Federal Register / Vol. 74, No. 112 / Friday, June 12, 2009 / Proposed Rules 27947 

Costs of Compliance 

Based on the service information, we 

estimate that this proposed AD would 

affect about 13 products of U.S. registry. 

We also estimate that it would take 

about 6 work-hours per product to 

comply with this proposed AD. The 

average labor rate is $80 per work-hour. 

Required parts would cost about $1,272 

per product. Based on these figures, we 

estimate the cost of the proposed AD on 

U.S. operators to be $22,776. Our cost 

estimate is exclusive of possible 

warranty coverage. 

Authority for This Rulemaking 

Title 49 of the United States Code 

specifies the FAA’s authority to issue 

rules on aviation safety. Subtitle I, 

section 106, describes the authority of 

the FAA Administrator. ‘‘Subtitle VII: 

Aviation Programs,’’ describes in more 

detail the scope of the Agency’s 

authority. 

We are issuing this rulemaking under 

the authority described in ‘‘Subtitle VII, 

Part A, Subpart III, Section 44701: 

General requirements.’’ Under that 

section, Congress charges the FAA with 

promoting safe flight of civil aircraft in 

air commerce by prescribing regulations 

for practices, methods, and procedures 

the Administrator finds necessary for 

safety in air commerce. This regulation 

is within the scope of that authority 

because it addresses an unsafe condition 

that is likely to exist or develop on 

products identified in this rulemaking 

action. 

Regulatory Findings 

We determined that this proposed AD 

would not have federalism implications 

under Executive Order 13132. This 

proposed AD would not have a 

substantial direct effect on the States, on 

the relationship between the national 

Government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government. 

For the reasons discussed above, I 

certify this proposed regulation: 

1. Is not a ‘‘significant regulatory 

action’’ under Executive Order 12866; 

2. Is not a ‘‘significant rule’’ under the 

DOT Regulatory Policies and Procedures 

(44 FR 11034, February 26, 1979); and 

3. Will not have a significant 

economic impact, positive or negative, 

on a substantial number of small entities 

under the criteria of the Regulatory 

Flexibility Act. 

We prepared a regulatory evaluation 

of the estimated costs to comply with 

this proposed AD and placed it in the 

AD docket. 

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Incorporation by reference, 

Safety. 

The Proposed Amendment 

Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA proposes to amend 14 CFR part 

39 as follows: 

PART 39—AIRWORTHINESS 

DIRECTIVES 

1. The authority citation for part 39 

continues to read as follows: 

Authority: 49 U.S.C. 106(g), 40113, 44701. 

§ 39.13 [Amended] 

2. The FAA amends § 39.13 by adding 

the following new AD: 

Turbomeca S.A.: Docket No. FAA–2009– 

0503; Directorate Identifier 2009–NE– 

12–AD. 

Comments Due Date 

(a) We must receive comments by July 13, 

2009. 

Affected Airworthiness Directives (ADs) 

(b) None. 

Applicability 

(c) This AD applies to Turbomeca Arriel 

1B, 1D, and 1D1 turboshaft engines. These 

engines are installed on, but not limited to, 

Eurocopter France AS350B, AS350BA, 

AS350B1, and AS350B2 helicopters. 

Reason 

(d) This AD results from several events of 

rupture of the Arriel 1 reduction gear box 

intermediate pinions. We are issuing this AD 

to prevent the rupture of the reduction gear 

box intermediate pinion, which could result 

in an overspeed of the power turbine, an 

uncommanded in-flight shutdown of the 

engine, and an emergency autorotation 

landing. 

Actions and Compliance 

(e) Unless already done, do the following 

actions. 

(f) No later than 28 February 2011, replace 

the Reduction Gear Box Intermediate Pinions 

(P/N 0 292 70 779 0) with Pinions 

incorporating Turbome ́ca modification TU 

232 in accordance with Turbome ́ca 

Mandatory Service Bulletin 292 72 0276 

Version B dated 06 November 2008. 

FAA AD Differences 

(g) None. 

(h) Alternative Methods of Compliance 

(AMOCs): The Manager, Engine Certification 

Office, FAA, has the authority to approve 

AMOCs for this AD, if requested using the 

procedures found in 14 CFR 39.19. 

Related Information 

(i) Refer to MCAI EASA Airworthiness 

Directive 2009–0002, dated January 7, 2009, 

and Turbomeca Mandatory Service Bulletin 

No. 292 72 0276, Version B, dated November 

6, 2008, for related information. Contact 

Turbomeca, 40220 Tarnos, France; telephone 

33 05 59 74 40 00; fax 33 05 59 74 45 15, 

for a copy of this service information. 

(j) Contact James Lawrence, Aerospace 

Engineer, Engine Certification Office, FAA, 

Engine and Propeller Directorate, 12 New 

England Executive Park, Burlington, MA 

01803; e-mail: james.lawrence@faa.gov; 

telephone (781) 238–7176; fax (781) 238– 

7199, for more information about this AD. 

Issued in Burlington, Massachusetts, on 

June 8, 2009. 

Robert G. Mann, 

Acting Manager, Engine and Propeller 

Directorate, Aircraft Certification Service. 

[FR Doc. E9–13850 Filed 6–11–09; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[REG–112994–06] 

RIN 1545–BF47 

Guidance Under Section 7874 

Regarding Surrogate Foreign 

Corporations 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Withdrawal of notice of 

proposed rulemaking and notice of 

proposed rulemaking by cross-reference 

to temporary regulations. 

SUMMARY: In the Rules and Regulations 

section of this issue of the Federal 

Register, the IRS and the Treasury 

Department are issuing temporary 

regulations concerning the treatment of 

a foreign corporation as a surrogate 

foreign corporation under section 

7874(a)(2)(B) of the Internal Revenue 

Code (Code). The temporary regulations 

primarily affect domestic corporations 

and partnerships (and certain parties 

related thereto), and certain foreign 

corporations that acquire substantially 

all of the properties of such domestic 

corporations or partnerships. The text of 

the temporary regulations serves as the 

text of these proposed regulations. 

DATES: Written or electronic comments 

and requests for a public hearing must 

be received by September 10, 2009. 

ADDRESSES: Send submissions to 

CC:PA:LPD:PR (REG–112994–06), room 

5203, Internal Revenue Service, PO Box 

7604, Ben Franklin Station, Washington, 

DC 20044. Submissions may be handdelivered Monday through Friday 

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

to CC:PA:LPD:PR (REG–112994–06), 

Courier’s Desk, Internal Revenue 

27948 Federal Register / Vol. 74, No. 112 / Friday, June 12, 2009 / Proposed Rules 

Service, 1111 Constitution Avenue, 

NW., Washington, DC 20224, or sent 

electronically via the Federal 

eRulemaking Portal at http:// 

www.regulations.gov (IRS REG–112994– 

06). 

FOR FURTHER INFORMATION CONTACT: 

Concerning the proposed regulations, S. 

James Hawes at (202) 622–3860; 

concerning submissions of comments 

and a request for a public hearing, 

contact Funmi Taylor at (202) 622–7180 

(not toll-free numbers). 

SUPPLEMENTARY INFORMATION: 

Background and Explanation of 

Provisions 

The temporary regulations in the 

Rules and Regulations section of this 

issue of the Federal Register amend the 

Income Tax Regulations (26 CFR part 1) 

relating to section 7874 of the Code. The 

temporary regulations address certain 

issues relating to the treatment of a 

foreign corporation as a surrogate 

foreign corporation under section 

7874(a)(2)(B). The text of the temporary 

regulations serves as the text of these 

proposed regulations, and the preamble 

to the temporary regulations explains 

these proposed regulations. 

Special Analyses 

It has been determined that this notice 

of proposed rulemaking is not a 

significant regulatory action as defined 

in Executive Order 12866. Therefore, a 

regulatory assessment is not required. It 

has also been determined that section 

553(b) of the Administrative Procedure 

Act (5 U.S.C. Chapter 5) does not apply 

to these regulations. These regulations 

do not impose a collection of 

information. Pursuant to the Regulatory 

Flexibility Act (5 U.S.C. chapter 6), it is 

hereby certified that this regulation will 

not have a significant economic impact 

on a substantial number of small 

entities. The complexity and cost of a 

transaction to which section 7874 may 

apply make it unlikely that a substantial 

number of small entities will engage in 

such a transaction. In addition, any 

economic impact to entities affected by 

section 7874, large or small, is derived 

from the operation of the statute or its 

intended application, not the 

regulations in this notice of proposed 

rulemaking. Pursuant to section 7805(f) 

of the Code, these regulations have been 

submitted to the Chief Counsel for 

Advocacy of the Small Business 

Administration for comment on its 

impact on small business. 

Comments and Request for a Public 

Hearing 

Before these proposed regulations are 

adopted as final regulations, 

consideration will be given to any 

written (a signed original and eight (8) 

copies) or electronic comments that are 

submitted timely to the IRS. The IRS 

and the Treasury Department request 

comments on the clarity of the proposed 

rules and how they can be made easier 

to understand. All comments will be 

available for public inspection and 

copying. A public hearing may be 

scheduled if requested by any person 

who timely submits comments. If a 

public hearing is scheduled, notice of 

the date, time and place for the public 

hearing will be published in the Federal 

Register. 

Drafting Information 

The principal author of these 

proposed regulations is S. James Hawes 

of the Office of Associate Chief Counsel 

(International). However, other 

personnel from the IRS and the Treasury 

Department participated in their 

development. 

List of Subjects in 26 CFR Part 1 

Income taxes, Reporting and 

recordkeeping requirements. 

Withdrawal of Notice of Proposed 

Rulemaking 

Accordingly, under the authority of 

26 USC 7805, the notice of proposed 

rulemaking (E6–8698) that was 

published in the Federal Register on 

June 6, 2006 (71 FR 32495) is 

withdrawn. 

Proposed Amendments to the 

Regulations 

Accordingly, 26 CFR part 1 is 

proposed to be 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 * * * 

Section 1.7874–2 is also issued under 26 

U.S.C. 7874(c)(6) and (g). * * * 

Par. 2. Section 1.7874–1 is amended 

by revising paragraphs (e) and (g) to 

read as follows: 

§ 1.7874–1 Disregard of affiliate-owned 

stock. 

* * * * * 

(e) [The text of the proposed 

amendments to § 1.7874–1(e) is the 

same as the text of § 1.7874–1T(e) 

published elsewhere in this issue of the 

Federal Register.] 

* * * * * 

(g) [The text of the proposed 

amendment to § 1.7874–1(g) is the same 

as the text of § 1.7874–1T(g) published 

elsewhere in this issue of the Federal 

Register.] 

Par. 3. Section 1.7874–2 is added to 

read as follows: 

§ 1.7874–2 Surrogate foreign corporation. 

[The text of proposed § 1.7874–2 is 

the same as the text of § 1.7874–2T(a) 

through (o) published elsewhere in this 

issue of the Federal Register.] 

Linda E. Stiff, 

Deputy Commissioner for Services and 

Enforcement. 

[FR Doc. E9–13769 Filed 6–9–09; 11:15 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 110 

[Docket No. USCG–2008–0171] 

RIN 1625–AA01 

Anchorage Regulations; Long Island 

Sound 

AGENCY: Coast Guard, DHS. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The Coast Guard proposes to 

establish seven anchorage grounds in 

Long Island Sound. These anchorages 

would be located within Connecticut or 

New York State waters. This action is 

necessary to aid in facilitating the safe 

and secure anchorage of vessels, 

particularly deep draft vessels, 

transiting Long Island Sound or 

awaiting entry to a port or facility in 

New York and Connecticut. 

DATES: Comments and related material 

must be received by the Coast Guard on 

or before August 11, 2009. Requests for 

public meetings must be received by the 

Coast Guard on or before July 13, 2009. 

ADDRESSES: You may submit comments 

identified by docket number USCG– 

2008–0171 using any one of the 

following methods: 

(1) Federal eRulemaking Portal: 

http://www.regulations.gov. 

(2) Fax: 202–493–2251. 

(3) Mail: Docket Management Facility 

(M–30), U.S. Department of 

Transportation, West Building Ground 

Floor, Room W12–140, 1200 New Jersey 

Avenue, SE., Washington, DC 20590– 

0001. 

(4) Hand delivery: Same as mail 

address above, between 9 a.m. and 5 

p.m., Monday through Friday, except 

Federal holidays. The telephone number 

is 202–366–9329. 

To avoid duplication, please use only 

one of these four methods. See the 

‘‘Public Participation and Request for