81_FR_44634 81 FR 44503 - Airworthiness Directives; The Boeing Company Airplanes

81 FR 44503 - Airworthiness Directives; The Boeing Company Airplanes

DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration

Federal Register Volume 81, Issue 131 (July 8, 2016)

Page Range44503-44508
FR Document2016-15904

We are adopting a new airworthiness directive (AD) for all The Boeing Company Model 737-600, -700, -700C, -800, -900, and -900ER series airplanes. This AD was prompted by reports of a manufacturing oversight, in which a supplier omitted the required protective finish on certain bushings installed in the rear spar upper chord on horizontal stabilizers, which could lead to galvanic corrosion and consequent cracking of the rear spar upper chord. This AD requires an inspection or records check to determine if affected horizontal stabilizers are installed, related investigative actions, and for affected horizontal stabilizers, repetitive inspections for any crack of the horizontal stabilizer rear spar upper chord, and corrective action if necessary. We are issuing this AD to detect and correct cracking of the rear spar upper chord, which can result in the failure of the upper chord and consequent departure of the horizontal stabilizer from the airplane, which can lead to loss of control of the airplane.

Federal Register, Volume 81 Issue 131 (Friday, July 8, 2016)
[Federal Register Volume 81, Number 131 (Friday, July 8, 2016)]
[Rules and Regulations]
[Pages 44503-44508]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-15904]


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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2015-6541; Directorate Identifier 2015-NM-135-AD; 
Amendment 39-18581; AD 2016-13-16]
RIN 2120-AA64


Airworthiness Directives; The Boeing Company Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: We are adopting a new airworthiness directive (AD) for all The 
Boeing Company Model 737-600, -700, -700C, -800, -900, and -900ER 
series airplanes. This AD was prompted by reports of a manufacturing 
oversight, in which a supplier omitted the required protective finish 
on certain bushings installed in the rear spar upper chord on 
horizontal stabilizers, which could lead to galvanic corrosion and 
consequent cracking of the rear spar upper chord. This AD requires an 
inspection or records check to determine if affected horizontal 
stabilizers are installed, related investigative actions, and for 
affected horizontal stabilizers, repetitive inspections for any crack 
of the horizontal stabilizer rear spar upper chord, and corrective 
action if necessary. We are issuing this AD to detect and correct 
cracking of the rear spar upper chord, which can result in the failure 
of the upper chord and consequent departure of the horizontal 
stabilizer from the airplane, which can lead to loss of control of the 
airplane.

DATES: This AD is effective August 12, 2016.
    The Director of the Federal Register approved the incorporation by 
reference of a certain publication listed in this AD as of August 12, 
2016.

ADDRESSES: For service information identified in this final rule, 
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-2015-
6541.

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-2015-
6541; 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

[[Page 44504]]

Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New 
Jersey Avenue SE., Washington, DC 20590.

FOR FURTHER INFORMATION CONTACT: Gaetano Settineri, Aerospace Engineer, 
Airframe Branch, ANM-120S, FAA, Seattle Aircraft Certification Office 
(ACO), 1601 Lind Avenue SW., Renton, WA 98057-3356; phone: 425-917-
6577; fax: 425-917-6590; email: gaetano.settineri@faa.gov.

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 all The Boeing Company 
Model 737-600, -700, -700C, -800, -900, and -900ER series airplanes. 
The NPRM published in the Federal Register on November 30, 2015 (80 FR 
74726) (``the NPRM''). The NPRM was prompted by reports of a 
manufacturing oversight, in which a supplier omitted the required 
protective finish on certain bushings installed in the rear spar upper 
chord on horizontal stabilizers, which could lead to galvanic corrosion 
and consequent cracking of the rear spar upper chord. The NPRM proposed 
to require an inspection or records check to determine if affected 
horizontal stabilizers are installed, related investigative actions, 
and for affected horizontal stabilizers, repetitive inspections for any 
crack of the horizontal stabilizer rear spar upper chord, and 
corrective action if necessary. We are issuing this AD to detect and 
correct cracking of the rear spar upper chord, which can result in the 
failure of the upper chord and consequent departure of the horizontal 
stabilizer from the airplane, which can lead to loss of control of the 
airplane.

Comments

    We gave the public the opportunity to participate in developing 
this AD. The following presents the comments received on the NPRM and 
the FAA's response to each comment.

Support for the NPRM

    Air Line Pilots Association International (ALPA) stated that it 
supports the NPRM. Boeing stated that is concurs with the NPRM.

Effect of Winglets on Accomplishment of the Proposed Actions

    Aviation Partners Boeing stated that installation of winglets per 
Supplemental Type Certificate (STC) ST00830SE (http://rgl.faa.gov/
Regulatory_and_Guidance_Library/rgstc.nsf/0/
184de9a71ec3fa5586257eae00707da6/$FILE/ST00830SE.pdf) does not affect 
the ability to accomplish the actions specified in the NPRM.
    We concur with the commenter. We have redesignated paragraph (c) of 
the proposed AD as paragraph (c)(1) and added new paragraph (c)(2) to 
this AD to state that installation of STC ST00830SE (http://
rgl.faa.gov/Regulatory_and_Guidance_Library/rgstc.nsf/0/
184de9a71ec3fa5586257eae00707da6/$FILE/ST00830SE.pdf) does not affect 
the ability to accomplish the actions required by this final rule. 
Therefore, for airplanes on which STC ST00830SE is installed, a 
``change in product'' alternative method of compliance (AMOC) approval 
request is not necessary to comply with the requirements of 14 CFR 
39.17.

Request To Revise the Proposed Applicability

    Airlines for America (A4A) requested that we revise the 
applicability of the proposed AD to state ``This AD applies to all 
horizontal stabilizers with serial numbers identified in Boeing SB 737-
55A1097.'' A4A explained that the proposed AD is applicable to all 
Boeing Model 737-600, -700, -700C, -800, -900, and -900ER series 
airplanes; however, Boeing Alert Service Bulletin 737-55A1097, dated 
July 1, 2015, provides a list of affected horizontal stabilizers by 
serial number. A4A expressed that the physical plate inspections 
required by paragraph (g)(1)(ii) of the proposed AD are excessive and 
unneeded, as operators normally track serialized components without the 
need to physically inspect the airframe. A4A further reasoned that when 
paragraph (c) of the proposed AD is written against all Model 737 Next 
Generation airframes, the complexity of compliance reporting becomes 
more burdensome. The net result, stated A4A, is indefinite record 
keeping of AD compliance for airplanes that are not equipped with 
horizontal stabilizers affected by the manufacturing oversight.
    We do not agree to revise the applicability of this AD as requested 
by the commenter. Paragraph (g)(1) of this AD gives operators the 
option of performing either a records check or an inspection. If the 
operator's records are sufficient to determine the serial number of the 
horizontal stabilizers on the affected airplane, then a physical 
inspection is not required. Furthermore, the affected horizontal 
stabilizers are rotable parts, so it is possible that an affected 
horizontal stabilizer could be installed on numerous airplanes during 
its service life, even on a new production airplane once it enters 
service. As specified in paragraph 2.B.(2) of Chapter 6 of the AD 
Manual, FAA-IR-M-8040.1C (http://rgl.faa.gov/
Regulatory_and_Guidance_Library/rgOrders.nsf/0/
66ddd8e1d2e95db3862577270062aabd/$FILE/FAA-IR-M-8040_1C.pdf), when the 
unsafe condition results from the installation of the appliance or part 
on an aircraft, the AD action is issued against the aircraft, not the 
appliance or part. Therefore, we have determined that it is appropriate 
for this AD to apply to all airplanes of the specified model types. We 
have made no changes to the applicability of this AD.

Request To Allow Removal and Replacement of Affected Horizontal 
Stabilizers

    A4A requested that we revise paragraph (h)(2) of the proposed AD to 
allow removal of an affected horizontal stabilizer, and replacement 
with an unaffected or an affected horizontal stabilizer that is within 
the parameters of paragraph 1.E. ``Compliance,'' of Boeing Alert 
Service Bulletin 737-55A1097, dated July 1, 2015. A4A explained that 
paragraph (g)(2) of the proposed AD requires that the inspection 
specified in Boeing Alert Service Bulletin 737-55A1097, dated July 1, 
2015, be accomplished on any horizontal stabilizer found to be within 
the effectivity of Boeing Alert Service Bulletin 737-55A1097, dated 
July 1, 2015, and the compliance times found in paragraph 1.E., 
``Compliance.'' A4A expressed that if cracking is found, operators must 
repair in accordance with paragraph (h)(2) of the proposed AD; 
paragraph (h)(2) of the proposed AD requires repair in accordance with 
paragraph (j) of the proposed AD before further flight.
    We agree. We have determined that removing a damaged horizontal 
stabilizer and replacing it with a serviceable horizontal stabilizer, 
as provided in paragraph (i) of this AD, addresses the identified 
unsafe condition. We have revised paragraph (h)(2) of this AD 
accordingly.

Request for Review of Other Inspection Methods

    A4A requested that the FAA and Boeing review other non-destructive 
test (NDT) inspection options such as an ultrasound process to satisfy 
the proposed inspection requirements. A4A pointed out that paragraph 
(g)(2) of the proposed AD specifies a high frequency eddy current 
(HFEC) method for inspection of the rear spar upper chord. A4A 
explained that the FAA should be aware that other methods, specifically

[[Page 44505]]

ultrasound inspection, may be better NDT diagnostic techniques, and 
that an ultrasound inspection, compared to the proposed HFEC process, 
may detect early crack development from the fitting holes versus 
cracking that has propagated up to and near the surface of the rear 
spar upper chord.
    We partially agree. We agree with the commenter that other 
inspection methods may be better NDT diagnostic techniques and note 
that alternative methods of compliance (AMOCs) have been granted to ADs 
when updated service information containing improved procedures to 
address an unsafe condition becomes available.
    We disagree to include other inspection options in this final rule, 
because the inspection technique required in this AD adequately 
addresses the unsafe condition and is accompanied by service 
information, which includes detectable crack lengths and inspection 
intervals. If additional service information that provides alternative 
NDT inspection methods becomes available, under the provisions of 
paragraph (j) of this AD, we will consider requests for approval of an 
AMOC if sufficient data are submitted to substantiate that the 
inspection method would provide an acceptable level of safety. We have 
made no changes to this AD in this regard.

Requests for Clarification of Parts Installation Requirements

    A4A requested that we reword paragraphs (g) and (i) of the proposed 
AD to allow operators to maintain or install any affected horizontal 
stabilizer on any airplane, provided that the horizontal stabilizer is, 
or will be, inspected as specified in paragraph 1.E., ``Compliance,'' 
of Boeing Alert Service Bulletin 737-55A1097, dated July 1, 2015. A4A 
explained that paragraphs (i)(1) and (i)(2) of the proposed AD preclude 
installation of an affected horizontal stabilizer without accomplishing 
the required inspection. A4A explained further that other maintenance 
activity could cause a horizontal stabilizer to be removed and 
reinstalled prior to reaching the compliance times specified in Boeing 
Alert Service Bulletin 737-55A1097, dated July 1, 2015. With the 
potential interpretation of paragraph (g)(2) of the proposed AD being 
to inspect immediately, the initial inspection would be significantly 
accelerated, and the inspection schedule would be altered for the 
remaining life of the component.
    All Nippon Airways (ANA) requested that we clarify the parts 
installation restrictions specified in paragraph (i) of the proposed AD 
to reduce the burden for operators. ANA explained that parts 
installation is restricted based on its serial number, and that 
paragraph (i)(2)(i) of the proposed AD requires initial inspection 
specified in paragraph (g)(2) of the proposed AD before further flight. 
ANA expressed that this requirement is applicable if the flight cycles 
and/or the date of issuance the original certificate of airworthiness, 
or the original export certificate of airworthiness for the horizontal 
stabilizer are unknown or have already exceeded the proposed compliance 
time specified in paragraph (g)(2) of the proposed AD. ANA reasoned 
that, if the flight cycles and the date of issuance of the original 
certificate of airworthiness or the original export certificate of 
airworthiness of the horizontal stabilizer are known, and the flight 
cycles and years on the horizontal stabilizer are less than the 
compliance times specified in paragraph 1.E., ``Compliance,'' of Boeing 
Alert Service Bulletin 737-55A1097, dated July 1, 2015, operators may 
conduct the inspection specified in paragraph (g)(2) of this AD at the 
time specified in paragraph (g)(2) of this AD.
    We agree to clarify. An affected horizontal stabilizer that has not 
reached the inspection threshold or the next repeat interval is still 
in compliance with this AD at the time it is installed on the airplane. 
We have revised paragraph (i)(2)(i) of this AD to read ``Initial and 
repetitive HFEC inspections specified in paragraph (g)(2) of this AD 
are completed within the compliance times specified in paragraph (g)(2) 
of this AD.'' We also agree to clarify that the 10-year compliance time 
specified in paragraph 1.E. ``Compliance,'' of Boeing Alert Service 
Bulletin 737-55A1097, dated July 1, 2015, is measured using the 
airplane the affected horizontal stabilizer was delivered on.

Request for Specific Repair Instructions and Terminating Action

    A4A requested that repair instructions be provided either in a 
revision to the service information, or via the structural repair 
manual (SRM). A4A also requested that the proposed AD be revised to 
include a preventive, terminating action including the option to remove 
and replace the subject bushings in the upper chord fitting during a 
heavy check schedule. A4A expressed that the NPRM and Boeing Alert 
Service Bulletin 737-55A1097, dated July 1, 2015, provide neither 
specific repair methods nor a means to terminate the inspections. A4A 
reasoned that the NPRM requires corrective action for any crack that is 
discovered, and that such action is to be performed in accordance with 
paragraph (j) of the proposed AD, which is the AMOC section. A4A said 
that, although no known inspections have revealed cracking, we (the 
FAA) must believe that findings will occur, and that operators would 
benefit by having guidance from Boeing without the need for an AMOC 
request. Similarly, A4A expressed, without a repair plan, there should 
also be a means of terminating the inspections entirely. A4A pointed to 
a recent experience concerning seat track cracking that exposed the 
difficulties of embarking upon a required inspection plan without a 
defined recovery path. A4A referred to AD 2013-23-04, Amendment 39-
17659 (78 FR 68693, November 15, 2013) (``AD 2013-23-04''), and stated 
that AD also directed operators to the AMOC process.
    We do not agree. An AD is issued to address an identified unsafe 
condition, as required by 14 CFR part 39. The determination of the 
unsafe condition, mitigating action, and compliance times in this AD 
has all been coordinated with Boeing. This AD is being issued to 
address the lack of corrosion protection on a critical structural 
element. As a result, dissimilar metal corrosion may cause cracking of 
the horizontal stabilizer rear spar upper chord. With no service 
history of cracking yet reported, it is expected that any cracking will 
be limited and not result in a significant disruption to affected 
operators. The inspections required by this AD provide an acceptable 
level of safety for the affected airplanes. We have reviewed with 
Boeing the implementation issues associated with AD 2013-23-04 and 
expect that Boeing will provide us with approvable data for repair and 
terminating actions in a timely manner to address any cracking found.
    For these reasons, we do not consider that delaying this action 
until after the possible release of revised service information is 
warranted, since sufficient technology and service information 
currently exist to accomplish the required actions within the 
compliance time. However, under the provisions of paragraph (j) of this 
AD, we will consider requests for approval of AMOCs for revised service 
information, repairs, or terminating actions if sufficient data are 
submitted to substantiate they would provide an acceptable level of 
safety. For these reasons, we have made no changes to this AD in this 
regard.

[[Page 44506]]

Request To Clarify Specific Parts of the Service Information

    ANA stated that paragraph (g)(1)(i) of the proposed AD should refer 
to Part 1, and paragraph (g)(1)(ii) of the proposed AD should refer to 
Part 2 of the Accomplishment Instructions of Boeing Alert Service 
Bulletin 737-55A1097, dated July 1, 2015. ANA did not provide a reason 
for this request.
    From these statements, we infer that ANA is requesting that we 
revise paragraphs (g)(1)(i) and (g)(1)(ii) of the proposed AD. We agree 
that the changes requested by ANA provide additional clarity. We have 
added ``Part 1 of'' to paragraph (g)(1)(i) and ``Part 2 of'' to 
paragraph (g)(1)(ii) of this AD.

Request for Assurance of Parts Availability

    A4A also requested that, prior to release of the AD, we assure that 
Boeing has sections of the rear spar available for the horizontal 
stabilizer including a typical splice repair plan for each affected 
737-NG fleet. A4A also requested that Boeing also provide or have 
available, horizontal stabilizers that are service ready prior to the 
release of the AD.
    We do not agree. We do not consider that delaying this action until 
Boeing has assured that replacement parts will be available is 
warranted. This AD is issued to address an identified unsafe condition, 
as required by 14 CFR part 39. The determination of the unsafe 
condition, mitigating action, and compliance times in this AD has all 
been coordinated with Boeing. This AD is being issued to address the 
lack of corrosion protection on a critical structural element. As a 
result, dissimilar metal corrosion may cause cracking of the horizontal 
stabilizer rear spar upper chord. With no service history of cracking 
yet reported, it is expected that any cracking will be limited and not 
be a significant disruption to affected operators. We understand that 
Boeing will make horizontal stabilizer parts and assemblies available 
as necessary for operators to address possible on-condition actions. 
However, since it is unknown how many repairs or replacements may be 
necessary and what parts would be necessary for each repair, we cannot 
estimate the type and number of parts needed. If parts availability 
becomes an issue, under the provisions of paragraph (j) of this AD, we 
may approve requests for adjustments to the compliance time for doing a 
repair or replacement if data are submitted to substantiate that such 
an adjustment would provide an acceptable level of safety. We have made 
no changes to this AD in this regard.

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:
     [Agr]re consistent with the intent that was proposed in 
the NPRM for correcting the unsafe condition; and
     Do not add any additional burden upon the public than was 
already proposed in the NPRM.
    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 Alert Service Bulletin 737-55A1097, dated July 
1, 2015. The service information describes procedures for an inspection 
or records check to determine if affected horizontal stabilizers are 
installed, related investigative actions, HFEC inspections for any 
crack of the horizontal stabilizer rear spar upper chord, and 
corrective action if necessary. 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.

Costs of Compliance

    We estimate that this AD affects 1,397 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
----------------------------------------------------------------------------------------------------------------
Inspection or records check...........  1 work-hour x $85 per                 $0             $85        $118,745
                                         hour = $85.
----------------------------------------------------------------------------------------------------------------

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

                                               On-Condition Costs
----------------------------------------------------------------------------------------------------------------
                                                                                                     Cost per
                  Action                                 Labor cost                 Parts cost        product
----------------------------------------------------------------------------------------------------------------
Inspections...............................  4 work-hours x $85 per hour = $340..              $0            $340
----------------------------------------------------------------------------------------------------------------

    According to the manufacturer, some of the costs of this AD may be 
covered under warranty, thereby reducing the cost impact on affected 
individuals. We do not control warranty coverage for affected 
individuals. As a result, we have included all costs in our cost 
estimate.
    We have received no definitive data that would enable us to provide 
cost estimates for the on-condition repairs specified in this AD.

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

[[Page 44507]]

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):

2016-13-16 The Boeing Company: Amendment 39-18581; Docket No. FAA-
2015-6541; Directorate Identifier 2015-NM-135-AD.

(a) Effective Date

    This AD is effective August 12, 2016.

(b) Affected ADs

    None.

(c) Applicability

    (1) This AD applies to all The Boeing Company Model 737-600, -
700, -700C, -800, -900, and 900ER series airplanes, certificated in 
any category.
    (2) Installation of Supplemental Type Certificate (STC) 
ST00830SE (http://rgl.faa.gov/Regulatory_and_Guidance_Library/
rgstc.nsf/0/184de9a71ec3fa5586257eae00707da6/$FILE/ST00830SE.pdf) 
does not affect the ability to accomplish the actions required by 
this AD. Therefore, for airplanes on which STC ST00830SE is 
installed, a ''change in product'' alternative method of compliance 
(AMOC) approval request is not necessary to comply with the 
requirements of 14 CFR 39.17.

(d) Subject

    Air Transport Association (ATA) of America Code 55, Stabilizers.

(e) Unsafe Condition

    This AD was prompted by reports of a manufacturing oversight, in 
which a supplier omitted the required protective finish on certain 
bushings installed in the rear spar upper chord on horizontal 
stabilizers, which could lead to galvanic corrosion and consequent 
cracking of the rear spar upper chord. We are issuing this AD to 
detect and correct cracking of the rear spar upper chord, which can 
result in the failure of the upper chord and consequent departure of 
the horizontal stabilizer from the airplane, which can lead to loss 
of control of the airplane.

(f) Compliance

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

(g) Serial Number Check or Inspection To Determine if Certain 
Horizontal Stabilizers Are Installed, Related Investigative Actions, 
Repetitive Inspections for Cracks, and Corrective Action

    (1) Except as specified in paragraph (h)(1) of this AD, within 
the compliance time identified in paragraph 1.E., ``Compliance,'' of 
Boeing Alert Service Bulletin 737-55A1097, dated July 1, 2015, do 
the actions specified in paragraph (g)(1)(i) or (g)(1)(ii) of this 
AD.
    (i) Do a records check to determine if an affected horizontal 
stabilizer is installed and if any horizontal stabilizer has been 
exchanged, and do all applicable related investigative actions, in 
accordance with Part 1 of the Accomplishment Instructions of Boeing 
Alert Service Bulletin 737-55A1097, dated July 1, 2015. Affected 
horizontal stabilizers are identified in the Accomplishment 
Instructions of Boeing Alert Service Bulletin 737-55A1097, dated 
July 1, 2015.
    (ii) Do an inspection of the horizontal stabilizer 
identification plate to determine if any affected horizontal 
stabilizer is installed, in accordance with Part 2 of the 
Accomplishment Instructions of Boeing Alert Service Bulletin 737-
55A1097, dated July 1, 2015. Affected horizontal stabilizers are 
identified in the Accomplishment Instructions of Boeing Alert 
Service Bulletin 737-55A1097, dated July 1, 2015.
    (2) If, during any action required by paragraph (g)(1)(i) or 
(g)(1)(ii) of this AD, any affected horizontal stabilizer is found: 
Except as specified in paragraph (h)(1) of this AD, within the 
compliance time identified in paragraph 1.E., ``Compliance,'' of 
Boeing Alert Service Bulletin 737-55A1097, dated July 1, 2015, do a 
high frequency eddy current (HFEC) inspection for any crack of the 
horizontal stabilizer rear spar upper chord and do all applicable 
corrective actions, in accordance with the Accomplishment 
Instructions of Boeing Alert Service Bulletin 737-55A1097, dated 
July 1, 2015, except as required by paragraph (h)(2) of this AD. 
Repeat the inspection thereafter at intervals identified in 
paragraph 1.E., ``Compliance,'' of Boeing Alert Service Bulletin 
737-55A1097, dated July 1, 2015.

(h) Exceptions to the Service Information Specifications

    (1) Where Boeing Alert Service Bulletin 737-55A1097, dated July 
1, 2015, specifies a compliance time ``after the original issue date 
of this service bulletin,'' this AD requires compliance within the 
specified compliance time after the effective date of this AD.
    (2) If any cracking is found during any inspection required by 
this AD, and Boeing Alert Service Bulletin 737-55A1097, dated July 
1, 2015, specifies to contact Boeing for appropriate action: Before 
further flight, repair using a method approved in accordance with 
the procedures specified in paragraph (j) of this AD, or replace 
with a serviceable horizontal stabilizer as specified in paragraph 
(i) of this AD.

(i) Parts Installation Restrictions

    As of the effective date of this AD, no person may install a 
horizontal stabilizer on any airplane, except as specified in 
paragraphs (i)(1) and (i)(2) of this AD.
    (1) A horizontal stabilizer may be installed if the part is 
inspected in accordance with ``Part 2: Horizontal Stabilizer 
Identification Plate Inspection'' of the Accomplishments 
Instructions of Boeing Alert Service Bulletin 737-55A1097, dated 
July 1, 2015, and no affected serial number is found.
    (2) A horizontal stabilizer may be installed if the part is 
inspected in accordance with ``Part 2: Horizontal Stabilizer 
Identification Plate Inspection'' of the Accomplishments 
Instructions of Boeing Alert Service Bulletin 737-55A1097, dated 
July 1, 2015, and an affected serial number is found, provided that 
the actions specified in paragraphs (i)(2)(i) and (i)(2)(ii) of this 
AD are done, as applicable.
    (i) Initial and repetitive HFEC inspections specified in 
paragraph (g)(2) of this AD are completed within the compliance 
times specified in paragraph (g)(2) of this AD.
    (ii) All applicable corrective actions are done before further 
flight as required by paragraph (h)(2) of this AD.

(j) 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 (k) of this AD. 
Information may be

[[Page 44508]]

emailed to: 9-ANM-Seattle-ACO-AMOC-Requests@faa.gov.
    (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.
    (4) For service information that contains steps that are labeled 
as Required for Compliance (RC), the provisions of paragraphs 
(j)(4)(i) and (j)(4)(ii) of this AD apply.
    (i) The steps labeled as RC, including substeps under an RC step 
and any figures identified in an RC step, must be done to comply 
with the AD. An AMOC is required for any deviations to RC steps, 
including substeps and identified figures.
    (ii) Steps not labeled as RC may be deviated from using accepted 
methods in accordance with the operator's maintenance or inspection 
program without obtaining approval of an AMOC, provided the RC 
steps, including substeps and identified figures, can still be done 
as specified, and the airplane can be put back in an airworthy 
condition.

(k) Related Information

    For more information about this AD, contact Gaetano Settineri, 
Aerospace Engineer, Airframe Branch, ANM 120S, FAA, Seattle Aircraft 
Certification Office (ACO), 1601 Lind Avenue SW., Renton, WA 98057-
3356; phone: 425-917-6577; fax: 425-917-6590; email: 
gaetano.settineri@faa.gov.

(l) 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 Alert Service Bulletin 737-55A1097, dated July 1, 
2015.
    (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 206-544-5000, extension 1; fax 206-766-5680; Internet 
https://www.myboeingfleet.com.
    (4) You may view this service information at the FAA, 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 June 23, 2016.
Dorr M. Anderson,
Acting Manager, Transport Airplane Directorate, Aircraft Certification 
Service.
[FR Doc. 2016-15904 Filed 7-7-16; 8:45 am]
 BILLING CODE 4910-13-P



                                                                      Federal Register / Vol. 81, No. 131 / Friday, July 8, 2016 / Rules and Regulations                                          44503

                                                (j) Credit for Previous Actions                          Systems Branch, ANM–150S, FAA, Seattle                ACTION:   Final rule.
                                                   This paragraph provides credit for the                Aircraft Certification Office (ACO), 1601 Lind
                                                corresponding actions specified in                       Avenue SW., Renton, WA 98057–3356;                    SUMMARY:    We are adopting a new
                                                paragraphs (g) and (h) of this AD, if those              phone: 425–917–6457; fax: 425–917–6590;               airworthiness directive (AD) for all The
                                                actions were performed before the effective              email: susan.l.monroe@faa.gov.                        Boeing Company Model 737–600, –700,
                                                date of this AD using the applicable service               (2) Service information identified in this          –700C, –800, –900, and –900ER series
                                                information specified in paragraphs (j)(1),              AD that is not incorporated by reference is           airplanes. This AD was prompted by
                                                (j)(2), and (j)(3) of this AD. This service              available at the addresses specified in               reports of a manufacturing oversight, in
                                                information is not incorporated by reference             paragraphs (m)(3) and (m)(4) of this AD.
                                                                                                                                                               which a supplier omitted the required
                                                in this AD.                                              (m) Material Incorporated by Reference                protective finish on certain bushings
                                                   (1) Boeing Alert Service Bulletin B787–
                                                81205–SB380009–00, Issue 001, dated March                   (1) The Director of the Federal Register           installed in the rear spar upper chord on
                                                26, 2015.                                                approved the incorporation by reference               horizontal stabilizers, which could lead
                                                   (2) Boeing Alert Service Bulletin B787–               (IBR) of the service information listed in this       to galvanic corrosion and consequent
                                                81205–SB530029–00, Issue 001, dated March                paragraph under 5 U.S.C. 552(a) and 1 CFR             cracking of the rear spar upper chord.
                                                26, 2015.                                                part 51.                                              This AD requires an inspection or
                                                   (3) Boeing Alert Service Bulletin B787–                  (2) You must use this service information          records check to determine if affected
                                                81205–SB530031–00, Issue 001, dated March                as applicable to do the actions required by
                                                                                                                                                               horizontal stabilizers are installed,
                                                26, 2015.                                                this AD, unless the AD specifies otherwise.
                                                                                                            (i) Boeing Alert Service Bulletin B787–
                                                                                                                                                               related investigative actions, and for
                                                (k) Alternative Methods of Compliance                    81205–SB380009–00, Issue 002, dated                   affected horizontal stabilizers, repetitive
                                                (AMOCs)                                                  December 9, 2015.                                     inspections for any crack of the
                                                   (1) The Manager, Seattle Aircraft                        (ii) Boeing Alert Service Bulletin B787–           horizontal stabilizer rear spar upper
                                                Certification Office (ACO), FAA, has the                 81205–SB530029–00, Issue 002, dated                   chord, and corrective action if
                                                authority to approve AMOCs for this AD, if               January 26, 2016.                                     necessary. We are issuing this AD to
                                                requested using the procedures found in 14                  (iii) Boeing Alert Service Bulletin B787–          detect and correct cracking of the rear
                                                CFR 39.19. In accordance with 14 CFR 39.19,              81205–SB530031–00, Issue 002, dated March             spar upper chord, which can result in
                                                send your request to your principal inspector            16, 2016.                                             the failure of the upper chord and
                                                or local Flight Standards District Office, as               (3) For Boeing service information
                                                                                                                                                               consequent departure of the horizontal
                                                appropriate. If sending information directly             identified in this AD, contact Boeing
                                                to the manager of the ACO, send it to the                Commercial Airplanes, Attention: Data &
                                                                                                                                                               stabilizer from the airplane, which can
                                                attention of the person identified in                    Services Management, P.O. Box 3707, MC                lead to loss of control of the airplane.
                                                paragraph (l)(1) of this AD. Information may             2H–65, Seattle, WA 98124–2207; telephone              DATES: This AD is effective August 12,
                                                be emailed to: 9-ANM-Seattle-ACO-AMOC-                   206–544–5000, extension 1; fax 206–766–               2016.
                                                Requests@faa.gov.                                        5680; Internet https://                                 The Director of the Federal Register
                                                   (2) Before using any approved AMOC,                   www.myboeingfleet.com.                                approved the incorporation by reference
                                                notify your appropriate principal inspector,                (4) You may view this service information          of a certain publication listed in this AD
                                                or lacking a principal inspector, the manager            at the FAA, Transport Airplane Directorate,           as of August 12, 2016.
                                                of the local flight standards district office/           1601 Lind Avenue SW., Renton, WA. For
                                                                                                                                                               ADDRESSES: For service information
                                                certificate holding district office.                     information on the availability of this
                                                   (3) An AMOC that provides an acceptable               material at the FAA, call 425–227–1221.               identified in this final rule, contact
                                                level of safety may be used for any repair,                 (5) You may view this service information          Boeing Commercial Airplanes,
                                                alteration, or modification required by this             that is incorporated by reference at the              Attention: Data & Services Management,
                                                AD if it is approved by the Boeing                       National Archives and Records                         P.O. Box 3707, MC 2H–65, Seattle, WA
                                                Commercial Airplanes Organization                        Administration (NARA). For information on             98124–2207; telephone 206–544–5000,
                                                Designation Authorization (ODA) that has                 the availability of this material at NARA, call       extension 1; fax 206–766–5680; Internet
                                                been authorized by the Manager, Seattle ACO              202–741–6030, or go to: http://                       https://www.myboeingfleet.com. You
                                                to make those findings. For a repair method              www.archives.gov/federal-register/cfr/ibr-            may view this referenced service
                                                to be approved, the repair method,                       locations.html.
                                                                                                                                                               information at the FAA, Transport
                                                modification deviation, or alteration
                                                                                                           Issued in Renton, Washington, on June 23,           Airplane Directorate, 1601 Lind Avenue
                                                deviation must meet the certification basis of
                                                                                                         2016.                                                 SW., Renton, WA. For information on
                                                the airplane, and the approval must
                                                specifically refer to this AD.                           Dorr M. Anderson,                                     the availability of this material at the
                                                   (4) For service information that contains             Acting Manager, Transport Airplane                    FAA, call 425–227–1221. It is also
                                                steps that are labeled as Required for                   Directorate, Aircraft Certification Service.          available on the Internet at http://
                                                Compliance (RC), the provisions of                       [FR Doc. 2016–15911 Filed 7–7–16; 8:45 am]            www.regulations.gov by searching for
                                                paragraphs (k)(4)(i) and (k)(4)(ii) apply.               BILLING CODE 4910–13–P                                and locating Docket No. FAA–2015–
                                                   (i) The steps labeled as RC, including                                                                      6541.
                                                substeps under an RC step and any figures
                                                identified in an RC step, must be done to                                                                      Examining the AD Docket
                                                                                                         DEPARTMENT OF TRANSPORTATION
                                                comply with the AD. An AMOC is required
                                                                                                                                                                 You may examine the AD docket on
                                                for any deviations to RC steps, including
                                                                                                         Federal Aviation Administration                       the Internet at http://
                                                substeps and identified figures.
                                                   (ii) Steps not labeled as RC may be                                                                         www.regulations.gov by searching for
                                                deviated from using accepted methods in                  14 CFR Part 39                                        and locating Docket No. FAA–2015–
                                                accordance with the operator’s maintenance               [Docket No. FAA–2015–6541; Directorate                6541; or in person at the Docket
                                                or inspection program without obtaining                  Identifier 2015–NM–135–AD; Amendment                  Management Facility between 9 a.m.
                                                approval of an AMOC, provided the RC steps,              39–18581; AD 2016–13–16]                              and 5 p.m., Monday through Friday,
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                                                including substeps and identified figures, can                                                                 except Federal holidays. The AD docket
                                                still be done as specified, and the airplane             RIN 2120–AA64                                         contains this AD, the regulatory
                                                can be put back in an airworthy condition.
                                                                                                         Airworthiness Directives; The Boeing                  evaluation, any comments received, and
                                                (l) Related Information
                                                                                                         Company Airplanes                                     other information. The address for the
                                                   (1) For more information about this AD,                                                                     Docket Office (phone: 800–647–5527) is
                                                contact Susan L. Monroe, Aerospace                       AGENCY:Federal Aviation                               Docket Management Facility, U.S.
                                                Engineer, Cabin Safety and Environmental                 Administration (FAA), DOT.                            Department of Transportation, Docket


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                                                44504                 Federal Register / Vol. 81, No. 131 / Friday, July 8, 2016 / Rules and Regulations

                                                Operations, M–30, West Building                          184de9a71ec3fa5586257eae00707da6/                     production airplane once it enters
                                                Ground Floor, Room W12–140, 1200                         $FILE/ST00830SE.pdf) does not affect                  service. As specified in paragraph
                                                New Jersey Avenue SE., Washington,                       the ability to accomplish the actions                 2.B.(2) of Chapter 6 of the AD Manual,
                                                DC 20590.                                                specified in the NPRM.                                FAA–IR–M–8040.1C (http://rgl.faa.gov/
                                                FOR FURTHER INFORMATION CONTACT:                            We concur with the commenter. We                   Regulatory_and_Guidance_Library/
                                                Gaetano Settineri, Aerospace Engineer,                   have redesignated paragraph (c) of the                rgOrders.nsf/0/
                                                Airframe Branch, ANM–120S, FAA,                          proposed AD as paragraph (c)(1) and                   66ddd8e1d2e95db3862577270062aabd/
                                                Seattle Aircraft Certification Office                    added new paragraph (c)(2) to this AD                 $FILE/FAA-IR-M-8040_1C.pdf), when
                                                (ACO), 1601 Lind Avenue SW., Renton,                     to state that installation of STC                     the unsafe condition results from the
                                                WA 98057–3356; phone: 425–917–6577;                      ST00830SE (http://rgl.faa.gov/                        installation of the appliance or part on
                                                fax: 425–917–6590; email:                                Regulatory_and_Guidance_Library/                      an aircraft, the AD action is issued
                                                gaetano.settineri@faa.gov.                               rgstc.nsf/0/                                          against the aircraft, not the appliance or
                                                SUPPLEMENTARY INFORMATION:                               184de9a71ec3fa5586257eae00707da6/                     part. Therefore, we have determined
                                                                                                         $FILE/ST00830SE.pdf) does not affect                  that it is appropriate for this AD to
                                                Discussion                                               the ability to accomplish the actions                 apply to all airplanes of the specified
                                                  We issued a notice of proposed                         required by this final rule. Therefore, for           model types. We have made no changes
                                                rulemaking (NPRM) to amend 14 CFR                        airplanes on which STC ST00830SE is                   to the applicability of this AD.
                                                part 39 by adding an AD that would                       installed, a ‘‘change in product’’
                                                                                                         alternative method of compliance                      Request To Allow Removal and
                                                apply to all The Boeing Company Model                                                                          Replacement of Affected Horizontal
                                                737–600, –700, –700C, –800, –900, and                    (AMOC) approval request is not
                                                                                                         necessary to comply with the                          Stabilizers
                                                –900ER series airplanes. The NPRM
                                                published in the Federal Register on                     requirements of 14 CFR 39.17.                            A4A requested that we revise
                                                November 30, 2015 (80 FR 74726) (‘‘the                                                                         paragraph (h)(2) of the proposed AD to
                                                                                                         Request To Revise the Proposed                        allow removal of an affected horizontal
                                                NPRM’’). The NPRM was prompted by                        Applicability
                                                reports of a manufacturing oversight, in                                                                       stabilizer, and replacement with an
                                                which a supplier omitted the required                       Airlines for America (A4A) requested               unaffected or an affected horizontal
                                                protective finish on certain bushings                    that we revise the applicability of the               stabilizer that is within the parameters
                                                installed in the rear spar upper chord on                proposed AD to state ‘‘This AD applies                of paragraph 1.E. ‘‘Compliance,’’ of
                                                horizontal stabilizers, which could lead                 to all horizontal stabilizers with serial             Boeing Alert Service Bulletin 737–
                                                to galvanic corrosion and consequent                     numbers identified in Boeing SB 737–                  55A1097, dated July 1, 2015. A4A
                                                cracking of the rear spar upper chord.                   55A1097.’’ A4A explained that the                     explained that paragraph (g)(2) of the
                                                The NPRM proposed to require an                          proposed AD is applicable to all Boeing               proposed AD requires that the
                                                inspection or records check to                           Model 737–600, –700, –700C, –800,                     inspection specified in Boeing Alert
                                                determine if affected horizontal                         –900, and –900ER series airplanes;                    Service Bulletin 737–55A1097, dated
                                                stabilizers are installed, related                       however, Boeing Alert Service Bulletin                July 1, 2015, be accomplished on any
                                                investigative actions, and for affected                  737–55A1097, dated July 1, 2015,                      horizontal stabilizer found to be within
                                                horizontal stabilizers, repetitive                       provides a list of affected horizontal                the effectivity of Boeing Alert Service
                                                inspections for any crack of the                         stabilizers by serial number. A4A                     Bulletin 737–55A1097, dated July 1,
                                                horizontal stabilizer rear spar upper                    expressed that the physical plate                     2015, and the compliance times found
                                                chord, and corrective action if                          inspections required by paragraph                     in paragraph 1.E., ‘‘Compliance.’’ A4A
                                                necessary. We are issuing this AD to                     (g)(1)(ii) of the proposed AD are                     expressed that if cracking is found,
                                                                                                         excessive and unneeded, as operators                  operators must repair in accordance
                                                detect and correct cracking of the rear
                                                                                                         normally track serialized components                  with paragraph (h)(2) of the proposed
                                                spar upper chord, which can result in
                                                                                                         without the need to physically inspect                AD; paragraph (h)(2) of the proposed AD
                                                the failure of the upper chord and
                                                                                                         the airframe. A4A further reasoned that               requires repair in accordance with
                                                consequent departure of the horizontal
                                                                                                         when paragraph (c) of the proposed AD                 paragraph (j) of the proposed AD before
                                                stabilizer from the airplane, which can
                                                                                                         is written against all Model 737 Next                 further flight.
                                                lead to loss of control of the airplane.
                                                                                                         Generation airframes, the complexity of                  We agree. We have determined that
                                                Comments                                                 compliance reporting becomes more                     removing a damaged horizontal
                                                  We gave the public the opportunity to                  burdensome. The net result, stated A4A,               stabilizer and replacing it with a
                                                participate in developing this AD. The                   is indefinite record keeping of AD                    serviceable horizontal stabilizer, as
                                                following presents the comments                          compliance for airplanes that are not                 provided in paragraph (i) of this AD,
                                                received on the NPRM and the FAA’s                       equipped with horizontal stabilizers                  addresses the identified unsafe
                                                response to each comment.                                affected by the manufacturing oversight.              condition. We have revised paragraph
                                                                                                            We do not agree to revise the                      (h)(2) of this AD accordingly.
                                                Support for the NPRM                                     applicability of this AD as requested by
                                                                                                         the commenter. Paragraph (g)(1) of this               Request for Review of Other Inspection
                                                   Air Line Pilots Association
                                                                                                         AD gives operators the option of                      Methods
                                                International (ALPA) stated that it
                                                supports the NPRM. Boeing stated that                    performing either a records check or an                 A4A requested that the FAA and
                                                is concurs with the NPRM.                                inspection. If the operator’s records are             Boeing review other non-destructive test
                                                                                                         sufficient to determine the serial                    (NDT) inspection options such as an
                                                Effect of Winglets on Accomplishment                     number of the horizontal stabilizers on               ultrasound process to satisfy the
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                                                of the Proposed Actions                                  the affected airplane, then a physical                proposed inspection requirements. A4A
                                                  Aviation Partners Boeing stated that                   inspection is not required. Furthermore,              pointed out that paragraph (g)(2) of the
                                                installation of winglets per                             the affected horizontal stabilizers are               proposed AD specifies a high frequency
                                                Supplemental Type Certificate (STC)                      rotable parts, so it is possible that an              eddy current (HFEC) method for
                                                ST00830SE (http://rgl.faa.gov/                           affected horizontal stabilizer could be               inspection of the rear spar upper chord.
                                                Regulatory_and_Guidance_Library/                         installed on numerous airplanes during                A4A explained that the FAA should be
                                                rgstc.nsf/0/                                             its service life, even on a new                       aware that other methods, specifically


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                                                                      Federal Register / Vol. 81, No. 131 / Friday, July 8, 2016 / Rules and Regulations                                         44505

                                                ultrasound inspection, may be better                     the proposed AD to reduce the burden                  discovered, and that such action is to be
                                                NDT diagnostic techniques, and that an                   for operators. ANA explained that parts               performed in accordance with
                                                ultrasound inspection, compared to the                   installation is restricted based on its               paragraph (j) of the proposed AD, which
                                                proposed HFEC process, may detect                        serial number, and that paragraph                     is the AMOC section. A4A said that,
                                                early crack development from the fitting                 (i)(2)(i) of the proposed AD requires                 although no known inspections have
                                                holes versus cracking that has                           initial inspection specified in paragraph             revealed cracking, we (the FAA) must
                                                propagated up to and near the surface of                 (g)(2) of the proposed AD before further              believe that findings will occur, and that
                                                the rear spar upper chord.                               flight. ANA expressed that this                       operators would benefit by having
                                                   We partially agree. We agree with the                 requirement is applicable if the flight               guidance from Boeing without the need
                                                commenter that other inspection                          cycles and/or the date of issuance the
                                                                                                                                                               for an AMOC request. Similarly, A4A
                                                methods may be better NDT diagnostic                     original certificate of airworthiness, or
                                                techniques and note that alternative                                                                           expressed, without a repair plan, there
                                                                                                         the original export certificate of
                                                methods of compliance (AMOCs) have                       airworthiness for the horizontal                      should also be a means of terminating
                                                been granted to ADs when updated                         stabilizer are unknown or have already                the inspections entirely. A4A pointed to
                                                service information containing                           exceeded the proposed compliance time                 a recent experience concerning seat
                                                improved procedures to address an                        specified in paragraph (g)(2) of the                  track cracking that exposed the
                                                unsafe condition becomes available.                      proposed AD. ANA reasoned that, if the                difficulties of embarking upon a
                                                   We disagree to include other                          flight cycles and the date of issuance of             required inspection plan without a
                                                inspection options in this final rule,                   the original certificate of airworthiness             defined recovery path. A4A referred to
                                                because the inspection technique                         or the original export certificate of                 AD 2013–23–04, Amendment 39–17659
                                                required in this AD adequately                           airworthiness of the horizontal stabilizer            (78 FR 68693, November 15, 2013) (‘‘AD
                                                addresses the unsafe condition and is                    are known, and the flight cycles and                  2013–23–04’’), and stated that AD also
                                                accompanied by service information,                      years on the horizontal stabilizer are                directed operators to the AMOC process.
                                                which includes detectable crack lengths                  less than the compliance times specified                 We do not agree. An AD is issued to
                                                and inspection intervals. If additional                  in paragraph 1.E., ‘‘Compliance,’’ of
                                                service information that provides                                                                              address an identified unsafe condition,
                                                                                                         Boeing Alert Service Bulletin 737–
                                                alternative NDT inspection methods                                                                             as required by 14 CFR part 39. The
                                                                                                         55A1097, dated July 1, 2015, operators
                                                becomes available, under the provisions                  may conduct the inspection specified in               determination of the unsafe condition,
                                                of paragraph (j) of this AD, we will                     paragraph (g)(2) of this AD at the time               mitigating action, and compliance times
                                                consider requests for approval of an                     specified in paragraph (g)(2) of this AD.             in this AD has all been coordinated with
                                                AMOC if sufficient data are submitted to                    We agree to clarify. An affected                   Boeing. This AD is being issued to
                                                substantiate that the inspection method                  horizontal stabilizer that has not                    address the lack of corrosion protection
                                                would provide an acceptable level of                     reached the inspection threshold or the               on a critical structural element. As a
                                                safety. We have made no changes to this                  next repeat interval is still in                      result, dissimilar metal corrosion may
                                                AD in this regard.                                       compliance with this AD at the time it                cause cracking of the horizontal
                                                Requests for Clarification of Parts                      is installed on the airplane. We have                 stabilizer rear spar upper chord. With
                                                Installation Requirements                                revised paragraph (i)(2)(i) of this AD to             no service history of cracking yet
                                                                                                         read ‘‘Initial and repetitive HFEC                    reported, it is expected that any
                                                   A4A requested that we reword                          inspections specified in paragraph (g)(2)             cracking will be limited and not result
                                                paragraphs (g) and (i) of the proposed                   of this AD are completed within the                   in a significant disruption to affected
                                                AD to allow operators to maintain or                     compliance times specified in paragraph               operators. The inspections required by
                                                install any affected horizontal stabilizer               (g)(2) of this AD.’’ We also agree to
                                                on any airplane, provided that the                                                                             this AD provide an acceptable level of
                                                                                                         clarify that the 10-year compliance time              safety for the affected airplanes. We
                                                horizontal stabilizer is, or will be,                    specified in paragraph 1.E.
                                                inspected as specified in paragraph 1.E.,                                                                      have reviewed with Boeing the
                                                                                                         ‘‘Compliance,’’ of Boeing Alert Service
                                                ‘‘Compliance,’’ of Boeing Alert Service                                                                        implementation issues associated with
                                                                                                         Bulletin 737–55A1097, dated July 1,
                                                Bulletin 737–55A1097, dated July 1,                                                                            AD 2013–23–04 and expect that Boeing
                                                                                                         2015, is measured using the airplane the
                                                2015. A4A explained that paragraphs                      affected horizontal stabilizer was                    will provide us with approvable data for
                                                (i)(1) and (i)(2) of the proposed AD                     delivered on.                                         repair and terminating actions in a
                                                preclude installation of an affected                                                                           timely manner to address any cracking
                                                horizontal stabilizer without                            Request for Specific Repair Instructions              found.
                                                accomplishing the required inspection.                   and Terminating Action
                                                                                                                                                                  For these reasons, we do not consider
                                                A4A explained further that other                           A4A requested that repair instructions              that delaying this action until after the
                                                maintenance activity could cause a                       be provided either in a revision to the               possible release of revised service
                                                horizontal stabilizer to be removed and                  service information, or via the structural            information is warranted, since
                                                reinstalled prior to reaching the                        repair manual (SRM). A4A also                         sufficient technology and service
                                                compliance times specified in Boeing                     requested that the proposed AD be
                                                                                                                                                               information currently exist to
                                                Alert Service Bulletin 737–55A1097,                      revised to include a preventive,
                                                                                                                                                               accomplish the required actions within
                                                dated July 1, 2015. With the potential                   terminating action including the option
                                                                                                         to remove and replace the subject                     the compliance time. However, under
                                                interpretation of paragraph (g)(2) of the
                                                                                                         bushings in the upper chord fitting                   the provisions of paragraph (j) of this
                                                proposed AD being to inspect
                                                immediately, the initial inspection                      during a heavy check schedule. A4A                    AD, we will consider requests for
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                                                would be significantly accelerated, and                  expressed that the NPRM and Boeing                    approval of AMOCs for revised service
                                                the inspection schedule would be                         Alert Service Bulletin 737–55A1097,                   information, repairs, or terminating
                                                altered for the remaining life of the                    dated July 1, 2015, provide neither                   actions if sufficient data are submitted
                                                component.                                               specific repair methods nor a means to                to substantiate they would provide an
                                                   All Nippon Airways (ANA) requested                    terminate the inspections. A4A                        acceptable level of safety. For these
                                                that we clarify the parts installation                   reasoned that the NPRM requires                       reasons, we have made no changes to
                                                restrictions specified in paragraph (i) of               corrective action for any crack that is               this AD in this regard.


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                                                44506                    Federal Register / Vol. 81, No. 131 / Friday, July 8, 2016 / Rules and Regulations

                                                Request To Clarify Specific Parts of the                       condition, mitigating action, and                                with the changes described previously
                                                Service Information                                            compliance times in this AD has all                              and minor editorial changes. We have
                                                   ANA stated that paragraph (g)(1)(i) of                      been coordinated with Boeing. This AD                            determined that these minor changes:
                                                the proposed AD should refer to Part 1,                        is being issued to address the lack of                             • Are consistent with the intent that
                                                and paragraph (g)(1)(ii) of the proposed                       corrosion protection on a critical                               was proposed in the NPRM for
                                                AD should refer to Part 2 of the                               structural element. As a result,                                 correcting the unsafe condition; and
                                                Accomplishment Instructions of Boeing                          dissimilar metal corrosion may cause                               • Do not add any additional burden
                                                Alert Service Bulletin 737–55A1097,                            cracking of the horizontal stabilizer rear                       upon the public than was already
                                                dated July 1, 2015. ANA did not provide                        spar upper chord. With no service                                proposed in the NPRM.
                                                a reason for this request.                                     history of cracking yet reported, it is
                                                                                                                                                                                  We also determined that these
                                                   From these statements, we infer that                        expected that any cracking will be
                                                                                                                                                                                changes will not increase the economic
                                                ANA is requesting that we revise                               limited and not be a significant
                                                                                                                                                                                burden on any operator or increase the
                                                paragraphs (g)(1)(i) and (g)(1)(ii) of the                     disruption to affected operators. We
                                                                                                                                                                                scope of this AD.
                                                proposed AD. We agree that the changes                         understand that Boeing will make
                                                requested by ANA provide additional                            horizontal stabilizer parts and                                  Related Service Information Under 1
                                                clarity. We have added ‘‘Part 1 of’’ to                        assemblies available as necessary for                            CFR Part 51
                                                paragraph (g)(1)(i) and ‘‘Part 2 of’’ to                       operators to address possible on-
                                                                                                               condition actions. However, since it is                            We reviewed Boeing Alert Service
                                                paragraph (g)(1)(ii) of this AD.                                                                                                Bulletin 737–55A1097, dated July 1,
                                                                                                               unknown how many repairs or
                                                Request for Assurance of Parts                                 replacements may be necessary and                                2015. The service information describes
                                                Availability                                                   what parts would be necessary for each                           procedures for an inspection or records
                                                   A4A also requested that, prior to                           repair, we cannot estimate the type and                          check to determine if affected horizontal
                                                release of the AD, we assure that Boeing                       number of parts needed. If parts                                 stabilizers are installed, related
                                                has sections of the rear spar available for                    availability becomes an issue, under the                         investigative actions, HFEC inspections
                                                the horizontal stabilizer including a                          provisions of paragraph (j) of this AD,                          for any crack of the horizontal stabilizer
                                                typical splice repair plan for each                            we may approve requests for                                      rear spar upper chord, and corrective
                                                affected 737–NG fleet. A4A also                                adjustments to the compliance time for                           action if necessary. This service
                                                requested that Boeing also provide or                          doing a repair or replacement if data are                        information is reasonably available
                                                have available, horizontal stabilizers                         submitted to substantiate that such an                           because the interested parties have
                                                that are service ready prior to the release                    adjustment would provide an acceptable                           access to it through their normal course
                                                of the AD.                                                     level of safety. We have made no                                 of business or by the means identified
                                                   We do not agree. We do not consider                         changes to this AD in this regard.                               in the ADDRESSES section.
                                                that delaying this action until Boeing                                                                                          Costs of Compliance
                                                has assured that replacement parts will                        Conclusion
                                                be available is warranted. This AD is                            We reviewed the relevant data,                                   We estimate that this AD affects 1,397
                                                issued to address an identified unsafe                         considered the comments received, and                            airplanes of U.S. registry.
                                                condition, as required by 14 CFR part                          determined that air safety and the                                 We estimate the following costs to
                                                39. The determination of the unsafe                            public interest require adopting this AD                         comply with this AD:
                                                                                                                               ESTIMATED COSTS
                                                                                                                                                                                                   Cost per          Cost on U.S.
                                                                   Action                                                     Labor cost                                       Parts cost          product            operators

                                                Inspection or records check .............        1 work-hour × $85 per hour = $85 ...............................                           $0             $85           $118,745



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

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

                                                Inspections ................   4 work-hours × $85 per hour = $340 ..............................................................................                $0           $340



                                                   According to the manufacturer, some                         estimates for the on-condition repairs                           detail the scope of the Agency’s
                                                of the costs of this AD may be covered                         specified in this AD.                                            authority.
                                                under warranty, thereby reducing the                                                                                               We are issuing this rulemaking under
                                                                                                               Authority for This Rulemaking
                                                cost impact on affected individuals. We
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                                                                                                                                                                                the authority described in Subtitle VII,
                                                do not control warranty coverage for                             Title 49 of the United States Code                             Part A, Subpart III, Section 44701:
                                                affected individuals. As a result, we                          specifies the FAA’s authority to issue                           ‘‘General requirements.’’ Under that
                                                have included all costs in our cost                            rules on aviation safety. Subtitle I,                            section, Congress charges the FAA with
                                                estimate.                                                      section 106, describes the authority of                          promoting safe flight of civil aircraft in
                                                   We have received no definitive data                         the FAA Administrator. Subtitle VII:                             air commerce by prescribing regulations
                                                that would enable us to provide cost                           Aviation Programs, describes in more                             for practices, methods, and procedures


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                                                                      Federal Register / Vol. 81, No. 131 / Friday, July 8, 2016 / Rules and Regulations                                               44507

                                                the Administrator finds necessary for                      (2) Installation of Supplemental Type               paragraph 1.E., ‘‘Compliance,’’ of Boeing
                                                safety in air commerce. This regulation                  Certificate (STC) ST00830SE (http://                  Alert Service Bulletin 737–55A1097, dated
                                                is within the scope of that authority                    rgl.faa.gov/Regulatory_and_Guidance_                  July 1, 2015, do a high frequency eddy
                                                                                                         Library/rgstc.nsf/0/                                  current (HFEC) inspection for any crack of
                                                because it addresses an unsafe condition                 184de9a71ec3fa5586257eae00707da6/$FILE/               the horizontal stabilizer rear spar upper
                                                that is likely to exist or develop on                    ST00830SE.pdf) does not affect the ability to         chord and do all applicable corrective
                                                products identified in this rulemaking                   accomplish the actions required by this AD.           actions, in accordance with the
                                                action.                                                  Therefore, for airplanes on which STC                 Accomplishment Instructions of Boeing Alert
                                                                                                         ST00830SE is installed, a ’’change in                 Service Bulletin 737–55A1097, dated July 1,
                                                Regulatory Findings                                      product’’ alternative method of compliance            2015, except as required by paragraph (h)(2)
                                                  This AD will not have federalism                       (AMOC) approval request is not necessary to           of this AD. Repeat the inspection thereafter
                                                implications under Executive Order                       comply with the requirements of 14 CFR                at intervals identified in paragraph 1.E.,
                                                13132. This AD will not have a                           39.17.                                                ‘‘Compliance,’’ of Boeing Alert Service
                                                                                                                                                               Bulletin 737–55A1097, dated July 1, 2015.
                                                substantial direct effect on the States, on              (d) Subject
                                                the relationship between the national                      Air Transport Association (ATA) of                  (h) Exceptions to the Service Information
                                                government and the States, or on the                     America Code 55, Stabilizers.                         Specifications
                                                distribution of power and                                                                                        (1) Where Boeing Alert Service Bulletin
                                                responsibilities among the various                       (e) Unsafe Condition                                  737–55A1097, dated July 1, 2015, specifies a
                                                levels of government.                                       This AD was prompted by reports of a               compliance time ‘‘after the original issue date
                                                  For the reasons discussed above, I                     manufacturing oversight, in which a supplier          of this service bulletin,’’ this AD requires
                                                certify that this AD:                                    omitted the required protective finish on             compliance within the specified compliance
                                                  (1) Is not a ‘‘significant regulatory                  certain bushings installed in the rear spar           time after the effective date of this AD.
                                                                                                         upper chord on horizontal stabilizers, which            (2) If any cracking is found during any
                                                action’’ under Executive Order 12866,                    could lead to galvanic corrosion and                  inspection required by this AD, and Boeing
                                                  (2) Is not a ‘‘significant rule’’ under                consequent cracking of the rear spar upper            Alert Service Bulletin 737–55A1097, dated
                                                DOT Regulatory Policies and Procedures                   chord. We are issuing this AD to detect and           July 1, 2015, specifies to contact Boeing for
                                                (44 FR 11034, February 26, 1979),                        correct cracking of the rear spar upper chord,        appropriate action: Before further flight,
                                                  (3) Will not affect intrastate aviation                which can result in the failure of the upper          repair using a method approved in
                                                in Alaska, and                                           chord and consequent departure of the                 accordance with the procedures specified in
                                                  (4) Will not have a significant                        horizontal stabilizer from the airplane, which        paragraph (j) of this AD, or replace with a
                                                economic impact, positive or negative,                   can lead to loss of control of the airplane.          serviceable horizontal stabilizer as specified
                                                on a substantial number of small entities                                                                      in paragraph (i) of this AD.
                                                                                                         (f) Compliance
                                                under the criteria of the Regulatory                        Comply with this AD within the                     (i) Parts Installation Restrictions
                                                Flexibility Act.                                         compliance times specified, unless already               As of the effective date of this AD, no
                                                List of Subjects in 14 CFR Part 39                       done.                                                 person may install a horizontal stabilizer on
                                                                                                                                                               any airplane, except as specified in
                                                  Air transportation, Aircraft, Aviation                 (g) Serial Number Check or Inspection To              paragraphs (i)(1) and (i)(2) of this AD.
                                                safety, Incorporation by reference,                      Determine if Certain Horizontal Stabilizers              (1) A horizontal stabilizer may be installed
                                                Safety.                                                  Are Installed, Related Investigative Actions,         if the part is inspected in accordance with
                                                                                                         Repetitive Inspections for Cracks, and                ‘‘Part 2: Horizontal Stabilizer Identification
                                                Adoption of the Amendment                                Corrective Action                                     Plate Inspection’’ of the Accomplishments
                                                  Accordingly, under the authority                          (1) Except as specified in paragraph (h)(1)        Instructions of Boeing Alert Service Bulletin
                                                delegated to me by the Administrator,                    of this AD, within the compliance time                737–55A1097, dated July 1, 2015, and no
                                                                                                         identified in paragraph 1.E., ‘‘Compliance,’’         affected serial number is found.
                                                the FAA amends 14 CFR part 39 as
                                                                                                         of Boeing Alert Service Bulletin 737–                    (2) A horizontal stabilizer may be installed
                                                follows:                                                 55A1097, dated July 1, 2015, do the actions           if the part is inspected in accordance with
                                                                                                         specified in paragraph (g)(1)(i) or (g)(1)(ii) of     ‘‘Part 2: Horizontal Stabilizer Identification
                                                PART 39—AIRWORTHINESS                                    this AD.                                              Plate Inspection’’ of the Accomplishments
                                                DIRECTIVES                                                  (i) Do a records check to determine if an          Instructions of Boeing Alert Service Bulletin
                                                                                                         affected horizontal stabilizer is installed and       737–55A1097, dated July 1, 2015, and an
                                                ■ 1. The authority citation for part 39                  if any horizontal stabilizer has been                 affected serial number is found, provided
                                                continues to read as follows:                            exchanged, and do all applicable related              that the actions specified in paragraphs
                                                    Authority: 49 U.S.C. 106(g), 40113, 44701.           investigative actions, in accordance with Part        (i)(2)(i) and (i)(2)(ii) of this AD are done, as
                                                                                                         1 of the Accomplishment Instructions of               applicable.
                                                § 39.13   [Amended]                                      Boeing Alert Service Bulletin 737–55A1097,               (i) Initial and repetitive HFEC inspections
                                                                                                         dated July 1, 2015. Affected horizontal               specified in paragraph (g)(2) of this AD are
                                                ■ 2. The FAA amends § 39.13 by adding                    stabilizers are identified in the                     completed within the compliance times
                                                the following new airworthiness                          Accomplishment Instructions of Boeing Alert           specified in paragraph (g)(2) of this AD.
                                                directive (AD):                                          Service Bulletin 737–55A1097, dated July 1,              (ii) All applicable corrective actions are
                                                2016–13–16 The Boeing Company:                           2015.                                                 done before further flight as required by
                                                    Amendment 39–18581; Docket No.                          (ii) Do an inspection of the horizontal            paragraph (h)(2) of this AD.
                                                    FAA–2015–6541; Directorate Identifier                stabilizer identification plate to determine if
                                                                                                         any affected horizontal stabilizer is installed,      (j) Alternative Methods of Compliance
                                                    2015–NM–135–AD.                                                                                            (AMOCs)
                                                                                                         in accordance with Part 2 of the
                                                (a) Effective Date                                       Accomplishment Instructions of Boeing Alert              (1) The Manager, Seattle Aircraft
                                                  This AD is effective August 12, 2016.                  Service Bulletin 737–55A1097, dated July 1,           Certification Office (ACO), FAA, has the
                                                                                                         2015. Affected horizontal stabilizers are             authority to approve AMOCs for this AD, if
                                                (b) Affected ADs
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                                                                                                         identified in the Accomplishment                      requested using the procedures found in 14
                                                  None.                                                  Instructions of Boeing Alert Service Bulletin         CFR 39.19. In accordance with 14 CFR 39.19,
                                                                                                         737–55A1097, dated July 1, 2015.                      send your request to your principal inspector
                                                (c) Applicability                                           (2) If, during any action required by              or local Flight Standards District Office, as
                                                   (1) This AD applies to all The Boeing                 paragraph (g)(1)(i) or (g)(1)(ii) of this AD, any     appropriate. If sending information directly
                                                Company Model 737–600, –700, –700C,                      affected horizontal stabilizer is found: Except       to the manager of the ACO, send it to the
                                                –800, –900, and 900ER series airplanes,                  as specified in paragraph (h)(1) of this AD,          attention of the person identified in
                                                certificated in any category.                            within the compliance time identified in              paragraph (k) of this AD. Information may be



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                                                44508                 Federal Register / Vol. 81, No. 131 / Friday, July 8, 2016 / Rules and Regulations

                                                emailed to: 9-ANM-Seattle-ACO-AMOC-                      www.archives.gov/federal-register/cfr/ibr-            Release No. 33–9616, Investment
                                                Requests@faa.gov.                                        locations.html.                                       Advisers Act Release No. IA–3879,
                                                   (2) Before using any approved AMOC,                                                                         Investment Company Act Release No.
                                                                                                           Issued in Renton, Washington, on June 23,
                                                notify your appropriate principal inspector,                                                                   IC–31166, Financial Reporting
                                                                                                         2016.
                                                or lacking a principal inspector, the manager
                                                of the local flight standards district office/           Dorr M. Anderson,                                     Codification No. FR–84 (August 14,
                                                certificate holding district office.                     Acting Manager, Transport Airplane                    2014) (SEC MMF Reform Rules). The
                                                   (3) An AMOC that provides an acceptable               Directorate, Aircraft Certification Service.          regulations also provide guidance
                                                level of safety may be used for any repair               [FR Doc. 2016–15904 Filed 7–7–16; 8:45 am]            regarding information reporting
                                                required by this AD if it is approved by the             BILLING CODE 4910–13–P
                                                                                                                                                               requirements for shares in MMFs.
                                                Boeing Commercial Airplanes Organization                                                                          An MMF is a type of investment
                                                Designation Authorization (ODA) that has                                                                       company registered under the
                                                been authorized by the Manager, Seattle                                                                        Investment Company Act of 1940 (1940
                                                ACO, to make those findings. For a repair                DEPARTMENT OF THE TREASURY                            Act) and regulated as an MMF under
                                                method to be approved, the repair must meet                                                                    Rule 2a–7 under the 1940 Act (17 CFR
                                                the certification basis of the airplane, and the         Internal Revenue Service
                                                approval must specifically refer to this AD.
                                                                                                                                                               270.2a–7). MMFs have historically
                                                   (4) For service information that contains             26 CFR Part 1                                         sought to keep stable the prices at which
                                                steps that are labeled as Required for                                                                         their shares are distributed, redeemed,
                                                Compliance (RC), the provisions of                       [TD 9774]                                             and repurchased. The securities that
                                                paragraphs (j)(4)(i) and (j)(4)(ii) of this AD                                                                 Rule 2a–7 permits an MMF to hold
                                                                                                         RIN 1545–BM04
                                                apply.                                                                                                         generally result in no more than
                                                   (i) The steps labeled as RC, including                                                                      minimal fluctuations in the MMF’s net
                                                substeps under an RC step and any figures
                                                                                                         Method of Accounting for Gains and
                                                                                                         Losses on Shares in Money Market                      asset value per share (NAV).1
                                                identified in an RC step, must be done to                                                                         MMFs meeting the requirements of
                                                comply with the AD. An AMOC is required                  Funds; Broker Returns With Respect
                                                                                                         to Sales of Shares in Money Market                    Rule 2a–7 have been permitted to value
                                                for any deviations to RC steps, including
                                                substeps and identified figures.                         Funds                                                 their assets based on the assets’ cost,
                                                   (ii) Steps not labeled as RC may be                                                                         with certain adjustments (amortized
                                                deviated from using accepted methods in                  AGENCY:  Internal Revenue Service (IRS),              cost method), and to price their shares
                                                accordance with the operator’s maintenance               Treasury.                                             by rounding the resulting NAV to the
                                                or inspection program without obtaining                  ACTION: Final regulations.                            nearest 1 percent (penny rounding).
                                                approval of an AMOC, provided the RC steps,                                                                    These methods have enabled MMFs to
                                                including substeps and identified figures, can           SUMMARY:   This document contains final               maintain constant share prices in almost
                                                still be done as specified, and the airplane             regulations that provide a simplified                 all circumstances. Because most MMFs
                                                can be put back in an airworthy condition.               method of accounting for gains and                    target a $1.00 share price, an MMF that
                                                (k) Related Information                                  losses on shares in money market funds                fails to maintain a constant share price
                                                  For more information about this AD,                    (MMFs). The final regulations also                    is said to ‘‘break the buck.’’
                                                contact Gaetano Settineri, Aerospace                     provide guidance regarding information                   The SEC MMF Reform Rules generally
                                                Engineer, Airframe Branch, ANM 120S, FAA,                reporting requirements for shares in                  bar the use of the amortized cost method
                                                Seattle Aircraft Certification Office (ACO),             MMFs. The final regulations respond to                and penny rounding for certain MMFs
                                                1601 Lind Avenue SW., Renton, WA 98057–                  Securities and Exchange Commission                    (floating-NAV MMFs) and require a
                                                3356; phone: 425–917–6577; fax: 425–917–                 (SEC) rules that change the amount for                floating-NAV MMF to value its assets
                                                6590; email: gaetano.settineri@faa.gov.                  which certain MMF shares are                          using market factors and to round its
                                                (l) Material Incorporated by Reference                   distributed, redeemed, and repurchased.               price per share to the nearest basis point
                                                   (1) The Director of the Federal Register              The final regulations affect MMFs and                 (the fourth decimal place, in the case of
                                                approved the incorporation by reference                  their shareholders.                                   a fund with a $1.0000 share price).
                                                (IBR) of the service information listed in this          DATES: Effective date: These regulations              Certain government-security-focused
                                                paragraph under 5 U.S.C. 552(a) and 1 CFR                are effective on July 8, 2016.                        MMFs (government MMFs) and certain
                                                part 51.                                                    Applicability dates: For the dates of              MMFs the beneficial owners of which
                                                   (2) You must use this service information             applicability, see §§ 1.446–7(e) and                  are limited to natural persons (retail
                                                as applicable to do the actions required by                                                                    MMFs) may continue to use the
                                                this AD, unless the AD specifies otherwise.
                                                                                                         1.6045–1(c)(3)(vi)(B).
                                                                                                         FOR FURTHER INFORMATION CONTACT:
                                                                                                                                                               amortized cost method and penny
                                                   (i) Boeing Alert Service Bulletin 737–
                                                55A1097, dated July 1, 2015.                             Grace Cho at (202) 317–6895 (not a toll-              rounding. (A government MMF or retail
                                                   (ii) Reserved.                                        free number).                                         MMF that continues to use the
                                                   (3) For Boeing service information                                                                          amortized cost method and penny
                                                                                                         SUPPLEMENTARY INFORMATION:
                                                identified in this AD, contact Boeing                                                                          rounding is called a stable-NAV MMF.)
                                                Commercial Airplanes, Attention: Data &                  Background                                               The SEC MMF Reform Rules also
                                                Services Management, P.O. Box 3707, MC                                                                         establish circumstances under which an
                                                2H–65, Seattle, WA 98124–2207; telephone                   This document contains amendments                   MMF is permitted or required to impose
                                                206–544–5000, extension 1; fax 206–766–                  to 26 CFR part 1 (Income Tax                          a liquidity fee or is permitted to impose
                                                5680; Internet https://                                  Regulations) under sections 446 and                   a redemption gate. When an MMF has
                                                www.myboeingfleet.com.                                   6045 of the Internal Revenue Code                     a liquidity fee in effect, the liquidity fee
                                                   (4) You may view this service information             (Code). The regulations provide a
                                                at the FAA, 1601 Lind Avenue SW., Renton,                                                                      reduces the proceeds received by all
                                                                                                         method of accounting for gain or loss on              redeeming shareholders. A redemption
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                                                WA. For information on the availability of               shares in MMFs and are intended to
                                                this material at the FAA, call 425–227–1221.                                                                   gate is the temporary suspension of
                                                                                                         simplify tax compliance for holders of                redemptions of shares in the MMF.
                                                   (5) You may view this service information
                                                that is incorporated by reference at the
                                                                                                         shares in MMFs affected by SEC                        Liquidity fees and redemption gates
                                                National Archives and Records                            regulations that impose liquidity fees or
                                                Administration (NARA). For information on                change how certain MMF shares are                       1 Note that the term ‘‘NAV’’ is used throughout
                                                the availability of this material at NARA, call          priced. See Money Market Fund Reform;                 this document to indicate the per-share amount that
                                                202–741–6030, or go to: http://                          Amendments to Form PF, Securities Act                 may be described elsewhere as ‘‘NAV per share.’’



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Document Created: 2016-07-08 00:17:28
Document Modified: 2016-07-08 00:17:28
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 August 12, 2016.
ContactGaetano Settineri, Aerospace Engineer, Airframe Branch, ANM-120S, FAA, Seattle Aircraft Certification Office (ACO), 1601 Lind Avenue SW., Renton, WA 98057-3356; phone: 425-917- 6577; fax: 425-917-6590; email: [email protected]
FR Citation81 FR 44503 
RIN Number2120-AA64
CFR AssociatedAir Transportation; Aircraft; Aviation Safety; Incorporation by Reference and Safety

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