[Federal Register Volume 78, Number 221 (Friday, November 15, 2013)]
[Notices]
[Pages 68897-68901]
[FR Doc No: 2013-27320]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-70836; File No. SR-EDGX-2013-40]

Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
EDGX Rule 3.5 (Advertising Practices) and To Repeal Rule 3.20 (Initial
or Partial Payments) To Conform with the Rules of the Financial
Industry Regulatory Authority, Inc.

November 8, 2013.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Exchange Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby
given that on October 28, 2013, EDGX Exchange, Inc. (``Exchange'' or
``EDGX'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which items have been substantially prepared by the Exchange.
The Exchange has designated the proposed rule change as constituting a
``non-controversial'' rule change under Exchange Act Rule 19b-4(f)(6),
which renders the proposal effective upon receipt of this filing by the
Commission.\3\ The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend EDGX Rule 3.5 (Advertising
Practices) and repeal EDGX Rule 3.20 (Initial or Partial Payments) to
conform with the rules of the Financial Industry Regulatory Authority,
Inc. (``FINRA'') for purposes of an agreement between the Exchange and
FINRA pursuant to Exchange Act Rule 17d-2.\4\ The text of the proposed
rule change is available on the Exchange's Web site at http://www.directedge.com, at the Exchange's principal office, and at the
Commission's Public Reference Room.
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    \4\ 17 CFR 240.17d-2.
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II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements
concerning the purpose of, and basis for, the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B and C below, of the most significant aspects of such
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change

1. Purpose
    Pursuant to Exchange Act Rule 17d-2,\5\ the Exchange and FINRA
entered into an agreement to allocate regulatory responsibility for
common rules (``17d-2 Agreement''). The 17d-2 Agreement covers common
members of the Exchange and FINRA (``Common Members'') and allocates to
FINRA regulatory responsibility, with respect to Common Members, for
the following: (i) Examination of Common Members for compliance with
federal securities laws,

rules and regulations and rules of the Exchange that the Exchange has
certified as identical or substantially similar to FINRA rules; (ii)
investigation of Common Members for violations of federal securities
laws, rules and regulations, and the rules of the Exchange that the
Exchange has certified as identical or substantially identical to FINRA
rules; and (iii) enforcement of compliance by Common Members with the
federal securities laws, rules and regulations, and the rules of the
Exchange that the Exchange has certified as identical or substantially
similar to FINRA rules.
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    \5\ Id.
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    The 17d-2 Agreement included a certification by the Exchange that
states that the requirements contained in certain Exchange rules are
identical to, or substantially similar to, certain FINRA rules that
have been identified as comparable. To conform with comparable FINRA
rules for purposes of the 17d-2 Agreement, the Exchange proposes to:
(i) amend EDGX Rule 3.5 (Advertising Practices) and (ii) repeal EDGX
Rule 3.20 (Initial or Partial Payments).
EDGX Rule 3.5 (Advertising Practices)
    The Exchange proposes to delete the current text of Rule 3.5 and
adopt text that would require Exchange members to comply with FINRA
Rule 2210 as if such Rule were part of the Exchange's rules and to
rename the rule ``Communications with the Public.'' \6\ The proposed
rule text is substantially the same as Rule 2210(a) of the Nasdaq Stock
Market LLC (``Nasdaq''), which was approved by the Commission.\7\
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    \6\ The Exchange does not propose to require that its members
comply with subparagraph (c) of FINRA Rule 2210. FINRA Rule 2210(c)
generally requires that FINRA members file certain communications
with FINRA. The Exchange believes that it is inappropriate for its
rules to require its members to file certain communications with
FINRA as such filing requirements under FINRA rules are between
FINRA and its members.
    \7\ See Exchange Act Release No. 58069 (Jun. 30, 2008), 73 FR
39360 (Jul. 9, 2008) (Notice of Filing and Immediate Effectiveness).
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    Currently, Exchange Rule 3.5(d) and (f) are excluded from the 17d-2
Agreement because they are not are identical to, or substantially
similar to, certain FINRA rules. First, Exchange Rule 3.5(d) requires
that advertising and sales literature be pre-approved and signed or
initialed by a supervisor while FINRA Rule 2210(b) only requires
supervisory pre-approval for retail communication, and imposes
different supervisory review standards for institutional communication,
and correspondence. Second, Rule 3.5(f) and FINRA Rule 2210(d)(6)
contain different content requirements for testimonials. Exchange Rule
3.5(d) and (f) were, therefore, excluded from the 17d-2 Agreement
because their requirements were not identical or substantially similar
to those required under FINRA Rule 2210(b) and (d)(6) respectively. To
harmonize its rules with FINRA, the Exchange proposes to delete the
current text of Rule 3.5 and adopt text that would require its members
to comply with FINRA Rule 2210 as if it was part of the Exchange's
rules so that Rule 3.5 can be incorporated into the 17d-2 Agreement in
its entirety.
    The Exchange believes that these changes would help to avoid
confusion among its members that are also FINRA members by further
aligning the Exchange Rule 3.5 with FINRA Rule 2210. The proposed
changes to Rule 3.5 are designed to enable the Exchange to incorporate
Rule 3.5 into the 17d-2 Agreement, further reducing duplicative
regulation of Exchange members that are also FINRA members.
Summary of FINRA Rule 2210
    FINRA Rule 2210 generally sets forth the content, filing,
supervisory review, and record retention for FINRA members'
communications with the public. A summary of FINRA Rule 2210 is below.
A complete description of FINRA Rule 2210 is provided in FINRA's
Regulatory Notice 12-29.\8\
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    \8\ See FINRA Regulatory Notice 12-29 (June 2012) available at
http://finra.complinet.com/net_file_store/new_rulebooks/f/i/FINRANotice12_29.pdf.
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    FINRA Rule 2210 divides a member's communications with the public
into the following three categories:
     Institutional communication. FINRA Rule 2210(a)(3) defines
``institutional communication'' as ``any written (including electronic)
communication that is distributed or made available only to
institutional investors, but does not include a member's internal
communications.''
     Retail communication. FINRA Rule 2210(a)(5) defines
``retail communication'' as ``any written (including electronic)
communication that is distributed or made available to more than 25
retail investors within any 30-day calendar period.'' ``Retail
investor'' includes any person other than an institutional investor,
regardless of whether the person has an account with the firm.
Communications that are considered advertisements and sales literature
fall under the definition of ``retail communication.''
     Correspondence. FINRA Rule 2210(a)(2) defines
``correspondence'' as ``any written (including electronic)
communication that is distributed or made available to fewer than 25
retail investors within any 30-day calendar period.''
    Supervisory Review. To comply with FINRA Rules 2210(b)'s
supervisory requirements, Common Members must obtain supervisory pre-
approval of all retail communications, while institutional
communications and correspondence would be subject to supervisory
review, but not pre-approval.
    Under FINRA Rule 2210(b)(1), all retail communications must be
approved by a supervisor prior to their first use or filing with FINRA
under FINRA Rule 2210(c). FINRA's Rule 2210(b)(1)'s supervisory
requirements do not apply to a retail communication if, at the time
that a member intends to publish or distribute it: (i) Another member
has filed it with FINRA and has received a letter from FINRA stating
that it appears to be consistent with applicable standards; and (ii)
the member has not materially altered it and will not use it in a
manner that is inconsistent with the conditions of FINRA's letter. The
rule's supervisory review requirements also do not apply to the
following retail communications, provided that the member supervises
and reviews such communications in the same manner as required for
supervising and reviewing correspondence pursuant to NASD Rule 3010(d):
(i) Any retail communication that is excepted from the definition of
``research report'' pursuant to NASD Rule 2711(a)(9)(A), unless the
communication makes any financial or investment recommendation; (ii)
any retail communication that is posted on an online interactive
electronic forum; and (iii) any retail communication that does not make
any financial or investment recommendation or otherwise promote a
product or service of the member.
    For institutional communications, FINRA Rule 2210(b)(3) requires a
member to establish written procedures that are appropriate to its
business, size, structure, and customers for the review by an
appropriately qualified registered principal of institutional
communications used by the member and its associated persons. Such
procedures must be reasonably designed to ensure that institutional
communications comply with applicable standards. When such procedures
do not require review of all institutional communications prior to
their first use or distribution, they must include provisions for: (i)
The education and training of associated persons as to the firm's
procedures governing institutional communications; (ii) the
documentation of such education and

training; and (iii) surveillance and follow-up to ensure that such
procedures are implemented and adhered to. A member must maintain and
make available to FINRA upon request evidence that these supervisory
procedures have been implemented and carried out.
    FINRA Rule 2210(b)(2) states that correspondence is subject to the
supervision and review requirements of NASD Rule 3010(d). Under NASD
Rule 3010(d)(2), each member shall develop written procedures that are
appropriate to its business, size, structure, and customers for the
review of incoming and outgoing written (i.e., non-electronic) and
electronic correspondence with the public relating to its investment
banking or securities business. These written procedures should include
procedures: (i) To review incoming, written correspondence directed to
registered representatives and related to the member's investment
banking or securities business; (ii) to properly identify and handle
customer complaints; and (iii) to ensure that customer funds and
securities are handled in accordance with firm procedures. When such
procedures do not require review of all correspondence prior to their
first use or distribution, they must include provisions for: (i) The
education and training of associated persons as to the firm's
procedures governing correspondence; (ii) the documentation of such
education and training; and (iii) surveillance and follow-up to ensure
that such procedures are implemented and adhered to.
    Record Retention. Under FINRA Rule 2210(b)(4)(A), members must
maintain all retail communications and institutional communications for
the retention period required by Exchange Act Rule 17a-4(b) and in a
format and media that comply with Exchange Act Rule 17a-4. The records
must include:
     A copy of the communication and the dates of first and (if
applicable) last use of such communication;
     the name of any registered principal who approved the
communication and the date that approval was given;
     in the case of a retail communication or an institutional
communication that is not approved prior to first use by a registered
principal, the name of the person who prepared or distributed the
communication;
     information concerning the source of any statistical
table, chart, graph or other illustration used in the communication;
and
     for any retail communication for which principal approval
is not required pursuant to FINRA Rule 2210(b)(1)(C), the name of the
member that filed the retail communication with the Department, and a
copy of the corresponding review letter from the Department.
    Filing Requirements. Like Nasdaq Rule 2210(a), Exchange Rule 3.5
would expressly state that Exchange members would not be required to
comply with FINRA Rule 2210(c). FINRA Rule 2210(c) generally requires
FINRA members to file certain retail communications with FINRA prior to
their first use. Exchange members who are also FINRA members would
continue to be subject to FINRA Rule 2210(c).
    Content Standards. FINRA Rule 2210(d) sets forth general content
standards for all communications. More specifically, all member
communications must be based on principles of fair dealing and good
faith, must be fair and balanced, and must provide a sound basis for
evaluating the facts in regard to any particular security or type of
security, industry, or service. No member may omit any material fact or
qualification if the omission, in light of the context of the material
presented, would cause the communication to be misleading. No member
may make any false, exaggerated, unwarranted, promissory or misleading
statement or claim in any communication. No member may publish,
circulate or distribute any communication that the member knows or has
reason to know contains any untrue statement of a material fact or is
otherwise false or misleading. Information may be placed in a legend or
footnote only in the event that such placement would not inhibit an
investor's understanding of the communication. Members must ensure that
statements are clear and not misleading within the context in which
they are made, and that they provide balanced treatment of risks and
potential benefits. Communications must be consistent with the risks of
fluctuating prices and the uncertainty of dividends, rates of return
and yield inherent to investments. Members must consider the nature of
the audience to which the communication will be directed and must
provide details and explanations appropriate to the audience.
    Communications may also not predict or project performance, imply
that past performance will recur or make any exaggerated or unwarranted
claim, opinion or forecast; provided, however, communications may
include: (i) A hypothetical illustration of mathematical principles,
provided that it does not predict or project the performance of an
investment or investment strategy; (ii) an investment analysis tool, or
a written report produced by an investment analysis tool, that meets
the requirements of FINRA Rule 2214; and (iii) a price target contained
in a research report on debt or equity securities, provided that the
price target has a reasonable basis, the report discloses the valuation
methods used to determine the price target, and the price target is
accompanied by disclosure concerning the risks that may impede
achievement of the price target.
    Testimonials. FINRA Rule 2210(d)(6) requires that: (i) If a
testimonial in a communication includes a technical aspect of
investing, the person making the testimonial must have the knowledge
and expertise to form a valid opinion; and (ii) retail communications
or correspondence providing any testimonial concerning the investment
advice or investment performance of a member or its products must also
prominently disclose that the testimonial: (a) may not be
representative of the experience of other customers; (b) is no
guarantee of future performance or success; and (c) is a paid
testimonial, if more than $100 in value has been paid.
    Recommendations. FINRA Rule 2210(d)(7)(A) requires that retail
communications that include a recommendation of securities must have a
reasonable basis for the recommendation and must disclose, if
applicable, the following: (i) That at the time the communication was
published or distributed, the member was making a market in the
security being recommended, or in the underlying security if the
recommended security is an option or security future, or that the
member or associated persons will sell to or buy from customers on a
principal basis; (ii) that the member or any associated person that is
directly and materially involved in the preparation of the content of
the communication has a financial interest in any of the securities of
the issuer whose securities are recommended, and the nature of the
financial interest (including, without limitation, whether it consists
of any option, right, warrant, future, long or short position), unless
the extent of the financial interest is nominal; and (iii) that the
member was manager or co-manager of a public offering of any securities
of the issuer whose securities are recommended within the past 12
months. Members must provide, or offer to furnish upon request,
available investment information supporting the recommendation. When a
member

recommends a corporate equity security, the member must provide the
price at the time the recommendation is made.
    Retail communication or correspondence may not refer, directly or
indirectly, to past specific recommendations of the member that were or
would have been profitable to any person; provided, however, that a
retail communication or correspondence may set out or offer to furnish
a list of all recommendations as to the same type, kind, grade or
classification of securities made by the member within the immediately
preceding period of not less than one year, if the communication or
list: (i) States the name of each such security recommended, the date
and nature of each such recommendation (e.g., whether to buy, sell or
hold), the market price at that time, the price at which the
recommendation was to be acted upon, and the market price of each such
security as of the most recent practicable date; and (ii) contains the
following cautionary legend, which must appear prominently within the
communication or list: ``it should not be assumed that recommendations
made in the future will be profitable or will equal the performance of
the securities in this list.''
Rule 3.20 (Initial or Partial Payments)
    The Exchange also proposes to delete Exchange Rule 3.20. In January
2010, FINRA repealed NASD Rule 2450 (Initial or Partial Payments) and
does not currently include a comparable rule in its rulebook.\9\ Like
NASD Rule 2450, Exchange Rule 3.20 prohibits any arrangement whereby
the customer of an Exchange member submits partial or installment
payments for the purchase of a security with the following exceptions:
(i) If a member is acting as agent or broker in such transaction, it
must immediately make an actual purchase of the security for the
account of the customer, and immediately take possession or control of
the security and maintain possession or control of the security as long
as the member is under the obligation to deliver the security to the
customer; (ii) if a member is acting as principal in such transaction,
it must, at the time of the transaction, own such security and maintain
possession or control of the security as long as the member is under
the obligation to deliver the security to the customer; and (iii) if
applicable to the member, the provisions of Regulation T \10\ of the
Federal Reserve Board are satisfied. Rule 3.20 also prohibits a member,
whether acting as principal or agent, in connection with any
installment or partial sales transaction, from making any agreement
with a customer whereby the member would be allowed to pledge or
hypothecate any security involved in such transaction for any amount in
excess of the indebtedness of the customer to such member.
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    \9\ See Exchange Act Release No. 61542 (Feb. 18, 2010), 75 FR
8768 (Feb. 25, 2010) (Order approving proposal to repeal NASD Rule
2450).
    \10\ Federal Reserve Board, Regulation T (Credit by Brokers and
Dealers), 12 CFR 220 et seq.
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    The Exchange proposes to repeal Exchange Rule 3.20 in light of the
explicit provisions in Regulation T requiring the deposit of sufficient
funds within the specified payment period. Specifically, Section 220.8
of Regulation T permits the purchase of a security in the cash account
predicated on either: (i) There being sufficient funds in the account;
or (ii) the member accepts in good faith the customer's agreement that
full cash payment will be made.\11\ The rule further stipulates that
payment must be made within a specified payment period.\12\ Regulation
T also allows the purchase of a security in a margin account, whereby a
customer must deposit an initial requirement, based upon the amount of
the transaction, within the specified payment period.
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    \11\ See Section 220.8(a)(1) of Regulation T.
    \12\ According to Section 220.2 of Regulation T, payment period
means the number of business days in the standard securities
settlement cycle in the United States, as defined in Exchange Act
Rule 15c6-1(a) (17 CFR 240.15c6-1(a)), plus two business days.
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    The Exchange also believes the hypothecation prohibition in
Exchange Rule 3.20 would no longer be relevant because it is predicated
on a partial or installment payment under the rule. The Exchange notes
that, notwithstanding the repeal of Rule 3.20, members would still be
required to comply with all applicable federal securities laws,
including Regulation T.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with Exchange Act Section 6(b)(5),\13\ which requires, among other
things, that the Exchange's rules be designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to foster cooperation and coordination with
persons engaged in facilitating transactions in securities, and to
remove impediments to and perfect the mechanism of a free and open
market and a national market system. The Exchange believes that the
proposed rule change would further these requirements by eliminating
duplicative and unnecessary rules and advancing the development of a
more efficient and effective Exchange rulebook. The Exchange believes
that the proposed rule change would provide greater harmonization
between the Exchange and FINRA rules of similar purpose, resulting in
greater uniformity and less burdensome and more efficient regulatory
compliance. As such, the proposed rule change would foster cooperation
and coordination with persons engaged in facilitating transactions in
securities and would remove impediments to and perfect the mechanism of
a free and open market and a national market system.
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    \13\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change would
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Exchange Act. The Exchange
believes that the proposed rule change is not designed to address any
competitive issues but rather to provide greater harmonization among
similar Exchange and FINRA rules, resulting in less burdensome and more
efficient regulatory compliance for Common Members and facilitating
FINRA's performance of its regulatory functions under the 17d-2
Agreement.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

    The Exchange has neither solicited nor received written comments on
the proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    The Exchange filed the proposed rule change pursuant to Exchange
Act Section 19(b)(3)(A) \14\ and Rule 19b-4(f)(6) \15\ thereunder.
Because the proposed rule change does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative for 30
days after the date of the filing, or such shorter time as the
Commission may designate if consistent with the protection of investors
and the public interest, the proposed rule change has become effective
pursuant to Exchange Act Section 19(b)(3)(A) and Rule 19b-4(f)(6)
thereunder.\16\
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    \14\ 15 U.S.C. 78s(b)(3)(A).
    \15\ See supra note 3.
    \16\ Exchange Act Rule 19b-4(f)(6) also requires the Exchange to
give the Commission written notice of its intent to file the
proposed rule change, along with a brief description and text of the
proposed rule change, at least five business days prior to the date
of filing of the proposed rule change, or such shorter time as
designated by the Commission. The Exchange satisfied this
requirement.

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    A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative for 30 days after the date of filing. Pursuant to
Rule 19b-4(f)(6)(iii), however, the Commission may designate a shorter
time if such action is consistent with the protection of investors and
the public interest.\17\ The Exchange has asked the Commission to waive
the 30-day operative delay so that the proposal may become operative
immediately upon filing.
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    \17\ 17 CFR 240.19b-4(f)(6)(iii).
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    The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest
because it will allow the Exchange to immediately conform its rules to
corresponding FINRA rules. This will ensure that such EDGX rules will
continue to be covered by the existing 17d-2 Agreement between the
Exchange and FINRA. As noted by the Exchange, amending EDGX Rule 3.5
would harmonize Exchange and FINRA rules of similar purpose reducing
duplicative regulation of Common Members. In addition, the Commission
believes that the repeal of Rule 3.20 would eliminate an unnecessary
rule from the Exchange's rulebook. Accordingly, the Commission hereby
grants the Exchange's request and waives the 30-day operative
delay.\18\
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    \18\ For purposes of waiving the 30-day operative delay, the
Commission has considered the proposed rule's impact on efficiency,
competition and capital formation. See 15 U.S.C. 78c(f).
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    At any time within sixty (60) days of the filing of such proposed
rule change, the Commission may summarily temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Exchange Act.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Exchange Act. Comments may be submitted
by any of the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please
include File Number SR-EDGX-2013-40 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.

All submissions should refer to File Number SR-EDGX-2013-40. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Web site (http://www.sec.gov/rules/sro.shtml). Copies
of the submission, all subsequent amendments, all written statements
with respect to the proposed rule change that are filed with the
Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for Web site viewing and printing in
the Commission's Public Reference Room, 100 F Street NE., Washington,
DC 20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change; the Commission does not edit
personal identifying information from submissions. You should submit
only information that you wish to make available publicly. All
submissions should refer to File Number SR-EDGX-2013-40 and should be
submitted on or before December 6, 2013.
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    \19\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-27320 Filed 11-14-13; 8:45 am]
BILLING CODE 8011-01-P


DCTM_ ARP. xls Surface N Leached N Reg Scenari Operation lb/ yr lb/ yr BaselineCattle Baseline Beef 6,358,935 17,101,285 BaselinePoultry Baseline Broiler 0 0 BaselineDairy Baseline Dairy 2,787,424 12,353,033 BaselineDairy Baseline Heifer 394,471 2,788,859 BaselinePoultry Baseline Layers 0 0 BaselinePoultry ( wet) Baseline Layers ( wet) 1,678,762 5,777,299 BaselineSwine Baseline Swine combined 662,501 2,221,505 BaselineSwine Baseline Swine slaughter 8,890,811 24,096,801 BaselinePoultry Baseline Turkey 0 0 BaselineVeal Baseline Veal 0 0 BaselineTotal Baseline Total 20,772,905 64,338,782 Option 1Cattle Option 1 Beef 6,358,935 17,101,285 Option 1Poultry Option 1 Broiler 0 0 Option 1Dairy Option 1 Dairy 2,787,424 12,353,033 Option 1Dairy Option 1 Heifer 394,471 2,788,859 Option 1Poultry Option 1 Layers 0 0 Option 1Poultry ( wet) Option 1 Layers ( wet) 1,678,762 5,777,299 Option 1Swine Option 1 Swine combined 662,501 2,221,505 Option 1Swine Option 1 Swine slaughter 8,890,811 24,096,801 Option 1Poultry Option 1 Turkey 0 0 Option 1Veal Option 1 Veal 0 0 Option 1Total Option 1 Total 20,772,905 64,338,782 Option 2Cattle Option 2 Beef 6,358,935 17,101,285 Option 2Poultry Option 2 Broiler 0 0 Option 2Dairy Option 2 Dairy 2,787,424 12,353,033 Option 2Dairy Option 2 Heifer 394,471 2,788,859 Option 2Poultry Option 2 Layers 0 0 Option 2Poultry ( wet) Option 2 Layers ( wet) 1,678,762 5,777,299 Option 2Swine Option 2 Swine combined 662,501 2,221,505 Option 2Swine Option 2 Swine slaughter 8,890,811 24,096,801 Option 2Poultry Option 2 Turkey 0 0 Option 2Veal Option 2 Veal 0 0 Option 2Total Option 2 Total 20,772,905 64,338,782 Option 3Cattle Option 3 Beef 0 17,101,285 Option 3Poultry Option 3 Broiler 0 0 Option 3Dairy Option 3 Dairy 0 12,353,033 Option 3Dairy Option 3 Heifer 0 2,788,859 Option 3Poultry Option 3 Layers 0 0 Option 3Poultry ( wet) Option 3 Layers ( wet) 0 5,777,299 Option 3Swine Option 3 Swine combined 0 2,221,505 Option 3Swine Option 3 Swine slaughter 0 24,096,801 Option 3Poultry Option 3 Turkey 0 0 Option 3Veal Option 3 Veal 0 0 Option 3Total Option 3 Total 0 64,338,782 Option 5aCattle Option 5 Beef 6,358,935 17,101,285 Option 5aPoultry Option 5 Broiler 0 0 DCTM_ ARP. xls Option 5aDairy Option 5 Dairy 2,787,424 12,353,033 Option 5aDairy Option 5 Heifer 394,471 2,788,859 Option 5aPoultry Option 5 Layers 0 0 Option 5Poultry ( wet) Option 5 Layers ( wet) 1,678,762 5,777,299 Option 5Swine Option 5 Swine combined 662,501 2,221,505 Option 5Swine Option 5 Swine slaughter 8,890,811 24,096,801 Option 5aPoultry Option 5 Turkey 0 0 Option 5aVeal Option 5 Veal 0 0 Option 5Total Option 5 Total 20,772,905 64,338,782 Option 6Cattle Option 6 Beef 6,358,935 17,101,285 Option 6Poultry Option 6 Broiler 0 0 Option 6Dairy Option 6 Dairy 2,787,424 12,353,033 Option 6Dairy Option 6 Heifer 394,471 2,788,859 Option 6Poultry Option 6 Layers 0 0 Option 6Poultry ( wet) Option 6 Layers ( wet) 1,678,762 5,777,299 Option 6Swine Option 6 Swine combined 662,501 2,221,505 Option 6Swine Option 6 Swine slaughter 8,890,811 24,096,801 Option 6Poultry Option 6 Turkey 0 0 Option 6Veal Option 6 Veal 0 0 Option 6Total Option 6 Total 20,772,905 64,338,782 Option 7Cattle Option 7 Beef 6,358,935 17,101,285 Option 7Poultry Option 7 Broiler 0 0 Option 7Dairy Option 7 Dairy 2,787,424 12,353,033 Option 7Dairy Option 7 Heifer 394,471 2,788,859 Option 7Poultry Option 7 Layers 0 0 Option 7Poultry ( wet) Option 7 Layers ( wet) 1,678,762 5,777,299 Option 7Swine Option 7 Swine combined 662,501 2,221,505 Option 7Swine Option 7 Swine slaughter 8,890,811 24,096,801 Option 7Poultry Option 7 Turkey 0 0 Option 7Veal Option 7 Veal 0 0 Option 7Total Option 7 Total 20,772,905 64,338,782 DCTM_ ARP. xls N Surface P Leached P P Sediment Sed BOD lb/ yr lb/ yr tons/ yr lb/ yr 23 0 0 0 0 0 0 0 0 0 0 0 0 0 15 0 0 0 0 0 0 3 0 0 0 0 0 0 0 0 0 0 0 0 0 7 0 0 0 0 0 0 3 0 0 0 0 0 0 33 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 85 0 0 0 0 0 0 23 0 0 0 0 0 0 0 0 0 0 0 0 0 15 0 0 0 0 0 0 3 0 0 0 0 0 0 0 0 0 0 0 0 0 7 0 0 0 0 0 0 3 0 0 0 0 0 0 33 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 85 0 0 0 0 0 0 23 0 0 0 0 0 0 0 0 0 0 0 0 0 15 0 0 0 0 0 0 3 0 0 0 0 0 0 0 0 0 0 0 0 0 7 0 0 0 0 0 0 3 0 0 0 0 0 0 33 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 85 0 0 0 0 0 0 17 0 0 0 0 0 0 0 0 0 0 0 0 0 12 0 0 0 0 0 0 3 0 0 0 0 0 0 0 0 0 0 0 0 0 6 0 0 0 0 0 0 2 0 0 0 0 0 0 24 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 64 0 0 0 0 0 0 23 0 0 0 0 0 0 0 0 0 0 0 0 0 DCTM_ ARP. xls 15 0 0 0 0 0 0 3 0 0 0 0 0 0 0 0 0 0 0 0 0 7 0 0 0 0 0 0 3 0 0 0 0 0 0 33 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 85 0 0 0 0 0 0 23 0 0 0 0 0 0 0 0 0 0 0 0 0 15 0 0 0 0 0 0 3 0 0 0 0 0 0 0 0 0 0 0 0 0 7 0 0 0 0 0 0 3 0 0 0 0 0 0 33 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 85 0 0 0 0 0 0 23 0 0 0 0 0 0 0 0 0 0 0 0 0 15 0 0 0 0 0 0 3 0 0 0 0 0 0 0 0 0 0 0 0 0 7 0 0 0 0 0 0 3 0 0 0 0 0 0 33 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 85 0 0 0 0 0 0 DCTM_ ARP. xls BOD FC FC FS FS Zn Cu 10 10 cfu/ yr 10 10 cfu/ yr lb/ yr lb/ yr 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 DCTM_ ARP. xls 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 DCTM_ ARP. xls Cd Ni Pb As Metals lb/ yr lb/ yr lb/ yr lb/ yr 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 DCTM_ ARP. xls 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000 0 0 0 0 0.000


[Federal Register Volume 76, Number 136 (Friday, July 15, 2011)]
[Rules and Regulations]
[Pages 41647-41651]
[FR Doc No: 2011-17399]

=======================================================================
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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2010-1305; Directorate Identifier 2010-NM-074-AD;
Amendment 39-16749; AD 2011-15-02]
RIN 2120-AA64

Airworthiness Directives; Lockheed Martin Corporation/Lockheed
Martin Aeronautics Company Model 382, 382B, 382E, 382F, and 382G
Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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

SUMMARY: We are superseding an existing airworthiness directive (AD)
for all Model 382, 382B, 382E, 382F, and 382G airplanes. That AD
currently requires revising the FAA-approved maintenance program by
incorporating new airworthiness limitations for fuel tank systems to
satisfy Special Federal Aviation Regulation No. 88 requirements. That
AD also requires the accomplishment of certain fuel system
modifications, the initial inspections of certain repetitive fuel
system limitations to phase in those inspections, and repair if
necessary. This new AD corrects certain part number references, adds an
additional inspection area, and for certain airplanes, requires certain
actions to be re-accomplished according to revised service information.
This AD was prompted by a report of incorrect accomplishment
information in the service information cited by the existing AD. We are
issuing this AD to prevent the potential for ignition sources inside
fuel tanks caused by latent failures, alterations, repairs, or
maintenance actions, which, in combination with flammable fuel vapors,
could result in a fuel tank explosion and consequent loss of the
airplane.

DATES: This AD is effective August 19, 2011.
    The Director of the Federal Register approved the incorporation by
reference of a certain publication listed in the AD as of August 19,
2011.
    The Director of the Federal Register approved the incorporation by
reference of a certain other publication listed in this AD as of
November 3, 2008 (73 FR 56464, dated September 29, 2008).

ADDRESSES: For service information identified in this AD, contact
Lockheed Martin Corporation/Lockheed Martin Aeronautics Company,
Airworthiness Office, Dept. 6A0M, Zone 0252, Column P-58, 86 S. Cobb
Drive, Marietta, Georgia 30063; telephone<PHONE_NUMBER>; fax 770-494-
5445; e-mail<EMAIL_ADDRESS>Internet http://www.lockheedmartin.com/ams/tools/TechPubs.html. You may review copies
of the referenced service information at the FAA, Transport Airplane
Directorate, 1601 Lind Avenue, SW., Renton, Washington. For information
on the availability of this material at the FAA, call<PHONE_NUMBER>.

Examining the AD Docket

    You may examine the AD docket on the Internet at http://www.regulations.gov; 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:<PHONE_NUMBER>) is Document Management Facility,
U.S. Department of Transportation, Docket Operations, M-30, West
Building

Ground Floor, Room W12-140, 1200 New Jersey Avenue, SE., Washington, DC
20590.

FOR FURTHER INFORMATION CONTACT: Neil Duggan, Aerospace Engineer,
Propulsion and Services Branch, ACE-118A, FAA, Atlanta Aircraft
Certification Office, 1701 Columbia Avenue, College Park, GA 30337;
phone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>; e-mail:
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Discussion

    We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR
part 39 to supersede airworthiness directive (AD) 2008-20-01, amendment
39-15680 (73 FR 56464, September 29, 2008). That AD applies to the
specified products. The NPRM published in the Federal Register on
January 5, 2011 (76 FR 485). That NPRM proposed to continue to require
revising the maintenance program by incorporating new airworthiness
limitations for fuel tank systems to satisfy Special Federal Aviation
Regulation No. 88 requirements. That NPRM also proposed to continue to
require the accomplishment of certain fuel system modifications, the
initial inspections of certain repetitive fuel system limitations to
phase in those inspections, and repair if necessary. That NPRM also
proposed to correct certain part number references, add an additional
inspection area, and for certain airplanes, require certain actions to
be re-accomplished according to revised service information.

Comments

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

Request To Revise Cost Estimate

    Lynden Air Cargo requested that the cost for revising the
Instructions for Continued Airworthiness be included in the Costs of
Compliance estimate. Lynden Air Cargo stated that there is a
significant amount of work-hours associated with revising ``company
manuals, job cards, maintenance programs, computerized tracking
programs and record keeping documents'' so that the operator can comply
with the requirements of a new AD. Lynden Air Cargo estimated that
these actions will take at least 80 work-hours for its office staff,
and estimated that this cost would affect other operators. Lynden Air
Cargo also pointed out that this work load for the office staff will
have a greater impact on smaller fleet operators with smaller staff.
    We agree that a requirement of the new AD will require an update of
the maintenance program to incorporate references to revised service
information. This action is estimated to take approximately 1 work-hour
per airplane. However, we disagree with increasing the estimated work-
hours for the time that it takes for writing job cards, tracking
programs, or record-keeping, since those actions are not directly
required by this AD. The costs specified by Lynden Air Cargo will not
be the same for all operators. The Costs of Compliance estimate has
been revised accordingly.

Conclusion

    We reviewed the relevant data, considered the comment received, and
determined that air safety and the public interest require adopting the
AD as proposed.

Costs of Compliance

    There are about 62 airplanes of the affected design in the
worldwide fleet. The following table provides the estimated costs for
U.S. operators to comply with this AD. The average labor rate per hour
is $85. The costs of the new requirements of this AD are as follows:

                                         Estimated Costs for New Actions
----------------------------------------------------------------------------------------------------------------
                                                                                Number of U.S.-
           Action               Work hours          Parts           Cost per       registered       Fleet cost
                                                                    airplane        airplanes
----------------------------------------------------------------------------------------------------------------
Inspection of fuel probes...              24  None............  $2,040, per                  24  $48,960, per
                                                                 inspection                       inspection
                                                                 cycle.                           cycle.
Maintenance program revision               1  None............  $85............              24  $2,040.
Actions necessary for                     24  None............  $2,040.........              24  $48,960.
 airplanes on which Lockheed
 Service Bulletin 382-28-19,
 Revision 3, dated November
 30, 2006, has been done.
----------------------------------------------------------------------------------------------------------------

    The current costs for AD 2008-20-01 are repeated for the
convenience of affected operators, as follows:

                              Estimated Costs for Actions Required by AD 2008-20-01
----------------------------------------------------------------------------------------------------------------
                                                                                Number of U.S.-
            Action               Work hours          Parts           Cost per       registered      Fleet cost
                                                                      product        airplanes
----------------------------------------------------------------------------------------------------------------
Maintenance program revision.               1  None.............             $85              24          $2,040
Installation of new, improved              12  $10,288..........         $11,308              24        $271,392
 fuel dump masts.
Dry bay zonal inspection,                 952  None.............         $80,920              24      $1,942,080
 inspection and repair of
 static ground terminals,
 marking the wiring for the
 fuel quantity indicating
 system, initial inspection
 of lightning and static
 bonding jumpers.
Installation of GFIs and                  120  $115,000.........        $125,200              24      $3,004,800
 flame arrestors.
Initial inspection of GFIs                  8  None.............            $680              24         $16,320
 and flame arrestors.
Installation of lightning                 910  $10,000..........         $87,350              24      $2,096,400
 bonding jumpers.

Sealant application..........             320  None.............         $27,200              24        $652,800
----------------------------------------------------------------------------------------------------------------

Authority for this Rulemaking

    Title 49 of the United States Code specifies the FAA's authority to
issue rules on aviation safety. Subtitle I, Section 106, describes the
authority of the FAA Administrator. Subtitle VII, Aviation Programs,
describes in more detail the scope of the Agency's authority.
    We are issuing this rulemaking under the authority described in
Subtitle VII, Part A, Subpart III, Section 44701, ``General
requirements.'' Under that section, Congress charges the FAA with
promoting safe flight of civil aircraft in air commerce by prescribing
regulations for practices, methods, and procedures the Administrator
finds necessary for safety in air commerce. This regulation is within
the scope of that authority because it addresses an unsafe condition
that is likely to exist or develop on products identified in this
rulemaking action.

Regulatory Findings

    We have determined that 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 removing airworthiness directive (AD)
2008-20-01, Amendment 39-15680 (73 FR 56464, September 29, 2008), and
adding the following new AD:

2011-15-02 Lockheed Martin Corporation/Lockheed Martin Aeronautics
Company: Amendment 39-16749; Docket No. FAA-2010-1305; Directorate
Identifier 2010-NM-074-AD.

Effective Date

    (a) This airworthiness directive (AD) is effective August 19,
2011.

Affected ADs

    (b) This AD supersedes AD 2008-20-01, Amendment 39-15680.

Applicability

    (c) This AD applies to all Lockheed Martin Corporation/Lockheed
Martin Aeronautics Company Model 382, 382B, 382E, 382F, and 382G
airplanes, certificated in any category.

    Note 1:  This AD requires revisions to certain operator
maintenance documents to include new inspections. Compliance with
these inspections is required by 14 CFR 91.403(c). For airplanes
that have been previously modified, altered, or repaired in the
areas addressed by these inspections, the operator may not be able
to accomplish the inspections described in the revisions. In this
situation, to comply with 14 CFR 91.403(c), the operator must
request approval for an alternative method of compliance according
to paragraph (o) of this AD. The request should include a
description of changes to the required inspections that will ensure
the continued operational safety of the airplane.

Subject

    (d) Air Transport Association (ATA) of America Code 28: Fuel.

Unsafe Condition

    (e) This AD results from a design review of the fuel tank
systems. The Federal Aviation Administration is issuing this AD to
prevent the potential for ignition sources inside fuel tanks caused
by latent failures, alterations, repairs, or maintenance actions,
which, in combination with flammable fuel vapors, could result in a
fuel tank explosion and consequent loss of the airplane.

Compliance

    (f) You are responsible for having the actions required by this
AD performed within the compliance times specified, unless the
actions have already been done.

RESTATEMENT OF REQUIREMENTS OF AD 2008-20-01, WITH NEW SERVICE
INFORMATION:

Maintenance Program Revision

    (g) Before December 16, 2008, revise the maintenance program to
incorporate the fuel system limitations (FSLs) and the critical
design configuration control limitations (CDCCLs) specified in the
Accomplishment Instructions of the Lockheed Service Bulletin 382-28-
22, Revision 3, dated March 28, 2008; except as provided by
paragraphs (g)(1), (g)(2), and (g)(3) of this AD, and except that
the modifications and initial inspections specified in table 1 of
this AD must be done at the compliance time specified in paragraph
(h) of this AD.
    (1) For the CDCCLs specified in paragraphs 2.C.(3)(e),
2.C.(3)(h), 2.C.(4)(a), 2.C.(5)(c), 2.C.(7)(h), and 2.C.(8) of the
Accomplishment Instructions of Lockheed Service Bulletin 382-28-22,
Revision 3, dated March 28, 2008, do the applicable actions in
accordance with the Accomplishment Instructions of Lockheed Service
Bulletin 382-28-19, Revision 3, dated November 30, 2006; or Revision
4, dated September 18, 2008. After the effective date of this AD,
use only Revision 4.
    (2) Where paragraph 2.C.(1)(c) of the Accomplishment
Instructions of Lockheed Service Bulletin 382-28-22, Revision 3,
dated March 28, 2008, specifies to change the maintenance program to
indicate that repetitive inspections of the lightning and static
bonding jumpers must be done in accordance with Lockheed Service
Bulletin 382-28-21, instead do the repetitive inspections in
accordance with Lockheed Service Bulletin 382-28-19, Revision 3,
dated November 30, 2006; or Revision 4, dated September 18, 2008.
After the effective date of this AD, use only Revision 4.
    (3) Where Lockheed Service Bulletin 382-28-22, Revision 3, dated
March 28, 2008, specifies to inspect, this AD requires doing a
general visual inspection.

    Note 2: For the purposes of this AD, a general visual inspection
is: ``A visual examination of an interior or exterior area,
installation, or assembly to detect obvious damage, failure, or
irregularity. This level of inspection is made from within touching
distance unless otherwise specified. A mirror may be necessary to
ensure visual access to all surfaces in the inspection area. This
level of inspection is made under normally available lighting
conditions such as daylight, hangar lighting, flashlight, or
droplight and may require removal or opening of access panels or
doors. Stands,

ladders, or platforms may be required to gain proximity to the area
being checked.''

Fuel System Modifications, Initial Inspections, and Repair if Necessary

    (h) Within 36 months after November 3, 2008 (the effective date
of AD 2008-20-01), do the applicable actions specified in table 1 of
this AD, and repair any discrepancy before further flight, in
accordance with the Accomplishment Instructions of Lockheed Service
Bulletin 382-28-22, Revision 3, dated March 28, 2008.

             Table 1--Modifications and Initial Inspections
------------------------------------------------------------------------
                                          Additional source of guidance
                 Action                    for accomplishing the action
------------------------------------------------------------------------
For airplanes having any serial number   Lockheed Service Bulletin 382-
 prior to 4962: Install new, improved     28-9, dated May 13, 1983.
 fuel dump masts in accordance with
 paragraph 2.C.(1)(d) of the
 Accomplishment Instructions of
 Lockheed Service Bulletin 382-28-22,
 Revision 3, dated March 28, 2008.
Mark the fuel quantity indicating        Lockheed Service Bulletin 382-
 system (FQIS) wires in accordance with   28-19, Revision 4, dated
 paragraphs 2.C.(1)(a)2, 2.C.(4)(b),      September 18, 2008.
 and 2.C.(4)(c) of the Accomplishment
 Instructions of Lockheed Service
 Bulletin 382-28-22, Revision 3, dated
 March 28, 2008.
Do the dry bay zonal inspection and      Lockheed Service Bulletin 382-
 inspect the static ground terminals of   28-19, Revision 4, dated
 the fuel system plumbing in accordance   September 18, 2008.
 with paragraph 2.C.(1)(a) of the
 Accomplishment Instructions of
 Lockheed Service Bulletin 382-28-22,
 Revision 3, dated March 28, 2008.
Install ground fault interrupters        Lockheed Service Bulletin 382-
 (GFIs) and flame arrestors for           28-20, Revision 11, dated
 protection of the fuel system in         April 20, 2010.
 accordance with paragraphs 2.C.(1)(b)
 and 2.C.(7)(c) of the Accomplishment
 Instructions of Lockheed Service
 Bulletin 382-28-22, Revision 3, dated
 March 28, 2008.
Inspect the GFIs for protection of the   Paragraph 2.C.(2) of the
 fuel system in accordance with           Accomplishment Instructions of
 paragraph 2.C.(1)(b)1 of the             Lockheed Service Bulletin 382-
 Accomplishment Instructions of           28-22, Revision 3, dated March
 Lockheed Service Bulletin 382-28-22,     28, 2008.
 Revision 3, dated March 28, 2008.
Install the lightning bonding jumpers    Lockheed Service Bulletin 382-
 (straps) in accordance with paragraphs   28-21, Revision 4, dated
 2.C.(1)(c) and 2.C.(6)(a) of the         January 6, 2010.
 Accomplishment Instructions of
 Lockheed Service Bulletin 382-28-22,
 Revision 3, dated March 28, 2008.
Inspect the lightning and static         Lockheed Service Bulletin 382-
 bonding jumpers (straps) in accordance   28-19, Revision 4, dated
 with paragraphs 2.C.(1)(c) of the        September 18, 2008.
 Accomplishment Instructions of
 Lockheed Service Bulletin 382-28-22,
 Revision 3, dated March 28, 2008.
Apply a certain sealant to the interior  Lockheed Service Bulletin 382-
 of the main wing fuel tanks; and apply   28-24, Revision 1, dated
 a certain sealant to the all external    November 5, 2007, including
 fuel tank nose caps, mid sections, and   the Errata Notice, dated
 tail sections; as applicable; in         January 7, 2008.
 accordance with paragraphs
 2.C.(1)(e)1, 2.C.(1)(e)3, and
 2.C.(7)(i)1 of the Accomplishment
 Instructions of Lockheed Service
 Bulletin 382-28-22, Revision 3, dated
 March 28, 2008.
------------------------------------------------------------------------

No Alternative Inspections, Inspection Intervals, or CDCCLs

    (i) After accomplishing the actions specified in paragraphs (g)
and (h) of this AD, no alternative inspections, inspection
intervals, or CDCCLs may be used unless the inspections, intervals,
or CDCCLs are approved as an alternative method of compliance in
accordance with the procedures specified in paragraph (o) of this
AD.

No Reporting Requirement

    (j) Although Lockheed Service Bulletin 382-28-19, Revision 3,
dated November 30, 2006, specifies to notify Lockheed of any
discrepancies found during inspection, this AD does not require that
action.

NEW REQUIREMENTS OF THIS AD:

Incorrect Steps in a Service Bulletin

    (k) Where the last two bulleted steps of paragraphs 2.C.(2)(b)5
and 2.C.(2)(c)3 of Lockheed Service Bulletin 382-28-22, Revision 3,
dated March 28, 2008, specify that the GFI FAILURE and GROUND FAULT
DETECTED lights illuminate for 2 seconds, this AD does not require
those steps.

Additional Inspection Area

    (l) For airplanes on which Lockheed Service Bulletin 382-28-19,
Revision 3, dated November 30, 2006, has not been done: Where table
1 of this AD specifies to do the dry bay zonal inspection, do an
inspection of the fuel probes as part of the dry bay zonal
inspections, in accordance with the service information specified in
paragraph (h) of this AD for the dry bay zonal inspections. Do the
inspections at the time specified in paragraph (h) of this AD, or
within 9 months after the effective date of this AD, whichever
occurs later.

Actions for Airplanes on Which a Previous Issue of Lockheed Service
Bulletin 382-28-19 Was Done

    (m) For airplanes on which any action was done in accordance
with Lockheed Service Bulletin 382-28-19, Revision 3, dated November
30, 2006: Within the compliance time specified in paragraph (h) of
this AD, or within 9 months after the effective date of this AD,
whichever occurs later, do the actions required by paragraphs (m)(1)
through (m)(4) of this AD and repair any discrepancy before further
flight, in accordance with Accomplishment Instructions of Lockheed
Service Bulletin 382-28-19, Revision 4, dated September 18, 2008.
Although Lockheed Service Bulletin 382-28-19, Revision 4, dated
September 18, 2008, specifies to notify Lockheed of any
discrepancies found during inspection, this AD does not require that
action.
    (1) Inspect the fuel probes as part of the zonal inspections of
the dry bay areas and other areas.
    (2) Inspect generator feeder and control wire bundles for
correct separation from other wires in the wing leading edge and
fuselage areas, and for correct separation from fuel tank boundaries
in the wing leading edge area.
    (3) Inspect for correct spot-tying of certain wire bundles that
are within 2 to 12 inches of hot equipment or wires with flame-
resistant lacing braid, or, for wiring in powerplant areas, with
fiberglass braid.
    (4) Inspect for use of the correct shielding specification and
separation of the FQIS wiring in certain locations from alternating
current (AC) power wires.

Credit for Actions Accomplished in Accordance With Previous Service
Information

    (n) Actions done before the effective date of this AD in
accordance with Lockheed

Service Bulletin 382-28-20, Revision 8, dated October 13, 2009;
Revision 9, dated December 14, 2009; or Revision 10, dated March 18,
2010; are acceptable for compliance with the requirements of
paragraph (h) of this AD.

Alternative Methods of Compliance (AMOCs)

    (o)(1) The Manager, Atlanta 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 the Related Information
section of this AD.
    (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) AMOCs approved for AD 2008-20-01 are approved as AMOCs for
this AD.

Related Information

    (p) For more information about this AD, contact Neil Duggan,
Aerospace Engineer, Propulsion and Services Branch, ACE-118A, FAA,
Atlanta Aircraft Certification Office, 1701 Columbia Avenue, College
Park, GA 30337; phone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>; e-mail:
<EMAIL_ADDRESS>
Material Incorporated by Reference

    (q) You must use Lockheed Service Bulletin 382-28-19, Revision
4, dated September 18, 2008; or Lockheed Service Bulletin 382-28-22,
Revision 3, dated March 28, 2008; as applicable; to do the actions
required by this AD, unless the AD specifies otherwise.
    (1) The Director of the Federal Register approved the
incorporation by reference of Lockheed Service Bulletin 382-28-19,
Revision 4, dated September 18, 2008, under 5 U.S.C. 552(a) and 1
CFR part 51.
    (2) The Director of the Federal Register previously approved the
incorporation by reference of Lockheed Service Bulletin 382-28-22,
Revision 3, dated March 28, 2008, on November 3, 2008 (73 FR 56464,
September 29, 2008).
    (3) For service information identified in this AD, contact
Lockheed Martin Corporation/Lockheed Martin Aeronautics Company,
Airworthiness Office, Dept. 6A0M, Zone 0252, Column P-58, 86 S. Cobb
Drive, Marietta, Georgia 30063; telephone<PHONE_NUMBER>; fax 770-494-
5445; e-mail<EMAIL_ADDRESS>Internet http://www.lockheedmartin.com/ams/tools/TechPubs.html.
    (4) You may review copies of the service information at the FAA,
FAA, Transport Airplane Directorate, 1601 Lind Avenue, SW., Renton,
Washington. For information on the availability of this material at
the FAA, call<PHONE_NUMBER>.
    (5) You may also review copies of the service information that
is incorporated by reference at the National Archives and Records
Administration (NARA). For information on the availability of this
material at an NARA facility, call<PHONE_NUMBER>, or go to http://www.archives.gov/federal_register/code_of_federal_regulations/ibr_locations.html.

    Issued in Renton, Washington, on July 1, 2011.
Jeffrey E. Duven,
Acting Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. 2011-17399 Filed 7-14-11; 8:45 am]
BILLING CODE 4910-13-P