[Federal Register: October 6, 2009 (Volume 74, Number 192)]
[Notices]
[Page 51364]
[DOCID:fr06oc09-122]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

Notice of Intent To Rule on Application 09-22-C-00-ORD To Impose
and Use the Revenue From a Passenger Facility Charge (PFC) at Chicago
O'Hare International Airport, Chicago, IL

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of Intent to Rule on Application.

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SUMMARY: The FAA proposes to rule and invites public comment on the
application to impose and use the revenue from a PFC Chicago O'Hare
International Airport under the provisions of the 49 U.S.C. 40117 and
Part 158 of the Federal Aviation Regulations (14 CFR Part 158).

DATES: Comments must be received on or before date which is 30 days
after date of publication in the Federal Register.

ADDRESSES: Comments on this application may be mailed or delivered in
triplicate to the FAA at the following address: Jack Delaney, Federal
Aviation Administration, Acting Manager, Chicago Airports District
Office, 2300 E. Devon, Des Plaines, Illinois 60018.
    In addition, one copy of any comments submitted to the FAA must be
mailed or delivered to Rosemarie Andolino, Commissioner of the City of
Chicago Department of Aviation at the following address: Chicago O'Hare
International Airport, 10510 West Zemke Road, P.O. Box 66142, Chicago,
Illinois 60666.
    Air carriers and foreign air carriers may submit copies of written
comments previously provided to the City of Chicago Department of
Aviation under section 158.23 of Part 158.

FOR FURTHER INFORMATION CONTACT: Jack Delaney, Federal Aviation
Administration, Acting Manager, Chicago Airports District Office, 2300
E. Devon, Des Plaines, Illinois 60018,<PHONE_NUMBER>. The application
may be reviewed in person at this same location.

SUPPLEMENTARY INFORMATION: The FAA proposes to rule and invites public
comment on the application to impose, use the revenue from, impose and
use the revenue from a PFC at Chicago O'Hare International Airport
under the provisions of the 49 U.S.C. 40117 and Part 158 of the Federal
Aviation Regulations (14 CFR Part 158).
    On September 17, 2009, the FAA determined that the application to
impose, use the revenue from, impose and use the revenue from a PFC
submitted by City of Chicago Department of Aviation was substantially
complete within the requirements of section 158.25 of Part 158. The FAA
will approve or disapprove the application, in whole or in part, no
later than January 1, 2010.
    The following is a brief overview of the application.
    Proposed charge effective date: May 1, 2026.
    Proposed charge expiration date: April 1, 2028.
    Level of the proposed PFC: $4.50.
    Total estimated PFC revenue: $274,750,247.
    Brief description of proposed project(s): Remaining O'Hare
Modernization Program Residential Sound Insulation.
    Class or classes of air carriers which the public agency has
requested not be required to collect PFCs: Air taxi.
    Any person may inspect the application in person at the FAA Office
listed above under FOR FURTHER INFORMATION CONTACT and at the FAA
regional Airports office located at: 2300 E. Devon, Des Plaines,
Illinois 60018.
    In addition, any person may, upon request, inspect the application,
notice and other documents germane to the application in person at the
City of Chicago Department of Aviation.

    Issued in Des Plaines, Illinois, on September 21, 2009.
Elliott Black,
Manager, Planning/Programming Branch, Airports Division Great Lakes
Region.
[FR Doc. E9-23942 Filed 10-5-09; 8:45 am]

BILLING CODE 4910-13-M


[Federal Register: March 9, 2010 (Volume 75, Number 45)]
[Notices]
[Page 10851-10853]
[DOCID:fr09mr10-101]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61629; File No. SR-NYSEAmex-2010-18)

Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing of
Proposed Rule Change Relating to the Designation of a ``Professional
Customer''

March 2, 2010.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on February 25, 2010, NYSE Amex LLC (``NYSE Amex'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the self-regulatory
organization. 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\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to designate any Customer that places more
than 390 orders in listed options per day on average during a calendar
month for its own beneficial account(s) as a ``Professional Customer.''
The text of the proposed rule change is attached as Exhibit 5 to the
19b-4 form. A copy of this filing is available on the Exchange's Web
site at http://www.nyse.com, at the Exchange's principal office and at
the Commission's Public Reference Room.

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 self-regulatory organization
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 those 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 parts of such statements.

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

1. Purpose
    Under NYSE Amex rules, a ``Customer'' is an individual or
organization that is not a Broker/Dealer.\4\ This term is used in
specific NYSE Amex rules that provide certain marketplace advantages to
Customer orders over non-customer orders (e.g., orders for the account
of ATP holders or broker/dealers). In particular, under NYSE Amex
rules, subject to certain exceptions, (i) Customer orders are given
priority over non-customer orders and Market-Maker quotes at the same
price,\5\ and (ii) ATP holders are generally not charged a transaction
fee for the execution of Customer orders. The purpose of providing
these marketplace advantages to Customer orders is to attract retail
investor order flow to the Exchange by leveling the playing field for
retail investors over market professionals\6\ and to provide
competitive pricing.
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    \4\ See NYSE Amex Rule 900.2NY(18).
    \5\ See, e.g., NYSE Amex Rule 963NY Priority and Order
Allocation Procedures--Open Outcry, 963.1NY Complex Order
Transactions, 964NY Display, Priority and Order Allocation--Trading
Systems, and 980NY(b) Priority of Complex Orders in the Consolidated
Book.
    \6\ Market professionals have access to sophisticated trading
systems that contain functionality not available to retail
investors, including things such as continuously updated pricing
models based on real-time streaming data, access to multiple markets
simultaneously, and order and risk management tools.
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    With respect to these NYSE Amex marketplace advantages, the
Exchange does not believe the definition of Customer versus a non-
Customer properly distinguishes between non-professional retail
investors and certain professionals. The Exchange believes that
providing marketplace advantages based upon whether the order is for
the account of a participant that is a registered Broker/Dealer is no
longer appropriate in today's marketplace because some non-broker-
dealer individuals and entities have access to information and
technology that enables them to professionally trade listed options in
the same manner as a broker or dealer in securities.\7\ These
individual traders and entities (collectively, ``Professional
Customers'') have the same technological and informational advantages
over retail investors as broker-dealers trading for their own account,
which enables them to compete effectively with broker-dealer orders and
market maker quotes for execution opportunities in the NYSE Amex
marketplace.\8\
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    \7\ For example, some Broker/Dealers provide professional
customers with multi-screened trading stations equipped with trading
technology that allows the trader to monitor and place orders on all
seven options exchanges simultaneously. These trading stations also
provide compliance filters, order management tools, the ability to
place orders in the underlying securities, and market data feeds.
See Securities Exchange Act Releases 59287 (January 23, 2009), 74 FR
5694 (January 30, 2009) (SR-ISE-2006-26) (order approving
International Securities Exchange (``ISE'') proposal to introduce
priority customer and professional orders) and 57254 (February 1,
2008), 73 FR 7345(February 7, 2008) (SR-ISE-2006-26) (notice of ISE
proposal to introduce priority customer and professional orders) at
note 8, See also Securities Exchange Act Release 61198 (December 17,
2009), 74 FR 68880 (December 29, 2009) (SR-CBOE-2009-078) (order
approving CBOE proposal to introduce Professional Customers).
    \8\ Market Makers enter quotes based on the theoretical value of
the option, which moves with various factors in their pricing
models, such as the value of the underlying security. Professional
customers place and cancel orders in relation to an option's
theoretical value in much the same manner as a Market Maker. This is
evidenced by the entry of limit orders that join the best bid or
offer and by a very high rate of orders that are entered and
cancelled. In contrast, retail investors who enter orders as part of
an investment strategy (such as a buy/write or directional trade)
most frequently enter marketable orders or limit orders that they do
not cancel and replace. See, e.g., Securities Exchange Act Release
57254 at note 9.
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    The Exchange therefore does not believe that it is consistent with
fair competition for these professional account holders to continue to
receive the same marketplace advantages as retail investors over
Broker/Dealers trading on NYSE Amex. Moreover, because Customer orders
at the same price are executed in time priority, retail investors are
prevented from fully benefiting from the priority advantage when
Professional Customers are afforded Customer order priority.
    Accordingly, the Exchange is seeking to adopt a new term that will
be used to more appropriately provide NYSE Amex marketplace advantages
to retail investors on NYSE Amex. Under the proposal, a ``Professional
Customer'' will

be defined in proposed Rule 900.2NY (18A) as a person or entity that
(i) is not a broker or dealer in securities, and (ii) places more than
390 orders in listed options per day on average during a calendar month
for its own beneficial account(s). Under the proposal, a Professional
Customer will be treated in the same manner as a broker or dealer in
securities for purposes of NYSE Amex Rules 900.3NY(j) (Facilitation
Order), 904G(f) (FLEX Trading Procedures and Principles--Crossing
Limitations), 934NY (Crossing), 934.1NY (Facilitation Cross
Transactions), 934.2NY (At-Risk Cross Transactions), 934.3NY
(Solicitation), 963NY (Priority and Order Allocation Procedures--Open
Outcry), 963.1NY (Complex Order Transactions), 964NY (Display, Priority
and Order Allocation--Trading Systems), 964.2NY(b)(1)(iii)
(Participation Entitlement of Specialists and e-Specialists),
964.2NY(b)(3)(B) (Allocation of Participation Entitlement Amongst
Specialist Pool), 980NY(b) (Electronic Complex Order Trading), Rule
995NY(b) (Prohibited Conduct--Limit Orders) and the Exchange's schedule
of fees.
    The use of this new term for purposes of the above-referenced
execution rules will result in Professional Customer account holders
participating in NYSE Amex's allocation process on equal terms with
Broker/Dealer orders. The proposal will not otherwise affect non-
Broker/Dealer individuals or entities under NYSE Amex rules. For
example, NYSE Amex will provide the same away-market protection for all
Customer orders, including non-Broker/Dealer orders that are included
in the definition of ``Professional Customer'' orders.
    In order to properly represent orders entered on the Exchange
according to the new definitions, ATP holders will be required to
indicate whether Customer orders are ``Professional Customer''
orders.\9\ To comply with this requirement, ATP holders will be
required to review their customers' activity on at least a quarterly
basis to determine whether orders that are not for the account of a
broker or dealer should be represented as Customer orders or
Professional Customer orders.\10\
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    \9\ The Exchange intends to require firms to identify
Professional Customer orders submitted electronically to the system
by identifying them with the number ``8'' in the customer type
field--a mandatory field required for order entry. Manual orders
submitted outside the electronic system will be marked with an
origin code of ``PC.'' These Professional Customer identifiers will
also flow through Exchange systems into audit trail and trade
reporting data.
    \10\ Orders for any customer that had an average of more than
390 orders per day during any month of a calendar quarter must be
represented as Professional Customer orders for the next calendar
quarter. ATP Holders will be required to conduct a quarterly review
and make any appropriate changes to the way in which they are
representing orders within five days after the end of each calendar
quarter. While members only will be required to review their
accounts on a quarterly basis, if during a quarter the Exchange
identifies a customer for which orders are being represented as
Customer orders but that has averaged more than 390 orders per day
during a month, the Exchange will notify the ATP Holder and the ATP
Holder will be required to change the manner in which it is
representing the customer's orders within five days.
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    Lastly, the Exchange intends to establish, via a separate rule
filing, transaction fees applicable to Professional Customers. The
Exchange will not commence the Professional Customer program until such
fees are in place.
    Section 11(a) of the Act prohibits any member of a national
securities exchange from effecting transactions on that exchange for
its own account, the account of an associated person, or an account
over which it or its associated persons exercises discretion unless an
exception applies.\11\ Section 11(a)(1) contains a number of exceptions
for principal transactions by members and their associated persons. One
such exception, set forth in subparagraph (G) of Section 11(a)(1) and
in Rule 11a1-1(T),\12\ permits any transaction for a member's own
account provided, among other things, that the transaction yields
priority, parity, and precedence to orders for the account of persons
who are not member or associated with members of the exchange. Exchange
rules, therefore, may require members to yield priority to the orders
of non-ATP Holders, including Customers, to satisfy this exception to
Section 11(a).\13\ Another exception permits market makers to effect
transactions on exchanges in which they are members.\14\
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    \11\ 15 U.S.C. 78k(a).
    \12\ 17 CFR 240.11a1-1(T).
    \13\ See, NYSE Amex Rule 910NY.
    \14\ Section 11(a)(1)(A).
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    In addition to the exceptions noted above, Rule 11a2-2(T) under the
Act\15\ provides exchange members with an exception from the
prohibitions in Section 11(a). Rule 11a2-2(T), known as the ``effect
versus execute'' rule, permits an exchange member, subject to certain
conditions, to effect transactions for its own account, the account of
an associated person, or an account with respect to which it or an
associated person thereof exercises investment discretion (collectively
``covered accounts'') by arranging for an unaffiliated member to
execute the transaction on the exchange.
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    \15\ 17 CFR 240.11a2-2(T).
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    To comply with the ``effect versus execute'' rule's conditions, a
member: (i) Must transmit the order from off the exchange floor; (ii)
may not participate in the execution of the transaction once it has
been transmitted to the member performing the execution;\16\ (iii) may
not be affiliated with the executing member; and (iv) with respect to
an account over which the member has investment discretion, neither the
member nor its associated person may retain any compensation in
connection with effecting the transaction except as provided in the
rule.\17\
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    \16\ The ATP Holder, however, may participate in clearing and
settling the transaction.
    \17\ 17 CFR 240.11a2-2(T).
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    The Exchange does not believe that its proposal relating to
Professional Customer orders would affect the availability of the
exceptions to Section 11(a) of the Act, including the exceptions in
subparagraph (G) of Section 11(a) and in Rules 11a1-1(T) and 11a2-2(T),
as are currently available.\18\
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    \18\ See Securities Exchange Act Release No. 59546 (March 10,
2009), 74 FR 11144 (March 16, 2009) (SR-CBOE-2009-016).
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    The Exchange believes that identifying Professional Customer
account holders based upon the average number of orders entered for a
beneficial account is an appropriately objective approach that will
reasonably distinguish such persons and entities from retail investors.
The Exchange proposes the threshold of 390 orders per day on average
over a calendar month because it believes it far exceeds the number of
orders that are entered by retail investors in a single day,\19\ while
being a sufficiently low number of orders to cover the Professional
account

holders that are competing with Broker/Dealers in the NYSE Amex
marketplace. In addition, basing the standard on the number of orders
that are entered in listed options for a beneficial account(s) assures
that Professional Customer account holders cannot inappropriately avoid
the purpose of the rule by spreading their trading activity over
multiple exchanges, and using an average number over a calendar month
will prevent gaming of the 390 order threshold.
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    \19\ Three hundred ninety orders is equal to the total number of
orders that a person would place in a day if that person entered one
order every minute from market open to close. Many of the largest
retail-oriented electronic brokers offer lower commission rates to
customers they define as ``active traders.'' Publicly available
information from the websites for Charles Schwab, Fidelity, TD
Ameritrade and optionsXpress all define an ``active trader'' as
someone who executes only a few options trades per month. The
highest required trading activity to qualify as an active trader
among these four firms was 35 trades per quarter. See Securities
Exchange Act Release 57254 at note 11 (which also notes that a study
of one of the largest retail-oriented options brokerage firms
indicated that on a typical trading day, options orders were entered
with respect to 5922 different customer accounts. There was only one
order entered with respect to 3765 of the 5922 different customer
accounts on this day, and there were only 17 customer accounts with
respect to which more than 10 orders were entered. The highest
number of orders entered with respect to any one account over the
course of an entire week was 27).
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\20\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\21\ in particular, in that it is designed to
prevent fraudulent and manipulative acts and practices, to promote just
and equitable principles of trade, to remove impediments to and perfect
the mechanism of a free and open market and a national market system,
and, in general, to protect investors and the public interest. In
particular, the proposal will assure that retail investors continue to
receive the appropriate marketplace advantages in NYSE Amex
marketplace, while furthering fair competition among marketplace
professionals by treating them equally within the NYSE Amex
marketplace.
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    \20\ 15 U.S.C. 78f(b).
    \21\ 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 will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.

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

    No written comments were solicited or received with respect to the
proposed rule change.

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

    Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
    (A) By order approve such proposed rule change, or
    (B) Institute proceedings to determine whether the proposed rule
change should be disapproved.

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 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 e-mail to<EMAIL_ADDRESS>Please include
File Number SR-NYSEAmex-2010-18 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-NYSEAmex-2010-18. This
file number should be included on the subject line if e-mail 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 Internet 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 a.m. and 3 p.m. Copies of the filing will also be
available for inspection and copying at NYSE`s principal office and on
its Internet Web site at http://www.nyse.com. 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-NYSEAmex-2010-18 and should be submitted
on or before March 30, 2010.
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    \22\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\22\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-4909 Filed 3-8-10; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: September 2, 2010 (Volume 75, Number 170)]
[Rules and Regulations]
[Page 53843-53846]
[DOCID:fr02se10-2]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2010-0481; Directorate Identifier 2009-NM-192-AD;
Amendment 39-16406; AD 2010-17-14]
RIN 2120-AA64

Airworthiness Directives; The Boeing Company Model 737-100 and -
200 Series Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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SUMMARY: We are adopting a new airworthiness directive (AD) for certain
Model 737-100 and -200 series airplanes. This AD requires repetitive
inspections for cracking and damaged fasteners of certain fuselage
frames and stub beams, and corrective actions if necessary. For certain
airplanes, this AD also requires repetitive inspections for cracking of
the inboard chord fastener hole of the frame at body station 639,
stringer S-16, and corrective actions if necessary. For certain
airplanes, this AD also requires an inspection to determine the edge
margin of the lower chord. For airplanes with a certain short edge
margin, this AD requires repetitive inspections for cracking, and
corrective actions if necessary; replacing the lower chord terminates
the repetitive inspections. This AD requires an eventual preventive
modification. For certain airplanes, doing the modification or a repair
terminates the repetitive inspections for the repaired or modified
frame only. For airplanes on which the modification or repair is done
at certain body stations, this AD requires repetitive inspections for
cracking of certain frame webs and inner and outer chords, and
corrective actions if necessary. For certain other airplanes, this AD
requires a modification which includes reinforcing the body frame inner
chords, replacing the stub beam upper chords and attach angles, and
reinforcing the stub beam web. This AD results from reports of fatigue
cracks at certain frame sections, in addition to stub beam cracking,
caused by high flight cycle stresses from both pressurization and
maneuver load. We are issuing this AD to detect and correct fatigue
cracking of certain fuselage frames and stub beams, and possible
severed frames, which could result in reduced structural integrity of
the frames. This reduced structural integrity can increase loading in
the fuselage skin, which will accelerate skin crack growth and result
in rapid decompression of the fuselage.

DATES: This AD is effective October 7, 2010.
    The Director of the Federal Register approved the incorporation by
reference of a certain publication listed in the AD as of October 7,
2010.

ADDRESSES: For service information identified in this AD, contact
Boeing Commercial Airplanes, Attention: Data & Services Management,
P.O. Box 3707, MC 2H-65, Seattle, Washington 98124-2207; telephone 206-
544-5000, extension 1, fax<PHONE_NUMBER>; e-mail<EMAIL_ADDRESS>
Internet https://www.myboeingfleet.com.

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 (telephone<PHONE_NUMBER>)

is the 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: Wayne Lockett, Aerospace Engineer,
Airframe Branch, ANM-120S, FAA, Seattle Aircraft Certification Office,
1601 Lind Avenue, SW., Renton, Washington 98057-3356; telephone (425)
917-6447; fax<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Discussion

    We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR
part 39 to include an airworthiness directive (AD) that would apply to
certain Model 737-100 and -200 series airplanes. That NPRM was
published in the Federal Register on May 19, 2010 (75 FR 27969). That
NPRM proposed to require repetitive inspections for cracking and
damaged fasteners of certain fuselage frames and stub beams, and
corrective actions if necessary. For certain airplanes, that NPRM also
proposed to require repetitive inspections for cracking of the inboard
chord fastener hole of the frame at body station 639, stringer S-16,
and corrective actions if necessary. For certain airplanes, that NPRM
also proposed to require an inspection to determine the edge margin of
the lower chord. For airplanes with a certain short edge margin, that
NPRM proposed to require repetitive inspections for cracking, and
corrective actions if necessary; replacing the lower chord would
terminate the repetitive inspections. That NPRM proposed to require an
eventual preventive modification. For certain airplanes, doing the
modification or a repair would terminate the repetitive inspections for
the repaired or modified frame only. For airplanes on which the
modification or repair is done at certain body stations, that NPRM
proposed to require repetitive inspections for cracking of certain
frame webs and inner and outer chords, and corrective actions if
necessary. For certain other airplanes, that NPRM proposed to require a
modification which includes reinforcing the body frame inner chords,
replacing the stub beam upper chords and attach angles, and reinforcing
the stub beam web.

Comments

    We gave the public the opportunity to participate in developing
this AD. We considered the comment received. Boeing supports the NPRM.

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

    We estimate that this AD affects 45 airplanes of U.S. registry.
    We estimate that it will take about 4 work-hours per product to
comply with the required inspections. The average labor rate is $85 per
work-hour. Based on these figures, we estimate the cost of this
inspection to the U.S. operators to be $15,300, or $340 per product,
per inspection cycle.
    We estimate that it will take about 288 work-hours per product to
comply with the required modification (for Group 1-3 airplanes). The
average labor rate is $85 per work-hour. Required parts cost about
$58,742 per product. Based on these figures, we estimate the cost of
this modification to the U.S. operators to be $83,222 per product.

Authority for This Rulemaking

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

Regulatory Findings

    This AD will not have federalism implications under Executive Order
13132. This AD will not have a substantial direct effect on the States,
on the relationship between the national government and the States, or
on the distribution of power and responsibilities among the various
levels of government.
    For the reasons discussed above, I certify that this AD:
    (1) Is not a ``significant regulatory action'' under Executive
Order 12866,
    (2) Is not a ``significant rule'' under DOT Regulatory Policies and
Procedures (44 FR 11034, February 26, 1979), and
    (3) Will not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.
    You can find our regulatory evaluation and the estimated costs of
compliance in the AD Docket.

List of Subjects in 14 CFR Part 39

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

Adoption of the Amendment

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

PART 39--AIRWORTHINESS DIRECTIVES

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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]

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2. The FAA amends Sec.  39.13 by adding the following new AD:

2010-17-14 The Boeing Company: Amendment 39-16406. Docket No. FAA-
2010-0481; Directorate Identifier 2009-NM-192-AD.

Effective Date

    (a) This airworthiness directive (AD) is effective October 7,
2010.

Affected ADs

    (b) None.

Applicability

    (c) This AD applies to The Boeing Company Model 737-100 and -200
series airplanes, certificated in any category; line numbers 1
through 848 inclusive.

Subject

    (d) Air Transport Association (ATA) of America Code 53:
Fuselage.

Unsafe Condition

    (e) This AD results from reports of fatigue cracks at certain
frame sections, in addition to stub beam cracking, caused by high
flight cycle stresses from both pressurization and maneuver load.
The Federal Aviation Administration is issuing this AD to detect and
correct fatigue cracking of certain fuselage frames and stub beams,
and possible severed frames, which could result in reduced
structural integrity of the frames. This reduced structural
integrity can increase loading in the fuselage skin, which will
accelerate skin crack growth and result in rapid decompression of
the fuselage.

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.

Inspections

    (g) For airplanes on which a repair (Part III of the
Accomplishment Instructions of Boeing Service Bulletin 737-53-1061)
or preventive modification (Part II of the Accomplishment
Instructions of Boeing Service Bulletin 737-53-1061) has not been
done in accordance with Boeing Service Bulletin 737-53-1061 as of
the effective date of this AD: Before the accumulation of 15,000
total flight cycles or within 3,000 flight cycles after the
effective date of this AD, whichever occurs later, do the
inspections required by paragraphs (g)(1) and (g)(2) of this AD, in
accordance with the Accomplishment Instructions of Boeing Service
Bulletin 737-53-1061, Revision 4, dated July 16, 1992. Repeat the
inspection at the time specified, until the terminating action
required by paragraph (l) of this AD is done.
    (1) Do a detailed inspection (Part I of the Accomplishment
Instructions of Boeing Service Bulletin 737-53-1061, Revision 4,
dated July 16, 1992) for cracks and damaged fasteners of the
fuselage frames and stub beams. If no crack or damaged fastener is
found, repeat the inspection thereafter at intervals not to exceed
4,500 flight cycles.
    (2) Do an eddy current inspection (Part IV of the Accomplishment
Instructions of Boeing Service Bulletin 737-53-1061, Revision 4,
dated July 16, 1992) for cracking of the inboard chord fastener hole
of the frame at body station 639, stringer S-16. If no crack is
found, repeat the inspection thereafter at intervals not to exceed
15,000 flight cycles.

    Note 1: Access and restoration instructions, as detailed in the
Accomplishment Instructions of Boeing Service Bulletin 737-53-1061,
Revision 4, dated July 16, 1992, are not required by this AD.
Operators may do those actions in accordance with their maintenance
practices.

    (h) For airplanes on which the body station 597 frame was
changed as of the effective date of this AD, in accordance with the
Accomplishment Instructions of Boeing Service Bulletin 737-53-1061,
dated May 28, 1982; Revision 1, dated December 16, 1983; Revision 2,
dated April 18, 1986; or Revision 3, dated June 15, 1989: Within
3,000 flight cycles after the effective date of this AD, do a
detailed inspection for cracking of the frame, in accordance with
the Accomplishment Instructions of Boeing Service Bulletin 737-53-
1061, Revision 4, dated July 16, 1992. Repeat the detailed
inspection thereafter at intervals not to exceed 4,500 flight
cycles. Installation of new radius fillers in accordance with the
Accomplishment Instructions of Boeing Service Bulletin 737-53-1061,
Revision 4, dated July 16, 1992, terminates the inspections required
by this paragraph.
    (i) For airplanes on which a stub beam lower chord with \1/4\-
inch diameter fasteners at body station 597 is installed as of the
effective date of this AD, in accordance with the Accomplishment
Instructions of Boeing Service Bulletin 737-53-1061, Revision 1,
dated December 16, 1983; Revision 2, dated April 18, 1986; or
Revision 3, dated June 15, 1989: Within 3,000 flight cycles after
the effective date of this AD, do a detailed inspection for short
edge margins. If the short edge margin is determined to be less than
1.5D (diameter), before further flight, do a detailed inspection for
cracking of the stub beam lower chords, in accordance with Boeing
Service Bulletin 737-53-1061, Revision 4, dated July 16, 1992.
Repeat the detailed inspection thereafter at intervals not to exceed
4,500 flight cycles, if the edge margin is less than 1.5D. If the
edge margin is greater than or equal to 1.5D, no further action is
required by this paragraph. Replacing the lower chord in accordance
with Boeing Service Bulletin 737-53-1061, Revision 4, dated July 16,
1992, terminates the repetitive inspections specified in this
paragraph.

Corrective Actions

    (j) Except as required by paragraph (k) of this AD, if any crack
or damaged fastener is found during any inspection required by this
AD, before further flight, repair if cracking and damaged fasteners
are within the specified limits, or do a preventive modification if
cracking or damaged fasteners are outside the specified limits, in
accordance with the Accomplishment Instructions of Boeing Service
Bulletin 737-53-1061, Revision 4, dated July 16, 1992.

Exception to Service Information

    (k) Where Boeing Service Bulletin 737-53-1061, Revision 4, dated
July 16, 1992, specifies to contact Boeing for repair instructions:
Before further flight, repair using a method approved in accordance
with the procedures specified in paragraph (n) of this AD.

Terminating Action (Preventive Modification) for Certain Inspections

    (l) Before the accumulation of 75,000 total flight cycles: Do
the preventive modification in accordance with Part II, or repair in
accordance with Part III, of the Accomplishment Instructions of
Boeing Service Bulletin 737-53-1061, Revision 4, dated July 16,
1992. The modification or repair terminates the repetitive
inspection requirements of this AD for the repaired or modified
frame only, except as required by paragraph (m) of this AD.

Post-Modification or Repair Inspections

    (m) For airplanes on which a repair or modification at body
station 616 or 639 is done: Within 24,000 flight cycles after doing
the repair or modification, or within 3,000 flight cycles after the
effective date of this AD, whichever occurs later, do a detailed
inspection for cracking of the body station 616 and 639 frame webs,
inner chord, and outer chord near stringer S-16, in accordance with
Boeing Service Bulletin 737-53-1061, Revision 4, dated July 16,
1992.
    (1) If no cracking is found, repeat the inspection thereafter at
intervals not to exceed 4,500 flight cycles.
    (2) If any cracking is found, before further flight, repair the
cracking using a method approved in accordance with the procedures
specified in paragraph (n) of this AD.

Alternative Methods of Compliance (AMOCs)

    (n)(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. Send information to
ATTN: Wayne Lockett, Aerospace Engineer, Airframe Branch, ANM-120S,
FAA, Seattle Aircraft Certification Office, 1601 Lind Avenue, SW.,
Renton, Washington 98057-3356; telephone<PHONE_NUMBER>; fax (425)
917-6590. Or, e-mail information to 9-ANM-Seattle-ACO-AMOC-
<EMAIL_ADDRESS>    (2) To request a different method of compliance or a different
compliance time for this AD, follow the procedures in 14 CFR 39.19.
Before using any approved AMOC on any airplane to which the AMOC
applies, notify your principal maintenance inspector (PMI) or
principal avionics inspector (PAI), as appropriate, or lacking a
principal inspector, your local Flight Standards District Office.
The AMOC approval letter must specifically reference this AD.
    (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 Delegation 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.

Material Incorporated by Reference

    (o) You must use Boeing Service Bulletin 737-53-1061, Revision
4, including Addendum, dated July 16, 1992; 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 this service information under 5
U.S.C. 552(a) and 1 CFR part 51.
    (2) For service information identified in this AD, contact
Boeing Commercial Airplanes, Attention: Data & Services Management,
P.O. Box 3707, MC 2H-65, Seattle, Washington 98124-2207; telephone
206-544-5000, extension 1, fax<PHONE_NUMBER>; e-mail
<EMAIL_ADDRESS>Internet https://www.myboeingfleet.com.
    (3) You may review copies of the 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>.
    (4) 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 NARA, call<PHONE_NUMBER>, or go to: http://
www.archives.gov/federal_register/code_of_federal_regulations/
ibr_locations.html.

    Issued in Renton, Washington, on August 11, 2010.
Jeffrey E. Duven,
Acting Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. 2010-20491 Filed 9-1-10; 8:45 am]
BILLING CODE 4910-13-P