[Federal Register Volume 77, Number 60 (Wednesday, March 28, 2012)]
[Notices]
[Pages 18875-18876]
[FR Doc No: 2012-7382]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66642; File No. SR-NYSEArca-2012-19]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of Proposed Rule Change To Amend Commentary .01 to NYSE Arca Rule 6.35

March 22, 2012.
    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 March 9, 2012, NYSE Arca, Inc. (the ``Exchange'' or
``NYSE Arca'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
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 proposes to [sic] amend Commentary .01 to
NYSE Arca Rule 6.35. The text of the proposed rule change is available
at the Exchange, the Commission's Public Reference Room, and
www.nyse.com.

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
    The Exchange proposes to amend Commentary .01 to NYSE Arca Rule
6.35 to allow certain cross trades effected on the Trading Floor to
count toward the Market Maker's appointment trading requirement and to
make non-substantive changes to NYSE Arca Rules 6.35, 6.37, 6.84, and
10.12.
    Under NYSE Arca Rule 6.35, a Market maker is required to effect at
least 75% of its trading activity (measured in terms of contract volume
per quarter) in classes within the Market Maker's appointment.
Commentary .01 to NYSE Arca Rule 6.35 clarifies that a Market Maker's
trades effected on the Trading Floor to accommodate cross trades
executed pursuant to NYSE Arca Rule 6.47 do not count for or against
the Market Maker's 75% requirement, regardless of whether the trades
are in issues within or without the Market Maker's appointment.
    The Exchange is proposing to amend Commentary .01 to NYSE Arca Rule
6.35 to allow a Market Maker's trades effected on the Trading Floor to
accommodate cross trades executed pursuant to NYSE Arca Rule 6.47 to
count toward the Market Maker's 75% requirement, regardless of whether
the trades are in issues within or without the Market Maker's
appointment.
    Transactions of a Market Maker should constitute a course of
dealings reasonably calculated to contribute to the maintenance of a
fair and orderly market.\4\ Market Makers located on the Trading Floor,
when trading in option classes other than those to which they are
appointed, must continue to fulfill Market Maker obligations for that
class as if they were appointed to such class. In addition, when
present anywhere on the Options Trading Floor, with regard to all
securities traded on the Trading Floor, not just those to which they
are appointed, Market Makers may be required to undertake the general
obligations of a Market Maker at any time in response to a demand from
a Trading Official.\5\ The Exchange believes that a Market Maker
engaging in such trading is fulfilling Market Maker obligations in
addition to providing liquidity to the market and the opportunity for
price improvement, and it is appropriate to encourage such activity by
counting it toward the 75% requirement.
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    \4\ See e.g., NYSE Arca Rule 6.37(a).
    \5\ See e.g., NYSE Arca Rule 6.37(c).
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    In addition, the Exchange notes that the proposed rule change is
similar to NYSE Amex LLC Options Rule 923NY(i), which permits all floor
trades executed by Floor Market Makers [sic] a designated Trading Zone,
not just those to which they hold an appointment, to count toward the
Market Maker's 75% requirement. While NYSE Arca Market Makers are not
appointed to a designated Trading Zone, they are subject to certain
Market Maker obligations in all classes of options while located on the
Trading Floor. As such, NYSE Arca believes that counting all floor
trades, executed to accommodate cross transactions, is consistent with
the application of NYSE Amex Rule 923NY(i) when calculating compliance
with the 75% ``in appointment'' requirement.
    NYSE Arca is also proposing non-substantive changes to NYSE Arca
Rules 6.35, 6.37, 6.84, and 10.12. The Exchange proposes to replace the
term ``Primary Appointment'' which is not a defined term with the word
``appointment'' as it is used elsewhere in NYSE Arca Rule 6.35.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) \6\ of the
Act, in general, and furthers the objectives of Section 6(b)(5),\7\ in
particular, in that the proposal 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 regulating, clearing, settling, processing
information with respect to, and facilitating transactions in
securities, 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. Specifically, the proposed
rule change will remove impediments to and perfect the mechanism of a
free and open market by providing an appropriate incentive for Market
Makers to provide greater liquidity and the opportunity for price
improvement on the Trading Floor, thereby benefiting all market
participants.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 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 45 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 or disapprove 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 email to<EMAIL_ADDRESS>Please include
File Number SR-NYSEArca-2012-19 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-NYSEArca-2012-19. 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 the filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-NYSEArca-2012-19 and should
be submitted on or before April 18, 2012.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
Kevin M. O'Neill,
Deputy Secretary.
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    \8\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2012-7382 Filed 3-27-12; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 78, Number 233 (Wednesday, December 4, 2013)]
[Notices]
[Pages 72897-72899]
[FR Doc No: 2013-28960]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2013-N-1428]

Draft Guidance for Industry on Interim Product Reporting for
Human Drug Compounding Outsourcing Facilities Under Section 503B of the
Federal Food, Drug, and Cosmetic Act; Availability

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice.

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SUMMARY: The Food and Drug Administration (FDA or the Agency) is
announcing the availability of a draft guidance for industry entitled
``Interim Product Reporting for Human Drug Compounding Outsourcing
Facilities Under Section 503B of the Federal Food, Drug, and Cosmetic
Act.'' The draft guidance addresses new provisions in the Federal Food,
Drug, and Cosmetic Act (the FD&C Act), as amended by the Drug Quality
and Security Act (DQSA), and sets forth an interim electronic
submission method for human drug compounders that choose to register as
outsourcing facilities (outsourcing facilities).

DATES: Although you can comment on any guidance at any time (see 21 CFR
10.115(g)(5)), to ensure that the Agency considers your comment on this
draft guidance before it begins work on a draft guidance describing the
updated format for long-term use, submit either electronic or written
comments on this draft guidance by February 3, 2014. Submit either
electronic or written comments concerning the collection of information
proposed in the draft guidance by February 3, 2014.

ADDRESSES: Submit written requests for single copies of the draft
guidance to the Division of Drug Information, Center for Drug
Evaluation and Research, Food and Drug Administration, 10903 New
Hampshire Ave., Bldg. 51, Rm. 2201, Silver Spring, MD 20993-0002. Send
one self-addressed adhesive label to assist that office in processing
your requests. See the SUPPLEMENTARY INFORMATION section for electronic
access to the draft guidance document.
    Submit electronic comments on the draft guidance to http://www.regulations.gov. Submit written comments to the Division of Dockets
Management (HFA-305), Food and Drug Administration, 5630 Fishers Lane,
Rm. 1061, Rockville, MD 20852.

FOR FURTHER INFORMATION CONTACT: Lysette Deshields, Drug Registration
and Listing Team, Center for Drug Evaluation and Research, Food and
Drug Administration, 10903 New Hampshire Ave., Silver Spring, MD 20993-
0002,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

I. Background

    FDA is announcing the availability of a draft guidance for industry
entitled ``Interim Product Reporting for Human Drug Compounding
Outsourcing Facilities Under Section 503B of the Federal Food, Drug,
and Cosmetic Act.'' The draft guidance is being issued to implement new
provisions added to the FD&C Act in the DQSA. In the newly enacted
legislation, Congress created a new statutory category of ``outsourcing
facilities'' that compound drugs. New section 503B of the FD&C Act (21
U.S.C. 353b) allows compounders to register with FDA as outsourcing
facilities and, among other things, imposes reporting requirements on
these entities if they choose to register. The draft guidance is
intended to assist registered outsourcing facilities in implementing
drug reporting. The draft guidance describes how an outsourcing
facility should provide interim electronic reports while FDA modifies
its existing electronic drug registration and listing system to
accommodate reporting of product information by registered outsourcing
facilities under section 503B of the FD&C Act. When the Agency has
modified its current electronic submission system to allow outsourcing
facilities to submit information electronically through a Structured
Product Labeling file, FDA intends to issue a draft guidance describing
the updated format for long-term use. When such guidance is issued in
final form, it will specify the form of reporting that outsourcing
facilities are to follow from that point forward.
    The draft guidance does not create or confer any rights for or on
any person and does not operate to bind FDA or the public. An
alternative approach may be used if such approach satisfies the
requirements of the applicable statutes and regulations.
    Elsewhere in this issue of the Federal Register, the Agency is
making available for comment a draft guidance on registration for human
drug compounding outsourcing facilities under section 503B of the FD&C
Act.

II. Paperwork Reduction Act

    Under the Paperwork Reduction Act of 1995 (the PRA) (44 U.S.C.
3501-3520), Federal Agencies must obtain approval from the Office of
Management and Budget (OMB) for each collection of information that
they conduct or sponsor. ``Collection of information'' is defined in 44
U.S.C. 3502(3) and 5 CFR 1320.3(c) and includes Agency requests or
requirements that members of the public submit reports, keep records,
or provide information to a third party. Section 3506(c)(2)(A) of the
PRA (44 U.S.C. 3506(c)(2)(A)) requires Federal agencies to provide a
60-day notice in the Federal Register for each proposed collection of
information before submitting the collection to OMB for approval. To
comply with this requirement, FDA is publishing notice of the proposed
collection of information set forth in this document.
    With respect to the collection of information associated with this
document, FDA invites comments on the following topics: (1) Whether the
proposed information collected is necessary for the proper performance
of FDA's functions, including whether the information will have
practical utility; (2) the accuracy of FDA's estimated burden of the
proposed information collected, including the validity of the
methodology and assumptions used; (3)

ways to enhance the quality, utility, and clarity of the information
collected; and (4) ways to minimize the burden of information collected
on the respondents, including through the use of automated collection
techniques, when appropriate, and other forms of information
technology.
    Under the draft guidance, registered outsourcing facilities should
submit to FDA a report identifying all drugs compounded by the facility
during the previous 6-month period. This product report should be
submitted upon initial registration as an outsourcing facility and once
during the months of June and December of each year. The report should
include the following information for all drugs compounded by the
outsourcing facility during the previous 6-month period:
     The active ingredient and strength of active ingredient
per unit;
     The source of the active ingredient (bulk or finished
drug);
     The National Drug Code (NDC) number of the source drug or
bulk active ingredient, if available;
     The dosage form and route of administration;
     The package description;
     The number of individual units produced; and
     The NDC number of the final product, if assigned.
    Product reports should be submitted to FDA electronically using an
Excel spreadsheet and via an email attachment, as described in the
draft guidance. Outsourcing facilities may request a waiver from the
electronic submission process by submitting a written request to FDA
explaining why the use of electronic means is not reasonable.
    Because human drug compounders are not required to register and
report as outsourcing facilities, it is difficult to anticipate the
number of outsourcing facilities that will participate in the process.
We estimate that a total of approximately 20 outsourcing facilities
(``number of respondents'' in table 1, row 1) will submit to FDA at the
time of initial registration a report identifying all drugs compounded
by the facility. We also estimate that these outsourcing facilities
will submit a total of approximately 20 reports for compounded drugs
containing the information specified in the draft guidance (``total
annual responses'' in table 1, row 1). We estimate that preparing and
submitting this information electronically will take approximately 10
hours per report (``average burden per response'' in table 1, row 1).
We expect to receive no more than one waiver request from this
electronic submission process (``total annual responses'' in table 1,
row 2), and each request should take approximately 1 hour to prepare
and submit to us (``average burden per response'' in table 1, row 2).
    We also estimate that a total of approximately 20 outsourcing
facilities (``number of respondents'' in table 2, row 1) will annually
submit to FDA a report identifying all drugs compounded by the
facility. We estimate that these outsourcing facilities will submit a
total of approximately 20 reports in June and 20 reports in December
containing the information specified in the draft guidance (``total
annual responses'' in table 2, row 1). We estimate that preparing and
submitting this information electronically will take approximately 10
hours per report (``average burden per response'' in table 2, row 1).
We expect to receive no more than one waiver request from the
electronic submission process (``total annual responses'' in table 2,
row 2), and each request should take approximately 1 hour to prepare
and submit to us (``average burden per response'' in table 2, row 2).

                                Table 1--Estimated One-Time Reporting Burden \1\
----------------------------------------------------------------------------------------------------------------
      Product reporting for                          Number of
     compounding outsourcing         Number of     responses per   Total annual   Average burden    Total hours
           facilities               respondents     respondent       responses     per response
----------------------------------------------------------------------------------------------------------------
Submission of Initial Product                 20               1              20              10             200
 Report.........................
Waiver Request from Electronic                 1               1               1               1               1
 Submission of Initial Product
 Report.........................
                                 -------------------------------------------------------------------------------
    Total.......................  ..............  ..............  ..............  ..............             201
----------------------------------------------------------------------------------------------------------------
\1\ There are no capital costs or operating and maintenance costs associated with this collection of
  information.

                                 Table 2--Estimated Annual Reporting Burden \1\
----------------------------------------------------------------------------------------------------------------
      Product reporting for                          Number of
     compounding outsourcing         Number of     responses per   Total annual   Average burden    Total hours
           facilities               respondents     respondent       responses     per response
----------------------------------------------------------------------------------------------------------------
Submission of June Product                    20               1              20              10             200
 Report.........................
Submission of December Product                20               1              20              10             200
 Report.........................
Waiver Request from Electronic                 1               1               1               1               1
 Submission of Product Reports..
                                 -------------------------------------------------------------------------------
    Total.......................  ..............  ..............  ..............  ..............             401
----------------------------------------------------------------------------------------------------------------
\1\ There are no capital costs or operating and maintenance costs associated with this collection of
  information.

III. Comments

    Interested persons may submit either electronic comments regarding
this document to http://www.regulations.gov or written comments to the
Division of Dockets Management (see ADDRESSES). It is only necessary to
send one set of comments. Identify comments with the docket number
found in brackets in the heading of this document. Received comments
may be seen in the Division of Dockets Management between 9 a.m. and 4
p.m., Monday through Friday, and will be posted to the docket at http://www.regulations.gov.

IV. Electronic Access

    Persons with access to the Internet may obtain the document at
either http://www.fda.gov/Drugs/GuidanceComplianceRegulatoryInformation/Guidances/default.htm or http://www.regulations.gov.

    Dated: November 27, 2013.
Leslie Kux,
Assistant Commissioner for Policy.
[FR Doc. 2013-28960 Filed 12-2-13; 11:15 am]
BILLING CODE 4160-01-P


[Federal Register Volume 76, Number 45 (Tuesday, March 8, 2011)]
[Proposed Rules]
[Pages 12619-12624]
[FR Doc No: 2011-5159]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2011-0155; Directorate Identifier 2009-NM-141-AD]
RIN 2120-AA64

Airworthiness Directives; The Boeing Company 737-200, -200C, -
300, -400, and -500 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 Boeing Model 737-200, -200C, -
300, -400, and -500 series airplanes. The existing AD currently
requires repetitive inspections to find fatigue cracking of certain
upper and lower skin panels of the fuselage, and follow-on and
corrective actions if necessary. The existing AD also includes a
terminating action for the repetitive inspections of certain modified
or repaired areas only. This proposed AD would add new inspections for
cracking of the fuselage skin along certain chem-milled lines, and
corrective actions if necessary. This proposed AD would also reduce
certain thresholds and intervals required by the existing AD. This
proposed AD results from reports of new findings of vertical cracks in
the fuselage skin along the chem-milled steps adjacent to the butt
joints. We are proposing this AD to detect and correct fatigue cracking
of the skin panels, which could result in sudden fracture and failure
of the skin panels of the fuselage, and consequent rapid decompression
of the airplane.

DATES: We must receive comments on this proposed AD by April 22, 2011.

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>.

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: 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>; e-mail<EMAIL_ADDRESS>
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-2011-0155;
Directorate Identifier 2009-NM-141-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 26, 2004, we issued AD 2004-18-06, Amendment 39-13784 (69
FR 54206, September 8, 2004), for certain Model 737-200, -200C, -300, -
400, and -500 series airplanes. That AD requires repetitive inspections
to find fatigue cracking of certain upper and lower skin panels of the
fuselage, and follow-on and corrective actions if necessary. That AD
also includes a terminating action for the repetitive inspections of
certain modified or repaired areas only. That AD resulted from reports
indicating new findings of cracks were found along the edges of the
chem-milled pockets in the upper skin at certain stringers. We issued
that AD to find and fix fatigue cracking of the skin panels, which
could result in sudden fracture and failure of the skin panels of the
fuselage, and consequent rapid decompression of the airplane.

Actions Since Existing AD Was Issued

    Since we issued AD 2004-18-06, we have received reports of new
findings of vertical cracks in the fuselage skin along the chem-milled
steps adjacent to the butt joints and at certain body stations on
airplanes with between 45,100 flight cycles (65,200 flight hours) and
67,400 flight cycles (70,800 flight hours).
    A decompression event connected to chem-milled steps occurred in
July 2009 (after issuance of Boeing Alert Service Bulletin 737-53A1210,
Revision 3, dated July 16, 2009) and resulted in re-evaluation of the
inspection thresholds and repetitive intervals. The new data and
analysis require the repetitive intervals be reduced from those
currently specified in Boeing Alert Service Bulletin 737-53A1210,
Revision 3, dated July 16, 2009. These new repetitive intervals are
defined in the differences section of the NPRM.

Explanation of Relevant Service Information

    We have reviewed Boeing Alert Service Bulletin 737-53A1210,
Revision 2, dated March 3, 2009; and Boeing Alert Service Bulletin 737-
53A1210, Revision 3, dated July 16, 2009. Boeing Alert Service Bulletin
737-53A1210, Revision 1, dated October 25, 2001, was referred to as the
appropriate source of service information for accomplishing the actions
in the existing AD.
    Boeing Alert Service Bulletin 737-53A1210, Revision 2, describes
procedures for, among other things,

repetitive external detailed and eddy current inspections for cracking
of the fuselage skin along certain chem-milled lines, and corrective
actions if necessary. The corrective actions include doing a time-
limited repair or a permanent repair, as applicable. After installation
of a time-limited repair, an external detailed inspection is done of
the repaired area for cracks and loose or missing fasteners. For
airplanes on which cracks are found, this service bulletin recommends
contacting Boeing for repair instructions and repairing; and, for
airplanes on which loose or damaged fasteners are found this service
bulletin specifies replacing any damaged or loose fasteners. This
service bulletin adds an optional preventive modification for Groups 3,
5, 6, and 8 at body station (BS) 500D through BS 520 on Model 737-300
airplanes, and BS 482B through BS 520, stringer 12, on Model 737-500
airplanes. This service bulletin also reduces the effectivity specified
in Revision 1, and contains editorial changes.
    Boeing Alert Service Bulletin 737-53A1210, Revision 3, clarifies
certain work instructions. This service bulletin also specifies that
more work is necessary for airplanes on which the actions in Boeing
Alert Service Bulletin 737-53A1210, dated December 14, 2000; or
Revision 1, dated October 25, 2001; were done. In addition, Revision 3
of this service bulletin adds the airplanes that were incorrectly
removed from the effectivity in Revision 2 of this service bulletin,
which were not identified until after Revision 2 of this service
bulletin was issued. Therefore, the effectivity in Revision 3 of this
service bulletin is the same as the effectivity in Revision 1 of this
service bulletin.
    Boeing Alert Service Bulletin 737-53A1210, Revision 3, specifies
that the repetitive inspection interval is 4,500 flight cycles.

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 2004-18-06 and would retain certain requirements of
the existing AD. This proposed AD would also require accomplishing the
actions specified in the service information described previously,
except as discussed under ``Differences Between the Proposed AD and
Service Information.'' This proposed AD also reduces the compliance
time of 40,000 total flight cycles for doing certain actions in AD
2004-18-06; this proposed AD specifies a compliance time of 35,000
total flight cycles in paragraph (s) of this AD.

Differences Between the Proposed AD and Service Information

    Boeing Alert Service Bulletin 737-53A1210, Revision 3, dated July
16, 2009, specifies to contact the manufacturer for disposition of
certain repair conditions, but this proposed AD would require repairing
those conditions in one of the following ways:
     In accordance with 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 (ODA) that we have
authorized to make those findings.
    Boeing Alert Service Bulletin 737-53A1210, Revision 2, dated March
3, 2009, specifies that no airplanes were added or removed from the
effectivity; however, the manufacturer has informed us that there were
airplanes incorrectly removed in the ``Identification by Customer,
Customer Code, Group and Variable Number'' section in Paragraph 1.A.1
of Revision 2 of this service bulletin. In light of the fact that
Revision 3 of this service bulletin includes those airplanes in its
effectivity, and includes all the actions specified in Revision 2 of
this service bulletin, this proposed AD would require that the new
actions be done in accordance with Revision 3 of this service bulletin.
    Paragraph 1.E of Boeing Alert Service Bulletin 737-53A1210,
Revision 3, specifies a repetitive inspection interval of 4,500 flight
cycles; that interval is expected to be reduced when this service
bulletin is revised. The manufacturer has informed us that it has re-
evaluated the inspection interval because it would not address the
identified unsafe condition soon enough to ensure an acceptable level
of safety for the affected fleet. In light of this fact, we find that a
repetitive inspection interval of 1,800 flight cycles, for the actions
specified in Tables 1 through 5, represents an appropriate interval of
time for affected airplanes to continue to operate without compromising
safety.
    Part 8 of the Accomplishment Instructions of Boeing Alert Service
Bulletin 737-53A1210, Revision 3, specifies a post-repair inspection of
the skin chem-milled crack repair at stringer 12; that inspection is
not required by this proposed AD. The damage tolerance inspections
specified in Table 7 of Boeing Alert Service Bulletin 737-53A1210,
Revision 3, dated July 16, 2009, may be used in support of compliance
with section 121.1109(c)(2) or 129.109(c)(2) of the Federal Aviation
Regulations (14 CFR 121.1109(c)(2) or 14 CFR 129.109(c)(2)).

Explanation of Change to This Proposed AD

    Boeing Commercial Airplanes has received an Organization Delegation
Authority (ODA), which replaces their previous designation as a
Designated Engineering Representative (DER). We have revised paragraphs
(j) and (l)(2) of this proposed AD to delegate the authority to approve
an alternative method of compliance for any repair required by this AD
to the Boeing Commercial Airplanes ODA.

Change to Existing AD

    This proposed AD would retain certain requirements of AD 2004-18-
06. Since AD 2004-18-06 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 2004-18-06                 proposed AD
------------------------------------------------------------------------
             paragraph (a)                        paragraph (g)
             paragraph (b)                        paragraph (h)
             paragraph (c)                        paragraph (i)
             paragraph (d)                        paragraph (j)
             paragraph (e)                        paragraph (k)
             paragraph (f)                        paragraph (l)
             paragraph (g)                        paragraph (m)
             paragraph (h)                        paragraph (n)
             paragraph (i)                        paragraph (o)
------------------------------------------------------------------------

    We have revised paragraph (m) of this proposed AD to specify that
doing paragraph (b) or (c), as applicable, of AD 2003-14-06, Amendment
39-13225, after the effective date of this proposed AD does not
terminate any of the actions required by paragraph (g) of this proposed
AD. Recent reports of cracking have shown that a detailed inspection
alone is not sufficient to find cracks in the fuselage skin. The
cracking begins on the internal surface of the skin and grows outward,
not becoming visible on the external surface until the crack is at
least three inches in length. Actions accomplished before the effective
date of this AD in accordance with AD 2003-14-06, which terminate
certain requirements of paragraph (g) of this proposed AD, are
reinstated with the new requirements specified in paragraph (p) of this
proposed AD.

Costs of Compliance

    There are about 903 airplanes of U.S. registry affected by AD 2004-
18-06.
    The inspections of the crown area that are required by AD 2004-18-
06 take about 94 work hours per airplane to accomplish, at an average
labor rate of $85 per work hour. Based on these figures, the estimated
cost of the currently required inspections is $7,990 per airplane, per
inspection cycle.
    The inspections of the lower lobe area that are required by AD
2004-18-06 take about 96 work hours per airplane to accomplish, at an
average labor rate of $85 per work hour. Based on these figures, the
estimated cost of the currently required inspections is $8,160 per
airplane, per inspection cycle.
    Should an operator elect to install the preventive modification
specified in AD 2004-18-06 it will take about 108 work hours per
airplane to accomplish, at an average labor rate of $85 per work hour.
Based on these figures, the estimated cost of the modification is
$9,180 per airplane.
    The new proposed inspections would affect about 701 airplanes of
U.S. registry.
    The new proposed inspections would take about 27 work hours per
airplane, at an average labor rate of $85 per work hour. Based on these
figures, the estimated cost of the new actions specified in this
proposed AD for U.S. operators is $1,608,795, or $2,295 per airplane,
per inspection 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),
    (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.

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 39-13784 (69 FR
54206, September 8, 2004) and adding the following new AD:

The Boeing Company: Docket No. FAA-2011-0155; Directorate Identifier
2009-NM-141-AD.

Comments Due Date

    (a) The FAA must receive comments on this AD action by April 22,
2011.

Affected ADs

    (b) This AD supersedes AD 2004-18-06, Amendment 39-13784. AD
2002-07-08, Amendment 39-12702; and AD 2003-14-06, Amendment 39-
13225; affect this AD.

Applicability

    (c) This AD applies to The Boeing Company Model 737-200, -200C,
-300, -400, and -500 series airplanes, certificated in any category,
as listed in Boeing Alert Service Bulletin 737-53A1210, Revision 3,
dated July 16, 2009.

Subject

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

Unsafe Condition

    (e) This AD results from new findings of vertical cracks along
chem-milled steps adjacent to the butt joints. The Federal Aviation
Administration is issuing this AD to detect and correct fatigue
cracking of the skin panels, which could result in sudden fracture
and failure of the skin panels of the fuselage, and consequent rapid
decompression of the airplane.

Compliance

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

Restatement of Certain Requirements of AD 2004-18-06, Amendment 39-
13784

External Detailed and Eddy Current Inspections

    (g) For Groups 1 through 5 airplanes identified in Boeing Alert
Service Bulletin 737-53A1210, Revision 1, dated October 25, 2001:
Before the accumulation of 35,000 total flight cycles, or within
4,500 flight cycles after October 13, 2004 (the effective date of AD
2004-18-06), whichever is later, do external detailed and eddy
current inspections of the crown area and other known areas of
fuselage skin cracking, per Part 1 and Figure 1 of the Work
Instructions of Boeing Alert Service Bulletin 737-53A1210, Revision
1, dated October 25, 2001; or in accordance with Part 1 of the
Accomplishment Instructions of Boeing Alert Service Bulletin 737-
53A1210, Revision 3, dated July 16, 2009. As of the effective date
of this AD, use only Boeing Alert Service Bulletin 737-53A1210,
Revision 3, dated July 16, 2009. Repeat the external detailed and
eddy current inspections at intervals not to exceed 4,500 flight
cycles until paragraph (i), (j)(1)(ii), (k), (l), or (m) of this AD
has been done, as applicable. Although paragraph 1.D. of Boeing
Alert Service Bulletin 737-53A1210, Revision 1, dated October 25,
2001, references a reporting requirement, such reporting is not
required by this AD. Accomplishing the actions required by paragraph
(p) or (q) of this AD ends the repetitive requirements in this
paragraph.

    Note 1:  For the purposes of this AD, a detailed inspection is
defined as: ``An intensive visual examination of a specific
structural area, system, installation, or assembly to detect damage,
failure, or irregularity. Available lighting is normally
supplemented with a direct source of good lighting at intensity
deemed appropriate by the inspector. Inspection aids such as mirror,
magnifying lenses, etc., may be used. Surface cleaning and elaborate
access procedures may be required.''

    (h) For all airplanes identified in Boeing Alert Service
Bulletin 737-53A1210, Revision 1, dated October 25, 2001, do an
external detailed inspection of the lower lobe area and section 41
of the fuselage for cracking, per Part 2 and Figure 2 of the Work
Instructions of Boeing Alert Service Bulletin 737-53A1210, Revision
1, dated October 25, 2001; or in accordance with Part 4 of the
Accomplishment Instructions of Boeing Alert Service Bulletin 737-
53A1210, Revision 3,

dated July 16, 2009. As of the effective date of this AD, use only
Boeing Alert Service Bulletin 737-53A1210, Revision 3, dated July
16, 2009. At the earlier of the times specified in paragraphs (h)(1)
and (h)(2) of this AD, do the inspection specified in this paragraph
and repeat the inspection thereafter at intervals not to exceed
4,500 flight cycles until paragraph (j)(2) or (k) of this AD has
been done, as applicable. Accomplishing the actions required by
paragraph (s) of this AD ends the requirements in this paragraph.
    (1) Within 9,000 flight cycles after doing the most recent
internal detailed inspection.
    (2) Within 4,500 flight cycles after October 13, 2004, or before
the accumulation of 40,000 total flight cycles, whichever occurs
later.

Preventive Modification

    (i) For Groups 3 and 5 airplanes identified in Boeing Alert
Service Bulletin 737-53A1210, Revision 1, dated October 25, 2001: If
no cracking is found during any inspection required by paragraph (g)
of this AD, doing the preventive modification of the chem-milled
pockets in the upper skin as specified in Part 5 of the Work
Instructions of Boeing Alert Service Bulletin 737-53A1210, Revision
1, dated October 25, 2001; or as specified in Part 7 of the Work
Instructions of Boeing Alert Service Bulletin 737-53A1210, Revision
3, dated July 16, 2009, except as required by paragraph (x) of this
AD; ends the repetitive external detailed and eddy current
inspections required by paragraph (g) of this AD for the modified
area only. As of the effective date of this AD, use only Boeing
Alert Service Bulletin 737-53A1210, Revision 3, dated July 16, 2009.

Corrective Actions

    (j) If any cracking is found during any inspection required by
paragraph (g), (h), (p), (q), or (s) of this AD, before further
flight, do the actions specified in paragraphs (j)(1) and (j)(2) of
this AD, as applicable, in accordance with the Work Instructions of
Boeing Alert Service Bulletin 737-53A1210, Revision 1, dated October
25, 2001; or Revision 3, dated July 16, 2009. As of the effective
date of this AD, use only Boeing Alert Service Bulletin 737-53A1210,
Revision 3, dated July 16, 2009. Where Boeing Alert Service Bulletin
737-53A1210, Revision 1, dated October 25, 2001; or Revision 3,
dated July 16, 2009; specify to contact Boeing for repair
instructions, before further flight, repair per a method approved by
the Manager, Seattle Aircraft Certification Office (ACO), FAA; or
per data meeting the type certification basis of the airplane if it
is approved by the Boeing Commercial Airplanes Organization
Designation Authorization (ODA) or any other person 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.
    (1) Except as provided by paragraph (k) of this AD, for cracking
of the crown area, do the repair specified in either paragraph
(j)(1)(i) or (j)(1)(ii) of this AD.
    (i) Do a time-limited repair per Part 4 of the Work Instructions
of Boeing Alert Service Bulletin 737-53A1210, Revision 1, dated
October 25, 2001; or in accordance with Part 6 of the Work
Instructions of Boeing Alert Service Bulletin 737-53A1210, Revision
3, dated July 16, 2009, except as required by paragraph (x) of this
AD, then do the actions required by paragraph (l) of this AD at the
times specified in that paragraph.
    (ii) Do a permanent repair per Part 3 of the Work Instructions
of Boeing Alert Service Bulletin 737-53A1210, Revision 1, dated
October 25, 2001; or in accordance with Part 5 of the Work
Instructions of Boeing Alert Service Bulletin 737-53A1210, Revision
3, dated July 16, 2009. Installation of a permanent repair ends the
repetitive inspections required by paragraph (g) of this AD for the
repaired area only. Installation of the lap joint repair specified
in paragraph (g) of AD 2002-07-08, Amendment 39-12702, is considered
acceptable for compliance with the corresponding permanent repair
specified in this paragraph for the repaired areas only.
    (2) Except as provided by paragraph (k) of this AD, for cracking
of the lower lobe area and Section 41, repair per Part 2 of the Work
Instructions of Boeing Alert Service Bulletin 737-53A1210, Revision
1, dated October 25, 2001; or in accordance with paragraph (j)(2)(i)
or (j)(2)(ii) of this AD. Accomplishment of this repair ends the
repetitive inspections required by paragraph (h) of this AD for the
repaired area only. As of the effective date of this, do the repair
specified in paragraph (j)(2)(i) or (j)(2)(ii) of this AD.
    (i) Do a time-limited repair in accordance with Part 6 of the
Work Instructions of Boeing Alert Service Bulletin 737-53A1210,
Revision 3, dated July 16, 2009, except as required by paragraph (x)
of this AD, then do the actions required by paragraph (l) of this AD
at the times specified in that paragraph.
    (ii) Do a permanent repair in accordance with Part 5 of the
Accomplishment Instructions of Boeing Alert Service Bulletin 737-
53A1210, Revision 3, dated July 16, 2009.

Optional Repair Method

    (k) For cracking in any area specified in paragraphs (j)(1) and
(j)(2) of this AD within the limitations of the applicable
structural repair manual (SRM) specified in table 1 of this AD,
repair any cracks per the applicable SRM specified in table 1 of
this AD. Accomplishment of the applicable repair terminates the
repetitive inspections required by paragraphs (g) and (h) of this AD
for the repaired area only.

                                                                 Table 1--SRM References
--------------------------------------------------------------------------------------------------------------------------------------------------------
                Model                               Subject/figure               Revision                  Date                            SRM
--------------------------------------------------------------------------------------------------------------------------------------------------------
737-100, -200 series airplanes.......  53-30-3, Figure 48.....................        102  September 10, 2010.................  Boeing 737-100/-200 SRM,
                                                                                D6-15565.
737-300 series airplanes.............  53-00-01, Figure 229...................         92  November 10, 2010..................  Boeing 737-300 SRM D6-
                                                                                37635.
737-400 series airplanes.............  53-00-01, Figure 231...................         75  November 10, 2010..................  Boeing 737-400 SRM, D6-
                                                                                38246.
737-500 series airplanes.............  53-00-01, Figure 229...................         70  November 10, 2010..................  Boeing 737-500 SRM, D6-
                                                                                38441.
--------------------------------------------------------------------------------------------------------------------------------------------------------

Follow-on and Corrective Actions

    (l) If a time-limited repair is done, as specified in paragraph
(j)(1)(i) or (j)(2)(i) of this AD: Do the actions specified in
paragraphs (l)(1), (l)(2), and (l)(3) of this AD, at the times
specified in paragraphs (l)(1), (l)(2), and (l)(3) of this AD, per
the Work Instructions of Boeing Alert Service Bulletin 737-53A1210,
Revision 1, dated October 25, 2001; or Boeing Alert Service Bulletin
737-53A1210, Revision 3, dated July 16, 2009.
    (1) Within 3,000 flight cycles after doing the repair: Do the
actions specified in paragraph (l)(1)(i) or (l)(1)(ii) of this AD.
Then repeat the applicable inspection specified in paragraph
(l)(1)(i) or (l)(1)(ii) of this AD at intervals not to exceed 3,000
flight cycles until permanent rivets are installed in the repaired
area, which ends the repetitive inspections for this paragraph. As
of the effective date of this AD, do only the inspections specified
in paragraph (l)(1)(ii) of this AD.
    (i) For repairs done before the effective date of this AD: Do a
detailed inspection of the repaired area for loose fasteners per
Part 4 of the Work Instructions of Boeing Alert Service Bulletin
737-53A1210, Revision 1, dated October 25, 2001, or do the actions
specified in paragraph (l)(1)(ii) of this AD. If any loose fastener
is found, before further flight, replace with a new fastener per
Boeing Alert Service Bulletin 737-53A1210, Revision 1, dated October
25, 2001.
    (ii) For repairs done after the effective date of this AD: Do a
detailed inspection of the repaired area for loose, damaged, and
missing fasteners in accordance with Part 6 of the Accomplishment
Instructions of Boeing Alert Service Bulletin 737-53A1210, Revision
3, dated July 16, 2009. If any loose, missing, or damaged fastener
is found, before further flight, replace with a new fastener in
accordance with Boeing Alert Service Bulletin 737-53A1210, Revision
3, dated July 16, 2009.
    (2) At the applicable time specified in paragraph (l)(2)(i) and
(l)(2)(ii) of this AD: Do inspections of the repaired area for
cracking per Part 4 of the Work Instructions of Boeing Alert Service
Bulletin 737-53A1210, Revision 1, dated October 25, 2001; or in

accordance with Part 6 of the Work Instructions of Boeing Alert
Service Bulletin 737-53A1210, Revision 3, dated July 16, 2009. If
any cracking is found, before further flight, repair per a method
approved by the Manager, Seattle ACO, or per data meeting the type
certification basis of the airplane if it is approved by the Boeing
Commercial Airplanes ODA or any other person 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.
    (i) For repairs done before the effective date of this AD:
Within 4,000 flight cycles after doing the repair, do the
inspections.
    (ii) For repairs done on or after the effective date of this AD:
Within 3,000 flight cycles after doing the repair, do the
inspections.
    (3) At the earlier of the times specified in paragraphs
(l)(3)(i) and (l)(3)(ii) of this AD: Make the repair permanent per
Part 4 and Figure 20 of the Work Instructions of Boeing Alert
Service Bulletin 737-53A1210, Revision 1, dated October 25, 2001, or
do the permanent repair in accordance with Part 5 of the Work
Instructions of Boeing Alert Service Bulletin 737-53A1210, Revision
3, dated July 16, 2009, which ends the repetitive inspections for
the repaired area only. As of the effective date of this AD, make
the repair permanent in accordance with Boeing Alert Service
Bulletin 737-53A1210, Revision 3, dated July 16, 2009.
    (i) Within 10,000 flight cycles after doing the repair in
accordance with Boeing Alert Service Bulletin 737-53A1210, Revision
1, dated October 25, 2001.
    (ii) At the later of the times specified in paragraphs
(l)(3)(ii)(A) and (l)(3)(ii)(B) of this AD.
    (A) Within 6,000 flight cycles after doing the repair.
    (B) Within 1,000 flight cycles after the effective date of this
AD.

Optional Terminating Action for Repetitive Eddy Current Inspections if
Done Before the Effective Date of This AD

    (m) Accomplishment of paragraph (b) or (c), as applicable, of AD
2003-14-06, Amendment 39-13225, before the effective date of this AD
ends the repetitive eddy current inspections required by paragraph
(g) of this AD for that skin panel only; however, the repetitive
external detailed inspections required by paragraph (g) of this AD
are still required for all areas. As of the effective date of this
AD, accomplishing paragraph (b) or (c), as applicable, of AD 2003-
14-06, Amendment 39-13225, does not end the repetitive eddy current
inspections required by paragraph (g) of this AD.

Credit for Actions Done per Previous Service Bulletin

    (n) Inspections, repairs, and preventive modifications done
before October 13, 2004, in accordance with Boeing Alert Service
Bulletin 737-53A1210, dated December 14, 2000, are acceptable for
compliance with the corresponding actions required by paragraphs
(g), (h), (i), (j), (k), and (l) of this AD.

Exception to Service Bulletin Procedures

    (o) For airplanes subject to the requirements of paragraphs (g),
(h), (p), and (q) of this AD: Inspections are not required in areas
that are spanned by an FAA-approved repair that has a minimum of 3
rows of fasteners above and below the chem-milled step. If an
external doubler covers the chem-milled step, but does not span it
by a minimum of 3 rows of fasteners above and below, in lieu of
requesting approval for an alternative method of compliance (AMOC),
one option to comply with the inspection requirement of paragraphs
(g) and (h) of this AD is to inspect all chem-milled steps covered
by the repair using internal nondestructive test (NDT) methods in
accordance with Part 6 of the Boeing 737 Non-Destructive Test NDT
Manual. As of the effective date of this AD, inspect in accordance
with Boeing Alert Service Bulletin 737-53A1210, Revision 3, dated
July 16, 2009.

New Requirements of This AD

Repetitive Inspections and Corrective Actions if Necessary

    (p) For Groups 1 through 5 and 9 through 21 airplanes identified
in Boeing Alert Service Bulletin 737-53A1210, Revision 3, dated July
16, 2009, on which the inspections required by paragraph (g) of this
AD have been done before the effective date of this AD: At the
applicable time specified in paragraph (p)(1) or (p)(2) of this AD,
do external detailed and eddy current inspections of the crown area
and other known areas of fuselage skin cracking in accordance with
Part 1 of the Accomplishment Instructions of Boeing Alert Service
Bulletin 737-53A1210, Revision 3, dated July 16, 2009; except as
provided by paragraph (o) of this AD. Repeat the external detailed
and eddy current inspections thereafter at intervals not to exceed
1,800 flight cycles. Accomplishing the inspections required by this
paragraph ends the repetitive inspections required by paragraph (g)
of this AD. Before further flight, do all applicable corrective
actions as specified in paragraph (j) of this AD.
    (1) For airplanes on which any action specified in paragraph
(i), (j)(1)(ii), (k), (l), or (m) of this AD has been done: Within
1,800 flight cycles after the effective date of this AD.
    (2) For airplanes on which actions specified in paragraphs (i),
(j)(1)(ii), (k), (l), and (m) of this AD have not been done: Within
4,500 flight cycles after doing the most recent inspection required
by paragraph (g) of this AD, or within 1,800 flight cycles after the
effective date of this AD, whichever is later.
    (q) For Groups 1 through 5 and 9 through 21 airplanes identified
in Boeing Alert Service Bulletin 737-53A1210, Revision 3, dated July
16, 2009; on which the inspections required by paragraph (g) of this
AD have not been done before the effective date of this AD: Before
the accumulation of 35,000 total flight cycles, or within 1,800
flight cycles after the effective date of this AD, whichever is
later, do external detailed and eddy current inspections of the
crown area and other known areas of fuselage skin cracking in
accordance with Part 1 of the Accomplishment Instructions of Boeing
Alert Service Bulletin 737-53A1210, Revision 3, dated July 16, 2009.
Repeat the external detailed and eddy current inspections thereafter
at intervals not to exceed 1,800 flight cycles. Before further
flight, do all applicable corrective actions as specified in
paragraph (j) of this AD.
    (r) For Group 1 through 5 and 9 through 21 airplanes identified
in Boeing Alert Service Bulletin 737-53A1210, Revision 3, dated July
16, 2009: At the later of the times specified in paragraphs (r)(1)
and (r)(2) of this AD, do external detailed and eddy current
inspections for vertical cracks in the fuselage skin along the chem-
milled steps of the butt joints, in accordance with Part 3 of the
Accomplishment Instructions of Boeing Alert Service Bulletin 737-
53A1210, Revision 3, dated July 16, 2009. Repeat the inspections
thereafter at intervals not to exceed 1,800 flight cycles or 1,800
flight hours, whichever occurs first. If any cracking is found,
before further flight, repair in accordance with Part 5 of the
Accomplishment Instructions of Boeing Alert Service Bulletin 737-
53A1210, Revision 3, dated July 16, 2009. Doing the repair
terminates the repetitive inspections specified in this paragraph
for the repaired area only.
    (1) Before the accumulation of 55,000 total flight cycles or
55,000 total flight hours, whichever occurs first.
    (2) Within 1,800 flight cycles or 1,800 flight hours after the
effective date of this AD, whichever occurs first.
    (s) For Groups 1 through 21 airplanes identified in Boeing Alert
Service Bulletin 737-53A1210, Revision 3, dated July 16, 2009:
Before the accumulation of 35,000 total flight cycles or within
4,500 flight cycles after the effective date of this AD, whichever
is later, do external detailed and eddy current inspections for
horizontal cracks along the chem-milled lines of the fuselage skin
of the lower lobe area and section 41, in accordance with Part 4 of
the Accomplishment Instructions of Boeing Alert Service Bulletin
737-53A1210, Revision 3, dated July 16, 2009; except as required by
paragraph (u) of this AD. Repeat the inspections thereafter at
intervals not to exceed 4,500 flight cycles. Accomplishing the
inspections required by this paragraph ends the repetitive
inspections required by paragraph (h) of this AD. Before further
flight, do all applicable corrective actions as specified in
paragraph (j) of this AD.
    (t) For Groups 4, 11, and 16 airplanes identified in Boeing
Alert Service Bulletin 737-53A1210, Revision 3, dated July 16, 2009:
Before the accumulation of 25,000 total flight cycles or within
4,500 flight cycles after the effective date of this AD, whichever
is later, do external detailed and eddy current inspections for
horizontal cracks along the chem-milled lines of the fuselage skin
of the fuselage window belt area in accordance with Part 2 of the
Accomplishment Instructions of Boeing Alert Service Bulletin 737-
53A1210, Revision 3, dated July 16, 2009. Repeat the inspections
thereafter at intervals not to exceed 4,500 flight cycles. If any
cracking is found, before further flight, repair using a

method approved in accordance with paragraph (y) of this AD.
    (u) For Groups 3, 5, 9, 10, 12, 14, 15, 17, 18, 19, 20, and 21
airplanes identified in Boeing Alert Service Bulletin 737-53A1210,
Revision 3, dated July 16, 2009: Do the actions specified in
paragraph (u)(1) or (u)(2) of this AD, as applicable.
    (1) For airplanes on which the inspections required by paragraph
(g) of this AD have been done before the effective date of this AD:
Within 4,500 flight cycles after doing the most recent inspection
required by paragraph (g) of this AD, do external detailed and eddy
current inspections for horizontal cracks along the chem-milled
lines of the fuselage skin of the fuselage window belt area in
accordance with Part 2 of the Accomplishment Instructions of Boeing
Alert Service Bulletin 737-53A1210, Revision 3, dated July 16, 2009.
Repeat the inspections thereafter at intervals not to exceed 4,500
flight cycles. If any cracking is found, before further flight,
repair in accordance with Part 8 of Boeing Alert Service Bulletin
737-53A1210, Revision 3, dated July 16, 2009, except as required by
paragraph (x) of this AD.
    (2) For airplanes on which the inspections required by paragraph
(g) of this AD have not been done before the effective date of this
AD: Before the accumulation of 25,000 total flight cycles or within
4,500 flight cycles after the effective date of this AD, whichever
is later, do external detailed and eddy current inspections for
horizontal cracks along the chem-milled lines of the fuselage skin
of the fuselage window belt area in accordance with Part 2 of the
Accomplishment Instructions of Boeing Alert Service Bulletin 737-
53A1210, Revision 3, dated July 16, 2009. Repeat the inspections
thereafter at intervals not to exceed 4,500 flight cycles. If any
cracking is found, before further flight, repair in accordance with
Part 8 of Boeing Alert Service Bulletin 737-53A1210, Revision 3,
dated July 16, 2009, except as required by paragraph (x) of this AD.

Repair and Preventive Modification

    (v) For airplanes on which cracking is found during any
inspection required by paragraph (p), (q), (r), or (s) of this AD,
as applicable, doing the repair of the chem-milled area in the skin,
as specified in Part 5 or Part 6 of the Accomplishment Instructions
of Boeing Alert Service Bulletin 737-53A1210, Revision 3, dated July
16, 2009, ends the repetitive external detailed and eddy current
inspections required by paragraph (p), (q), (r), or (s) of this AD,
as applicable, for the repaired area only.

    Note 2:  Part 8 of the Accomplishment Instructions of Boeing
Alert Service Bulletin 737-53A1210, Revision 3, dated July 16, 2009,
specifies a post-repair inspection of the skin chem-milled crack
repair at stringer 12; that inspection is not required by this AD.
The damage tolerance inspections specified in Table 7 of Boeing
Alert Service Bulletin 737-53A1210, Revision 3, dated July 16, 2009,
may be used in support of compliance with section 121.1109(c)(2) or
129.109(c)(2) of the Code of Federal Regulations (14 CFR
121.1109(c)(2) or 14 CFR 129.109(c)(2)).

    (w) For airplanes on which no cracking is found during any
inspection required by paragraph (p) or (q) of this AD, as
applicable, doing the preventive modification of the chem-milled
areas in the skin at stringer S-12, as specified in Part 7 of the
Accomplishment Instructions of Boeing Alert Service Bulletin 737-
53A1210, Revision 3, dated July 16, 2009, except as required by
paragraph (x) of this AD, ends the repetitive external detailed and
eddy current inspections required by paragraph (p) or (q) of this
AD, as applicable, for the modified area only.

Exception to Boeing Alert Service Bulletin 737-53A1210, Revision 3

    (x) Where Boeing Alert Service Bulletin 737-53A1210, Revision 3,
dated July 16, 2009, specifies to contact Boeing for repair
instructions, before further flight, repair using a method approved
in accordance with paragraph (y) of this AD.

Alternative Methods of Compliance (AMOCs)

    (y)(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 the Related Information
section of this AD. Information may be e-mailed 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 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 2004-18-06,
Amendment 39-13784, are approved as AMOCs for the corresponding
provisions of this AD.

Related Information

    (z) For more information about this AD, contact 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<PHONE_NUMBER>; e-mail:
<EMAIL_ADDRESS>
    Issued in Renton, Washington on February 22, 2011.
Kalene C. Yanamura,
Acting Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. 2011-5159 Filed 3-7-11; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 78, Number 191 (Wednesday, October 2, 2013)]
[Notices]
[Pages 60943-60945]
[FR Doc No: 2013-24008]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-70517; File No. SR-NYSEMKT-2013-78]

Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed Rule Change Extending the Pilot
Program for Certain Clearly Erroneous Executions Under Rule 128--
Equities and Removing References to Individual Security Trading Pauses
Contained in Rule 128(c)(4)--Equities

September 26, 2013.
    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 September 24, 2013, 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 and II
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 extend the pilot program for certain
clearly erroneous executions under Rule 128--Equities and remove
references to individual security trading pauses contained in Rule
128(c)(4)--Equities. The text of the proposed rule 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
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to extend the pilot program for certain
clearly erroneous executions under Rule 128--Equities and remove
references to individual security trading pauses contained in Rule
128(c)(4)--Equities. Portions of Rule 128--Equities, explained in
further detail below, are currently operating as a pilot program set to
expire on September 30, 2013.\4\ The Exchange proposes to extend the
pilot program to April 8, 2014.
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    \4\ See Securities Exchange Act Release No. 68801 (February 1,
2013), 78 FR 8630 (February 6, 2013) (SR-NYSEMKT-2013-11).
---------------------------------------------------------------------------

    On September 10, 2010, the Securities and Exchange Commission
(``Commission'') approved, on a pilot basis, changes to Rule 128--
Equities to provide for uniform treatment: (1) Of clearly erroneous
execution reviews in multi-stock events involving twenty or more
securities; and (2) in the event transactions occur that result in the
issuance of an individual security trading pause by the primary listing
market and subsequent transactions that occur before the trading pause
is in effect on the Exchange.\5\ The Exchange also adopted additional
changes to Rule 128--Equities that reduced the ability of the Exchange
to deviate from the objective standards set forth in Rule 128--
Equities,\6\ and in 2013, adopted a provision designed to address the
operation of the Plan to Address Extraordinary Market Volatility
Pursuant to Rule 608 of Regulation NMS under the Act (the ``Limit Up-
Limit Down Plan'' or the ``Plan'').\7\ The Exchange believes the
benefits to market participants from the more objective clearly
erroneous executions rule should continue on a pilot basis through
April 8, 2014, which is one year following the commencement of
operations of the Plan. The Exchange believes that continuing the pilot
during this time will protect against any unanticipated consequences.
Thus, the Exchange believes that the protections of Rule 128--Equities
should continue while the industry gains further experience operating
the Limit Up-Limit Down Plan.
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    \5\ See Securities Exchange Act Release No. 62886 (September 10,
2010), 75 FR 56613 (September 16, 2010) (SR-NYSEAmex-2010-60).
    \6\ Id.
    \7\ See Securities Exchange Act Release No. 68801 (February 1,
2013), 78 FR 8630 (February 6, 2013) (SR-NYSEMKT-2013-11);
Securities Exchange Act Release No. 67091 (May 31, 2012), 77 FR
33498 (June 6, 2012) (the ``Limit Up-Limit Down Release''); see also
Rule 128(i)--Equities.
---------------------------------------------------------------------------

    The Exchange also proposes to eliminate all references in Rule
128--Equities to individual security trading pauses issued by a primary
listing market. Specifically, Rule 128(c)(4)--Equities provides
specific rules to follow with respect to review of an execution as
potentially clearly erroneous when there is an individual security
trading pause pursuant to Rule 80C--Equities. The individual security
trading pauses described in Rule 128(c)(4)--Equities, which apply to
the securities included in the S&P 500 and Russell 1000 indexes as well
as to a pilot list of Exchange Traded Products (the ``subject
securities''), are being phased out as securities become subject to the
Plan pursuant to a phased implementation schedule. The Plan is already
operational with respect to all subject securities, and thus, the
Exchange believes that all references to individual security trading
pauses should be removed, including all cross-

references to Rule 128(c)(4)--Equities contained in other portions of
Rule 128--Equities.\8\
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    \8\ The Exchange notes that certain Exchange Traded Products
(``ETPs'') are not yet subject to the Limit Up-Limit Down Plan.
Because such ETPs are not on the pilot list of securities, such ETPs
are not subject to Rule 128(c)(4)--Equities. See Securities Exchange
Act Release No. 65102 (August 11, 2011), 76 FR 51111 (August 17,
2011) (SR-NYSEAmex-2011-60) (notice of filing and immediate
effectiveness to amend Rule 128--Equities so that clearly erroneous
executions involving securities recently added to the individual
security trading pause pilot under Rule 80C--Equities continue to be
resolved in the same manner before being added to the pilot).
Accordingly, the proposed rule change does not change the status quo
with respect to such ETPs. As amended, all securities, including
ETPs not subject to the Limit Up-Limit Down Plan, will continue to
be subject to Rule 128(c)(1) through (3)--Equities.
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2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the
Act,\9\ in general, and furthers the objectives of Section 6(b)(5) of
the Act,\10\ in particular, because it would promote just and equitable
principles of trade, remove impediments to, and perfect the mechanism
of, a free and open market and a national market system. The Exchange
believes that the pilot program promotes just and equitable principles
of trade in that it promotes transparency and uniformity across markets
concerning review of transactions as clearly erroneous. More
specifically, the Exchange believes that the extension of the pilot
would help assure that the determination of whether a clearly erroneous
trade has occurred will be based on clear and objective criteria, and
that the resolution of the incident will occur promptly through a
transparent process. The proposed rule change would also help ensure
consistent results in handling erroneous trades across the U.S.
markets, thus furthering fair and orderly markets, the protection of
investors and the public interest. Although the Limit Up-Limit Down
Plan will become fully operational during the same time period as the
proposed extended pilot, the Exchange believes that maintaining the
pilot will help to protect against unanticipated consequences. To that
end, the extension will allow the Exchange to determine whether Rule
128--Equities is necessary once the Plan is fully operational and, if
so, whether improvements can be made. Finally, the elimination of
references to individual security trading pauses will help to avoid
confusion among market participants, which is consistent with the
protection of investors and the public interest and therefore
consistent with the Act. As described above, individual security
trading pauses have been replaced by the Limit Up-Limit Down Plan with
respect to securities that are subject to Rule 80C--Equities.
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    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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

    The Exchange does not believe that the proposed rule change
implicates any competitive issues. To the contrary, the Exchange
believes that the Financial Industry Regulatory Authority (``FINRA'')
and other national securities exchanges are also filing similar
proposals, and thus, the proposal will help to ensure consistency
across market centers.

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

    Because the proposed rule change does not (i) significantly affect
the protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative for 30
days from the date on which it was filed, or such shorter time as the
Commission may designate if consistent with the protection of investors
and the public interest, the proposed rule change has become effective
pursuant to Section 19(b)(3)(A) of the Act \11\ and Rule 19b-
4(f)(6)(iii) thereunder.\12\
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(6)(iii). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written
notice of its intent to file the proposed rule change, along with a
brief description and the 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 asked the Commission to waive the 30-day operative
delay so that the proposal may become operative immediately upon
filing. The Commission believes that waiving the 30-day operative delay
is consistent with the protection of investors and the public interest,
as it will allow the pilot program to continue uninterrupted, thereby
avoiding investor confusion that could result from a temporary
interruption in the pilot program. For this reason, the Commission
designates the proposed rule change to be operative upon filing.\13\
---------------------------------------------------------------------------

    \13\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------

    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 proposal 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-2013-78 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-NYSEMKT-2013-78. 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.shtm).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for Web site viewing and printing in
the Commission's Public Reference Room, 100 F Street NE., Washington,
DC 20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal

office of the Exchange. All comments received will be posted without
change; the Commission does not edit personal identifying information
from submissions. You should submit only information that you wish to
make available publicly. All submissions should refer to File Number
SR-NYSEMKT-2013-78 and should be submitted on or before October 23,
2013.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-24008 Filed 10-1-13; 8:45 am]
BILLING CODE 8011-01-P