[Federal Register Volume 81, Number 80 (Tuesday, April 26, 2016)]
[Notices]
[Pages 24674-24676]
[FR Doc No: 2016-09594]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77658; File No. SR-NYSEMKT-2016-45]

Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed Rule Change Modifying the NYSE Amex
Options Fee Schedule

April 20, 2016.
    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 April 11, 2016, NYSE MKT LLC (the ``Exchange'' or ``NYSE
MKT'') 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 modify the NYSE Amex Options Fee Schedule
(``Fee Schedule''). The Exchange proposes to implement the fee change
effective April 11, 2016. The proposed change is available on the
Exchange's Web site at www.nyse.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 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 the
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of this filing is to amend Sections I. E. and G. of the
Fee Schedule \4\ to adjust fees and credits payable, effective on April
11, 2016.
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    \4\ See Fee Schedule, Sections I. E. (Amex Customer Engagement
(``ACE'') Program--Standard Options) and G. (CUBE Auction Fees &
Credits), available here, https://www.nyse.com/publicdocs/nyse/markets/amex-options/NYSE_Amex_Options_Fee_Schedule.pdf.
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Proposed changes to ACE Program
    Section I.E. of the Fee Schedule describes the Exchange's ACE
Program, which features five tiers expressed as a percentage of total
industry Customer equity and Exchange Traded Fund (``ETF'') option
average daily volume \5\ and provides two alternative methods through
which Order Flow Providers (each an ``OFP'') may receive per contract
credits for Electronic Customer volume that the OFP, as agent, submits
to the Exchange.
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    \5\ The volume thresholds are based on an NYSE Amex Options
Market Makers' volume transacted Electronically as a percentage of
total industry Customer equity and ETF options volumes as reported
by the Options Clearing Corporation (the ``OCC''). Total industry
Customer equity and ETF option volume is comprised of those equity
and ETF contracts that clear in the Customer account type at OCC and
does not include contracts that clear in either the Firm or Market
Maker account type at OCC or contracts overlying a security other
than an equity or ETF security. See OCC Monthly Statistics Reports,
available here, http://www.theocc.com/webapps/monthly-volume-reports.
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    The Exchange proposes to modify the ACE Program by increasing
certain of the credits available for Tiers 2 through 5 as illustrated
in the table below, with proposed additions appearing underscored and
proposed deletions appearing in brackets:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                        ACE Program--Standard options                         Credits payable on customer volume only
                                    --------------------------------------------------------------------------------------------------------------------
                                                                                Total electronic ADV
                                                                                (of which 20% or
                                      Customer electronic                              greater of the
                Tier                     ADV as a % of                               minimum qualifying                       1 Year          3 Year
                                       industry customer              OR            volume for each tier     Customer        enhanced        enhanced
                                         equity and ETF                             must be customer) as  volume credits     customer        customer
                                          options ADV                                 a % of industry                     volume credits  volume credits
                                                                                customer equity and
                                                                                ETF options ADV
--------------------------------------------------------------------------------------------------------------------------------------------------------
1..................................  0.00% to 0.60%.......  .....................  N/A..................           $0.00           $0.00           $0.00

2..................................  > 0.60% to 0.80% or    .....................  N/A..................         [(0.16]        [(0.16)]        [(0.16)]
                                      >= 0.35% over                                                               (0.18)          (0.18)          (0.18)
                                      October 2015 volumes.
3..................................  > 0.80% to 1.25%.....  .....................  1.50% to 2.50% of            [(0.17)]        [(0.18)]        [(0.19)]
                                                                                which 20% or greater          (0.19)          (0.20)          (0.21)
                                                                                of 1.50% must be
                                                                                Customer.
4..................................  > 1.25 to 1.75%......  .....................  > 2.50% to 3.50% of          [(0.18)]        [(0.19)]        [(0.21)]
                                                                                which 20% or greater          (0.20)          (0.21)          (0.22)
                                                                                of 2.50% must be
                                                                                Customer.
5..................................  > 1.75%..............  .....................  > 3.50% of which 20%         [(0.19)]        [(0.21)]        [(0.23)]
                                                                                or greater of 3.5%            (0.22)          (0.23)          (0.24)
                                                                                must be Customer.
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* * * * *
    The proposed amendments to the ACE Program are designed to enhance
the rebates, which the Exchange believes would attract more volume and
liquidity to the Exchange to the benefit of Exchange participants
through increased opportunities to trade as well as enhancing price
discovery.
Proposed changes to CUBE Pricing
    Section I.G. of the Fee Schedule sets forth the rates for per
contract fees and credits for executions associated with a CUBE
Auction. The Exchange is proposing to adjust rates for RFR Response
fees and Initiating Credits and Rebates. Specifically, the Exchange
proposes to adjust RFR Response fees for Non-Customers to $0.70 for
symbols in the Penny Pilot, from $0.12; and to adjust RFR Response fees
for Non-Customers for symbols not in the Penny Pilot to $1.05, from
$0.12. The Exchange also proposes to adjust the Initiating Participant
credits and rebates to $0.35 for symbols in the Penny Pilot, $0.70 for
symbols not in the Penny Pilot, an increase from the $0.05 Initiating
Participant credit in all names. The Exchange also proposes to increase
the ACE Initiating Participant Rebate from $0.05 to $0.18.
    The proposed changes are designed to increase incentives for
submission of CUBE Orders, which should maximize price improvement
opportunities for Customers. In addition, the Exchange notes that prior
changes to CUBE Pricing (effective in February 2016), designed to
address concerns raised about auction fee structures revealed that fee
adjustments to incent Market Maker participation did not lead to
greater volume and liquidity in CUBE Auctions, and did not encourage
Market Maker RFR Responses to such Auctions.\6\
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    \6\ See Securities Exchange Act Release No. 77106 (February 10,
2016), 81 FR 8107, 8108 (February 17, 2016) (SR-MKT-2016-18) (the
``February CUBE Changes'') (noting that the changes to CUBE pricing,
particularly the reduction in the RFR Response Fee, were designed to
address concerns raised by Market Makers that auction pricing,
including the CUBE, hindered competition by Market Makers, and
providing that ``the proposed changes would also provide the
concerned Market Makers to have a platform on which they can provide
proof of concept.'') The Exchange notes that the CUBE fees and
credits in place prior to the February CUBE Changes are consistent
with the adjustments proposed herein.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\7\ in general, and furthers the
objectives of Sections 6(b)(4) and (5) of the Act,\8\ in particular,
because it provides for the equitable allocation of reasonable dues,
fees, and other charges among its members, issuers and other persons
using its facilities and does not unfairly discriminate between
customers, issuers, brokers or dealers.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange believes that the proposed amendments to the ACE
Program are reasonable, equitable and not unfairly discriminatory
because they would enhance the incentives to Order Flow Providers to
transact Customer orders on the Exchange, which would benefit all
market participants by providing more trading opportunities and tighter
spreads, even to those market participants that do not participate in
the ACE Program. Additionally, the Exchange believes the proposed
changes to the ACE Program are consistent with the Act because they may
attract greater volume and liquidity to the Exchange, which would
benefit all market participants by providing tighter quoting and better
prices, all of which perfects the mechanism for a free and open market
and national market system.
    The Exchange believes that the proposed changes to CUBE Auction
fees are reasonable, equitable and not unfairly discriminatory.
Specifically, the proposed increases to both the Initiating Participant
Credits (for both Penny Pilot and Non-Penny Pilot) as well as the fees
associated with RFR Responses that participate in the CUBE are
reasonable, equitable and non-discriminatory because they apply equally
to all ATP Holders that choose to participate in the CUBE, and access
to the Exchange is offered on terms that are not unfairly
discriminatory.
    The Exchange believes the proposed changes to CUBE are reasonable,
as they are similar to fee and credit structures previously applied to
the CUBE Auction \9\ and to fees charged for similar auction mechanisms
on other markets, such as BOX Options Exchange LLC (``BOX''), which
charges a total fee of $1.05 for a Market Maker response to a PIP
auction in a non-Penny Pilot issue.\10\
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    \9\ See supra n. 6.
    \10\ See BOX Fee Schedule, available here, http://boxexchange.com/assets/BOX_Fee_Schedule.pdf.
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    The Exchange likewise believes the proposed increase of the ACE
Initiating Participant Credit is reasonable, equitable and not unfairly
discriminatory for the following reasons. First, the ACE Initiating
Participant Rebate is based on the amount of business transacted on the
Exchange and is designed to attract more volume and liquidity to the

Exchange generally, and to CUBE Auctions specifically, which would
benefit all market participants (including those that do not
participate in the ACE Program) through increased opportunities to
trade at potentially improved prices as well as enhancing price
discovery. Furthermore, the Exchange notes that the ACE Initiating
Participant Rebate is equitable and not unfairly discriminatory because
it would continue to incent ATP Holders to transact Customer orders on
the Exchange and an increase in Customer order flow would bring greater
volume and liquidity to the Exchange. Increased volume to the Exchange
benefits all market participants by providing more trading
opportunities and tighter spreads, even to those market participants
that do not participate in the ACE Program.
    Finally, the Exchange believes the proposed changes are consistent
with the Act because to the extent the modifications permit the
Exchange to continue to attract greater volume and liquidity, the
proposed change would improve the Exchange's overall competitiveness
and strengthen its market quality for all market participants.
    For these reasons, the Exchange believes that the proposal is
consistent with the Act.

B. Self-Regulatory Organization's Statement on Burden on Competition

    In accordance with Section 6(b)(8) of the Act,\11\ 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 Act. The Exchange believes the proposed amendments
to the ACE Program are pro-competitive as the proposed increased
rebates may encourage OFPs to direct Customer order flow to the
Exchange and any resulting increase in volume and liquidity to the
Exchange would benefit all Exchange participants through increased
opportunities to trade as well as enhancing price discovery. Further,
the Exchange believes the proposed amendments to CUBE Auction pricing
are pro-competitive as the fees and credits are designed to incent
increases in the number of CUBE Auctions brought to the Exchange, which
would benefit all Exchange participants through increased opportunities
to trade as well as enhancing price discovery.
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    \11\ 15 U.S.C. 78f(b)(8).
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    The Exchange notes that it operates in a highly competitive market
in which market participants can readily favor competing venues. In
such an environment, the Exchange must continually review, and consider
adjusting, its fees and credits to remain competitive with other
exchanges. For the reasons described above, the Exchange believes that
the proposed rule change reflects this competitive environment.

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

    The foregoing rule change is effective upon filing pursuant to
Section 19(b)(3)(A) \12\ of the Act and subparagraph (f)(2) of Rule
19b-4 \13\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
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    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f)(2).
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    At any time within 60 days of the filing of such 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. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \14\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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    \14\ 15 U.S.C. 78s(b)(2)(B).
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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-NYSEMKT-2016-45 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSEMKT-2016-45. 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
10:00 a.m. and 3:00 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 available publicly. All
submissions should refer to File Number SR-NYSEMKT-2016-45, and should
be submitted on or before May 17, 2016.
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    \15\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-09594 Filed 4-25-16; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 79, Number 132 (Thursday, July 10, 2014)]
[Rules and Regulations]
[Pages 39300-39302]
[FR Doc No: 2014-14475]

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

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2014-0341; Directorate Identifier 2014-NM-102-AD;
Amendment 39-17874; AD 2014-12-13]
RIN 2120-AA64

Airworthiness Directives; the Boeing Company Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule; request for comments.

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SUMMARY: We are superseding Airworthiness Directive (AD) 2014-03-06 for
all the Boeing Company Model 737-100, -200, -200C, -300, -400, and -500
series airplanes. AD 2014-03-06 required repetitive inspections for
cracking of the aft support fitting for the main landing gear (MLG)
beam, and the rear spar upper chord and rear spar web in the area of
rear spar station (RSS) 224.14; and repair if necessary. This AD
clarifies two paragraph references. This AD was prompted by a
determination that two paragraph references were in error. We are
issuing this AD to detect and correct cracking of the aft support
fitting for the main landing gear (MLG) beam, and the rear spar upper
chord and rear spar web in the area of rear spar station (RSS) 224.14,
which could grow and result in a fuel leak and possible fire.

DATES: This AD is effective July 25, 2014.
    The Director of the Federal Register approved the incorporation by
reference of a certain publication listed in this AD as of April 9,
2014 (79 FR 12368, March 5, 2014).
    We must receive any comments on this AD by August 25, 2014.

ADDRESSES: You may send comments, using the procedures found in 14 CFR
11.43 and 11.45, 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 AD, contact Boeing
Commercial Airplanes, Attention: Data & Services Management, P.O. Box
3707, MC 2H-65, Seattle, WA 98124-2207; telephone<PHONE_NUMBER>,
extension 1; fax<PHONE_NUMBER>; Internet https://www.myboeingfleet.com.
You may view this referenced service information at the FAA, Transport
Airplane Directorate, 1601 Lind Avenue SW., Renton, WA. For information
on the availability of this material at the FAA, call<PHONE_NUMBER>.

Examining the AD Docket

    You may examine the AD docket on the Internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2014-
0341; 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 street address for the Docket Office (phone:
800-647-5527) is in the ADDRESSES section. Comments will be available
in the AD docket shortly after receipt.

FOR FURTHER INFORMATION CONTACT: Nancy Marsh, Aerospace Engineer,
Airframe Branch, ANM-120S, FAA, Seattle Aircraft Certification Office
(ACO), 1601 Lind Avenue SW., Renton, WA 98057-3356; phone: 425-917-
6440; fax:<PHONE_NUMBER>; email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Discussion

    On January 18, 2014, we issued AD 2014-03-06, Amendment 39-17743
(79 FR 12368, March 5, 2014), for all the Boeing Company Model 737-100,
-200, -200C, -300, -400, and -500 series airplanes. AD 2014-03-06
required repetitive inspections for cracking of the aft support fitting
for the main landing gear (MLG) beam, and the rear spar upper chord and
rear spar web in the area of rear spar station (RSS) 224.14; and repair
if necessary. AD 2014-03-06 resulted from reports of cracks found in
the aft support fitting, the rear spar upper chord, and the rear spar
web. We issued AD 2014-03-06 to detect and correct cracking of the aft
support fitting for the main landing gear (MLG) beam, and the rear spar
upper chord and rear spar web in the area of rear spar station (RSS)
224.14, which could grow and result in a fuel leak and possible fire.

Actions Since AD 2014-03-06 Was Issued

    Since we issued AD 2014-03-06, Amendment 39-17743 (79 FR 12368,
March 5, 2014), two incorrect paragraph references were found. The
references to paragraphs (g) and (g)(1) in paragraph (h)(2) of AD 2014-
03-06 are incorrect. The correct reference should be to the
introductory text of paragraph (h) and paragraph (h)(1) of AD 2014-03-
06. Paragraph (h)(2) of AD 2014-03-06 is the corrective action for the
inspections required by the introductory text of paragraph (h) and
paragraph (h)(1) of this AD. In order to mandate the corrective actions
for the inspections required by the introductory text of paragraph (h)
and paragraph (h)(1) of this AD, we have revised the references in
paragraph (h)(2) of this AD.

FAA's Determination

    We are issuing this AD because we evaluated all the relevant
information and determined the unsafe condition described previously is
likely to exist or develop in other products of these same type
designs.

AD Requirements

    This AD requires repetitive inspections for cracking of the aft
support fitting for the MLG beam, and the rear spar upper chord and
rear spar web in the area of RSS 224.14; and repair if necessary. This
AD corrects these paragraph references.

FAA's Justification and Determination of the Effective Date

    AD 2014-03-06, Amendment 39-17743 (79 FR 12368, March 5, 2014),
clearly indicated that inspections, and repairs if necessary, are
required. Since this new AD merely corrects incorrect paragraph
references, notice and opportunity for public comment before issuing
this AD are unnecessary.

Comments Invited

    This AD is a final rule that involves requirements affecting flight
safety, and we did not provide you with notice and an opportunity to
provide your comments before it becomes effective. However, we invite
you to send any written data, views, or arguments about this AD. Send
your comments to an address listed under the ADDRESSES section. Include
the docket number FAA-2014-0341 and directorate identifier 2014-NM-102-
AD at the beginning of your comments. We specifically invite comments
on the overall regulatory, economic, environmental, and energy aspects
of this AD. We will consider all comments received by the closing date
and may amend this 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 AD.

Costs of Compliance

    We estimate that this AD affects 353 airplanes of U.S. registry.
    We estimate the following costs to comply with this AD:

                                                 Estimated Costs
----------------------------------------------------------------------------------------------------------------
                                                             Parts                              Cost on U.S.
              Action                      Labor cost          cost      Cost per product          operators
----------------------------------------------------------------------------------------------------------------
Inspection [Retained actions from   Up to 86 work-hours x         $0  Up to $7,310 per      Up to $2,580,430 per
 AD 2014-03-06, Amendment            $85 per hour =                    inspection cycle.     inspection cycle.
 39[dash]17743 (79 FR 12368, March   $7,310 per
 5, 2014)].                          inspection cycle.
----------------------------------------------------------------------------------------------------------------

    We have received no definitive data that would enable us to provide
cost estimates for the on-condition actions specified in this AD.

Authority for This Rulemaking

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

Regulatory Findings

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

List of Subjects in 14 CFR Part 39

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

Adoption of the Amendment

    Accordingly, under the authority delegated to me by the
Administrator, the FAA amends part 39 of the Federal Aviation
Regulations (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)
2014-03-06, Amendment 39-17743 (79 FR 12368, March 5, 2014), and adding
the following new AD:

2014-12-13 The Boeing Company: Amendment 39-17874; Docket No. FAA-
2014-0341; Directorate Identifier 2014-NM-102-AD.

(a) Effective Date

    This AD is effective July 25, 2014.

(b) Affected ADs

    This AD replaces AD 2014-03-06, Amendment 39-17743 (79 FR 12368,
March 5, 2014).

(c) Applicability

    (1) This AD applies to all The Boeing Company Model 737-100, -
200, -200C, -300, -400, and -500 series airplanes, certificated in
any category.
    (2) Installation of Supplemental Type Certificate (STC)
ST01219SE (http://rgl.faa.gov/Regulatory_and_Guidance_Library/rgstc.nsf/0/2C6E3DBDDD36F91C862576A4005D64E2?OpenDocument&Highlight=st01219se)
does not affect the ability to accomplish the actions required by
this AD. Therefore, for airplanes on which STC ST01219SE is
installed, a ``change in product'' alternative method of compliance
(AMOC) approval request is not necessary to comply with the
requirements of 14 CFR 39.17.

(d) Subject

    Air Transport Association (ATA) of America Code 57, Wings.

(e) Unsafe Condition

    This AD was prompted by reports of cracks found in the aft
support fitting, the rear spar upper chord, and the rear spar web.
We are issuing this AD to detect and correct cracking of the aft
support fitting for the main landing gear (MLG) beam, and the rear
spar upper chord and rear spar web in the area of rear spar station
(RSS) 224.14, which could grow and result in a fuel leak and
possible fire.

(f) Compliance

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

(g) Retained Inspections: Group 1 Airplanes

    This paragraph restates the actions required by paragraph (g) of
AD 2014-03-06, Amendment 39-17743 (79 FR 12368, March 5, 2014) with
no changes. For airplanes identified in Group 1 of Boeing Special
Attention Service Bulletin 737-57-1318, dated May 15, 2013: At the
applicable time specified in paragraph 1.E., ``Compliance,'' of
Boeing Special Attention Service Bulletin 737-57-1318, dated May 15,
2013, except as required by paragraph (i) of this AD, do inspections
and applicable corrective actions using a method approved in
accordance with the procedures specified in paragraph (j) of this
AD.

(h) Retained Inspections: Groups 2-7 Airplanes

    This paragraph restates the actions required by the introductory
text of paragraph (h) of AD 2014-03-06, Amendment 39-17743 (79 FR
12368, March 5, 2014) with no changes. For airplanes identified in
Groups 2 through 7 of Boeing Special Attention Service Bulletin 737-
57-1318, dated May 15, 2013: At the applicable time specified in
paragraph 1.E., ``Compliance,'' of Boeing Special Attention Service
Bulletin 737-57-1318, dated May 15, 2013, except as required by
paragraph (i) of this AD, do high frequency eddy current inspections
to detect cracking of the aft support fitting for the MLG beam, and
the rear spar upper chord and rear spar web in the area of rear spar
station 224.14, as applicable, in accordance with Option 1, 2, or 3
of the Accomplishment Instructions of Boeing Special Attention
Service Bulletin 737-57-1318, dated May 15, 2013.
    (1) This paragraph restates the actions required by paragraph
(h)(1) of AD 2014-03-06, Amendment 39-17743 (79 FR 12368, March 5,
2014) with no changes. If no crack is found, repeat the inspection
thereafter at the time specified in paragraph 1.E., ``Compliance,''
of Boeing Special Attention Service Bulletin 737-57-1318, dated May
15, 2013, as applicable. Accomplishment of the inspection of the 12
fastener holes (locations 1-12) in accordance with Option 2, Action
3; or Option 3, Action 3; as specified in note (b) of tables 2
through 5 of paragraph 1.E., ``Compliance,'' of Boeing Special
Attention Service Bulletin 737-57-1318, dated May 15, 2013;
terminates only the corresponding inspections that include note (b)
in the ``Repeat Interval'' column of the applicable table.
    (2) This paragraph restates the actions required by paragraph
(h)(2) of AD 2014-03-06, Amendment 39-17743 (79 FR 12368, March 5,
2014), with revised paragraph references to the introductory text of
paragraph (h) and to paragraph (h)(1) of this AD to mandate
corrective actions. If any crack is found during any inspection
required by the introductory text of paragraph (h) or by paragraph
(h)(1) of this AD, repair before further flight using a method
approved in accordance with the procedures specified in paragraph
(j) of this AD.

(i) Retained Exception to Service Information Specifications

    This paragraph restates the actions required by paragraph (i) of
AD 2014-03-06, Amendment 39-17743 (79 FR 12368, March 5, 2014), with
no changes. Where Boeing Special Attention Service Bulletin 737-57-
1318, dated May 15, 2013, specifies a compliance time ``after the
original issue date of this service bulletin,'' this AD requires
compliance within the specified compliance time after April 9, 2014
(the effective date of AD 2014-03-06).

(j) Alternative Methods of Compliance (AMOCs)

    (1) The Manager, Seattle Aircraft Certification Office (ACO),
FAA, has the authority to approve AMOCs for this AD, if requested
using the procedures found in 14 CFR 39.19. In accordance with 14
CFR 39.19, send your request to your principal inspector or local
Flight Standards District Office, as appropriate. If sending
information directly to the manager of the ACO, send it to the
attention of the person identified in paragraph (k) of this AD.
Information may be emailed to<EMAIL_ADDRESS>    (2) Before using any approved AMOC, notify your appropriate
principal inspector, or lacking a principal inspector, the manager
of the local flight standards district office/certificate holding
district office.
    (3) An AMOC that provides an acceptable level of safety may be
used for any repair required by this AD if it is approved by the
Boeing Commercial Airplanes Organization Designation Authorization
(ODA), which 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 for AD 2014-03-06, Amendment 39-17743 (79 FR
12368, March 5, 2014), are approved as AMOCs for the corresponding
provisions of this AD.

(k) Related Information

    For more information about this AD, contact Nancy Marsh,
Aerospace Engineer, Airframe Branch, ANM-120S, FAA, Seattle Aircraft
Certification Office (ACO), 1601 Lind Avenue SW., Renton, WA 98057-
3356; phone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>; email:
<EMAIL_ADDRESS>
(l) Material Incorporated by Reference

    (1) The Director of the Federal Register approved the
incorporation by reference (IBR) of the service information listed
in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51.
    (2) You must use this service information as applicable to do
the actions required by this AD, unless the AD specifies otherwise.
    (3) The following service information was approved for IBR on
April 9, 2014 (79 FR 12368, March 5, 2014).
    (i) Boeing Special Attention Service Bulletin 737-57-1318, dated
May 15, 2013.
    (ii) Reserved.
    (4) For service information identified in this AD, contact
Boeing Commercial Airplanes, Attention: Data & Services Management,
P.O. Box 3707, MC 2H-65, Seattle, WA 98124-2207; telephone 206-544-
5000, extension 1; fax<PHONE_NUMBER>; Internet https://www.myboeingfleet.com.
    (5) You may view this service information at FAA, Transport
Airplane Directorate, 1601 Lind Avenue SW., Renton, WA. For
information on the availability of this material at the FAA, call
425-227-1221.
    (6) You may view this service information that is incorporated
by reference at the National Archives and Records Administration
(NARA). For information on the availability of this material at
NARA, call<PHONE_NUMBER>, or go to: http://www.archives.gov/federal-register/cfr/ibr-locations.html.

    Issued in Renton, Washington on June 6, 2014.
Jeffrey E. Duven,
Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. 2014-14475 Filed 7-9-14; 8:45 am]
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