[Federal Register Volume 77, Number 53 (Monday, March 19, 2012)]
[Notices]
[Pages 16110-16112]
[FR Doc No: 2012-6495]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66580; File No. SR-BATS-2012-012]

Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Modify
Exchange Rule 14.3, Entitled ``General Procedures and Prerequisites for
Initial and Continued Listing on the Exchange''

March 13, 2012.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on March 8, 2012, BATS Exchange, Inc. (the ``Exchange'' or ``BATS'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I and II below, which Items
have been prepared by the Exchange. 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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange is filing with the Commission a proposal to amend Rule
14.3, entitled ``General Procedures and Prerequisites for Initial and
Continued Listing on the Exchange'' to include additional requirements
for the listing of securities that are issued by the Exchange or any of
its affiliates.
    The text of the proposed rule change is available at the Exchange's
Web site at http://www.batstrading.com, at the principal office of the
Exchange, 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 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 parts of such
statements.

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

1. Purpose
    The Exchange is proposing a rule change to adopt a new Rule 14.3(e)
that would impose additional reporting requirements on the Exchange
should the Exchange or an affiliate of the Exchange list a security on
the Exchange (collectively, the ``BATS Affiliates''). In the event that
a BATS Affiliate seeks to list a security on the Exchange (the
``Affiliate Security''), the proposed rule change would require that
prior to the initial listing of the Affiliate Security on the Exchange,
Exchange personnel determine that such security satisfies the
Exchange's rules for listing, and such finding must be approved by the
Regulatory Oversight Committee of the Exchange's Board of Directors.
The proposed rule change would also require the Exchange to prepare a

quarterly report for the Regulatory Oversight Committee of the
Exchange's Board of Directors detailing: (1) The Exchange's monitoring
of the Affiliate Security's compliance with the Exchange's listing
standards, including the Affiliate Security's compliance with the
Exchange's minimum share price requirement and the Affiliate Security's
compliance with each of the quantitative continued listing
requirements; and (2) the Exchange's monitoring of the trading of the
Affiliate Security, including summaries of all related surveillance
alerts, complaints, regulatory referrals, trades cancelled or adjusted
pursuant to Rule 11.17, investigations, examinations, formal and
informal disciplinary actions, exception reports and trading data used
to ensure the Affiliate Security's compliance with the Exchange's
listing and trading rules. The Exchange would be required to promptly
furnish a copy of this quarterly report to the Commission.
    To the extent the Exchange uses Exchange staff to conduct
surveillance of trading activity on the Exchange, which it does today,
the Exchange would be required to engage an independent third party
once a year to review and prepare a report regarding surveillance of
the Affiliate Security and promptly forward to the Regulatory Oversight
Committee of the Exchange's Board of Directors and the Commission a
copy of the report prepared by the independent third party. In
connection with the engagement of this third party, the Exchange would
look for appropriate subject-matter expertise and would consider
engaging appropriately qualified entities such as independent
accounting firms, law firms, consulting firms or other self-regulatory
organizations. The Exchange would also be required to commission an
annual review and report by an independent accounting firm of the
compliance of the Affiliate Security with the Exchange's listing
requirements. The Exchange would be required to promptly furnish a copy
of this annual report to the Regulatory Oversight Committee of the
Exchange's Board of Directors and the Commission.
    In the event that the Exchange determines that the BATS Affiliate
is not in compliance with any of the Exchange's listing standards, the
rule would require the Exchange to notify the issuer of such non-
compliance promptly and request a plan of compliance. The Exchange
would be required to file a report with the Commission within five
business days of providing such notice to the issuer of its non-
compliance. The required report would identify the date of the non-
compliance, type of non-compliance, and any other material information
conveyed to the issuer in the notice of non-compliance. Within five
business days of receipt of a plan of compliance from the issuer, the
Exchange would be again required to notify the Commission of such
receipt, whether the plan of compliance was accepted by the Exchange or
what other action was taken with respect to the plan and the time
period provided to regain compliance with the Exchange's listing
standards, if any.
    The Exchange is proposing to exclude from the definition of Rule
14.3(e)--solely for purposes of this rule--securities that meet the
definition of ``Portfolio Depository Receipts'' and ``Index Fund
Shares'' under Rules 14.11(b)(1)(A) and 14.11(c)(1)(A), respectively.
These securities, commonly referred to as ``exchange traded funds'' or
``ETFs,'' are issued by investment companies registered under the
Investment Company Act of 1940 and are based on an index or portfolio
of securities. An ETF is designed to provide investment results that
correspond generally to the price and yield performance of the
underlying index or portfolio of securities. The Exchange believes that
such securities do not present the same concerns as other securities,
even if issued by a BATS Affiliate. ETFs, which do not represent
investments in an individual company, are already exempt from a number
of listing standards including corporate governance rules standards,
such as the requirement to have a board of directors comprised of a
majority of independent directors and to have a code of conduct
applicable to all employees and directors. The Exchange does not
believe that the additional reporting requirements in the proposed rule
change would provide any value in this context because ETFs would not
constitute an investment in a BATS Affiliate. Further, these issuers
are already subject to a comprehensive scheme of regulation pursuant to
the Investment Company Act of 1940.
    The listing of securities of a BATS Affiliate could potentially
create a conflict of interest between the Exchange's self regulatory
responsibility to vigorously oversee the listing and trading of the
stock on its market, and its own commercial or economic interests. Such
``self-listing'' may raise questions as to the Exchange's ability to
independently and effectively enforce its rules against an affiliate or
the operator/owner of its facility. In addition, such listing has the
potential to exacerbate possible conflicts that may arise when the
Exchange oversees competitors that may also be listed on the Exchange.
The Exchange believes that the proposed rule change, by requiring
heightened reporting by the Exchange to the Commission with respect to
the Exchange's oversight of the listing and trading on the Exchange of
the securities of any BATS Affiliate, will help protect against any
concern that the Exchange will not effectively enforce its rules with
respect to the listing and trading of these securities. In addition,
the requirement that an independent accounting firm review such
issuer's compliance with the Exchange's listing standards adds a degree
of independent oversight to the Exchange's regulation of the listing of
these securities, which should help mitigate against any potential or
actual conflicts of interest. The Exchange also believes that the
additional requirements contained in the proposed rule change would
provide additional assurance that any Affiliate Securities listed on
the Exchange by a BATS Affiliate comply with the Exchange's listing
standards on an on-going basis. Finally, the Exchange believes that the
proposed rule change would eliminate any perception of a potential
conflict of interest if a BATS Affiliate seeks to list a security on
the Exchange.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with the
requirements of the Act and the rules and regulations thereunder that
are applicable to a national securities exchange, and, in particular,
with the requirements of Section 6(b) of the Act.\3\ Specifically, the
proposed change is consistent with Section 6(b)(5) of the Act,\4\
because it is 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.
Specifically, the Exchange believes that the proposed rule change, by
requiring heightened reporting by the Exchange to the Commission with
respect to oversight of the listing and trading on the Exchange of
Affiliate Securities, will help protect against concerns that the
Exchange will not effectively enforce its rules with respect to the
listing and trading of these securities. In addition, the requirement
that an independent accounting firm review such issuer's compliance
with

the Exchange's listing standards adds a degree of independent oversight
to the Exchange's regulation of the listing of these securities, which
may mitigate any potential or actual conflicts of interest. Further,
the additional requirements contained in the proposed rule change would
help to provide additional assurance that any Affiliate Securities
listed on the Exchange by a BATS Affiliate comply with the Exchange's
listing standards both upon the initial listing of the BATS Affiliate
and on an on-going basis. The Exchange believes that the proposed rule
change would eliminate any perception of a potential conflict of
interest if a BATS Affiliate seeks to list a security on the Exchange.
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    \3\ 15 U.S.C. 78f(b).
    \4\ 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 imposes
any burden on competition.

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 Changes and Timing for
Commission Action

    Because the foregoing proposed rule change does not significantly
affect the protection of investors or the public interest, does not
impose any significant burden on competition, and, by its terms, does
not become operative for 30 days from the date on which it was filed,
or such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \5\ and Rule 19b-
4(f)(6) thereunder.\6\
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    \5\ 15 U.S.C. 78s(b)(3)(A).
    \6\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's 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 has satisfied this requirement.
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    The Exchange has requested that the Commission waive the 30-day
operative delay. The Exchange believes that the proposed rule change is
consistent with the protection of investors and the public interest
because it would permit the Exchange to immediately implement the
proposed rule change in the event an Affiliate seeks to list on the
Exchange.\7\ The Commission believes that waiver of the operative delay
is consistent with the protection of investors and the public interest
because such waiver would allow the Exchange to implement protections
against potential conflicts of interest that may arise from listing an
Affiliate security on the Exchange without undue delay. The Commission
notes that the proposed rule change is based on and similar to New York
Stock Exchange Rule 497.\8\ Therefore, the Commission designates the
proposal operative upon filing.\9\
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    \7\ See SR-BATS-2012-012, Item 7.
    \8\ See id. See also Securities Exchange Act Release Nos. 53382
(February 27, 2006), 71 FR 11251 (March 6, 2006) (SR-NYSE-77) and
55293 (February 14, 2007), 72 FR 8033 (February 22, 2007) (SR-NYSE-
2006-120).
    \9\ For purposes only 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 60 days of the filing of the proposed rule
change, the Commission summarily may 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 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 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-BATS-2012-012 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-BATS-2012-012. 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 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 such 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 publicly available. All
submissions should refer to File Number SR-BATS-2012-012 and should be
submitted on or before April 9, 2012.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-6495 Filed 3-16-12; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 87, Number 124 (Wednesday, June 29, 2022)]
[Rules and Regulations]
[Page 38661]
[FR Doc No: 2022-13871]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 165

[Docket No. USCG-2022-0427]

Safety Zone; Marine Events Within the Eighth Coast Guard
District; Lower Mississippi River; New Orleans, LA

AGENCY: Coast Guard, DHS.

ACTION: Notification of enforcement of regulation.

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SUMMARY: The Coast Guard will enforce a temporary safety zone for the
St. John the Baptist Independence Day Fireworks located on the
navigable waters of the Lower Mississippi River between mile marker
(MM) 137.5 and MM 138.5 in vicinity of Reserve, Louisiana. This action
is needed to provide for the safety of life on these navigable
waterways during the event. During the enforcement periods, the
operator of any vessel in the regulated area must comply with
directions from the Captain of the Port or designated representative.

DATES: The regulations in 33 Code of Federal Regulations, Part 165.801,
Table 5, line 2 will be enforced from 8:30 p.m. though 9:30 p.m. on
July 1, 2022.

FOR FURTHER INFORMATION CONTACT: If you have questions about this
notification of enforcement, call or email Lieutenant Commander William
Stewart, Sector New Orleans, U.S. Coast Guard; telephone<PHONE_NUMBER>,
email [email protected].

SUPPLEMENTARY INFORMATION: The Coast Guard will enforce a temporary
safety zone in 33 CFR 165.801, Table 5, line 2 for the St. John the
Baptist Independence Day Celebration event. This regulation will be
enforced from 8:30 p.m. through 9:30 p.m. on July 1, 2022. This action
is being taken to provide for the safety of life on navigable waterways
during this event. Our regulations for marine events within the Eighth
Coast Guard District, 33 CFR 165.801, specifies the location of the
regulated area on the Mississippi River between mile marker (MM) 137.5
and MM 138.5 on the Lower Mississippi River near Reserve, Louisiana.
During the enforcement period, if you are the operator of a vessel in
the regulated area, you must comply with directions from the Captain of
the Port or a designated representative.
    In addition to this notice of enforcement in the Federal Register,
the Coast Guard plans to provide notification of this enforcement
period via a Marine Safety Information Bulletin and/or Broadcast Notice
to Mariners.

    Dated: June 23, 2022.
K.K. Denning,
Captain, U.S. Coast Guard, Captain of the Port Sector New Orleans.
[FR Doc. 2022-13871 Filed 6-28-22; 8:45 am]
BILLING CODE 9110-04-P


[Federal Register: February 25, 2010 (Volume 75, Number 37)]
[Proposed Rules]
[Page 8554-8557]
[DOCID:fr25fe10-28]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2010-0132; Directorate Identifier 2009-NM-096-AD]
RIN 2120-AA64

Airworthiness Directives; The Boeing Company Model 747-100, -
200B, and -200F Series Airplanes

AGENCY: Federal Aviation Administration (FAA), Department of
Transportation (DOT).

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: The FAA proposes to supersede an existing airworthiness
directive (AD) that applies to certain Model 747-100, 747-200B, and -
200F series airplanes. The existing AD currently requires inspections
to detect cracking in the upper row of fasteners holes of the skin lap
joints in the fuselage lower lobe, and repair, if necessary. This
proposed AD would reduce the maximum interval of the post-modification
inspections. This proposed AD results from reports of fatigue cracking
on modified airplanes. We are proposing this AD to detect and correct
fatigue cracking in the longitudinal lap joints of the fuselage lower
lobe, which could lead to the rapid decompression of the airplane and
the inability of the structure to carry fail-safe loads.

DATES: We must receive comments on this proposed AD by April 12, 2010.

ADDRESSES: You may send comments by any of the following methods:

     Federal eRulemaking Portal: Go to http://
www.regulations.gov. Follow the instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue, SE., Washington, DC 20590.
     Hand Delivery: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue, SE., Washington, DC 20590, between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays.
    For service information identified in this proposed 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. 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> or
425-227-1152.

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 proposed AD, the regulatory
evaluation, any comments received, and other information. The street
address for the Docket Office (telephone<PHONE_NUMBER>) is in the
ADDRESSES section. Comments will be available in the AD docket shortly
after receipt.

FOR FURTHER INFORMATION CONTACT: Ivan Li, Aerospace Engineer, Airframe
Branch, ANM-120S, FAA, Seattle Aircraft Certification Office, 1601 Lind
Avenue, SW., Renton, Washington 98057-3356; telephone<PHONE_NUMBER>;
fax<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Comments Invited

    We invite you to send any written relevant data, views, or
arguments about this proposed AD. Send your comments to an address
listed under the ADDRESSES section. Include ``Docket No. FAA-2010-0132;
Directorate Identifier 2009-NM-096-AD'' at the beginning of your
comments. We specifically invite comments on the overall regulatory,
economic, environmental, and energy aspects of this proposed AD. We
will consider all comments received by the closing date and may amend
this proposed AD because of those comments.
    We will post all comments we receive, without change, to http://
www.regulations.gov, including any personal information you provide. We
will also post a report summarizing each substantive verbal contact we
receive about this proposed AD.

Discussion

    On August 4, 1994, we issued AD 94-17-01, Amendment 39-8996 (59 FR
41653, August 15, 1994), for certain Model 747 series airplanes. That
AD requires inspections to detect cracking in the upper row of fastener
holes of the skin lap joints in the fuselage lower lobe, and repair if
necessary. That AD resulted from reports of incidents involving fatigue
cracking and corrosion of transport category airplanes that are
approaching or have exceeded their design life goal. We issued that AD
to prevent separation of fuselage skin and rapid loss of pressure in
the airplane.

Actions Since Existing AD Was Issued

    Since we issued AD 94-17-01, Boeing has performed a fleet-wide
evaluation of the skin panel lap joints for widespread fatigue damage
(WFD) and determined that the post-modification inspection interval of
AD 94-17-01 needs to be reduced. In addition, lap joints where the
upper (overlapping) skin thickness at the upper row of fasteners is
0.071 inch or less need to be further modified to preclude WFD. WFD of
the lap joints can link up and result in large skin cracks, and
possible rapid in-flight decompression of the airplane.

Relevant Service Information

    AD 94-17-01 referred to Boeing Service Bulletin 747-53A2267,
Revision 3, dated March 26, 1992, as the appropriate source of service
information. Boeing has since issued Alert Service Bulletin 747-
53A2267, Revision 4, dated March 26, 2009. This service bulletin
reduces the repetitive interval for the post-modification inspections
and references a structural modification for lap joints where the upper
(overlapping) skin thickness at the upper row of fasteners is 0.071
inch or less.

Related Rulemaking

    We are considering issuing related rulemaking to address the
identified unsafe condition. We are in the process of issuing an AD
that will refer to Revision 1 of Boeing Alert Service Bulletin 747-
53A2463, and is related to this issue. That AD will require further
modification of all the affected lap joints with an upper skin
thickness of 0.071 inch or less.

FAA's Determination and Requirements of the Proposed AD

    We have evaluated all pertinent information and identified an
unsafe condition that is likely to develop on other airplanes of the
same type design. For this reason, we are proposing this AD, which
would supersede AD 94-17-01. This AD would retain the requirements of
that AD using the revised service information, and reduce the maximum
interval of the post-modification inspections from 3,000 flight cycles
to 1,000 flight cycles.

Differences Between the Proposed AD and Service Bulletin

    Boeing Alert Service Bulletin 747-53A2267, Revision 4, dated March
26, 2009, specifies to contact the manufacturer for instructions on how
to repair certain conditions, but this proposed AD would require
repairing those conditions in one of the following ways:
     Using a method that we approve; or
     Using data that meet the certification basis of the
airplane, and that have been approved by the Boeing Commercial
Airplanes Organization Designation Authorization that we have
authorized to make those findings.

Changes to Existing AD

    This proposed AD would retain the requirements of AD 94-17-01.
Since AD 94-17-01 was issued, the AD format has been revised, and
certain paragraphs have been rearranged. As a result, the corresponding
paragraph identifiers have changed in this proposed AD, as listed in
the following table:

                      Revised Paragraph Identifiers
------------------------------------------------------------------------
                                      Corresponding  requirement in this
     Requirement in AD 94-17-01                  proposed AD
------------------------------------------------------------------------
             Paragraph (a)                       Paragraph (g).
             Paragraph (b)                       Paragraph (h).
             Paragraph (c)                       Paragraph (i).
------------------------------------------------------------------------

    This proposed AD identifies the legal name of the manufacturer as
published in the most recent type certificate data sheet for the
affected airplane models.

Costs of Compliance

    There are about 23 airplanes of the affected design in the
worldwide fleet. The following table provides the estimated costs for
U.S. operators to comply with this proposed AD.

                                                                     Estimated Costs
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Number of
                                                     Average                                             U.S. -
               Action                  Work hours   labor rate     Parts        Cost per airplane      registered                Fleet cost
                                                     per hour                                          airplanes
--------------------------------------------------------------------------------------------------------------------------------------------------------
Inspection (required by AD 94-17-01)          244          $85           $0  $20,740 per inspection             7  $145,180 per inspection cycle.
                                                                              cycle.
--------------------------------------------------------------------------------------------------------------------------------------------------------

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 proposed AD would not have federalism
implications under Executive Order 13132. This proposed AD would not
have a substantial direct effect on the States, on the relationship
between the national Government and the States, or on the distribution
of power and responsibilities among the various levels of government.
    For the reasons discussed above, I certify that the proposed
regulation:
    1. Is not a ``significant regulatory action'' under Executive Order
12866;
    2. Is not a ``significant rule'' under the DOT Regulatory Policies
and Procedures (44 FR 11034, February 26, 1979); and
    3. Will not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.
    We prepared a regulatory evaluation of the estimated costs to
comply with this proposed AD and placed it in the AD docket. See the
ADDRESSES section for a location to examine the regulatory evaluation.

List of Subjects in 14 CFR Part 39

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

The Proposed Amendment

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

PART 39--AIRWORTHINESS DIRECTIVES

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

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

Sec.  39.13  [Amended]

    2. The FAA amends Sec.  39.13 by removing Amendment 39-8996 (59 FR
41653, August 15, 1994) and adding the following new AD:

The Boeing Company: Docket No. FAA-2010-0132; Directorate Identifier
2009-NM-096-AD.

Comments Due Date

    (a) The FAA must receive comments on this AD action by April 12,
2010.

Affected ADs

    (b) This AD supersedes AD 94-17-01, Amendment 39-8996.

Applicability

    (c) This AD applies to The Boeing Company Model 747-100, 747-
200B, and 747-200F series airplanes, certificated in any category,
as identified in Boeing Alert Service Bulletin 747-53A2267, Revision
4, dated March 26, 2009.

Subject

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

Unsafe Condition

    (e) This AD results from reports of fatigue cracking. The
Federal Aviation Administration is issuing this AD to detect and
correct fatigue cracking in the fuselage lower lobe longitudinal lap
joints, which could lead to the rapid decompression of the airplane
and the inability of the structure to carry fail-safe loads.

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 94-17-01, with Revised
Compliance Times for Post-Modification Inspection and Revised
Service Information:

Initial External High Frequency Eddy Current Inspection

    (g) Perform an external high frequency eddy current inspection
to detect cracks in the upper row of fasteners in the modified lap
joints in accordance with Boeing Service Bulletin 747-53A2267,
Revision 3, dated March 26, 1992; or Revision 4, dated March 26,
2009; at the time specified in paragraph (g)(1) or (g)(2) or (g)(3)
of this AD, as applicable. As of the effective date of this AD, only
Revision 4 may be used.
    (1) For airplanes on which the full modification required by AD
90-06-06, Amendment 39-6490, has been accomplished in accordance
with Revision 2 of Boeing Service Bulletin 747-53A2267, dated March
29, 1990; or Revision 3, dated March 26, 1992; or Revision 4, dated
March 26, 2009: Prior to the accumulation of 10,000 flight cycles
after accomplishment of the full modification.
    (2) For airplanes on which the full modification required by AD
90-06-06 has been accomplished in accordance with Boeing Service
Bulletin 747-53A2267, dated March 28, 1986; or Revision 1, dated
September 25, 1986: Prior to the accumulation of 7,000 flight cycles
after accomplishment of the full modification.
    (3) For airplanes on which the optional modification has been
accomplished in accordance with Boeing Service Bulletin 747-53A2267,
Revision 2, dated March 29, 1990; or Revision 3, dated March 26,
1992; or Revision 4, dated March 26, 2009: Prior to the accumulation
of 7,000 flight cycles after accomplishment of the optional
modification.

Repetitive External High Frequency Eddy Current Inspections

    (h) If no cracking is detected during the inspection required by
paragraph (g) of this AD, repeat the inspection required by
paragraph (g) of this AD at the earlier of the times specified in
paragraphs (h)(1) and (h)(2) of this AD, and thereafter at intervals
not to exceed 1,000 flight cycles.
    (1) Within 3,000 flight cycles after the last inspection
required by paragraph (g) of this AD.
    (2) Within 1,000 flight cycles after the last inspection
required by paragraph (g) of this AD or 500 flight cycles after the
effective date of this AD, whichever occurs later.

Repair

    (i) If any cracking is detected during any inspection required
by paragraph (g) of this

AD, prior to further flight, repair in accordance with Section 53-
30-03 of the Boeing 747 Structural Repair Manual (SRM); or Boeing
Alert Service Bulletin 747-53A2267, Revision 4, dated March 26,
2009; except as required by paragraph (j) of this AD; and repeat the
inspection required by paragraph (g) of this AD at the times
specified in paragraph (i)(1) of this AD. After the effective date
of this AD, use only Boeing Alert Service Bulletin 747-53A2267,
Revision 4, dated March 26, 2009.
    (1) As of the effective date of this AD: If the repair specified
in the Boeing 747 SRM does not include removing the lap joint and
the upper row of countersunk fasteners, repeat the inspection
required by paragraph (g) of this AD at the earlier of the times
specified in paragraphs (i)(1)(i) and (i)(1)(ii) of this AD, and
thereafter at intervals not to exceed 1,000 flight cycles.
    (i) Within 3,000 flight cycles after the last inspection
required by paragraph (g) of this AD.
    (ii) Within 1,000 flight cycles after the last inspection
required by paragraph (g) of this AD, or within 500 flight cycles
after the effective date of this AD, whichever occurs later.
    (2) If the repair specified in the 747 SRM includes removing the
lap joint and the upper row of countersunk fasteners, such repair
constitutes terminating action for the inspection requirements of
this AD.

Exception to the Service Bulletin

    (j) If any cracking is found during any inspection required by
this AD, and Boeing Alert Service Bulletin 747-53A2267, Revision 4,
dated March 26, 2009, specifies contacting Boeing for appropriate
action: Before further flight, repair the cracking using a method
approved in accordance with the procedures specified in paragraph
(k) of this AD. For a repair method to be approved by the Manager,
Seattle ACO, as required by this paragraph, the Manager's approval
letter must specifically refer to this AD.

Alternative Methods of Compliance (AMOCs)

    (k)(1) The Manager, Seattle Aircraft Certification Office, 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: Ivan
Li, Aerospace Engineer, Airframe Branch, ANM-120S, FAA, Seattle
Aircraft Certification Office, 1601 Lind Avenue, SW., Renton,
Washington 98057-3356; telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>.
Or, e-mail information to<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 Designation Authorization
(ODA) that has been authorized by the Manager, Seattle ACO, to make
those findings. For a repair method to be approved, the repair must
meet the certification basis of the airplane, and the approval must
specifically refer to this AD.
    (4) AMOCs approved previously in accordance with AD 94-17-01 are
approved as AMOCs for the corresponding provisions of this AD.

    Issued in Renton, Washington, on February 17, 2010.
Stephen P. Boyd,
Acting Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. 2010-3819 Filed 2-24-10; 8:45 am]
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