials to prepare adequate responses

and appropriate questions.

The public hearing will continue on

the specified date until all persons

scheduled to testify have been heard.

Persons in the audience who have not

been scheduled to testify, and who wish

to do so, will be heard following those

who have been scheduled. The hearing

will end after all persons scheduled to

testify and persons present in the

audience who wish to testify have been

heard.

3. Public Meeting

If only one person requests an

opportunity to testify at a hearing, a

public meeting, rather than a public

hearing, may be held. Persons wishing

to meet with OSM representatives to

discuss the proposed amendment may

request a meeting by contacting the

person listed under FOR FURTHER

INFORMATION CONTACT. All such meetings

will be open to the public and, if

possible, notices of meetings will be

posted at the locations listed under

ADDRESSES. A written summary of each

meeting will be made a part of the

administrative record.

IV. Procedural Determinations

1. Executive Order 12866

This rule is exempted from review by

the Office of Management and Budget

(OMB) under Executive Order 12866

(Regulatory Planning and Review).

2. Executive Order 12778

The Department of the Interior has

conducted the reviews required by

section 2 of Executive Order 12778

(Civil Service Reform) and has

determined that this rule meets the

applicable standards of subsections (a)

and (b) of that section. However, these

standards are not applicable to the

actual language of State regulatory

programs and program amendments

since each such program is drafted

promulgated by a specific State, not by

OSM. Under sections 503 and 505 of

SMCRA (30 U.S.C. 1253 and 1255) and

the Federal regulations at 30 CFR

730.11, 732.15, and 732.17(h)(10),

decisions on proposed State regulatory

programs and program amendments

submitted by the States must be based

solely on a determination of whether the

submittal is consistent with SMCRA and

its implementing Federal regulations

and whether the other requirements of

30 CFR Parts 730, 731, and 732 have

been met.

3. National Environmental Policy Act

No environmental impact statement is

required for this rule since section

702(d) of SMCRA (30 U.S.C. 1292(d))

provides that agency decisions on

proposed State regulatory program

provisions do not constitute major

Federal actions within the meaning of

section 102(2)(C) of the National

Environmental Policy Act of 1969 (42

U.S.C. 4332(2)(C)).

4. Paperwork Reduction Act

This rule does not contain

information collection requirements that

require approval by OMB under the

Paperwork Reduction Act (44 U.S.C.

3507 et seq.).

5. Regulatory Flexibility Act

The Department of the Interior has

determined that this rule will not have

a significant economic impact on a

substantial number of small entities

under the Regulatory Flexibility Act (5

U.S.C. 601 et seq.). The State submittal

that is the subject of this rule is based

upon counterpart Federal regulations for

which an economic analysis was

prepared and certification made that

such regulations would not have a

significant economic effect upon a

substantial number of small entities.

Accordingly, this rule will ensure that

existing requirements previously

promulgated by OSM will be

implemented by the State. In making the

determination as to whether this rule

would have a significant economic

impact, the Department relied upon the

data and assumptions for the

counterpart Federal regulations.

List of Subjects in 30 CFR Part 934

Intergovernmental relations, Surface

mining, Underground mining.

Dated: April 26, 1995.

Peter A. Rutledge,

Acting Assistant Director, Western Support

Center.

[FR Doc. 95–10776 Filed 5–1–95; 8:45 am]

BILLING CODE 4310–05–M