80_FR_59761 80 FR 59570 - Airworthiness Directives; The Boeing Company Airplanes

80 FR 59570 - Airworthiness Directives; The Boeing Company Airplanes

DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration

Federal Register Volume 80, Issue 191 (October 2, 2015)

Page Range59570-59575
FR Document2015-24677

We are adopting a new airworthiness directive (AD) for The Boeing Company Model 777 airplanes equipped with Rolls-Royce Trent 800 series engines. This AD was prompted by reports of in-flight separation of the engine's aft plug from the forward plug, which are the two parts of the turbine exhaust plug assembly. This AD requires installation of a serviceable turbine exhaust plug assembly (for certain airplanes), and a general visual inspection (for certain airplanes) to determine the diameter of the bolt used at the forward and aft plug interface, and applicable corrective actions. We are issuing this AD to prevent separation of the aft plug from the forward plug of the turbine exhaust plug assembly, which could result in parts departing the airplane and hitting the empennage, and destabilizing the airplane during a critical flight phase. In addition, parts remaining on a runway could pose a hazard to another airplane.

Federal Register, Volume 80 Issue 191 (Friday, October 2, 2015)
[Federal Register Volume 80, Number 191 (Friday, October 2, 2015)]
[Rules and Regulations]
[Pages 59570-59575]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-24677]


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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2014-0128; Directorate Identifier 2013-NM-133-AD; 
Amendment 39-18278; AD 2015-19-16]
RIN 2120-AA64


Airworthiness Directives; The Boeing Company Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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SUMMARY: We are adopting a new airworthiness directive (AD) for The 
Boeing Company Model 777 airplanes equipped with Rolls-Royce Trent 800 
series engines. This AD was prompted by reports of in-flight separation 
of the engine's aft plug from the forward plug, which are the two parts 
of the turbine exhaust plug assembly. This AD requires installation of 
a serviceable turbine exhaust plug assembly (for certain airplanes), 
and a general visual inspection (for certain airplanes) to determine 
the diameter of the bolt used at the forward and aft plug interface, 
and applicable corrective actions. We are issuing this AD to prevent 
separation of the aft plug from the forward plug of the turbine exhaust 
plug assembly, which could result in parts departing the airplane and 
hitting the empennage, and destabilizing the airplane during a critical 
flight phase. In addition, parts remaining on a runway could pose a 
hazard to another airplane.

DATES: This AD is effective November 6, 2015.
    The Director of the Federal Register approved the incorporation by 
reference of a certain publication listed in this AD as of November 6, 
2015.

ADDRESSES: For service information identified in this AD, contact 
Boeing Commercial Airplanes, Attention: Data & Services Management, 
P.O. Box 3707, MC 2H-65, Seattle, WA 98124-2207; telephone 206-544-
5000, extension 1; fax 206-766-5680; Internet https://www.myboeingfleet.com. You may view this referenced service information 
at the FAA, Transport Airplane Directorate, 1601 Lind Avenue SW., 
Renton, WA. For information on the availability of this material at the 
FAA, call 425-227-1221. It is also available on the Internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2014-
0128.

Examining the AD Docket

    You may examine the AD docket on the Internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2014-
0128; or in person at the Docket Management Facility between 9 a.m. and 
5 p.m., Monday through Friday, except Federal holidays. The AD docket 
contains this AD, the regulatory evaluation, any comments received, and 
other information. The address for the Docket Office (phone: 800-647-
5527) is Docket Management Facility, U.S. Department of Transportation, 
Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 
New Jersey Avenue SE., Washington, DC 20590.

FOR FURTHER INFORMATION CONTACT: Kevin Nguyen, Aerospace Engineer, 
Propulsion Branch, ANM-140S, Seattle Aircraft Certification Office 
(ACO), FAA, 1601 Lind Avenue SW., Renton, WA 98057-3356; phone: 425-
917-6501; fax: 425-917-6590; email: [email protected].

SUPPLEMENTARY INFORMATION:

Discussion

    We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR 
part 39 by adding an AD that would apply to The Boeing Company Model 
777 airplanes equipped with Rolls-Royce Trent 800 series engines. The 
NPRM published in the Federal Register on March 3, 2014 (79 FR 11725); 
corrected March 11, 2014 (79 FR 13592). The NPRM was prompted by 
reports of in-flight separation of the engine's aft plug from the 
forward plug, which are the two parts of the turbine exhaust plug 
assembly. The NPRM proposed to require installation of a serviceable 
turbine exhaust plug assembly (for certain airplanes), and a general 
visual inspection (for certain airplanes) to determine the diameter of 
the bolt used at the forward and aft plug interface, and applicable 
corrective actions. We are issuing this AD to prevent separation of the 
aft plug from the forward plug of the turbine exhaust plug assembly, 
which could result in parts departing the airplane and hitting the 
empennage, and destabilizing the airplane during a critical flight 
phase. In addition, parts remaining on a runway could pose a hazard to 
another airplane.

Comments

    We gave the public the opportunity to participate in developing 
this AD. The following presents the comments received on the NPRM (79 
FR 11725, March 3, 2014; corrected March 11, 2014 (79 FR 13592); and 
the FAA's response to each comment.

Request To Match Compliance Time

    Cathay Pacific requested that we ensure that the AD compliance date 
will be the same as the compliance time of Boeing Special Attention 
Service Bulletin 777-78-0051, Revision 3, dated August 23, 2012; or 
Boeing Special Attention Service Bulletin 777-78-0051, Revision 4, 
dated February 7, 2014. Cathay Pacific reasoned that paragraph (i) of 
the proposed AD specified compliance within 60 months after the 
effective date of the proposed AD, and both revisions of this service 
information specify a compliance time that is within 60 months after 
the Revision 3 date of the service bulletin.
    We infer that Cathay Pacific is requesting that we reduce the 
compliance time of this final rule to match the compliance time listed 
in the service information. We do not agree with the commenter's 
request. In developing an appropriate compliance time for this action, 
we considered not only the degree of urgency associated with addressing 
the subject unsafe condition, but the manufacturer's recommendation for 
an appropriate compliance time, the time required for the rulemaking 
process, the availability of required parts, and the practical aspect 
of installing the required modification within an interval of time that 
corresponds to the typical scheduled maintenance for the majority of 
affected operators. Under the provisions of paragraph (l) of this AD,

[[Page 59571]]

we may approve requests for adjustments to the compliance time, if data 
are submitted to substantiate that such an adjustment would provide an 
acceptable level of safety. We have not changed the AD in this regard.

Request To Define ``Serviceable'' To Include Pre-Boeing Service 
Bulletin 777-78-0051 Plug Assemblies

    Cathay Pacific requested that we revise paragraph (j) of the 
proposed AD; corrected March 11, 2014 (79 FR 13592) to define 
``serviceable'' plug assemblies. Cathay Pacific reasoned that both pre- 
and post-Boeing Service Bulletin 777-78-0051 plug assemblies can be 
installed, and the modification can be completed before the required 
compliance time of the NPRM (79 FR 11725, March 3, 2014; corrected 
March 11, 2014 (79 FR 13592)).
    We do not agree to revise paragraph (j) of this AD because 
serviceable assemblies are already defined in paragraph (h) of this AD. 
This definition applies to the entire AD. Also, pre- Boeing Service 
Bulletin 777-78-0051 plug assemblies do not meet the definition of 
serviceable, as specified in the service information.

Request To Revise Definition of a Serviceable Assembly

    American Airlines (AA) requested that we revise paragraph (h) of 
the proposed AD to add another definition: Serviceable plug assemblies, 
as those maintained in accordance with the operator's continued 
airworthiness maintenance program (CAMP), prior to issuance of Boeing 
Special Attention Service Bulletin 777-78-0051, Revision 3, dated 
August 23, 2012. AA explained that prior to release of Boeing Special 
Attention Service Bulletin 777-78-0051, Revision 3, dated August 23, 
2012, due to reported events of exhaust plug losses by other operators, 
AA recognized that multiple removals of the exhaust aft plug causes the 
3/16'' nutplate locking feature to wear out, which could then result in 
loss of the aft plug. As a result, AA implemented a maintenance program 
as part of its CAMP, which offers a level of safety equivalent to that 
of Boeing Special Attention Service Bulletin 777-78-0051, Revision 3, 
dated August 23, 2012. During every engine removal, for a refurbishment 
or overhaul shop visit, the pre-Boeing Special Attention Service 
Bulletin 777-78-0051, Revision 3, dated August 23, 2012, exhaust aft 
plug nutplates are replaced with new nutplates.
    In addition, AA stated that the holes are inspected for elongation 
and cracks in accordance with procedures equivalent to Boeing Special 
Attention Service Bulletin 777-78-0051 inspection procedures. Model 777 
Airplane Maintenance Manual Chapter 78-11-02-400-803-R00, requires that 
the minimum fastener run[hyphen]on torque of 2 in[hyphen]lbs is met 
during every installation of the aft exhaust plug. In addition, each of 
the exhaust aft plug fasteners receives a general visual check, using a 
ladder/stand and a bright light, every 150 flight hours. AA expressed 
that it is currently the largest Model 777-200 Trent 800 operator in 
the worldwide fleet and has not lost an exhaust aft plug due to loose 
or missing fasteners, as its CAMP demonstrates an equivalent level of 
safety to the service information.
    As an alternative, AA requested that we revise the NPRM (79 FR 
11725, March 3, 2014; corrected March 11, 2014 (79 FR 13592)) to 
include, as serviceable exhaust aft plugs, those maintained in 
accordance with the operator's own maintenance program, such as AA's 
approved CAMP prior to issuance of Boeing Special Attention Service 
Bulletin 777-78-0051, Revision 3, dated August 23, 2012, and to remain 
in service until the next engine removal for refurbishment or overhaul 
shop visit, or 60 months from the effective date of the AD, whichever 
is later.
    We do not agree to include the requested provision. The maintenance 
program described by AA is likely to be acceptable in lieu of direct 
compliance with portions of this AD; however, the description of that 
program provided in AA's comment is not sufficient to serve as 
engineering data for the FAA to approve as an optional method of 
compliance in this AD. Operators can submit a request for approval of 
an alternative method of compliance (AMOC), with a more detailed 
proposal to use the maintenance program, if sufficient data are 
submitted to substantiate that the change would provide an acceptable 
level of safety. We have not changed this AD in this regard.

Request To Change Compliance Time of Parts Installation Limitation

    Boeing and Cathay Pacific requested that we revise paragraph (j) of 
the proposed AD to change the installation limitation from the 
effective date of the AD to the compliance deadline for the AD. Boeing 
reasoned that paragraph (j) of the proposed AD currently creates an 
alternative and indeterminate compliance deadline. Boeing explained 
that during the compliance interval and prior to the AD deadline, 
operators may be required, due to unforeseen circumstances, to install 
a unit that is not a serviceable unit, and that under the current 
wording, this would unnecessarily ground the airplane.
    We do not agree to revise paragraph (j) of this AD to change the 
installation limitation from the effective date of the AD to the 
compliance date of the AD. Grace period compliance times are provided 
in ADs in recognition that an immediate unscheduled modification 
requirement would be disruptive. A grace period is included to give 
operators a reasonable period of time to schedule and perform actions 
that are required by the AD and that otherwise would not have occurred. 
A parts installation limitation is included in some cases to require 
that, if the parts affected by the AD are already being removed for a 
reason other than the AD itself, that opportunity to correct the unsafe 
condition should be taken. We determine whether such a parts 
installation limitation should be included in the AD, and what the 
specific requirements of the limitation will be, based on the risk 
level associated with the unsafe condition and the expected 
availability of required replacement parts.
    In this case, we made a determination that the risk warranted the 
consideration of a parts installation limitation. We also determined 
that sufficient parts would be available to meet that limitation, and 
that sufficient time to perform any required actions to make a nozzle 
assembly serviceable as defined in paragraph (h) of this AD would exist 
in situations where the nozzle might be removed in maintenance. 
Specifically, we considered the case of an unscheduled engine change 
where an operator may not have included a serviceable nozzle assembly 
with the replacement engine. Modification of a nozzle assembly to meet 
the definition of a serviceable nozzle can be performed in roughly the 
same or less elapsed time than it takes to perform the engine 
replacement itself. We did not foresee any other commonly occurring 
situation where an engine nozzle assembly would be removed for 
maintenance. However, as discussed in response to the comment issue 
``Request to Revise Definition of a Serviceable Assembly,'' if an 
operator specifically and adequately addresses the management of this 
unsafe condition within its CAMP, we will consider AMOC approvals to 
allow installation of nozzle assemblies that do not meet the definition 
of serviceable nozzle in paragraph (h) of this AD.
    We clarified paragraph (j) of this AD as a result of these 
comments. We considered the explanatory statements about the intent of 
the parts installation limitation language used in several

[[Page 59572]]

recent ADs, and determined that different language should be used in 
this case to more clearly convey the intent of the parts installation 
limitation contained in this AD. We have added the words ``or re-
install'' to paragraph (j) to clarify that any installation of a nozzle 
assembly, regardless of the reason for the removal of the nozzle 
assembly and regardless of the source of the replacement nozzle 
assembly, is subject to the parts installation limitation of paragraph 
(j) of this AD.

Request To Clarify Paragraph (j) of the Proposed AD

    AA requested that we clarify paragraph (j) of the proposed AD. AA 
explained that paragraph (j) of the proposed AD allows that only a 
serviceable turbine exhaust plug assembly may be installed on any 
airplane as of the effective date of this AD, while paragraph (i) of 
the proposed AD requires a compliance time within a certain time after 
the effective date of this AD, without any referral to serviceable 
turbine exhaust plug assembly. AA reasoned that as written, these steps 
are confusing and could lead operators to believe the actions required 
by the AD are due as of the effective date of this AD.
    We agree with the commenter and have clarified paragraph (j) of 
this AD by including references to paragraphs (h)(1) and (h)(2) of this 
AD.

Request To Clarify the AMOC Paragraph

    Boeing requested that we revise paragraph (k)(3) of the proposed AD 
(paragraph (l)(3) of this AD) to indicate that an AMOC, approved for a 
repaired serviceable unit is to be attached to, and travel with, the 
repaired serviceable unit. Boeing explained that the AMOC approval 
should apply to the deviation on the serviceable unit and thereby 
travel with the serviceable unit, which is rotable and could be 
installed on numerous airplanes during its service life. Boeing also 
explained that a unit repaired in accordance with an approved AMOC will 
fulfill the intent of airplane safety when the unit is installed on an 
airplane, and that the unit will be in compliance with the AD as long 
as the part is serviceable as defined by the AD.
    We agree with the commenter and have revised paragraph (l)(3) of 
this AD accordingly.

Request To Use the CAMP

    AA requested that we revise the NPRM (79 FR 11725, March 3, 2014; 
corrected March 11, 2014 (79 FR 13592)), to include language that 
allows the optional re-identification of the exhaust plug with the 
correct post-Boeing Special Attention Service Bulletin 777-78-0051, 
part number identity in accordance with a method approved by the 
operator's approved CAMP, as the CAMP provides an equivalent level of 
safety. AA explained that prior to the release of Boeing Special 
Attention Service Bulletin 777-78-0051, Revision 3, dated August 23, 
2012, AA implemented a maintenance program to install data plates on 
the forward and aft exhaust plug. The plates were installed because the 
manufacturer part number and serial number, which were chemical-etched 
on the exhaust plug skin by the manufacturer, were no longer legible. 
AA stated that the data plates contain the original part number, a 
company-assigned serial number, and the text ``MATCHED SET. DO NOT 
SEPARATE.'' AA added that the installed identification plates are in 
the same location as, but a different length than, the plates specified 
in Boeing Special Attention Service Bulletin 777-78-0051, Revision 3, 
dated August 23, 2012.
    We agree to allow alternative permanent part-marking methods. If 
the markings contain the required information and are permanent, the 
intent of the marking requirement is addressed, and additional 
flexibility is provided to operators. Therefore, part-marking methods 
for the CAMP might be approved, provided that the markings are 
permanent and contain the information specified in Boeing Special 
Attention Service Bulletin 777-78-0051, Revision 4, dated February 7, 
2014. We have added this information to paragraph (g) of this AD 
accordingly.

Request To Eliminate AMOC Approval Requirement for Previous Repairs

    AA requested that we revise paragraph (h) of the proposed AD, to 
allow repairs accomplished prior to the release of this AD, in 
accordance with Boeing instructions and approved per 14 CFR part 
121.379, or a Boeing ODA, to be included as acceptable repairs in this 
AD, without the requirement to obtain a Boeing ODA AMOC or Seattle 
Aircraft Certification Office AMOC approval.
    AA explained that, prior to release of the NPRM (79 FR 11725, March 
3, 2014; corrected March 11, 2014 (79 FR 13592)); exhaust aft plugs 
have received repairs at the exhaust aft plug mate line during 
inspection or during incorporation of Boeing Special Attention Service 
Bulletin 777-78-0051, Revision 3, dated August 23, 2012, utilizing 
procedures provided by Boeing without Boeing ODA approval; rather, the 
repair was approved per 14 CFR part 121.379. AA expressed that 
paragraph (h) of the proposed AD specifies using a repair method 
approved in accordance with the procedures specified in paragraph (k) 
of the proposed AD, and these previously accomplished repairs, which 
followed Boeing repair instructions, offer an equivalent level of 
safety to the NPRM.
    We partially agree with the request. We agree to add paragraph 
(l)(4) in this AD to eliminate the requirement for subsequent AMOC 
approval for repairs that were previously approved by the Boeing ODA, 
using an FAA Form 8100-9, and having met the requirements of paragraph 
(h) of this AD, for the definition of serviceable turbine exhaust plug 
assemblies. We are confident that the Boeing ODA repair approval 
process ensures that each repair is reviewed by qualified engineering 
staff with knowledge of the original airplane design and compliance 
substantiation. At the same time, we want to ensure that those repairs 
would have a configuration that meets the definition of serviceable 
turbine exhaust plug assemblies as defined in the service information. 
We have added paragraph (l)(4) in this AD to state that repairs 
approved prior to the effective date of this AD, by the Boeing ODA 
using FAA Form 8100-9, and having met the requirements of paragraph (h) 
of this AD for the definition of serviceable turbine exhaust plug 
assemblies, do not require AMOC approval.
    We disagree, however, to eliminate the AMOC approval requirement 
for repairs approved by other means. Even though Boeing Service 
Engineering may have provided a ``no technical objection'' statement, 
qualified engineering staff with knowledge of the original airplane 
design and compliance substantiation may not have been involved in 
evaluating the repair. We have not changed this AD in this regard.

Additional Changes to This AD

    We have revised this AD to refer to Boeing Special Attention 
Service Bulletin 777-78-0051, Revision 4, dated February 7, 2014, as 
the appropriate source of service information for the required actions. 
Among other things, this service information adds Group 2 airplanes to 
paragraph 1.E., ``Compliance;'' includes a maintenance records check; 
adds a general visual inspection to determine the diameter of the bolt 
used at the forward and aft plug interface; and adds applicable 
corrective actions--all of which we have clarified in new paragraph 
(g)(4) of this AD. Paragraphs (g)(3) and (c) of the proposed AD already 
accounted for the Group 2

[[Page 59573]]

airplanes defined in Boeing Special Attention Service Bulletin 777-78-
0051, Revision 4, dated February 7, 2014. Paragraph (g)(2) of the 
proposed AD accounted for the required actions.
    We have also added a new paragraph (k) to this AD to provide credit 
for certain actions, if those actions were performed before the 
effective date of this AD using Boeing Special Attention Service 
Bulletin 777-78-0051, Revision 3, dated August 23, 2012. We have 
redesignated the subsequent paragraphs of this AD accordingly.

Conclusion

    We reviewed the relevant data, considered the comments received, 
and determined that air safety and the public interest require adopting 
this AD with the changes described previously and minor editorial 
changes. We have determined that these minor changes:
     Are consistent with the intent that was proposed in the 
NPRM (79 FR 11725, March 3, 2014; corrected March 11, 2014 (79 FR 
13592)) for correcting the unsafe condition; and
     Do not add any additional burden upon the public than was 
already proposed in the NPRM (79 FR 11725, March 3, 2014; corrected 
March 11, 2014 (79 FR 13592)).
    We also determined that these changes will not increase the 
economic burden on any operator or increase the scope of this AD.

Related Service Information Under 1 CFR Part 51

    We reviewed Boeing Special Attention Service Bulletin 777-78-0051, 
Revision 4, dated February 7, 2014. Among other things, this service 
information adds Group 2 airplanes to paragraph 1.E., ``Compliance;'' 
includes a maintenance records check; adds a general visual inspection 
to determine the diameter of the bolt used at the forward and aft plug 
interface; and adds applicable corrective actions. This service 
information is reasonably available because the interested parties have 
access to it through their normal course of business or by the means 
identified in the ADDRESSES section of this AD.

Costs of Compliance

    We estimate that this AD affects 35 airplanes of U.S. registry.
    We estimate the following costs to comply with this AD:

                                                 Estimated Costs
----------------------------------------------------------------------------------------------------------------
                                                                                     Cost per      Cost on U.S.
                Action                         Labor cost           Parts cost        product        operators
----------------------------------------------------------------------------------------------------------------
Installation..........................  5 work-hours x $85 per                $0            $425         $14,875
                                         hour = $425.
General visual inspection.............  2 work-hours x $85 per                $0            $170          $5,950
                                         hour = $170.
----------------------------------------------------------------------------------------------------------------

    We estimate the following costs to do any necessary replacement 
that would be required based on the results of the inspection. We have 
no way of determining the number of aircraft that might need this 
replacement:

                                               On-Condition Costs
----------------------------------------------------------------------------------------------------------------
                                                                                                     Cost per
                    Action                                Labor cost               Parts cost        product
----------------------------------------------------------------------------------------------------------------
Replacement (replacing the \3/16\-inch bolts   5 work-hours x $85 per hour =                $0             $425
 with \1/4\-inch bolts).                        $425.
----------------------------------------------------------------------------------------------------------------

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

    This AD will not have federalism implications under Executive Order 
13132. This AD will 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 that this AD:
    (1) Is not a ``significant regulatory action'' under Executive 
Order 12866,
    (2) Is not a ``significant rule'' under DOT Regulatory Policies and 
Procedures (44 FR 11034, February 26, 1979),
    (3) Will not affect intrastate aviation in Alaska, and
    (4) 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.

List of Subjects in 14 CFR Part 39

    Air transportation, Aircraft, Aviation safety, Incorporation by 
reference, Safety.

Adoption of the Amendment

    Accordingly, under the authority delegated to me by the 
Administrator, the FAA amends 14 CFR part 39 as follows:

PART 39--AIRWORTHINESS DIRECTIVES

0
1. The authority citation for part 39 continues to read as follows:

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


Sec.  39.13  [Amended]

0
2. The FAA amends Sec.  39.13 by adding the following new airworthiness 
directive (AD):

2015-19-16 The Boeing Company: Amendment 39-18278; Docket No. FAA-
2014-0128; Directorate Identifier 2013-NM-133-AD.

[[Page 59574]]

(a) Effective Date

    This AD is effective November 6, 2015.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to The Boeing Company Model 777-200, -200LR, -
300,-300ER, and 777F series airplanes; certificated in any category; 
equipped with Rolls-Royce Trent 800 series engines.

(d) Subject

    Air Transport Association (ATA) of America Code 78, Engine 
Exhaust.

(e) Unsafe Condition

    This AD was prompted by reports of in-flight separation of the 
engine's aft plug from the forward plug, which are the two parts of 
the turbine exhaust plug assembly. We are issuing this AD to prevent 
separation of the aft plug from the forward plug of the turbine 
exhaust plug assembly, which could result in parts departing the 
airplane and hitting the empennage or hitting a person on the 
ground, and destabilizing the airplane during a critical flight 
phase; parts remaining on a runway could cause damage to another 
airplane.

(f) Compliance

    Comply with this AD within the compliance times specified, 
unless already done.

(g) Installation and General Visual Inspection

    At the applicable time specified in paragraph 1.E., 
``Compliance,'' of Boeing Special Attention Service Bulletin 777-78-
0051, Revision 4, dated February 7, 2014, except as provided by 
paragraph (i) of this AD, do the applicable actions specified in 
paragraphs (g)(1), (g)(2), (g)(3), and (g)(4) of this AD, in 
accordance with the Accomplishment Instructions of Boeing Special 
Attention Service Bulletin 777-78-0051, Revision 4, dated February 
7, 2014. Alternative part marking methods are allowed for the 
requirements of this paragraph, if approved by the FAA principal 
maintenance inspector, provided that the markings are permanent and 
contain the information required by Boeing Special Attention Service 
Bulletin 777-78-0051, Revision 4, dated February 7, 2014.
    (1) For airplanes identified as Group 1, Configuration 1, in 
Boeing Special Attention Service Bulletin 777-78-0051, Revision 4, 
dated February 7, 2014: Install a serviceable turbine exhaust plug 
assembly.
    (2) For airplanes identified as Group 1, Configurations 2 and 3, 
in Boeing Special Attention Service Bulletin 777-78-0051, Revision 
4, dated February 7, 2014: Do a general visual inspection to 
determine the diameter of the bolt used at the forward and aft plug 
interface, and before further flight, do all applicable corrective 
actions.
    (3) For airplanes listed in paragraph (c) of this AD that are 
not listed in the ``Effectivity'' section of Boeing Special 
Attention Service Bulletin 777-78-0051, Revision 4, dated February 
7, 2014: Do a general visual inspection to determine if a 
serviceable turbine exhaust plug assembly is installed. If a 
serviceable turbine exhaust plug assembly is not installed, before 
further flight, install a serviceable turbine exhaust plug assembly.
    (4) For airplanes identified as Group 2, in Boeing Special 
Attention Service Bulletin 777-78-0051, Revision 4, dated February 
7, 2014: Do a maintenance records check to determine affected 
turbine exhaust plug assemblies, and for affected assemblies, do a 
general visual inspection to determine the diameter of the bolt used 
at the forward and aft plug interface, and before further flight, do 
all applicable corrective actions.

(h) Definition of Serviceable Assembly

    For the purposes of this AD, an acceptable serviceable turbine 
exhaust plug assembly must meet the conditions specified in 
paragraph (h)(1) or (h)(2) of this AD.
    (1) A new assembly with part number 314W5520-22.
    (2) A serviceable assembly as defined in the Accomplishment 
Instructions of Boeing Special Attention Service Bulletin 777-78-
0051, Revision 4, dated February 7, 2014; except, for any assembly 
on which the actions specified in Part 2 or Part 3 of the 
Accomplishment Instructions of Boeing Special Attention Service 
Bulletin 777-78-0051, Revision 4, dated February 7, 2014, are done, 
and Boeing Special Attention Service Bulletin 777-78-0051, Revision 
4, dated February 7, 2014, specifies to contact Boeing for repair 
instructions, this AD requires repair before further flight, using a 
method approved in accordance with the procedures specified in 
paragraph (l)(1) of this AD.

(i) Exception to Service Information Specifications

    Where paragraph 1.E., ``Compliance,'' of Boeing Special 
Attention Service Bulletin 777-78-0051, Revision 4, dated February 
7, 2014, specifies a compliance time ``after the Revision 3 date of 
this service bulletin,'' or ``after the Revision 4 date of this 
service bulletin,'' this AD requires compliance within the 
applicable time after the effective date of this AD.

(j) Parts Installation Limitation

    As of the effective date of this AD, only a serviceable turbine 
exhaust plug assembly that meets the requirements of paragraph 
(h)(1) or (h)(2) of this AD may be installed or reinstalled on any 
airplane.

(k) Credit for Previous Actions

    This paragraph provides credit for the actions specified in 
paragraph (g) of this AD, if those actions were performed before the 
effective date of this AD using Boeing Special Attention Service 
Bulletin 777-78-0051, Revision 3, dated August 23, 2012 (which is 
not incorporated by reference in this AD), provided that for Group 
1, Configuration 2, airplanes, on which the condition defined in 
Table 2 of paragraph 1.E., ``Compliance,'' of Boeing Special 
Attention Service Bulletin 777-78-0051, Revision 3, dated August 23, 
2012, was found (i.e., only \1/4\ inch diameter bolts are found 
installed at all 33 locations forward and aft plug interface), the 
re-identification of the forward and aft plug was done before 
further flight after the inspection.

(l) Alternative Methods of Compliance (AMOCs)

    (1) The Manager, Seattle Aircraft Certification Office (ACO), 
FAA, has the authority to approve AMOCs for this AD, if requested 
using the procedures found in 14 CFR 39.19. In accordance with 14 
CFR 39.19, send your request to your principal inspector or local 
Flight Standards District Office, as appropriate. If sending 
information directly to the manager of the ACO, send it to the 
attention of the person identified in paragraph (m) of this AD. 
Information may be emailed to: [email protected].
    (2) Before using any approved AMOC, notify your appropriate 
principal inspector, or lacking a principal inspector, the manager 
of the local flight standards district office/certificate holding 
district office.
    (3) An AMOC that provides an acceptable level of safety may be 
used for any repair required by this AD if it is approved by the 
Boeing Commercial Airplanes Organization Designation Authorization 
(ODA) that has been authorized by the Manager, Seattle ACO, to make 
those findings. For a repair method to be approved, the repair must 
meet the certification basis of the airplane, and the approval must 
specifically refer to this AD. An AMOC approved as described in this 
paragraph for a specific serviceable nozzle assembly may be 
transferred with that nozzle assembly to another aircraft without an 
additional AMOC approval being required.
    (4) Repairs approved prior to the effective date of this AD by 
the Boeing ODA do not require AMOC approval if those repairs were 
approved using FAA Form 8100-9 and those repairs meet the definition 
of a serviceable assembly contained in the Accomplishment 
Instructions of Boeing Special Attention Service Bulletin 777-78-
0051, Revision 4, dated February 7, 2014.

(m) Related Information

    (1) For more information about this AD, contact Kevin Nguyen, 
Aerospace Engineer, Propulsion Branch, ANM-140S, Seattle Aircraft 
Certification Office (ACO) FAA, 1601 Lind Avenue SW., Renton, WA 
98057-3356; phone: 425-917-6501; fax: 425-917-6590; email: 
[email protected].
    (2) Service information identified in this AD that is not 
incorporated by reference is available at the addresses specified in 
paragraphs (n)(3) and (n)(4) of this AD.

(n) Material Incorporated by Reference

    (1) The Director of the Federal Register approved the 
incorporation by reference (IBR) of the service information listed 
in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51.
    (2) You must use this service information as applicable to do 
the actions required by this AD, unless the AD specifies otherwise.
    (i) Boeing Special Attention Service Bulletin 777-78-0051, 
Revision 4, dated February 7, 2014.
    (ii) Reserved.
    (3) For Boeing service information identified in this AD, 
contact Boeing Commercial Airplanes, Attention: Data & Services 
Management, P.O. Box 3707, MC 2H-65, Seattle, WA 98124-2207; 
telephone

[[Page 59575]]

206-544-5000, extension 1; fax 206-766-5680; Internet https://www.myboeingfleet.com.
    (4) You may view this service information at FAA, Transport 
Airplane Directorate, 1601 Lind Avenue SW., Renton, WA. For 
information on the availability of this material at the FAA, call 
425-227-1221.
    (5) You may view this service information that is incorporated 
by reference at the National Archives and Records Administration 
(NARA). For information on the availability of this material at 
NARA, call 202-741-6030, or go to: http://www.archives.gov/federal-register/cfr/ibr-locations.html.

    Issued in Renton, Washington, on September 16, 2015.
Michael Kaszycki,
Acting Manager, Transport Airplane Directorate, Aircraft Certification 
Service.
[FR Doc. 2015-24677 Filed 10-1-15; 8:45 am]
 BILLING CODE 4910-13-P



                                                  59570              Federal Register / Vol. 80, No. 191 / Friday, October 2, 2015 / Rules and Regulations

                                                     (ii) Reserved.                                       empennage, and destabilizing the                      13592). The NPRM was prompted by
                                                     (3) For Lockheed service information                 airplane during a critical flight phase. In           reports of in-flight separation of the
                                                  identified in this AD, contact Lockheed                 addition, parts remaining on a runway                 engine’s aft plug from the forward plug,
                                                  Martin Corporation/Lockheed Martin
                                                                                                          could pose a hazard to another airplane.              which are the two parts of the turbine
                                                  Aeronautics Company, Airworthiness Office,
                                                  Dept. 6A0M, Zone 0252, Column P–58, 86 S.               DATES: This AD is effective November 6,               exhaust plug assembly. The NPRM
                                                  Cobb Drive, Marietta, GA 30063; telephone               2015.                                                 proposed to require installation of a
                                                  770–494–5444; fax 770–494–5445; email                      The Director of the Federal Register               serviceable turbine exhaust plug
                                                  ams.portal@lmco.com; Internet http://                   approved the incorporation by reference               assembly (for certain airplanes), and a
                                                  www.lockheedmartin.com/ams/tools/                       of a certain publication listed in this AD            general visual inspection (for certain
                                                  TechPubs.html.                                          as of November 6, 2015.                               airplanes) to determine the diameter of
                                                     (4) You may view this service information                                                                  the bolt used at the forward and aft plug
                                                  at FAA, Transport Airplane Directorate, 1601            ADDRESSES: For service information
                                                                                                          identified in this AD, contact Boeing                 interface, and applicable corrective
                                                  Lind Avenue SW., Renton, WA. For
                                                                                                          Commercial Airplanes, Attention: Data                 actions. We are issuing this AD to
                                                  information on the availability of this
                                                  material at the FAA, call 425–227–1221.                 & Services Management, P.O. Box 3707,                 prevent separation of the aft plug from
                                                     (5) You may view this service information            MC 2H–65, Seattle, WA 98124–2207;                     the forward plug of the turbine exhaust
                                                  that is incorporated by reference at the                telephone 206–544–5000, extension 1;                  plug assembly, which could result in
                                                  National Archives and Records                           fax 206–766–5680; Internet https://                   parts departing the airplane and hitting
                                                  Administration (NARA). For information on
                                                                                                          www.myboeingfleet.com. You may view                   the empennage, and destabilizing the
                                                  the availability of this material at NARA, call                                                               airplane during a critical flight phase. In
                                                  202–741–6030, or go to: http://                         this referenced service information at
                                                                                                          the FAA, Transport Airplane                           addition, parts remaining on a runway
                                                  www.archives.gov/federal-register/cfr/ibr-                                                                    could pose a hazard to another airplane.
                                                  locations.html.                                         Directorate, 1601 Lind Avenue SW.,
                                                    Issued in Renton, Washington, on
                                                                                                          Renton, WA. For information on the                    Comments
                                                  September 18, 2015.                                     availability of this material at the FAA,               We gave the public the opportunity to
                                                  Dorr M. Anderson,
                                                                                                          call 425–227–1221. It is also available               participate in developing this AD. The
                                                                                                          on the Internet at http://                            following presents the comments
                                                  Acting Manager, Transport Airplane
                                                  Directorate, Aircraft Certification Service.
                                                                                                          www.regulations.gov by searching for                  received on the NPRM (79 FR 11725,
                                                                                                          and locating Docket No. FAA–2014–                     March 3, 2014; corrected March 11,
                                                  [FR Doc. 2015–24839 Filed 10–1–15; 8:45 am]
                                                                                                          0128.                                                 2014 (79 FR 13592); and the FAA’s
                                                  BILLING CODE 4910–13–P
                                                                                                          Examining the AD Docket                               response to each comment.
                                                                                                            You may examine the AD docket on                    Request To Match Compliance Time
                                                  DEPARTMENT OF TRANSPORTATION                            the Internet at http://                                  Cathay Pacific requested that we
                                                  Federal Aviation Administration                         www.regulations.gov by searching for                  ensure that the AD compliance date will
                                                                                                          and locating Docket No. FAA–2014–                     be the same as the compliance time of
                                                  14 CFR Part 39                                          0128; or in person at the Docket                      Boeing Special Attention Service
                                                                                                          Management Facility between 9 a.m.                    Bulletin 777–78–0051, Revision 3, dated
                                                  [Docket No. FAA–2014–0128; Directorate                  and 5 p.m., Monday through Friday,                    August 23, 2012; or Boeing Special
                                                  Identifier 2013–NM–133–AD; Amendment                    except Federal holidays. The AD docket
                                                  39–18278; AD 2015–19–16]                                                                                      Attention Service Bulletin 777–78–
                                                                                                          contains this AD, the regulatory                      0051, Revision 4, dated February 7,
                                                  RIN 2120–AA64                                           evaluation, any comments received, and                2014. Cathay Pacific reasoned that
                                                                                                          other information. The address for the                paragraph (i) of the proposed AD
                                                  Airworthiness Directives; The Boeing                    Docket Office (phone: 800–647–5527) is                specified compliance within 60 months
                                                  Company Airplanes                                       Docket Management Facility, U.S.                      after the effective date of the proposed
                                                  AGENCY:  Federal Aviation                               Department of Transportation, Docket                  AD, and both revisions of this service
                                                  Administration (FAA), DOT.                              Operations, M–30, West Building                       information specify a compliance time
                                                                                                          Ground Floor, Room W12–140, 1200                      that is within 60 months after the
                                                  ACTION: Final rule.
                                                                                                          New Jersey Avenue SE., Washington,                    Revision 3 date of the service bulletin.
                                                  SUMMARY:   We are adopting a new                        DC 20590.                                                We infer that Cathay Pacific is
                                                  airworthiness directive (AD) for The                    FOR FURTHER INFORMATION CONTACT:                      requesting that we reduce the
                                                  Boeing Company Model 777 airplanes                      Kevin Nguyen, Aerospace Engineer,                     compliance time of this final rule to
                                                  equipped with Rolls-Royce Trent 800                     Propulsion Branch, ANM–140S, Seattle                  match the compliance time listed in the
                                                  series engines. This AD was prompted                    Aircraft Certification Office (ACO),                  service information. We do not agree
                                                  by reports of in-flight separation of the               FAA, 1601 Lind Avenue SW., Renton,                    with the commenter’s request. In
                                                  engine’s aft plug from the forward plug,                WA 98057–3356; phone: 425–917–6501;                   developing an appropriate compliance
                                                  which are the two parts of the turbine                  fax: 425–917–6590; email:                             time for this action, we considered not
                                                  exhaust plug assembly. This AD                          kevin.nguyen@faa.gov.                                 only the degree of urgency associated
                                                  requires installation of a serviceable                  SUPPLEMENTARY INFORMATION:                            with addressing the subject unsafe
                                                  turbine exhaust plug assembly (for                                                                            condition, but the manufacturer’s
                                                  certain airplanes), and a general visual                Discussion                                            recommendation for an appropriate
                                                  inspection (for certain airplanes) to                     We issued a notice of proposed                      compliance time, the time required for
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                                                  determine the diameter of the bolt used                 rulemaking (NPRM) to amend 14 CFR                     the rulemaking process, the availability
                                                  at the forward and aft plug interface,                  part 39 by adding an AD that would                    of required parts, and the practical
                                                  and applicable corrective actions. We                   apply to The Boeing Company Model                     aspect of installing the required
                                                  are issuing this AD to prevent                          777 airplanes equipped with Rolls-                    modification within an interval of time
                                                  separation of the aft plug from the                     Royce Trent 800 series engines. The                   that corresponds to the typical
                                                  forward plug of the turbine exhaust plug                NPRM published in the Federal                         scheduled maintenance for the majority
                                                  assembly, which could result in parts                   Register on March 3, 2014 (79 FR                      of affected operators. Under the
                                                  departing the airplane and hitting the                  11725); corrected March 11, 2014 (79 FR               provisions of paragraph (l) of this AD,


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                                                                     Federal Register / Vol. 80, No. 191 / Friday, October 2, 2015 / Rules and Regulations                                        59571

                                                  we may approve requests for                             equivalent to Boeing Special Attention                the current wording, this would
                                                  adjustments to the compliance time, if                  Service Bulletin 777–78–0051                          unnecessarily ground the airplane.
                                                  data are submitted to substantiate that                 inspection procedures. Model 777                         We do not agree to revise paragraph
                                                  such an adjustment would provide an                     Airplane Maintenance Manual Chapter                   (j) of this AD to change the installation
                                                  acceptable level of safety. We have not                 78–11–02–400–803–R00, requires that                   limitation from the effective date of the
                                                  changed the AD in this regard.                          the minimum fastener run-on torque of                 AD to the compliance date of the AD.
                                                                                                          2 in-lbs is met during every installation             Grace period compliance times are
                                                  Request To Define ‘‘Serviceable’’ To                                                                          provided in ADs in recognition that an
                                                                                                          of the aft exhaust plug. In addition, each
                                                  Include Pre-Boeing Service Bulletin                                                                           immediate unscheduled modification
                                                                                                          of the exhaust aft plug fasteners receives
                                                  777–78–0051 Plug Assemblies                                                                                   requirement would be disruptive. A
                                                                                                          a general visual check, using a ladder/
                                                     Cathay Pacific requested that we                     stand and a bright light, every 150 flight            grace period is included to give
                                                  revise paragraph (j) of the proposed AD;                hours. AA expressed that it is currently              operators a reasonable period of time to
                                                  corrected March 11, 2014 (79 FR 13592)                  the largest Model 777–200 Trent 800                   schedule and perform actions that are
                                                  to define ‘‘serviceable’’ plug assemblies.              operator in the worldwide fleet and has               required by the AD and that otherwise
                                                  Cathay Pacific reasoned that both pre-                  not lost an exhaust aft plug due to loose             would not have occurred. A parts
                                                  and post-Boeing Service Bulletin 777–                   or missing fasteners, as its CAMP                     installation limitation is included in
                                                  78–0051 plug assemblies can be                          demonstrates an equivalent level of                   some cases to require that, if the parts
                                                  installed, and the modification can be                  safety to the service information.                    affected by the AD are already being
                                                  completed before the required                              As an alternative, AA requested that               removed for a reason other than the AD
                                                  compliance time of the NPRM (79 FR                      we revise the NPRM (79 FR 11725,                      itself, that opportunity to correct the
                                                  11725, March 3, 2014; corrected March                   March 3, 2014; corrected March 11,                    unsafe condition should be taken. We
                                                  11, 2014 (79 FR 13592)).                                2014 (79 FR 13592)) to include, as                    determine whether such a parts
                                                     We do not agree to revise paragraph                  serviceable exhaust aft plugs, those                  installation limitation should be
                                                  (j) of this AD because serviceable                      maintained in accordance with the                     included in the AD, and what the
                                                  assemblies are already defined in                       operator’s own maintenance program,                   specific requirements of the limitation
                                                  paragraph (h) of this AD. This definition               such as AA’s approved CAMP prior to                   will be, based on the risk level
                                                  applies to the entire AD. Also, pre-                    issuance of Boeing Special Attention                  associated with the unsafe condition
                                                  Boeing Service Bulletin 777–78–0051                     Service Bulletin 777–78–0051, Revision                and the expected availability of required
                                                  plug assemblies do not meet the                         3, dated August 23, 2012, and to remain               replacement parts.
                                                  definition of serviceable, as specified in              in service until the next engine removal                 In this case, we made a determination
                                                  the service information.                                for refurbishment or overhaul shop visit,             that the risk warranted the
                                                  Request To Revise Definition of a                       or 60 months from the effective date of               consideration of a parts installation
                                                  Serviceable Assembly                                    the AD, whichever is later.                           limitation. We also determined that
                                                                                                             We do not agree to include the                     sufficient parts would be available to
                                                     American Airlines (AA) requested                     requested provision. The maintenance                  meet that limitation, and that sufficient
                                                  that we revise paragraph (h) of the                     program described by AA is likely to be               time to perform any required actions to
                                                  proposed AD to add another definition:                  acceptable in lieu of direct compliance               make a nozzle assembly serviceable as
                                                  Serviceable plug assemblies, as those                   with portions of this AD; however, the                defined in paragraph (h) of this AD
                                                  maintained in accordance with the                       description of that program provided in               would exist in situations where the
                                                  operator’s continued airworthiness                      AA’s comment is not sufficient to serve               nozzle might be removed in
                                                  maintenance program (CAMP), prior to                    as engineering data for the FAA to                    maintenance. Specifically, we
                                                  issuance of Boeing Special Attention                    approve as an optional method of                      considered the case of an unscheduled
                                                  Service Bulletin 777–78–0051, Revision                  compliance in this AD. Operators can                  engine change where an operator may
                                                  3, dated August 23, 2012. AA explained                  submit a request for approval of an                   not have included a serviceable nozzle
                                                  that prior to release of Boeing Special                 alternative method of compliance                      assembly with the replacement engine.
                                                  Attention Service Bulletin 777–78–                      (AMOC), with a more detailed proposal                 Modification of a nozzle assembly to
                                                  0051, Revision 3, dated August 23,                      to use the maintenance program, if                    meet the definition of a serviceable
                                                  2012, due to reported events of exhaust                 sufficient data are submitted to                      nozzle can be performed in roughly the
                                                  plug losses by other operators, AA                      substantiate that the change would                    same or less elapsed time than it takes
                                                  recognized that multiple removals of the                provide an acceptable level of safety.                to perform the engine replacement itself.
                                                  exhaust aft plug causes the 3/16″                       We have not changed this AD in this                   We did not foresee any other commonly
                                                  nutplate locking feature to wear out,                   regard.                                               occurring situation where an engine
                                                  which could then result in loss of the aft                                                                    nozzle assembly would be removed for
                                                  plug. As a result, AA implemented a                     Request To Change Compliance Time of                  maintenance. However, as discussed in
                                                  maintenance program as part of its                      Parts Installation Limitation                         response to the comment issue ‘‘Request
                                                  CAMP, which offers a level of safety                       Boeing and Cathay Pacific requested                to Revise Definition of a Serviceable
                                                  equivalent to that of Boeing Special                    that we revise paragraph (j) of the                   Assembly,’’ if an operator specifically
                                                  Attention Service Bulletin 777–78–                      proposed AD to change the installation                and adequately addresses the
                                                  0051, Revision 3, dated August 23,                      limitation from the effective date of the             management of this unsafe condition
                                                  2012. During every engine removal, for                  AD to the compliance deadline for the                 within its CAMP, we will consider
                                                  a refurbishment or overhaul shop visit,                 AD. Boeing reasoned that paragraph (j)                AMOC approvals to allow installation of
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                                                  the pre-Boeing Special Attention                        of the proposed AD currently creates an               nozzle assemblies that do not meet the
                                                  Service Bulletin 777–78–0051, Revision                  alternative and indeterminate                         definition of serviceable nozzle in
                                                  3, dated August 23, 2012, exhaust aft                   compliance deadline. Boeing explained                 paragraph (h) of this AD.
                                                  plug nutplates are replaced with new                    that during the compliance interval and                  We clarified paragraph (j) of this AD
                                                  nutplates.                                              prior to the AD deadline, operators may               as a result of these comments. We
                                                     In addition, AA stated that the holes                be required, due to unforeseen                        considered the explanatory statements
                                                  are inspected for elongation and cracks                 circumstances, to install a unit that is              about the intent of the parts installation
                                                  in accordance with procedures                           not a serviceable unit, and that under                limitation language used in several


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                                                  59572              Federal Register / Vol. 80, No. 191 / Friday, October 2, 2015 / Rules and Regulations

                                                  recent ADs, and determined that                         the optional re-identification of the                 rather, the repair was approved per 14
                                                  different language should be used in                    exhaust plug with the correct post-                   CFR part 121.379. AA expressed that
                                                  this case to more clearly convey the                    Boeing Special Attention Service                      paragraph (h) of the proposed AD
                                                  intent of the parts installation limitation             Bulletin 777–78–0051, part number                     specifies using a repair method
                                                  contained in this AD. We have added                     identity in accordance with a method                  approved in accordance with the
                                                  the words ‘‘or re-install’’ to paragraph (j)            approved by the operator’s approved                   procedures specified in paragraph (k) of
                                                  to clarify that any installation of a                   CAMP, as the CAMP provides an                         the proposed AD, and these previously
                                                  nozzle assembly, regardless of the                      equivalent level of safety. AA explained              accomplished repairs, which followed
                                                  reason for the removal of the nozzle                    that prior to the release of Boeing                   Boeing repair instructions, offer an
                                                  assembly and regardless of the source of                Special Attention Service Bulletin 777–               equivalent level of safety to the NPRM.
                                                  the replacement nozzle assembly, is                     78–0051, Revision 3, dated August 23,                    We partially agree with the request.
                                                  subject to the parts installation                       2012, AA implemented a maintenance                    We agree to add paragraph (l)(4) in this
                                                  limitation of paragraph (j) of this AD.                 program to install data plates on the                 AD to eliminate the requirement for
                                                                                                          forward and aft exhaust plug. The plates              subsequent AMOC approval for repairs
                                                  Request To Clarify Paragraph (j) of the                 were installed because the manufacturer               that were previously approved by the
                                                  Proposed AD                                             part number and serial number, which                  Boeing ODA, using an FAA Form 8100–
                                                    AA requested that we clarify                          were chemical-etched on the exhaust                   9, and having met the requirements of
                                                  paragraph (j) of the proposed AD. AA                    plug skin by the manufacturer, were no                paragraph (h) of this AD, for the
                                                  explained that paragraph (j) of the                     longer legible. AA stated that the data               definition of serviceable turbine exhaust
                                                  proposed AD allows that only a                          plates contain the original part number,              plug assemblies. We are confident that
                                                  serviceable turbine exhaust plug                        a company-assigned serial number, and                 the Boeing ODA repair approval process
                                                  assembly may be installed on any                        the text ‘‘MATCHED SET. DO NOT                        ensures that each repair is reviewed by
                                                  airplane as of the effective date of this               SEPARATE.’’ AA added that the                         qualified engineering staff with
                                                  AD, while paragraph (i) of the proposed                 installed identification plates are in the            knowledge of the original airplane
                                                  AD requires a compliance time within a                  same location as, but a different length              design and compliance substantiation.
                                                  certain time after the effective date of                than, the plates specified in Boeing                  At the same time, we want to ensure
                                                  this AD, without any referral to                        Special Attention Service Bulletin 777–               that those repairs would have a
                                                  serviceable turbine exhaust plug                        78–0051, Revision 3, dated August 23,                 configuration that meets the definition
                                                  assembly. AA reasoned that as written,                  2012.                                                 of serviceable turbine exhaust plug
                                                  these steps are confusing and could lead                  We agree to allow alternative                       assemblies as defined in the service
                                                  operators to believe the actions required               permanent part-marking methods. If the                information. We have added paragraph
                                                  by the AD are due as of the effective                   markings contain the required                         (l)(4) in this AD to state that repairs
                                                  date of this AD.                                        information and are permanent, the                    approved prior to the effective date of
                                                    We agree with the commenter and                       intent of the marking requirement is                  this AD, by the Boeing ODA using FAA
                                                  have clarified paragraph (j) of this AD                 addressed, and additional flexibility is              Form 8100–9, and having met the
                                                  by including references to paragraphs                   provided to operators. Therefore, part-               requirements of paragraph (h) of this AD
                                                  (h)(1) and (h)(2) of this AD.                           marking methods for the CAMP might                    for the definition of serviceable turbine
                                                                                                          be approved, provided that the markings               exhaust plug assemblies, do not require
                                                  Request To Clarify the AMOC                             are permanent and contain the                         AMOC approval.
                                                  Paragraph                                               information specified in Boeing Special                  We disagree, however, to eliminate
                                                     Boeing requested that we revise                      Attention Service Bulletin 777–78–                    the AMOC approval requirement for
                                                  paragraph (k)(3) of the proposed AD                     0051, Revision 4, dated February 7,                   repairs approved by other means. Even
                                                  (paragraph (l)(3) of this AD) to indicate               2014. We have added this information                  though Boeing Service Engineering may
                                                  that an AMOC, approved for a repaired                   to paragraph (g) of this AD accordingly.              have provided a ‘‘no technical
                                                  serviceable unit is to be attached to, and                                                                    objection’’ statement, qualified
                                                                                                          Request To Eliminate AMOC Approval                    engineering staff with knowledge of the
                                                  travel with, the repaired serviceable
                                                                                                          Requirement for Previous Repairs                      original airplane design and compliance
                                                  unit. Boeing explained that the AMOC
                                                  approval should apply to the deviation                     AA requested that we revise                        substantiation may not have been
                                                  on the serviceable unit and thereby                     paragraph (h) of the proposed AD, to                  involved in evaluating the repair. We
                                                  travel with the serviceable unit, which                 allow repairs accomplished prior to the               have not changed this AD in this regard.
                                                  is rotable and could be installed on                    release of this AD, in accordance with
                                                                                                          Boeing instructions and approved per                  Additional Changes to This AD
                                                  numerous airplanes during its service
                                                  life. Boeing also explained that a unit                 14 CFR part 121.379, or a Boeing ODA,                    We have revised this AD to refer to
                                                  repaired in accordance with an                          to be included as acceptable repairs in               Boeing Special Attention Service
                                                  approved AMOC will fulfill the intent of                this AD, without the requirement to                   Bulletin 777–78–0051, Revision 4, dated
                                                  airplane safety when the unit is                        obtain a Boeing ODA AMOC or Seattle                   February 7, 2014, as the appropriate
                                                  installed on an airplane, and that the                  Aircraft Certification Office AMOC                    source of service information for the
                                                  unit will be in compliance with the AD                  approval.                                             required actions. Among other things,
                                                  as long as the part is serviceable as                      AA explained that, prior to release of             this service information adds Group 2
                                                  defined by the AD.                                      the NPRM (79 FR 11725, March 3, 2014;                 airplanes to paragraph 1.E.,
                                                     We agree with the commenter and                      corrected March 11, 2014 (79 FR                       ‘‘Compliance;’’ includes a maintenance
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                                                  have revised paragraph (l)(3) of this AD                13592)); exhaust aft plugs have received              records check; adds a general visual
                                                  accordingly.                                            repairs at the exhaust aft plug mate line             inspection to determine the diameter of
                                                                                                          during inspection or during                           the bolt used at the forward and aft plug
                                                  Request To Use the CAMP                                 incorporation of Boeing Special                       interface; and adds applicable corrective
                                                    AA requested that we revise the                       Attention Service Bulletin 777–78–                    actions—all of which we have clarified
                                                  NPRM (79 FR 11725, March 3, 2014;                       0051, Revision 3, dated August 23,                    in new paragraph (g)(4) of this AD.
                                                  corrected March 11, 2014 (79 FR                         2012, utilizing procedures provided by                Paragraphs (g)(3) and (c) of the proposed
                                                  13592)), to include language that allows                Boeing without Boeing ODA approval;                   AD already accounted for the Group 2


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                                                                            Federal Register / Vol. 80, No. 191 / Friday, October 2, 2015 / Rules and Regulations                                                          59573

                                                  airplanes defined in Boeing Special                                     and minor editorial changes. We have                      0051, Revision 4, dated February 7,
                                                  Attention Service Bulletin 777–78–                                      determined that these minor changes:                      2014. Among other things, this service
                                                  0051, Revision 4, dated February 7,                                       • Are consistent with the intent that                   information adds Group 2 airplanes to
                                                  2014. Paragraph (g)(2) of the proposed                                  was proposed in the NPRM (79 FR                           paragraph 1.E., ‘‘Compliance;’’ includes
                                                  AD accounted for the required actions.                                  11725, March 3, 2014; corrected March                     a maintenance records check; adds a
                                                     We have also added a new paragraph                                   11, 2014 (79 FR 13592)) for correcting                    general visual inspection to determine
                                                  (k) to this AD to provide credit for                                    the unsafe condition; and                                 the diameter of the bolt used at the
                                                  certain actions, if those actions were                                    • Do not add any additional burden                      forward and aft plug interface; and adds
                                                  performed before the effective date of                                  upon the public than was already                          applicable corrective actions. This
                                                  this AD using Boeing Special Attention                                  proposed in the NPRM (79 FR 11725,                        service information is reasonably
                                                  Service Bulletin 777–78–0051, Revision                                  March 3, 2014; corrected March 11,                        available because the interested parties
                                                  3, dated August 23, 2012. We have                                       2014 (79 FR 13592)).                                      have access to it through their normal
                                                  redesignated the subsequent paragraphs                                    We also determined that these                           course of business or by the means
                                                  of this AD accordingly.                                                 changes will not increase the economic                    identified in the ADDRESSES section of
                                                                                                                          burden on any operator or increase the                    this AD.
                                                  Conclusion
                                                                                                                          scope of this AD.
                                                    We reviewed the relevant data,                                                                                                  Costs of Compliance
                                                  considered the comments received, and                                   Related Service Information Under 1                         We estimate that this AD affects 35
                                                  determined that air safety and the                                      CFR Part 51                                               airplanes of U.S. registry.
                                                  public interest require adopting this AD                                  We reviewed Boeing Special                                We estimate the following costs to
                                                  with the changes described previously                                   Attention Service Bulletin 777–78–                        comply with this AD:
                                                                                                                                         ESTIMATED COSTS
                                                                                                                                                                                                       Cost per       Cost on U.S.
                                                                               Action                                                         Labor cost                           Parts cost          product         operators

                                                  Installation .......................................................   5 work-hours × $85 per hour = $425 .............                       $0             $425        $14,875
                                                  General visual inspection ................................             2 work-hours × $85 per hour = $170 .............                       $0             $170         $5,950



                                                    We estimate the following costs to do                                 be required based on the results of the                   determining the number of aircraft that
                                                  any necessary replacement that would                                    inspection. We have no way of                             might need this replacement:

                                                                                                                                       ON-CONDITION COSTS
                                                                                                                                                                                                                        Cost per
                                                                                     Action                                                                  Labor cost                                Parts cost       product

                                                  Replacement (replacing the                    ⁄ -inch bolts with
                                                                                              3 16                           ⁄ -
                                                                                                                            14      5 work-hours × $85 per hour = $425 ...........................        $0             $425
                                                   inch bolts).



                                                  Authority for This Rulemaking                                           Regulatory Findings                                       List of Subjects in 14 CFR Part 39
                                                     Title 49 of the United States Code                                     This AD will not have federalism                          Air transportation, Aircraft, Aviation
                                                  specifies the FAA’s authority to issue                                  implications under Executive Order                        safety, Incorporation by reference,
                                                  rules on aviation safety. Subtitle I,                                   13132. This AD will not have a                            Safety.
                                                  section 106, describes the authority of                                 substantial direct effect on the States, on               Adoption of the Amendment
                                                  the FAA Administrator. Subtitle VII:                                    the relationship between the national
                                                                                                                          government and the States, or on the                        Accordingly, under the authority
                                                  Aviation Programs, describes in more
                                                                                                                          distribution of power and                                 delegated to me by the Administrator,
                                                  detail the scope of the Agency’s
                                                                                                                          responsibilities among the various                        the FAA amends 14 CFR part 39 as
                                                  authority.                                                                                                                        follows:
                                                                                                                          levels of government.
                                                     We are issuing this rulemaking under
                                                  the authority described in Subtitle VII,                                  For the reasons discussed above, I                      PART 39—AIRWORTHINESS
                                                  Part A, Subpart III, Section 44701:                                     certify that this AD:                                     DIRECTIVES
                                                  ‘‘General requirements.’’ Under that                                      (1) Is not a ‘‘significant regulatory
                                                  section, Congress charges the FAA with                                  action’’ under Executive Order 12866,                     ■ 1. The authority citation for part 39
                                                  promoting safe flight of civil aircraft in                                                                                        continues to read as follows:
                                                                                                                            (2) Is not a ‘‘significant rule’’ under
                                                  air commerce by prescribing regulations                                 DOT Regulatory Policies and Procedures                        Authority: 49 U.S.C. 106(g), 40113, 44701.
                                                  for practices, methods, and procedures                                  (44 FR 11034, February 26, 1979),                         § 39.13    [Amended]
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                                                  the Administrator finds necessary for
                                                                                                                            (3) Will not affect intrastate aviation                 ■ 2. The FAA amends § 39.13 by adding
                                                  safety in air commerce. This regulation
                                                                                                                          in Alaska, and                                            the following new airworthiness
                                                  is within the scope of that authority
                                                  because it addresses an unsafe condition                                  (4) Will not have a significant                         directive (AD):
                                                  that is likely to exist or develop on                                   economic impact, positive or negative,                    2015–19–16 The Boeing Company:
                                                  products identified in this rulemaking                                  on a substantial number of small entities                     Amendment 39–18278; Docket No.
                                                  action.                                                                 under the criteria of the Regulatory                          FAA–2014–0128; Directorate Identifier
                                                                                                                          Flexibility Act.                                              2013–NM–133–AD.



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                                                  59574              Federal Register / Vol. 80, No. 191 / Friday, October 2, 2015 / Rules and Regulations

                                                  (a) Effective Date                                      turbine exhaust plug assembly is installed. If        (l) Alternative Methods of Compliance
                                                    This AD is effective November 6, 2015.                a serviceable turbine exhaust plug assembly           (AMOCs)
                                                                                                          is not installed, before further flight, install         (1) The Manager, Seattle Aircraft
                                                  (b) Affected ADs                                        a serviceable turbine exhaust plug assembly.          Certification Office (ACO), FAA, has the
                                                    None.                                                    (4) For airplanes identified as Group 2, in        authority to approve AMOCs for this AD, if
                                                                                                          Boeing Special Attention Service Bulletin             requested using the procedures found in 14
                                                  (c) Applicability                                       777–78–0051, Revision 4, dated February 7,            CFR 39.19. In accordance with 14 CFR 39.19,
                                                     This AD applies to The Boeing Company                2014: Do a maintenance records check to               send your request to your principal inspector
                                                  Model 777–200, –200LR, –300,–300ER, and                 determine affected turbine exhaust plug               or local Flight Standards District Office, as
                                                  777F series airplanes; certificated in any              assemblies, and for affected assemblies, do a         appropriate. If sending information directly
                                                  category; equipped with Rolls-Royce Trent               general visual inspection to determine the            to the manager of the ACO, send it to the
                                                  800 series engines.                                     diameter of the bolt used at the forward and          attention of the person identified in
                                                  (d) Subject                                             aft plug interface, and before further flight,        paragraph (m) of this AD. Information may be
                                                                                                          do all applicable corrective actions.                 emailed to: 9-ANM-Seattle-ACO-AMOC-
                                                    Air Transport Association (ATA) of                                                                          Requests@faa.gov.
                                                  America Code 78, Engine Exhaust.                        (h) Definition of Serviceable Assembly
                                                                                                                                                                   (2) Before using any approved AMOC,
                                                  (e) Unsafe Condition                                      For the purposes of this AD, an acceptable          notify your appropriate principal inspector,
                                                                                                          serviceable turbine exhaust plug assembly             or lacking a principal inspector, the manager
                                                     This AD was prompted by reports of in-               must meet the conditions specified in                 of the local flight standards district office/
                                                  flight separation of the engine’s aft plug from
                                                                                                          paragraph (h)(1) or (h)(2) of this AD.                certificate holding district office.
                                                  the forward plug, which are the two parts of
                                                                                                            (1) A new assembly with part number                    (3) An AMOC that provides an acceptable
                                                  the turbine exhaust plug assembly. We are
                                                                                                          314W5520–22.                                          level of safety may be used for any repair
                                                  issuing this AD to prevent separation of the
                                                                                                            (2) A serviceable assembly as defined in            required by this AD if it is approved by the
                                                  aft plug from the forward plug of the turbine
                                                                                                          the Accomplishment Instructions of Boeing             Boeing Commercial Airplanes Organization
                                                  exhaust plug assembly, which could result in
                                                                                                          Special Attention Service Bulletin 777–78–            Designation Authorization (ODA) that has
                                                  parts departing the airplane and hitting the
                                                                                                          0051, Revision 4, dated February 7, 2014;             been authorized by the Manager, Seattle
                                                  empennage or hitting a person on the ground,
                                                                                                          except, for any assembly on which the                 ACO, to make those findings. For a repair
                                                  and destabilizing the airplane during a
                                                                                                          actions specified in Part 2 or Part 3 of the          method to be approved, the repair must meet
                                                  critical flight phase; parts remaining on a
                                                                                                          Accomplishment Instructions of Boeing                 the certification basis of the airplane, and the
                                                  runway could cause damage to another
                                                                                                          Special Attention Service Bulletin 777–78–            approval must specifically refer to this AD.
                                                  airplane.
                                                                                                          0051, Revision 4, dated February 7, 2014, are         An AMOC approved as described in this
                                                  (f) Compliance                                          done, and Boeing Special Attention Service            paragraph for a specific serviceable nozzle
                                                     Comply with this AD within the                       Bulletin 777–78–0051, Revision 4, dated               assembly may be transferred with that nozzle
                                                  compliance times specified, unless already              February 7, 2014, specifies to contact Boeing         assembly to another aircraft without an
                                                  done.                                                   for repair instructions, this AD requires             additional AMOC approval being required.
                                                                                                          repair before further flight, using a method             (4) Repairs approved prior to the effective
                                                  (g) Installation and General Visual                     approved in accordance with the procedures            date of this AD by the Boeing ODA do not
                                                  Inspection                                              specified in paragraph (l)(1) of this AD.             require AMOC approval if those repairs were
                                                     At the applicable time specified in                                                                        approved using FAA Form 8100–9 and those
                                                                                                          (i) Exception to Service Information                  repairs meet the definition of a serviceable
                                                  paragraph 1.E., ‘‘Compliance,’’ of Boeing
                                                                                                          Specifications                                        assembly contained in the Accomplishment
                                                  Special Attention Service Bulletin 777–78–
                                                  0051, Revision 4, dated February 7, 2014,                  Where paragraph 1.E., ‘‘Compliance,’’ of           Instructions of Boeing Special Attention
                                                  except as provided by paragraph (i) of this             Boeing Special Attention Service Bulletin             Service Bulletin 777–78–0051, Revision 4,
                                                  AD, do the applicable actions specified in              777–78–0051, Revision 4, dated February 7,            dated February 7, 2014.
                                                  paragraphs (g)(1), (g)(2), (g)(3), and (g)(4) of        2014, specifies a compliance time ‘‘after the
                                                                                                          Revision 3 date of this service bulletin,’’ or        (m) Related Information
                                                  this AD, in accordance with the
                                                  Accomplishment Instructions of Boeing                   ‘‘after the Revision 4 date of this service             (1) For more information about this AD,
                                                  Special Attention Service Bulletin 777–78–              bulletin,’’ this AD requires compliance               contact Kevin Nguyen, Aerospace Engineer,
                                                  0051, Revision 4, dated February 7, 2014.               within the applicable time after the effective        Propulsion Branch, ANM–140S, Seattle
                                                  Alternative part marking methods are                    date of this AD.                                      Aircraft Certification Office (ACO) FAA, 1601
                                                  allowed for the requirements of this                                                                          Lind Avenue SW., Renton, WA 98057–3356;
                                                                                                          (j) Parts Installation Limitation                     phone: 425–917–6501; fax: 425–917–6590;
                                                  paragraph, if approved by the FAA principal
                                                  maintenance inspector, provided that the                   As of the effective date of this AD, only a        email: kevin.nguyen@faa.gov.
                                                  markings are permanent and contain the                  serviceable turbine exhaust plug assembly               (2) Service information identified in this
                                                  information required by Boeing Special                  that meets the requirements of paragraph              AD that is not incorporated by reference is
                                                  Attention Service Bulletin 777–78–0051,                 (h)(1) or (h)(2) of this AD may be installed          available at the addresses specified in
                                                  Revision 4, dated February 7, 2014.                     or reinstalled on any airplane.                       paragraphs (n)(3) and (n)(4) of this AD.
                                                     (1) For airplanes identified as Group 1,
                                                                                                          (k) Credit for Previous Actions                       (n) Material Incorporated by Reference
                                                  Configuration 1, in Boeing Special Attention
                                                  Service Bulletin 777–78–0051, Revision 4,                  This paragraph provides credit for the                (1) The Director of the Federal Register
                                                  dated February 7, 2014: Install a serviceable           actions specified in paragraph (g) of this AD,        approved the incorporation by reference
                                                  turbine exhaust plug assembly.                          if those actions were performed before the            (IBR) of the service information listed in this
                                                     (2) For airplanes identified as Group 1,             effective date of this AD using Boeing Special        paragraph under 5 U.S.C. 552(a) and 1 CFR
                                                  Configurations 2 and 3, in Boeing Special               Attention Service Bulletin 777–78–0051,               part 51.
                                                  Attention Service Bulletin 777–78–0051,                 Revision 3, dated August 23, 2012 (which is              (2) You must use this service information
                                                  Revision 4, dated February 7, 2014: Do a                not incorporated by reference in this AD),            as applicable to do the actions required by
                                                  general visual inspection to determine the              provided that for Group 1, Configuration 2,           this AD, unless the AD specifies otherwise.
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                                                  diameter of the bolt used at the forward and            airplanes, on which the condition defined in             (i) Boeing Special Attention Service
                                                  aft plug interface, and before further flight,          Table 2 of paragraph 1.E., ‘‘Compliance,’’ of         Bulletin 777–78–0051, Revision 4, dated
                                                  do all applicable corrective actions.                   Boeing Special Attention Service Bulletin             February 7, 2014.
                                                     (3) For airplanes listed in paragraph (c) of         777–78–0051, Revision 3, dated August 23,                (ii) Reserved.
                                                  this AD that are not listed in the ‘‘Effectivity’’      2012, was found (i.e., only 1⁄4 inch diameter            (3) For Boeing service information
                                                  section of Boeing Special Attention Service             bolts are found installed at all 33 locations         identified in this AD, contact Boeing
                                                  Bulletin 777–78–0051, Revision 4, dated                 forward and aft plug interface), the re-              Commercial Airplanes, Attention: Data &
                                                  February 7, 2014: Do a general visual                   identification of the forward and aft plug was        Services Management, P.O. Box 3707, MC
                                                  inspection to determine if a serviceable                done before further flight after the inspection.      2H–65, Seattle, WA 98124–2207; telephone



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                                                                     Federal Register / Vol. 80, No. 191 / Friday, October 2, 2015 / Rules and Regulations                                                    59575

                                                  206–544–5000, extension 1; fax 206–766–                 I. Background                                             conditions for the exemption found in
                                                  5680; Internet https://                                                                                           Sections 2(h)(3) through (5) of the CEA,
                                                  www.myboeingfleet.com.                                     On July 21, 2010, President Obama
                                                                                                          signed the Dodd-Frank Act into law. 1                     7 U.S.C. 2(h)(3)–(5), including a
                                                     (4) You may view this service information
                                                  at FAA, Transport Airplane Directorate, 1601            Title VII of the Dodd-Frank Act 2                         requirement that the ECM notify the
                                                  Lind Avenue SW., Renton, WA. For                        amended the CEA 3 to establish a                          Commission of its intent to rely upon
                                                  information on the availability of this                 comprehensive framework for the                           the exemption.9
                                                  material at the FAA, call 425–227–1221.                 regulation of over-the-counter                               Under CEA Section 5d, 7 U.S.C. 7a–
                                                     (5) You may view this service information            derivatives, also known as swaps.                         3, EBOTs were facilities that traded
                                                  that is incorporated by reference at the                Among other reforms, Title VII requires
                                                  National Archives and Records                                                                                     commodities (other than securities or
                                                                                                          that any person who operates a facility                   securities indexes) that had a nearly
                                                  Administration (NARA). For information on
                                                                                                          to trade swaps register as a designated                   inexhaustible deliverable supply and
                                                  the availability of this material at NARA, call
                                                  202–741–6030, or go to: http://                         contract market (‘‘DCM’’) or a swap                       either no cash market or a cash market
                                                  www.archives.gov/federal-register/cfr/ibr-              execution facility (‘‘SEF’’); 4 the latter is             so liquid that any contract traded on the
                                                  locations.html.                                         a category of trading market newly                        commodity was highly unlikely to be
                                                                                                          established under the law.                                susceptible to manipulation. EBOT
                                                    Issued in Renton, Washington, on
                                                  September 16, 2015.                                     Concurrently, Title VII eliminated from
                                                                                                                                                                    transactions were limited to eligible
                                                                                                          the CEA two categories of exempt
                                                  Michael Kaszycki,                                                                                                 contract participants 10 and subject to
                                                                                                          markets for the trading of derivatives
                                                  Acting Manager, Transport Airplane                                                                                minimal trading prohibitions, including
                                                                                                          originally established in the CEA by the
                                                  Directorate, Aircraft Certification Service.                                                                      anti-fraud and anti-manipulation
                                                                                                          Commodity Futures Modernization Act
                                                  [FR Doc. 2015–24677 Filed 10–1–15; 8:45 am]                                                                       restrictions. EBOTs were required to file
                                                                                                          of 2000 (‘‘CFMA’’): 5 exempt commercial
                                                  BILLING CODE 4910–13–P
                                                                                                          markets (‘‘ECMs’’) and exempt boards of                   notice with the Commission of their
                                                                                                          trade (‘‘EBOTs’’).                                        election to operate as an EBOT.11
                                                                                                             Under the CFMA’s revisions to the                         Section 723 of the Dodd-Frank Act
                                                                                                          CEA, ECMs could trade exempt                              repealed CEA Section 2(h)(3) as it then
                                                  COMMODITY FUTURES TRADING                               commodities 6 (i.e. any commodity other                   existed,12 thus eliminating the ECM
                                                  COMMISSION                                              than an excluded commodity 7 and                          category. Section 734 of the Dodd-Frank
                                                  17 CFR Parts 15, 18, 36, 40, 140                        agricultural commodities) on electronic                   Act similarly repealed CEA Section
                                                                                                          trading facilities between eligible                       5d,13 thus eliminating the EBOT
                                                                                                          commercial entities 8 without                             category. Both Sections 723 and 734 of
                                                  RIN 3038–AE10                                           complying with comprehensive                              the Dodd-Frank Act contain grandfather
                                                                                                          designation criteria and core principles                  provisions allowing existing ECMs and
                                                  Repeal of the Exempt Commercial
                                                                                                          that were applicable to designated                        EBOTs to petition the Commission to
                                                  Market and Exempt Board of Trade
                                                                                                          contract markets. A facility that elected                 continue to operate as ECMs and EBOTs
                                                  Exemptions
                                                                                                          to operate as an ECM was generally                        subject to the requirements of the CEA
                                                  AGENCY:  Commodity Futures Trading                      exempt from regulation, but was still                     Sections 2(h)(3) and 5d, respectively, for
                                                  Commission.                                             required to comply with certain                           a limited period of time.14 Pursuant to
                                                  ACTION: Final rule.                                     informational and recordkeeping                           these grandfather provisions, the
                                                                                                          requirements, if the market satisfied the                 Commission issued an order in
                                                  SUMMARY:    The Commodity Futures                                                                                 September 2010 granting petitioning
                                                                                                             1 Public Law 111–203, 124 Stat. 1376 (July 21,
                                                  Trading Commission (the                                                                                           ECMs and EBOTs up to one year of
                                                                                                          2010).
                                                  ‘‘Commission’’) is taking final action to                  2 Pursuant to Section 701 of the Dodd-Frank Act,       grandfather relief from the general
                                                  revise its regulations by removing the                  Title VII may be cited as the ‘‘Wall Street               effective date of the Dodd-Frank Act
                                                  part 36 regulations. Those regulations                  Transparency and Accountability Act of 2010.’’            amendments to the CEA (‘‘Grandfather
                                                  implemented provisions of the                              3 7 U.S.C. 1 et seq. (2012).
                                                                                                                                                                    Relief Order’’).15
                                                  Commodity Exchange Act (‘‘CEA’’) that                      4 Dodd-Frank Act Section 733 (amending the CEA

                                                  established exempt boards of trade and                  to add new section 5h).                                      Subsequent to the Grandfather Relief
                                                  exempt commercial markets—two
                                                                                                             5 Public Law 106–554, 114 Stat. 2763 (December         Order, the Commission issued a series
                                                                                                          21, 2000).
                                                  categories of derivatives-trading                          6 See CFMA Section 101(4) (amending CEA to
                                                                                                                                                                       9 The Commission’s part 36 regulations
                                                  platforms that were eliminated from the                 add definition of ‘‘Exempt Commodity,’’ currently
                                                                                                                                                                    established similar requirements for EBOTs.
                                                  CEA by the Dodd-Frank Wall Street                       codified as CEA Section 1(a)(20), 7 U.S.C. 1a(20)            10 The definition of ‘‘Eligible Contract
                                                  Reform and Consumer Protection Act                      (2012).
                                                                                                             7 ‘‘Excluded Commodity’’ is also a statutorily         Participant’’ is found in Section 1a(18) of the CEA,
                                                  (the ‘‘Dodd-Frank Act’’). This action                   defined term, currently codified as CEA Section
                                                                                                                                                                    7 U.S.C. 1a(18) (2012).
                                                  also removes various cross-references in                1(a)(19), 7 U.S.C. 1a(19) (2012). Generally
                                                                                                                                                                       11 The Commission’s Part 36 regulations

                                                  other Commission regulations                            characterized, the term captures, among other             established similar requirements for ECMs.
                                                                                                                                                                       12 The Dodd-Frank Act amended Section 2(h) of
                                                  implicating exempt boards of trade and                  things specified financial instruments, measures,
                                                                                                          and indexes (e.g., securities and security indexes,       the CEA effective July 16, 2011, H.R. 4173, Section
                                                  exempt commercial markets.                              currencies, interest rates, debt instruments, and         723(a)(1), Public Law 111–203, 124 Stat. 1376, by
                                                  DATES: This rulemaking is effective on                  credit ratings); any ‘‘other rate, differential, index,   striking existing subsection (h)—‘‘Transactions in
                                                                                                          or measure of economic or commercial risk, return         exempt commodities’’ and inserting new subsection
                                                  October 2, 2015.                                                                                                  (h)—‘‘Clearing requirement’’ not addressed to
                                                                                                          or value’’ not substantially based on the value of a
                                                  FOR FURTHER INFORMATION CONTACT:
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                                                                                                          narrow commodity group or solely based on a               exempt commercial markets.
                                                                                                                                                                       13 The Dodd-Frank Act repealed Section 5d of the
                                                  Commodity Futures Trading                               commodity or commodities with no cash value; and
                                                                                                          other economic or commercial indexes, or                  CEA effective July 16, 2011, H.R. 4173, Section
                                                  Commission, Three Lafayette Centre,                                                                               734(a), Public Law 111–203, 124 Stat. 1376 (2010).
                                                                                                          occurrences and contingencies associated with an
                                                  1155 21st Street NW., Washington, DC                    economic consequence, beyond the control of                  14 ECMs and EBOTs were permitted to continue
                                                  20581; Dana R. Brown, Division of                       parties to the relevant contract, agreement or            operations until July 16, 2012 pursuant to a
                                                  Market Oversight, telephone (202) 418–                  transaction.                                              grandfather relief order issued by the Commission
                                                  5093 and email dbrown@cftc.gov.                            8 The definition of ‘‘Eligible Commercial Entity’’     pursuant to Sections 723(c)(2)(B) and 734(c)(2) of
                                                                                                          is found in Section 1a(17) of the CEA. 7 U.S.C.           the Dodd-Frank Act, respectively.
                                                  SUPPLEMENTARY INFORMATION:                              1a(17) (2006).                                               15 75 FR 56513 (September 16, 2010).




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Document Created: 2015-12-15 08:45:28
Document Modified: 2015-12-15 08:45:28
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesThis AD is effective November 6, 2015.
ContactKevin Nguyen, Aerospace Engineer, Propulsion Branch, ANM-140S, Seattle Aircraft Certification Office (ACO), FAA, 1601 Lind Avenue SW., Renton, WA 98057-3356; phone: 425- 917-6501; fax: 425-917-6590; email: [email protected]
FR Citation80 FR 59570 
RIN Number2120-AA64
CFR AssociatedAir Transportation; Aircraft; Aviation Safety; Incorporation by Reference and Safety

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