Federal Register / Vol. 61, No. 93 / Monday, May 13, 1996 / Rules and Regulations 21957

controlled taxpayer, such participant’s

benefits from the transferred intangibles

must be measured by reference to the

transferee’s benefits, disregarding any

consideration paid by the transferee to

the controlled participant (such as a

royalty pursuant to a license agreement).

* * *

(iii) * * *

(E) * * *

Example 8. U.S. Parent (USP), Foreign

Subsidiary 1 (FS1) and Foreign Subsidiary 2

(FS2) enter into a cost sharing arrangement

to develop computer software that each will

market and install on customers’ computer

systems. The participants divide costs on the

basis of projected sales by USP, FS1, and FS2

of the software in their respective geographic

areas. However, FS1 plans not only to sell

but also to license the software to unrelated

customers, and FS1’s licensing income

(which is a percentage of the licensees’ sales)

is not counted in the projected benefits. In

this case, the basis used for measuring the

benefits of each participant is not the most

reliable because all of the benefits received

by participants are not taken into account. In

order to reliably determine benefit shares,

FS1’s projected benefits from licensing must

be included in the measurement on a basis

that is the same as that used to measure its

own and the other participants’ projected

benefits from sales (e.g., all participants

might measure their benefits on the basis of

operating profit).

* * * * *

(j) * * *

(2) Documentation—(i) Requirements.

* * *

(ii) Coordination with penalty

regulation. The documents described in

paragraph (j)(2)(i) of this section will

satisfy the principal documents

requirement under § 1.6662–

6(d)(2)(iii)(B) with respect to a qualified

cost sharing arrangement.

* * * * *

Approved: May 2, 1996.

Margaret Milner Richardson,

Commissioner of Internal Revenue.

Leslie Samuels,

Assistant Secretary of the Treasury.

[FR Doc. 96–11781 Filed 5–9–96; 8:45 am]

BILLING CODE 4830–01–U

DEPARTMENT OF TRANSPORTATION

Coast Guard

33 CFR Part 3

[CGD 96–016]

RIN 2115–AF31

First and Fifth District Boundaries,

Marine Inspection and Captain of the

Port Zone Boundaries

AGENCY: Coast Guard, DOT.

ACTION: Final rule.

SUMMARY: The Coast Guard is changing

the boundary between the First and

Fifth Districts and revising the

descriptions of several Marine

Inspection and Captain of the Port Zone

boundaries in the First and Fifth

Districts. The Marine Inspection Zone

that covers the New York and Long

Island Sound Captain of the Port Zones

is being split into two Marine Inspection

Zones, each of which will be the same

geographic area as its respective Captain

of the Port Zone. These changes clarify

Coast Guard geographic area

responsibilities both in the First and

Fifth Coast Guard Districts. These

changes are administrative and will

impact Coast Guard services.

EFFECTIVE DATE: This rule is effective on

April 15, 1996.

ADDRESSES: Unless otherwise indicated,

documents referred to in this preamble

are available for inspection or copying

at the office of the Executive Secretary,

Marine Safety Council (G–LRA/3406),

U.S. Coast Guard Headquarters, 2100

Second Street SW., room 3406,

Washington, DC 20593–0001, between 8

a.m. and 3 p.m., Monday through

Friday, except Federal Holidays. The

telephone number is (202) 267–1477.

FOR FURTHER INFORMATION CONTACT:

Richard Schaefer, Project Manager,

Program Branch, Search Rescue

Division (G–NRS–1), (202) 267–1089.

SUPPLEMENTARY INFORMATION:

Background and Purpose

The Coast Guard is revising 33 CFR

part 3 to reflect a change in the

boundaries of the First and Fifth

Districts. The First District,

headquartered in Boston, includes New

England and the State and City of New

York and is located immediately to the

north of the Fifth District which

includes the mid-Atlantic area and is

headquartered in Portsmouth, Virginia.

The Coast Guard has moved the

boundary between the districts

approximately 21 miles north, thereby

enlarging the area of the Fifth District

and reducing the area of the First

District.

Portions of the area transferred from

the First to the Fifth District which are

currently part of the New York Captain

of the Port Zone become part of the

Philadelphia Marine Inspection Zone

and Captain of the Port Zone, and the

Hampton Roads Marine Inspection Zone

and Captain of the Port Zone. The

boundaries of the Philadelphia and

Hampton Roads Zones are amended to

reflect this additional area.

Additionally, within the First District,

two new Marine Inspection Zones are

being established. Previously, the New

York and Long Island Captain of the

Port Zones together comprised a single

Marine Inspection Zone. This single

Marine Inspection Zone is being divided

into two new zones. One new Marine

Inspection Zone will have the same

boundaries as the New York Captain of

the Port Zone, and the other new Marine

Inspection Zone will have the same

boundaries as the Long Island Sound

Captain of the Port Zone.

Discussion of Changes

The current descriptions do not

reflect the changes in these District and

Marine Inspection and Captain of the

Port Zone boundaries. This rule revises

these descriptions. The Coast Guard is

proceeding directly to a final rule under

section 553(b)(3)(A) of the

Administrative Procedures Act (5 U.S.C.

551 et seq.) which excludes rulemakings

relating to agency organization,

procedure, or practice from the

requirements of public notice and

comment. These changes are

administrative and will not impact

Coast Guard services.

Section 3.05–1. This section is revised

to describe the First District’s new

boundaries. Portions of northern New

Jersey which were formerly in the First

District are now in the Fifth District.

The new boundary line between the

districts in New Jersey moves

approximately 21 miles north from

39°57′ N. latitude at the Toms River to

40°18′ N. latitude, just south of the

Shrewsbury River. The offshore

boundary in the Atlantic Ocean moves

north an equal distance.

Section 3.05–25. This section,

describing the New York Marine

Inspection Zone, is removed.

Section 3.05–30. This section,

describing the New York Captain of the

Port Zone, is revised to describe the

boundaries of the new New York

Captain of the Port Zone and the new

New York Marine Inspection Zone, both

of which have the same boundaries.

Section 3–05–35. This section,

describing the Long Island Sound

Captain of the Port Zone, is revised to

describe the boundaries of the new Long

Island Sound Captain of the Port Zone

and the new Long Island Sound Marine

Inspection Zone, both of which have the

same boundaries.

Section 3–25–1. This section,

describing the Fifth District boundaries,

is revised to add those portions of New

Jersey and adjacent offshore waters of

the Atlantic Ocean which previously

were in the First District. All of Ocean

County, NJ, the southern half of
21958 Federal Register / Vol. 61, No. 93 / Monday, May 13, 1996 / Rules and Regulations

Monmouth County, NJ, north of 40°18′

N. latitude and Atlantic Ocean waters

adjacent will be within the boundaries

of the Fifth District.

3.25–05. This section, describing the

Philadelphia Marine Inspection Zone

and Captain of the Port Zone, is revised

to add those portions of New Jersey and

adjacent offshore waters of the Atlantic

Ocean north of 38°28′ N. latitude which

previously were in the New York

Captain of the Port Zone. All of Ocean

County, NJ, the southern half of

Monmouth County, NJ, north of 40°18′

N. latitude and Atlantic Ocean waters

adjacent will be within the boundaries

of the Philadelphia Marine Inspection

and Captain of the Port Zones.

Section 3.25–10. This section,

describing the Hampton Roads Marine

Inspection Zone and Captain of the Port

Zone, is revised to add those portions of

the Atlantic Ocean south of 38°28′ N.

latitude which previously were in the

New York Captain of the Port Zone.

Regulatory Evaluation

This rule is not a significant

regulatory action under section 3(f) of

Executive Order 12866 and does not

require an assessment of potential costs

and benefits under section 6(a)(3) of that

order. It has not been reviewed by the

Office of Management and Budget under

that order. It is not significant under the

regulatory policies and procedures of

the Department of Transportation (DOT)

(44 FR 11040; February 26, 1979). The

Coast Guard expects the economic

impact of this rule to be so minimal that

full Regulatory Evaluation under

paragraph 10e of the regulatory policies

and procedures of DOT is unnecessary.

As this rule involves internal agency

practices and procedures, it will not

impose any costs on the public.

Collection of Information

This rule contains no collection of

information requirements under the

Paperwork Reduction Act (44 U.S.C.

3501 et seq.).

Federalism

The Coast Guard has analyzed this

rule under the principles and criteria

contained in Executive Order 12612 and

has determined that this rule does not

have sufficient federalism implications

to warrant the preparation of a

Federalism Assessment.

Environment

The Coast Guard considered the

environmental impact of this rule and

concluded that under paragraph 2.B.2 of

Commandant Instruction M16475.1B,

this rule is categorically excluded from

further environmental documentation.

This exclusion is in accordance with

paragraphs 2.B.2.e (34) (a) and (b),

concerning regulations that are editorial

or procedural and concerning internal

agency functions or organization. A

‘‘Categorical Exclusion Determination’’

is available in the docket for inspection

or copying where indicated under

ADDRESSES.

List of Subjects in 33 CFR Part 3

Organization and functions

(Government agencies). For the reasons

set out in the preamble, the Coast Guard

amends 33 CFR part 3 as follows:

PART 3—COAST GUARD AREAS,

DISTRICTS, MARINE INSPECTION

ZONES, AND CAPTAIN OF THE PORT

ZONES

1. The authority citation for part 3

continues to read as follows:

Authority: 14 U.S.C. 633; 49 CFR 1.45,

1.46.

2. In section 3.05–1, paragraph (b) is

revised to read as follows:

§ 3.05–1 First district.

* * * * *

(b) The First Coast Guard District is

comprised of: Maine; New Hampshire;

Vermont; Massachusetts; Rhode Island;

Connecticut; New York except that part

north of latitude 42° N. and west of

longitude 74°39′ W; that part of New

Jersey north of 40°18′ N. latitude, east of

74°30.5′ W. longitude, and northeast of

a line from 40°18′ N. 74°30.5′ W. northnorthwesterly to the New York, New

Jersey & Pennsylvania boundaries at

Tristate; all U.S. Naval reservations on

shore at Newfoundland; the ocean area

encompassed by the Search and Rescue

boundary between Canada and the

United States easterly to longitude 63°

W.; thence due south to latitude 41° N.;

thence southwesterly along a line

bearing 219°T to the point of

intersection at 37° N. latitude, 67°13′ W.

longitude with a line bearing 122°T

from the New Jersey shoreline at 40°18′

N. latitude (just south of the Shrewsbury

River); thence northwesterly along this

line to the coast.

§ 3.05–25 [Removed]

3. Section 3.05–25 is removed.

4. Section 3.05–30 is revised to read

as follows:

§ 3.05–30 New York Marine Inspection

Zone and Captain of the Port Zone.

(a) The New York Marine Inspection

Office and Captain of the Port Office is

located in New York, New York.

(b) The boundary of the New York

Marine Inspection Zone and Captain of

the Port Zone starts on the south shore

of Long Island at 40°35.4′ N. latitude,

73°46.6′ W. longitude and proceeds

southeasterly along a line bearing

127.5°T to 38°28′ N. latitude, 70°11′ W.

longitude; thence northwesterly along a

line bearing 122°T from the New Jersey

coast at 40°18′ N. latitude; thence west

along 40°18′ N. latitude to 74°30.5′ W.

longitude; thence northwesterly to the

intersection of the New York-New

Jersey-Pennsylvania boundaries at

Tristate; thence northwesterly along the

east bank of the Delaware River to

42°00′ N. latitude; thence east to 74°39′

W. longitude; thence north to the

Canadian border; thence easterly along

the Canadian Border to the northeast

corner of the Orleans County line in

Vermont; thence following the eastern

and southern boundaries of Orleans,

Franklin, Chittenden, Addison, and

Ruthland Counties to the Vermont-New

York boundary; thence southerly along

the New York boundary to 41°01.5′ N.

latitude, 73°40′ W. longitude; thence

southerly to the southern shore of

Manursing Island at 40°58′ N. latitude,

73°40′ W. longitude; thence

southeasterly to 40°52.5′ N. latitude,

73°37.2′ W. longitude; thence southerly

to 40°40′ N. latitude, 73°40′ W.

longitude; thence southwesterly to the

point of origin.

5. Section 3.05–35 is revised to read

as follows:

§ 3.05–35 Long Island Sound Marine

Inspection and Captain of the Port Zone.

(a) The Long Island Sound Marine

Inspection Office and Captain of the

Port Office is located in New Haven,

Connecticut.

(b) The boundary of the Long Island

Sound Marine Inspection Zone and

Captain of the Port Zone starts at

40°35.4′ N. latitude, 73°46.6′ W.

longitude; thence proceeds along a line

northwesterly to 40°40′ N. latitude,

73°40′ W. longitude; thence to 40°52.5′

N. latitude, 73°37.2′ W. longitude;

thence northwest to the south shore of

Manursing Island at 40°58′ N. latitude,

73°40′ W. longitude; thence northerly to

the Connecticut-New York boundary at

41°01.5′ N. latitude, 73°40′ w. longitude;

thence north along the western

boundary of Connecticut to the

Massachusetts-Connecticut boundary;

thence east along the southern boundary

of Massachusetts, including the waters

of the Congamond Lakes, to the Rhode

Island boundary; thence south along the

Connecticut-Rhode Island boundary,

excluding the waters of Beach Pond, to

41°24′ N. latitude, 71°48′ W. longitude;

thence southerly to 41°21′ N. latitude,

71°48.5′ W. longitude at Westerly,

Rhode Island; thence southwesterly to

Watch Hill Light, Rhode Island. The
Federal Register / Vol. 61, No. 93 / Monday, May 13, 1996 / Rules and Regulations 21959

northern offshore boundary is a line

bearing 132°T from Watch Hill Light to

the outermost extent of the EEZ. The

southern offshore boundary extends

along a line bearing 127.5°T from the

south shore of Long Island at 40°35.4′ N.

latitude, 73°46.6′ W. longitude to 38°28′

N. latitude, 70°11′ W. longitude; thence

easterly to the outermost extent of the

EEZ; thence northerly along the

outermost extent of the EEZ to the

intersection of the northern boundary.

6. In section 3.25–1, paragraph (b) is

revised to read as follows:

§ 3.25–1 Fifth district.

* * * * *

(b) The Fifth Coast Guard District is

comprised of: North Carolina; Virginia;

District of Columbia; Maryland;

Delaware; that part of Pennsylvania east

of a line drawn along 78°55′ W.

longitude south to 41°00′ N. latitude,

thence west to 79°00′ W. longitude, and

thence south to the PennsylvaniaMaryland boundary; that portion of New

Jersey that lies south and west of a line

drawn from the New Jersey shoreline at

40°18′ N. latitude (just south of the

Shrewsbury River), thence westward to

40°18′ N. latitude, 74°30.5′ W.

longitude, thence north-northwesterly to

the junction of the New York, New

Jersey, and Pennsylvania boundaries at

Tristate; and the ocean area

encompassed by a line bearing 122°T

from the coastal end of the First and

Fifth Districts’ land boundary at the

intersection of the New Jersey shoreline

and 40°18′ N. latitude (just south of the

Shrewsbury River) to the southernmost

point in the First Coast Guard District (a

point located at approximately 37° N.

latitude, 67°13′ W. longitude); thence

along a line bearing 219°T to the point

of intersection with the ocean boundary

between the Fifth and Seventh Coast

Guard Districts, which is defined as a

line bearing 122°T from the coastal end

of the Fifth and Seventh Districts’ land

boundary at the shoreline at the North

Carolina-South Carolina border, point

located at approximately 30°55′ N. 73°

W.; thence northwesterly along this line

to the coast.

7. In section 3.25–05, paragraph (b) is

revised to read as follows:

§ 3.25–05 Philadelphia Marine Inspection

Zone and Captain of the Port Zone.

* * * * *

(b) The boundary of the Philadelphia

Marine Inspection zone and Captain of

the Port Zone starts at the New Jersey

coast at 40°18′ N. latitude, thence

proceeds westward to 40°18′ N. latitude,

74°30.5′ W. longitude, thence northnorthwesterly to the junction of the New

York, New Jersey, and Pennsylvania

boundaries at Tristate; thence

northwesterly along the east bank of the

Delaware River to 42°00′ N. latitude;

thence west along the New YorkPennsylvania boundary to 78°55′ W.

longitude; thence south to 41°00′ N.

latitude; thence west to 79°00′ W.

longitude; thence south to the

Pennsylvania-Maryland boundary;

thence east to the intersection of the

Maryland-Delaware boundary; thence

south and east along the MarylandDelaware boundary to the sea, including

Fenwick Island Light. The offshore

boundary starts at Fenwick Island Light

and proceeds east along 38°28′ N.

latitude to 70°11′ W. longitude; thence

northwesterly along a line bearing 122°T

from the New Jersey Coast at 40°18′ N.

latitude.

8. In section 3.25–10, paragraph (b) is

revised to read as follows:

§ 3.25–10 Hampton Roads Marine

Inspection Zone and Captain of the Port

Zone.

* * * * *

(b) The boundary of the Hampton

Roads Marine Inspection Zone and

Captain of the Port Zone starts at the

intersection of the Maryland-Delaware

boundary and the coast and proceeds

along the Maryland-Delaware boundary

to a point 75°30′ W. longitude; thence

southerly to a point 75°30′ W. longitude

on the Maryland-Virginia boundary,

thence westerly along the MarylandVirginia boundary as it proceeds across

the Delmarva Peninsula, Pocomoke

River, Tangier and Pocomoke Sounds,

and Chesapeake Bay; thence

northwesterly along the MarylandVirginia boundary and the District of

Columbia-Virginia boundary as those

boundaries are formed along the

southern bank of the Potomac River to

the intersection of the VirginiaMaryland-West Virginia boundaries;

thence southerly along the VirginiaWest Virginia boundary and the

Virginia-Kentucky boundary to the

Tennessee boundary; thence eastward

along the Virginia-Tennessee boundary

to the Virginia-North Carolina

boundary; thence eastward along the

Virginia-North Carolina boundary to

Kerr (Buggs Island) Lake; thence along

the shore of Kerr Lake in North Carolina

back to the Virginia-North Carolina

boundary; thence eastward along the

Virginia-North Carolina boundary to the

west bank of the Chowan River; thence

southerly along the west bank of the

Chowan River to a point 36°00′ N.

latitude, 76°41′ W. longitude; thence

generally southerly and easterly along

the western boundaries of Washington,

and Hyde Counties to a point 35°37′ N.

latitude, 76°32′ W. longitude; thence

easterly to a point 35°37′ N. latitude,

76°00.5′ W. longitude; thence generally

southwesterly to a point 35°01.5′ N.

latitude, 76°20 W. longitude; thence

easterly to the sea at 34°59.8′ N. latitude,

76°07.8 W. longitude. The offshore

boundary starts at the intersection of the

Maryland-Delaware boundary and the

coast and proceeds east to a point 38°28′

N. latitude, 70°11 W. longitude; thence

southeasterly on a line bearing 122° T to

the outermost extent of the EEZ; thence

southerly along the outermost extent of

the EEZ to 34°59.8′ N. latitude; and

thence westerly along 34°59.8′ latitude

to the coast at 76°07.8′ W. longitude.

Dated: April 10, 1996.

Rudy K. Peschel,

Rear Admiral, U.S. Coast Guard, Chief, Office

of Navigation Safety an Waterway Services.

[FR Doc. 96–11899 Filed 5–10–96; 8:45 am]

BILLING CODE 4910–14–M

33 CFR Part 100

[CGD01–95–017]

RIN 2115–AE 46

Special Local Regulation: Harvard-Yale

Regatta, Thames River, New London,

CT

AGENCY: Coast Guard, DOT.

ACTION: Final rule.

SUMMARY: The annual Harvard-Yale

Regatta is a rowing competition held on

the Thames River in New London, CT.

This regulation establishes the date and

time for this year’s event and amends

the permanent regulation. These

regulations are necessary to control

vessel traffic within the immediate

vicinity of the event due to the

confirmed nature of the waterway and

anticipated congestion at the time of the

event, thus providing for the safety of

life and property on the affected

navigable waters.

EFFECTIVE DATE: This section is effective

on June 12, 1996.

FOR FURTHER INFORMATION CONTACT:

Lieutenant (Junior Grade) Benjamin M.

Algeo, Chief Boating Affairs Branch,

First Coast Guard District, (617) 223–

8310.

SUPPLEMENTARY INFORMATION:

Regulatory History

A notice of proposed rulemaking

(NPRM) was published on April 24,

1995, (60 FR 20065) in the Federal

Register proposing a permanent change

to the effective period in 33 CFR

100.101. No comments were received

and no hearing was requested.