[Federal Register: March 5, 2008 (Volume 73, Number 44)]
[Notices]
[Page 11965-11968]
[DOCID:fr05mr08-113]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57387; File No. SR-ISE-2007-99]

Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Order Granting Accelerated Approval of
Proposed Rule Change, as Modified by Amendment No. 1 Thereto, To Allow
for the Listing and Trading of Index-Linked Exchangeable Notes

February 27, 2008.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on October 12, 2007, the International Securities Exchange, LLC
(``Exchange'' or ``ISE'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change as described in
Items I and II below, which Items have been substantially prepared by
the Exchange. On February 26, 2008, the Exchange filed Amendment No. 1
to the proposed rule change.\3\ This order provides notice of the
proposed rule change, as amended, and approves the proposal on an
accelerated basis.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ In Amendment No. 1, the Exchange proposed changes to ISE
Rule 2101 that consolidate into a single rule certain requirements
for products traded on the Exchange pursuant to unlisted trading
privileges (``UTP'') that have been established in various new
products proposals previously approved by the Commission. ISE will
trade index-linked exchangeable notes pursuant to UTP, so the
provisions of proposed ISE Rule 2101 would apply to this type of
product.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend its rules to provide for the listing
and trading of index-linked exchangeable notes. The text of the
proposed rule change is available at the Exchange's principal office,
on the Exchange's Web site (http://www.ise.com), and at the
Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes rules that would allow it to list and trade,
or trade pursuant to UTP, index-linked exchangeable notes. Index-linked
exchangeable notes allow investors to hold a single, exchange-listed
note exchangeable for the cash value of the underlying stocks
(``Underlying Stocks'') of an index (``Underlying Index,'' ``Index,''
``Underlying Indices,'' or ``Indices''), and thereby acquire--in a
single security and single trade--exposure to a specific index of
equity securities.
    Each Underlying Index or Underlying Stock (as applicable) must be:
     An index that has been created by a third party and: (1)
Has been described in an exchange rule for the trading of options,
Portfolio Depositary Receipts, Investment Company Units, index-linked
exchangeable notes, or index-linked securities which has been approved
by the Commission under section 19(b)(2) of the Act,\4\ and the
standards set forth in the Commission approval order are satisfied; or
(2) is an index that meets the requirements of the exchange rules
adopted pursuant to Rule 19b-4(e) under the Act \5\ (each, a ``Third-
Party Index''); or
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    \4\ 15 U.S.C. 78s(b)(2).
    \5\ 17 CFR 240.19b-4(e).
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     An index that has been created by the issuer and: (1) Has
been described in an exchange rule for the trading of options,
Portfolio Depositary Receipts, Investment Company Units, index-linked
exchangeable notes, or index-linked securities that has been approved
by the Commission pursuant to section 19(b)(2) of the Act, and the
standards set forth in the Commission approval order are satisfied; or
(2) is an index which meets the requirements of the exchange rules
adopted pursuant to Rule 19b-4(e) of the Act (each, an ``Issuer
Index'').
     Each issuer of an Underlying Stock shall be a reporting
company under the Act that is listed on a national securities exchange
and is subject to last-sale reporting; and
     An Issuer Index will meet the procedures and criteria in
ISE Rule 2002(d) \6\ or the criteria set forth in proposed Rule
2133(d)(ii) and the index concentration limits in Rule 2002(d).
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    \6\ ISE Rule 2002(d) sets forth the criteria for trading options
on a broad-based index.
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a. Description of Index-Linked Exchangeable Notes
    Index-linked exchangeable notes are debt securities that are
exchangeable at the option of the holder (subject to the requirement
that the holder in most circumstances exchange a specified minimum
amount of notes), on call by the issuer, or at maturity for a cash
amount (the ``Cash Value Amount'') based on the reported market prices
of the Underlying Stocks of an Underlying Index. Each index-linked
exchangeable note is intended to provide investors with an instrument
that closely tracks the Underlying Index. Despite being linked to an
Index, they will trade as individual securities. The linkage is on a
one-to-one basis so that a holder of notes is fully exposed to
depreciation and appreciation of the Underlying Stocks.
    Index-linked exchangeable notes are expected to trade at a cost
lower than the cost of trading each of the Underlying Stocks separately
(because of reduced commission and custody costs) and also give
investors the ability to maintain index exposure without any management
or administrative fees and ongoing expenses. The initial offering price
for an index-linked exchangeable note will be established on the date
the note is priced for sale to the public. In addition, index-linked
exchangeable notes will not include embedded options or leverage.
Because index-linked exchangeable notes are debt securities, a holder
will not be recognized by issuers of the Underlying Stocks as the owner
of those stocks and will have no rights as a stockholder with respect
to those stocks.
    Additional issuances of a series of index-linked exchangeable notes
may be made subsequent to the initial issuance of that series (and
prior to the maturity of that series) for purposes of providing market
liquidity. Each series of index-linked exchangeable notes may or may
not provide for quarterly interest coupons based on dividends or other
cash distributions paid on the Underlying Stocks during a prescribed
period and an annual supplemental coupon based on the value of the
Underlying Index during a prescribed period. Index-linked exchangeable
notes will generally be acquired, held, or transferred only in round-
lot amounts (or round-lot multiples) of 100 notes.
    Beginning on a specified date and up to a specified date prior to
the maturity date or any call date, the holder of index-linked
exchangeable notes may exchange some or all of its notes for

their Cash Value Amount, plus any accrued but unpaid quarterly interest
coupons. A holder will generally be required to exchange a certain
specified minimum amount of notes, although this minimum requirement
may be waived following a downgrade in the issuer's credit rating below
specified thresholds or the occurrence of other specified events.
    Index-linked exchangeable notes may be subject to call by the
issuer on specified dates or during specified periods, upon at least
30, but not more than 60, days notice to holders. The call price would
be equal to the Cash Value Amount, plus any accrued but unpaid
quarterly interest coupons.
    At maturity, the holder of an index-linked exchangeable note will
receive a cash amount equal to the Cash Value Amount, plus any
accumulated but unpaid quarterly and annual supplemental interest
coupons. Although a specific maturity date will not be established
until the time of the initial offering of a series of notes, the notes
will provide for maturity within a period of not less than one or more
than 30 years from the date of issue.
    In connection with the initial listing of each series of index-
linked exchangeable notes, the Exchange has established that a minimum
of 150,000 notes held by at least 400 holders be required to be
outstanding when trading begins (except if traded in thousand dollar
denominations, then no minimum number of holders is necessary).
Beginning 12 months after the initial issuance of a series of index-
linked exchangeable notes, the Exchange will consider the suspension of
trading in or removal from listing of that series of notes under any of
the following circumstances: (1) The series has fewer than 50,000 notes
issued and outstanding; (2) the market value of all notes of that
series issued and outstanding is less than $1 million; or (3) such
other event shall occur or such other condition exists which in the
opinion of the Exchange makes further dealings on the Exchange
inadvisable.
b. Eligibility Standards for Issuers
    The following standards would apply to issuers of index-linked
exchangeable notes:
     Assets/Equity. The issuer shall have assets in excess of
$100 million and net worth of at least $10 million. If the issuer does
not have pre-tax income from continuing operations of at least $750,000
in the last fiscal year or two of the last three fiscal years, the
Exchange will require the issuer to have the following: (1) Total
assets of at least $200 million and net worth of at least $10 million;
or (2) total assets of at least $100 million and net worth of at least
$20 million.\7\
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    \7\ See proposed ISE Rule 2133(a)(2).
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     Distribution. Minimum public distribution of 150,000 notes
with a minimum of 400 public note-holders. This minimum public note-
holder requirement will not be applicable to an issue traded in
thousand dollar denominations or if the securities are redeemable at
the option of the holders on at least a weekly basis.\8\
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    \8\ See proposed ISE Rule 2133(a)(1).
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     Principal Amount/Aggregate Market Value. Not less than $4
million.\9\
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    \9\ See proposed Rule 2133(a)(3).
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     Tangible Net Worth. The issuer will be expected to have a
minimum tangible net worth in excess of $250 million, and to have a
pre-tax income from continuing operations that substantially exceeds
$750,000 in the last fiscal year or two of the last three fiscal years.
In the alternative, the issuer will be expected: (1) To have a minimum
tangible net worth of $150 million, and to otherwise substantially
exceed the earnings requirements set forth above (in the first bullet
point); and (2) not to have issued index-linked exchangeable notes
where the original issue price of all the issuer's other index-linked
exchangeable note offerings (combined with other index-linked
exchangeable note offerings of the issuer's affiliates) listed on a
national securities exchange exceeds 25% of the issuer's net worth.\10\
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    \10\ See proposed Rule 2133(c).
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c. Description of the Underlying Indices
    An Underlying Index will either be a Third-Party Index or an Issuer
Index. All changes to an Underlying Index, including the deletion and
addition of Underlying Stocks, index rebalancing, and changes to the
calculation of the index, will be made in accordance with the
Commission's order under section 19(b)(2) of the Act \11\ or the
Exchange rules under which that index was approved, as the case may be.
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    \11\ 15 U.S.C. 78s(b)(2).
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    If the index is maintained by a broker-dealer or fund advisor, the
broker-dealer or fund advisor must erect and maintain a ``firewall''
around personnel who have access to information concerning changes and
adjustments to the index and the index must be calculated by a third
party who is not a broker-dealer or fund advisor.\12\
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    \12\ See proposed ISE Rule 2133(g).
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d. Eligibility Standards for Issuer Indices and Their Underlying Stocks
    Pursuant to proposed ISE Rule 2133(d), Issuer Indices and their
Underlying Stocks must either meet the procedures and criteria set
forth in ISE Rule 2002(d) or satisfy the following minimum standards:
     Each Underlying Stock of an Issuer Index must: (1) Have a
minimum market capitalization of $3 billion and, during the 12 months
preceding listing of the index-linked exchangeable note, traded at
least 2.5 million shares; (2) have a minimum market capitalization of
$1.5 billion and, during the 12 months preceding listing of the index-
linked exchangeable note, traded at least 10 million shares; or (3)
have a minimum market capitalization of $500 million and, during the 12
months preceding listing of the index-linked exchangeable note, traded
at least 15 million shares;
     Each issuer of an Underlying Stock must be a reporting
company under the Act that is listed on a national securities exchange
and is subject to last-sale reporting; in addition, if any Underlying
Stock is the stock of a non-U.S. company that is traded in the U.S.
market as a sponsored American Depositary Share (``ADS''), ordinary
share or otherwise, then for each such security the Exchange shall
either: (1) Have in place a comprehensive surveillance sharing
agreement with the primary exchange on which each non-U.S. security is
traded (in the case of an ADS, the primary exchange on which the
security underlying the ADS is traded); (2) the combined trading volume
of each non-U.S. security and other related non-U.S. securities
occurring in the U.S. market or in markets with which the Exchange has
in place a comprehensive surveillance sharing agreement represents (on
a share equivalent basis for any ADS) at least 50% of the combined
worldwide trading volume in such securities (i.e., each non-U.S.
security, other related non-U.S. securities, and other classes of
common stock related to each non-U.S. security) over the six-month
period preceding the date of listing; or (3) (a) the combined trading
volume of each non-U.S. security and other related non-U.S. securities
occurring in the U.S. market represents (on a share equivalent basis)
at least 20% of the combined world-wide trading volume in such
securities (i.e., each non-U.S. security and in other related non-U.S.
securities) over the six-month period preceding the date of selection
of the non-U.S. security for an index-linked exchangeable note listing;
(b) the average daily trading volume for each non-U.S. security in the
U.S. markets over the six months preceding the selection of each non-
U.S. security for an index-linked exchangeable note listing is 100,000
or more shares; and (c) the trading volume

is at least 60,000 shares per day in the U.S. markets on a majority of
the trading days for the six months preceding the date of selection of
each non-U.S. security for an index-linked exchangeable note listing;
and
     If any underlying security to which the instrument is to
be linked is the stock of a non-U.S. company which is traded in the
U.S. market as a sponsored ADS, ordinary share, or otherwise, then the
minimum number of holders of such underlying linked security shall be
2,000; and
     The index concentration limits set forth in ISE Rule
2002(d) are met.\13\
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    \13\ See ISE Rule 2002(d).
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e. Exchange Rules Applicable to Index-Linked Exchangeable Notes
    Index-linked exchangeable notes will be subject to all Exchange
rules governing the trading of equity securities.
    In addition, pursuant to Rule 10A-3 under the Act \14\ and section
3 of the Sarbanes-Oxley Act of 2002,\15\ the Exchange will prohibit the
initial or continued listing of any security of an issuer that is not
in compliance with the requirements set forth therein.
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    \14\ 17 CFR 240.10A-3.
    \15\ Section 3 of Pub. L. 107-204, 116 Stat. 745 (2002).
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    Pursuant to proposed ISE Rule 2101, new derivative securities
products traded on the Exchange pursuant to UTP, including index-linked
exchangeable notes, will be subject to a number of requirements
previously made as representations. For example, pursuant to proposed
ISE Rule 2101(a)(2)(i), the Exchange will distribute a Regulatory
Information Circular prior to the commencement of trading in such new
derivative securities product that generally will include the same
information as the information circular provided by the listing
exchange, including: (1) The special risks of trading the new
derivative securities product; (2) the Exchange's rules that will apply
to the new derivative securities product, including the suitability
rule; (3) information about the dissemination of value of the
underlying assets or indexes; and (4) the risk of trading during the
Pre-Market Session due to the lack of calculation or dissemination of
information about the underlying assets and/or index value.
    Proposed ISE Rule 2101(a)(2)(ii) reminds Equity EAMs that they are
subject to the prospectus delivery requirements under the Securities
Act of 1933, unless the new derivative securities product is the
subject of an order by the Commission exempting the product from
certain prospectus delivery requirements under section 24(d) of the
Investment Company Act of 1940 and the product is not otherwise subject
to prospectus delivery requirements under the Securities Act of 1933.
The Exchange will inform its Equity EAMs regarding the application of
the provisions of this subparagraph to a new derivative securities
product by means of a Regulatory Information Circular.
    Additionally, the proposed rule change sets forth procedures for
halting trading in certain circumstances. When the Exchange is the
listing market for index-linked exchangeable notes, if the official
index value applicable to that index-linked exchangeable note is
interrupted, the Exchange may halt trading during the day in which the
interruption occurs; if the interruption persists past the trading day
in which it occurred, the Exchange will halt trading no later than the
beginning of the trading day following the interruption.\16\ The
Exchange also will immediately halt trading in a new derivative
securities product trading on the Exchange pursuant to UTP upon
notification by the listing market of a halt due to a temporary
interruption in the calculation or wide dissemination of the Intraday
Indicative Value (``IIV'') or the value of the underlying index.\17\ If
the interruption persists until the scheduled commencement of trading
on the next business day, the Exchange will not commence trading of the
product on that day.\18\ The Exchange may resume trading in the product
only if calculation and wide dissemination of the IIV or the value of
the underlying index resumes or trading in such series resumes in the
listing market.\19\ Further, for new derivative securities products
trading on the Exchange on a UTP basis where a net asset value
(``NAV'') is disseminated, if the Exchange becomes aware that the NAV
is not being disseminated to all market participants at the same time,
the Exchange will immediately halt trading; the Exchange may resume
trading in the product only when trading in the new derivative
securities product resumes on the listing market.\20\
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    \16\ See proposed ISE Rule 2133(h).
    \17\ See proposed ISE Rule 2101(a)(2)(iii)(A).
    \18\ See id.
    \19\ See id.
    \20\ See proposed ISE Rule 2101(a)(2)(iii)(B).
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2. Statutory Basis
    The basis under the Act for this proposed rule change is found in
section 6(b)(5),\21\ in that the proposed rule change is designed to
promote just and equitable principles of trade, remove impediments to
and perfect the mechanisms of a free and open market and a national
market system, and, in general, to protect investors and the public
interest.
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    \21\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The proposed rule change does not 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

    The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any unsolicited written comments from members or other interested
parties.

III. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to<EMAIL_ADDRESS>Please include
File Number SR-ISE-2007-99 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549.

All submissions should refer to File Number SR-ISE-2007-99. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the

proposed rule change between the Commission and any person, other than
those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of ISE. 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-ISE-2007-99 and should be
submitted on or before March 26, 2008.

IV. Commission's Findings and Order Granting Accelerated Approval of
the Proposed Rule Change

    After careful review, the Commission finds that the proposed rule
change, as amended, is consistent with the requirements of the Act and
the rules and regulations thereunder applicable to a national
securities exchange.\22\ In particular, the Commission finds that the
proposal is consistent with section 6(b)(5) of the Act \23\ in that it
is designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in facilitating
transactions in securities, 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.
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    \22\ In approving this rule change, the Commission notes that it
has considered the proposed rule's impact on efficiency,
competition, and capital formation. See 15 U.S.C. 78c(f).
    \23\ 15 U.S.C. 78f(b)(5).
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    Currently, the Exchange would have to file a proposed rule change
with the Commission pursuant to section 19(b)(1) of the Act \24\ and
Rule 19b-4 thereunder \25\ to list or trade any index-linked
exchangeable notes. Rule 19b-4(e), however, provides that the listing
and trading of a new derivative securities product by a self-regulatory
organization (``SRO'') will not be deemed a proposed rule change
pursuant to Rule 19b-4(c)(1) if the Commission has approved, pursuant
to section 19(b) of the Act, the SRO's trading rules, procedures, and
listing standards for the product class that would include the new
derivative securities product, and the SRO has a surveillance program
for the product class. The Exchange's proposed rules fulfill these
requirements. Use of Rule 19b-4(e) by ISE to list or trade equity
securities such as index-linked exchangeable notes should promote
competition, reduce burdens on issuers and other market participants,
and make offerings available to investors more quickly.
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    \24\ 15 U.S.C. 78s(b)(1).
    \25\ 17 CFR 240.19b-4.
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    The Commission has approved generic listing standards for index-
linked exchangeable notes on other national securities exchanges
similar to those being proposed by ISE.\26\ ISE's proposal does not
appear to raise any novel regulatory issues, and the Commission is
approving it on the same basis as those earlier proposals.
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    \26\ See Securities Exchange Act Release No. 49532 (April 7,
2004), 69 FR 19593 (April 13, 2004) (SR-PCX-2004-01); Securities
Exchange Act Release No. 46370 (August 16, 2002), 67 FR 54509
(August 22, 2002) (SR-CBOE-2002-29); Securities Exchange Act Release
No. 45082 (November 19, 2001), 66 FR 59282 (November 27, 2001) (SR-
Phlx-2001-92); Securities Exchange Act Release No. 44621 (July 30,
2001), 66 FR 41064 (August 6, 2001) (SR-Amex-2001-29).
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    Additionally, the Commission believes that the proposed rules are
reasonably designed to promote fair disclosure of information that may
be necessary to price index-linked exchangeable notes appropriately. If
a broker-dealer or fund advisor is responsible for maintaining (or has
a role in maintaining) the underlying index, such broker-dealer or fund
advisor would be required to erect and maintain a ``firewall'' to
prevent the flow of non-public information regarding the underlying
index from the personnel involved in the development and maintenance of
such index to others such as sales and trading personnel.\27\ The
Commission also believes that the Exchange's proposed trading halt
rules, discussed above, are reasonably designed to prevent trading when
transparency is impaired.
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    \27\ See proposed ISE Rule 2133(h).
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    Further, the Commission believes that the trading rules and
procedures to which products will be subject pursuant to this proposal
are consistent with the Act. Products traded pursuant to the proposed
rule change would be subject to ISE's previously approved rules
governing the trading of Equity Securities.
    The Exchange represents that its surveillance procedures are
adequate to properly monitor the trading of new derivative securities
products, including index-linked exchangeable notes. The proposed rule
change also requires that the Exchange enter into a comprehensive
surveillance sharing agreement (``CSSA'') with markets trading
components of the index or portfolio on which the new derivative
securities product is based to the same extent as the listing
exchange's rules require the listing market to enter into a CSSA with
such markets. This approval is based on that recommendation.

Acceleration

    The Commission finds good cause for approving the proposed rule
change, as amended, prior to the 30th day after the date of publication
of the notice of filing thereof in the Federal Register. ISE's proposal
is similar to other proposals that have been approved by the
Commission.\28\ The Commission believes that ISE's proposal does not
raise any novel issues, and accelerated approval of the proposal will
expedite the listing and trading of additional products by the
Exchange, subject to consistent and reasonable standards. Therefore,
the Commission finds good cause, consistent with section 19(b)(2) of
the Act,\29\ to approve the proposed rule change, as modified by
Amendment No. 1, on an accelerated basis.
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    \28\ See supra at note 26.
    \29\ 15 U.S.C. 78s(b)(2).
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V. Conclusion

    It is therefore ordered, pursuant to section 19(b)(2) of the
Act,\30\ that the proposed rule change (SR-ISE-2007-99), as modified by
Amendment No. 1 thereto, is hereby approved on an accelerated basis.
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    \30\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\31\
Florence E. Harmon,
Deputy Secretary.
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    \31\ 17 CFR 200.30-3(a)(12).
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 [FR Doc. E8-4172 Filed 3-4-08; 8:45 am]

BILLING CODE 8011-01-P


[Federal Register: April 7, 2010 (Volume 75, Number 66)]
[Notices]
[Page 17755]
[DOCID:fr07ap10-70]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

[Docket No. USCG-2010-0161]

Certificate of Alternative Compliance for the Offshore Supply
Vessel C-ATLAS

AGENCY: Coast Guard, DHS.

ACTION: Notice.

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SUMMARY: The Coast Guard announces that a Certificate of Alternative
Compliance was issued for the offshore supply vessel C-ATLAS as
required by 33 U.S.C. 1605(c) and 33 CFR 81.18.

DATES: The Certificate of Alternate Compliance was issued on March 2,
2010.

ADDRESSES: The docket for this notice is available for inspection or
copying at the Docket Management Facility (M-30), U.S. Department of
Transportation, 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. You may also find this
docket on the Internet by going to http://www.regulations.gov,
inserting USCG-2010-0161 in the ``Keyword'' box, and then clicking
``Search.''

FOR FURTHER INFORMATION CONTACT: If you have questions on this notice,
call CWO2 David Mauldin, District Eight, Prevention Branch, U.S. Coast
Guard, telephone<PHONE_NUMBER>. If you have questions on viewing or
submitting material to the docket, call Renee V. Wright, Program
Manager, Docket Operations, telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Background and Purpose

    A Certificate of Alternative Compliance, as allowed under Title 33
of the Code of Federal Regulations, Parts 81 and 89, has been issued
for the offshore supply vessel C-ATLAS. Full compliance with 72 COLREGS
and the Inland Rules Act would hinder the vessel's ability to operate
as designed. The horizontal distance between the forward and aft
masthead lights may be 22'2\3/8\''. Placing the aft masthead light at
the horizontal distance from the forward masthead light as required by
Annex I, paragraph 3(a) of the 72 COLREGS, and Annex I, Section
84.05(a) of the Inland Rules Act, would result in an aft masthead light
location directly over the cargo deck where it would interfere with
loading and unloading operations.
    The Certificate of Alternative Compliance allows for the horizontal
separation of the forward and aft masthead lights to deviate from the
requirements of Annex I, paragraph 3(a) of 72 COLREGS, and Annex I,
Section 84.05(a) of the Inland Rules Act.

    (This notice is issued under authority of 33 U.S.C. 1605(c), and
33 CFR 81.18.)

    Dated: March 8, 2010.
J.W. Johnson,
Commander, U.S. Coast Guard, Chief, Inspections and Investigations
Branch, By Direction of the Commander, Eighth Coast Guard District.
[FR Doc. 2010-7827 Filed 4-6-10; 8:45 am]
BILLING CODE 9110-04-P


[Federal Register Volume 82, Number 210 (Wednesday, November 1, 2017)]
[Notices]
[Pages 50662-50663]
[FR Doc No: 2017-23720]

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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

[Internal Agency Docket No. FEMA-4344-DR;Docket ID FEMA-2017-0001]

California; Major Disaster and Related Determinations

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Notice.

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

SUMMARY: This is a notice of the Presidential declaration of a major
disaster for the State of California (FEMA-4344-DR), dated October 10,
2017, and related determinations.

DATES: The declaration was issued October 10, 2017.

FOR FURTHER INFORMATION CONTACT: Dean Webster, Office of Response and
Recovery, Federal Emergency Management Agency, 500 C Street SW.,
Washington, DC 20472,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: Notice is hereby given that, in a letter
dated October 10, 2017, the President issued a major disaster
declaration under the authority of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act, 42 U.S.C. 5121 et seq. (the
``Stafford Act''), as follows:

    I have determined that the damage in certain areas of the State
of California resulting from wildfires beginning on October 8, 2017,
and continuing, is of sufficient severity and magnitude to warrant a
major disaster declaration under the Robert T. Stafford Disaster
Relief and Emergency Assistance Act, 42 U.S.C. 5121 et seq. (the
``Stafford Act''). Therefore, I declare that such

a major disaster exists in the State of California.
    In order to provide Federal assistance, you are hereby
authorized to allocate from funds available for these purposes such
amounts as you find necessary for Federal disaster assistance and
administrative expenses.
    You are authorized to provide assistance for debris removal and
emergency protective measures (Categories A and B) under the Public
Assistance program in the designated areas, Hazard Mitigation
throughout the State, and any other forms of assistance under the
Stafford Act that you deem appropriate subject to completion of
Preliminary Damage Assessments (PDAs). Direct Federal assistance is
authorized.
    Consistent with the requirement that Federal assistance be
supplemental, any Federal funds provided under the Stafford Act for
Hazard Mitigation will be limited to 75 percent of the total
eligible costs. Federal funds provided under the Stafford Act for
Public Assistance also will be limited to 75 percent of the total
eligible costs, with the exception of projects that meet the
eligibility criteria for a higher Federal cost-sharing percentage
under the Public Assistance Alternative Procedures Pilot Program for
Debris Removal implemented pursuant to section 428 of the Stafford
Act.
    Further, you are authorized to make changes to this declaration
for the approved assistance to the extent allowable under the
Stafford Act.

    The Federal Emergency Management Agency (FEMA) hereby gives notice
that pursuant to the authority vested in the Administrator, under
Executive Order 12148, as amended, William Roche, of FEMA is appointed
to act as the Federal Coordinating Officer for this major disaster.
    The following areas of the State of California have been designated
as adversely affected by this major disaster:

    Butte, Lake, Mendocino, Napa, Nevada, Sonoma, and Yuba Counties
for debris removal and emergency protective measures (Categories A
and B), including direct federal assistance, under the Public
Assistance program.
    All areas within the State of California are eligible for
assistance under the Hazard Mitigation Grant Program.

    The following Catalog of Federal Domestic Assistance Numbers
(CFDA) are to be used for reporting and drawing funds: 97.030,
Community Disaster Loans; 97.031, Cora Brown Fund; 97.032, Crisis
Counseling; 97.033, Disaster Legal Services; 97.034, Disaster
Unemployment Assistance (DUA); 97.046, Fire Management Assistance
Grant; 97.048, Disaster Housing Assistance to Individuals and
Households In Presidentially Declared Disaster Areas; 97.049,
Presidentially Declared Disaster Assistance--Disaster Housing
Operations for Individuals and Households; 97.050, Presidentially
Declared Disaster Assistance to Individuals and Households--Other
Needs; 97.036, Disaster Grants--Public Assistance (Presidentially
Declared Disasters); 97.039, Hazard Mitigation Grant.

Brock Long,
Administrator, Federal Emergency Management Agency.
[FR Doc. 2017-23720 Filed 10-31-17; 8:45 am]
 BILLING CODE 9111-23-P


[Federal Register Volume 81, Number 30 (Tuesday, February 16, 2016)]
[Notices]
[Page 7782]
[FR Doc No: 2016-03020]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Project No. 1894-207--South Carolina Parr Hydroelectric Project]

South Carolina Electric & Gas Company; Notice of Revised
Restricted Service List for a Programmatic Agreement

    Rule 2010 of the Federal Energy Regulatory Commission's
(Commission) Rules of Practice and Procedure, 18 CFR 385.2010, provides
that, to eliminate unnecessary expense or improve administrative
efficiency, the Secretary may establish a restricted service list for a
particular phase or issue in a proceeding concerning non-public
information. The restricted service list should contain the names of
persons on the service list who, in the judgment of the decisional
authority establishing the list, are active participants with respect
to the phase or issue in the proceeding for which the list is
established.
    The Commission staff is consulting with the South Carolina
Department of Archives & History (South Carolina SHPO) and the Advisory
Council on Historic Preservation (Advisory Council) pursuant to the
Advisory Council's regulations, 36 CFR part 800, implementing section
106 of the National Historic Preservation Act, as amended, (54 U.S.C.
306108), to prepare a Programmatic Agreement for managing properties
included in, or eligible for inclusion in, the National Register of
Historic Places that could be affected by issuance of a new license for
the Parr Hydroelectric Project No. 1894-207.
    On November 18, 2014, Commission staff established a restricted
service list for the Parr Hydroelectric Project. Since that time, the
United Keetoowah Band of Cherokee Indians in Oklahoma requested a
change in the restricted service list and therefore, the restricted
service list is revised as follows:
    Replace ``Lisa C. Baker, Acting THPO, United Keetoowah Band of
Cherokee Indians in Oklahoma'' with ``Assistant Chief Joe Bunch, or
Representative, United Keetoowah Band of Cherokee Indians in
Oklahoma.''

    Dated: February 9, 2016.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2016-03020 Filed 2-12-16; 8:45 am]
BILLING CODE 6717-01-P


"King, Heidi R."<EMAIL_ADDRESS> 12/06/2007 04:54 PM

To

Margaret Morrison/RTP/USEPA/US@EPA

cc

Lydia Wegman/RTP/USEPA/US@EPA, Karen Martin/RTP/USEPA/US@EPA, Deirdre Murphy/RTP/USEPA/US@EPA

Subject

Tomorrow, Fri 10:30 call-in number for interagency review of O3 pub comments

Hi Margaret,

Do we have a call-in number for the interagency review of Ozone NAAQS

public comments tomorrow, Friday, at 10:30?

Thank you,

Heidi

(202) 395-4551


[Federal Register: April 9, 2010 (Volume 75, Number 68)]
[Notices]
[Page 18213]
[DOCID:fr09ap10-92]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2009-E-0164]

Determination of Regulatory Review Period for Purposes of Patent
Extension; MOZOBIL

AGENCY:  Food and Drug Administration, HHS.

ACTION:  Notice.

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

SUMMARY:  The Food and Drug Administration (FDA) has determined the
regulatory review period for MOZOBIL and is publishing this notice of
that determination as required by law. FDA has made the determination
because of the submission of an application to the Director of Patents
and Trademarks, Department of Commerce, for the extension of a patent
which claims that human drug product.

ADDRESSES:  Submit written comments and petitions to the Division of
Dockets Management (HFA-305), Food and Drug Administration, 5630
Fishers Lane, rm. 1061, Rockville, MD 20852. Submit electronic comments
to http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Beverly Friedman, Office of Regulatory
Policy, Food and Drug Administration, 10903 New Hampshire Ave., Bldg.
51, rm. 6222, Silver Spring, MD 20993-0002,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: The Drug Price Competition and Patent Term
Restoration Act of 1984 (Public Law 98-417) and the Generic Animal Drug
and Patent Term Restoration Act (Public Law 100-670) generally provide
that a patent may be extended for a period of up to 5 years so long as
the patented item (human drug product, animal drug product, medical
device, food additive, or color additive) was subject to regulatory
review by FDA before the item was marketed. Under these acts, a
product's regulatory review period forms the basis for determining the
amount of extension an applicant may receive.
    A regulatory review period consists of two periods of time: A
testing phase and an approval phase. For human drug products, the
testing phase begins when the exemption to permit the clinical
investigations of the drug becomes effective and runs until the
approval phase begins. The approval phase starts with the initial
submission of an application to market the human drug product and
continues until FDA grants permission to market the drug product.
Although only a portion of a regulatory review period may count toward
the actual amount of extension that the Director of Patents and
Trademarks may award (for example, half the testing phase must be
subtracted as well as any time that may have occurred before the patent
was issued), FDA's determination of the length of a regulatory review
period for a human drug product will include all of the testing phase
and approval phase as specified in 35 U.S.C. 156(g)(1)(B).
    FDA recently approved for marketing the human drug product MOZOBIL
(plerixafor). MOZOBIL is indicated in combination with granulocyte-
colony stimulating factor to mobilize hematopoietic stem cells to the
peripheral blood for collection and subsequent autologous
transplantation in patients with non-Hodgkin's lymphoma and multiple
myeloma. Subsequent to this approval, the Patent and Trademark Office
received a patent term restoration application for MOZOBIL (U.S. Patent
No. 5,583,131) from Genzyme Corp., and the Patent and Trademark Office
requested FDA's assistance in determining this patent's eligibility for
patent term restoration. In a letter dated September 29, 2009, FDA
advised the Patent and Trademark Office that this human drug product
had undergone a regulatory review period and that the approval of
MOZOBIL represented the first permitted commercial marketing or use of
the product. Thereafter, the Patent and Trademark Office requested that
FDA determine the product's regulatory review period.
    FDA has determined that the applicable regulatory review period for
MOZOBIL is 3,849 days. Of this time, 3,666 days occurred during the
testing phase of the regulatory review period, while 183 days occurred
during the approval phase. These periods of time were derived from the
following dates:
    1. The date an exemption under section 505(i) of the Federal Food,
Drug, and Cosmetic Act (the act) (21 U.S.C. 355(i)) became effective:
June 4, 1998. The applicant claims June 3, 1998, as the date the
investigational new drug application (IND) became effective. However,
FDA records indicate that the IND effective date was June 4, 1998,
which was 30 days after FDA receipt of the IND.
    2. The date the application was initially submitted with respect to
the human drug product under section 505(b) of the act: June 16, 2008.
FDA has verified the applicant's claim that the new drug application
(NDA) 22-311 was submitted on June 16, 2008.
    3. The date the application was approved: December 15, 2008. FDA
has verified the applicant's claim that NDA 22-311 was approved on
December 15, 2008.
    This determination of the regulatory review period establishes the
maximum potential length of a patent extension. However, the U.S.
Patent and Trademark Office applies several statutory limitations in
its calculations of the actual period for patent extension. In its
application for patent extension, this applicant seeks 1,826 days of
patent term extension.
    Anyone with knowledge that any of the dates as published are
incorrect may submit to the Division of Dockets Management (see
ADDRESSES) written or electronic comments and ask for a redetermination
by June 8, 2010. Furthermore, any interested person may petition FDA
for a determination regarding whether the applicant for extension acted
with due diligence during the regulatory review period by October 6,
2010. To meet its burden, the petition must contain sufficient facts to
merit an FDA investigation. (See H. Rept. 857, part 1, 98th Cong., 2d
sess., pp. 41-42, 1984.) Petitions should be in the format specified in
21 CFR 10.30.
    Comments and petitions should be submitted to the Division of
Dockets Management. Three copies of any mailed information are to be
submitted, except that individuals may submit one copy. Comments are to
be identified with the docket number found in brackets in the heading
of this document.
    Comments and petitions may be seen in the Division of Dockets
Management between 9 a.m. and 4 p.m., Monday through Friday.

    Dated: March 22, 2010.
Jane A. Axelrad,
Associate Director for Policy, Center for Drug Evaluation and Research.
[FR Doc. 2010-8172 Filed 4-8-10; 8:45 am]
BILLING CODE 4160-01-S


July 2, 2001 Donald R. Lynam Vice President, Air Conservation Ethyl Corporation 330 South Fourth Street Richmond, VA 23219 4304 Dear Dr. Lynam,

On April 27, 2001, the Ethyl Corporation ( Ethyl) submitted to the Environmental Protection Agency ( EPA) a draft health study protocol for MMT, as required under the Alternative Tier 2 Health Effects Testing Requirements. This submission deals with protocols associated with the developmental physiologically based pharmacokinetic health study ( the PBPK study). These requirements were finalized in the notification received by Ethyl on May 25, 2000. As you know, the notification requires EPA review and approval of these protocols. We believe that the draft protocol fulfills EPA's study requirements.

In an attachment to your submission, the Technical Advisory Panel ( TAP) commented on the possibility of including neurobehavioral testing at the end of the PBPK study. However the TAP decided against inclusion of neurobehavioral testing since it would involve significant expansion of the PBPK study and result in little gain. The TAP acknowledged that putative neurobehavioral toxicity needs to be addressed in a future study and acknowledged EPA's position that neurobehavioral endpoints will need to be addressed in a non human primate. Additionally, the TAP recommended that the Chemical Industry Institute of Toxicology ( CIIT) should consider consulting EPA on this issue.

In a separate attachment, CIIT pointed out that group sizes used in the PBPK study are much smaller than those used in most developmental neurotoxicity studies and are unlikely to have sufficient statistical power for most behavioral endpoints. CIIT also concurred with the TAP opinion that neurobehavioral endpoints are beyond the scope of the current experiment.  2

We agree with the TAP that the inclusion of neurobehavioral endpoints at the end of the PBPK study would be a significant expansion of the PBPK study and result in little gain. We also agree with CIIT that the sample sizes of the PBPK study are too small to yield sufficient statistical power needed for neurobehavioral testing. Finally, in EPA's May 11, 2000, MMT Alternative Tier 2 Health Effects Testing Requirements Notification, EPA stated that additional testing should " not interfere with any of the testing requirements adopted today or delay any additional Alternative Tier 2 testing requirements which may be adopted in the future."

Finally, we agree with the Technical Advisory Panel and CIIT comments that the exposure concentrations for the PBPK study should be made dependent on the outcome of the ongoing subchronic manganese sulfate pharmacokinetic study. However, this may be difficult given the testing schedule. We recommend that any significant information emerging from the current study be taken into account in the PBPK study, regardless of the latter's progress. We also acknowledge CIIT's concern that a stable concentration of 1 milligram of manganese per cubic meter ( mg Mn/ m3) atmosphere in a 8 cubic meter inhalation chamber may be difficult to achieve. We encourage CIIT to conduct the feasibility studies proposed to determine an effective maximal concentration. EPA requests that Ethyl notify the Agency if it encounters any difficulty in reliably generating the highest exposure concentration of 1 mg Mn/ m3 during the feasibility studies.

We look forward to Ethyl's submission of the revised draft protocol as required under the notification. If you have any questions concerning our review, please contact Joe Sopata of my staff at ( 202) 564 9034.

Sincerely,

/ s/

Robert E. Larson, Acting Director Transportation and Regional Programs Division cc: Monica Alvarez, ORD/ OSP J. Michael Davis, ORD/ NCEA Stan Durkee, ORD/ OSP Hal Zenick, ORD/ NHEERL William Russo, ORD/ NHEERL Tim Backstrom, OGC Kevin Fast, Hunton & Williams


[Federal Register: August 16, 2010 (Volume 75, Number 157)]
[Notices]
[Page 50030-50032]
[DOCID:fr16au10-128]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62685; File No. SR-OCC-2010-12]

Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Modify the Definition of Government Securities To Exclude Separate
Trading of Registered Interest and Principal Securities on Treasury
Inflation Protected Securities, Commonly Known as TIP-STRIPS

August 10, 2010.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on July 29, 2010, The Options
Clearing Corporation (``OCC'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change described in Items
I and II below, which items have been prepared primarily by OCC. OCC
filed the proposal pursuant to Section 19(b)(3)(A)(i) of the Act \2\
and Rule 19b-4(f)(1) \3\ thereunder so that the proposal was effective
upon filing with the Commission. The Commission is publishing this
notice to solicit comments on the rule change from interested parties.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78s(b)(3)(A)(i).
    \3\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The proposed rule change will modify the definition of ``Government
securities'' found in Article I, Section 1 of OCC's By-Laws to exclude
Separate Trading of Registered Interest and Principal Securities
(``STRIPS'') on Treasury Inflation Protected Securities (``TIPS''),
commonly known as TIP-STRIPS.

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

    In its filing with the Commission, OCC included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. OCC has prepared summaries, set forth in sections (A),
(B), and (C) below, of the most significant aspects of these
statements.\4\
---------------------------------------------------------------------------

    \4\ The Commission has modified the text of the summaries
prepared by OCC.

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

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

1. Purpose
    The purpose of this rule change is to modify the definition of
``Government securities'' found in Article I, Section 1 of OCC's By-
Laws to exclude Separate Trading of Registered Interest and Principal
Securities (``STRIPS'') on Treasury Inflation Protected Securities
(``TIPS''), commonly known as TIP-STRIPS. The reason for the proposed
exclusion is the absence of a liquid secondary market for TIP-STRIPS.
    U.S. and Canadian Government securities are acceptable forms of
collateral for margin and clearing fund purposes. OCC defines
Government securities to be securities issued or guaranteed by the
United States or Canadian Government or any other government acceptable
to OCC. U.S. Government securities include bills, bonds, notes, TIPS,
and STRIPS. The U.S. Government does not issue STRIPS, but it does
guarantee their principal payments making them eligible as Government
securities for purposes of OCC's By-Laws and Rules. The U.S. Government
also does not issue TIP-STRIPS. Nonetheless, TIP-STRIPS fall within
OCC's definition of Government securities as their principal is
guaranteed by the U.S. Government.
    TIP-STRIPS were first issued in the late 1990's by an investment
bank to meet the needs of certain clients. The securities are
registered in the Federal Reserve Bank's book entry system. The
securities have a de minimis circulation, and there currently is no
active secondary market for them resulting in a lack of price
transparency and liquidity and no reliable means by which to determine
their value. OCC's ability to liquidate this form of collateral in the
event of a clearing member default could be severely compromised as a
result of these factors. Accordingly, OCC has concluded TIP-STRIPS
should be excluded from the definition of Government securities. OCC is
unaware of any instance in which a clearing member has pledged TIP-
STRIPS to meet its margin or clearing fund obligation. Therefore, OCC
believes excluding TIP-STRIPS from the definition of Government
securities enhances the protection of OCC, clearing members, and the
investing public without imposing a burden on clearing members
depositing Government securities to meet their margin and clearing fund
obligations.
2. Statutory Basis
    OCC believes that the proposed rule change is consistent with
Section 17A of the Act,\5\ as amended, because it assures the
safeguarding of securities and funds which are in OCC's custody and
control and provides for the protection of investors and the public
interest. The proposed change meets these objectives by making a
security with de minimis circulation, liquidity, and price transparency
ineligible for deposit as a form of collateral. As OCC has not
identified an instance in which a clearing member has deposited such
security as collateral, the proposed change does not burden clearing
members or adversely affect their ability to meet their obligations to
OCC. The proposed rule change is not inconsistent with the existing
rules of OCC, including any other rules proposed to be amended.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------

(B) Self-Regulatory Organization's Statement on Burden on Competition

    OCC does not believe that the proposed rule change will have any
impact or impose any burden on competition.

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

    Written comments relating to the proposed rule change were not and
are not intended to be solicited or received. OCC will notify the
Commission of any written comments received by OCC.

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

    The foregoing proposed rule change has become effective upon filing
pursuant to Section 19(b)(3)(A)(i) of the Act \6\ and Rule 19b-4(f)(1)
\7\ thereunder because the proposed rule change constitutes a stated
policy, practice, or interpretation with respect to the meaning,
administration, or enforcement of an existing rule. 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.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78s(b)(3)(A)(i).
    \7\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to<EMAIL_ADDRESS>Please include
File Number SR-OCC-2010-12 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-OCC-2010-12. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filings also will be available for
inspection and copying at the principal office of OCC and on OCC's Web
site at http://www.optionsclearing.com/components/docs/legal/rules_
and_bylaws/sr_occ_10_12.pdf.
    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-OCC-2010-12
and should be submitted on or before September 7, 2010.

    For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\8\
---------------------------------------------------------------------------

    \8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-20181 Filed 8-13-10; 8:45 am]
BILLING CODE 8010-01-P


[Federal Register Volume 82, Number 215 (Wednesday, November 8, 2017)]
[Proposed Rules]
[Pages 51782-51786]
[FR Doc No: 2017-24065]

========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.

========================================================================

Federal Register / Vol. 82, No. 215 / Wednesday, November 8, 2017 /
Proposed Rules

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2017-0288; Product Identifier 2017-CE-007-AD]
RIN 2120-AA64

Airworthiness Directives; Textron Aviation Inc. Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Supplemental notice of proposed rulemaking (SNPRM); reopening
of comment period.

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

SUMMARY: We are revising an earlier proposal for all Textron Aviation
Inc. Models A36TC and B36TC airplanes. This action revises the notice
of proposed rulemaking (NPRM) by adding all Textron Aviation Inc.
Models S35, V35, V35A, and V35B airplanes that have the optional
turbocharger engine installed to the applicability and adding an annual
visual inspection of the exhaust tailpipe v-band coupling (clamp). We
are proposing this airworthiness directive (AD) to address the unsafe
condition on these products. Since these actions would impose an
additional burden over those in the NPRM, we are reopening the comment
period to allow the public the chance to comment on these changes.

DATES: The comment period for the NPRM published in the Federal
Register on April 12, 2017 (82 FR 17594), is reopened.
    We must receive comments on this SNPRM by December 26, 2017.

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.

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-2017-
0288; 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 SNPRM, 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: Thomas Teplik, Aerospace Engineer,
Wichita ACO Branch, FAA, 1801 Airport Road, Room 100, Wichita, Kansas
67209; phone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>; email:
[email protected].

SUPPLEMENTARY INFORMATION:

Comments Invited

    We invite you to send any written relevant data, views, or
arguments about this proposal. Send your comments to an address listed
under the ADDRESSES section. Include ``Docket No. FAA-2017-0288;
Product Identifier 2017-CE-007-AD'' at the beginning of your comments.
We specifically invite comments on the overall regulatory, economic,
environmental, and energy aspects of this SNPRM. We will consider all
comments received by the closing date and may amend this SNPRM 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 SNPRM.

Discussion

    We issued an NPRM to amend 14 CFR part 39 by adding an AD that
would apply to Textron Aviation Inc. (Textron) Models A36TC and B36TC
airplanes. The NPRM published in the Federal Register on April 12, 2017
(82 FR 17594). The NPRM was prompted by a fatal accident where the
exhaust tailpipe fell off during takeoff. The NPRM proposed to add a
life limit to the exhaust tailpipe v-band coupling (clamp) and, if the
coupling is removed for any reason before the life limit is reached,
require an inspection of the v-band coupling before reinstalling.

Actions Since the NPRM Was Issued

    Since we issued the NPRM, we received information that Textron
Models S35, V35, V35A, and V35B airplanes could have a turbocharged
reciprocating engine installed, either at manufacture as an optional
installation or post-manufacture as a supplemental type certificate
(STC) installation. Either engine installation would include
installation of an affected v-band coupling. We also received comments
to the NPRM requesting an annual visual inspection of the v-band
couplings and requesting language changes to address the replacement of
the engine with a non-turbocharged engine.

Comments

    We gave the public the opportunity to comment on the NPRM. The
following presents the comments received on the NPRM and the FAA's
response to each comment.

Request Repetitive Visual Inspections of the V-Band Coupling

    The National Transportation Safety Board (NTSB) requested we add
repetitive visual inspections of the v-band coupling. The NTSB noted
that the FAA included repetitive visual inspections of the v-band
coupling in a previous AD affecting Piper Aircraft Inc. airplanes. They
believe a similar repetitive visual inspection of the v-band coupling
for the airplanes affected by this proposed AD, in addition to the
proposed life limit, would help identify the cracks before failure.
    We agree with the comment, and we have added a repetitive visual
inspection of the v-band coupling to this SNPRM.

Request To Remove Airplanes Without a Turbocharged Engine From the
Applicability

    Gerard Terpstra requested we exclude Model A36TC airplanes that
have STC

SA3523NM installed from the applicability of the AD. This STC removes
the turbocharged engine and replaces it with a turbine engine, which
does not include a v-band coupling affected by the proposed AD.
Therefore, it would be impossible to comply with the AD.
    We agree with this comment, and we have modified the Applicability,
paragraph (c), to only apply to airplanes with engine installations
with a turbocharger that include exhaust tailpipe v-band couplings
affected by this SNPRM.

In Favor of the AD

    Thomas P. Turner of the American Bonanza Society Air Safety
Foundation responded in favor of the proposed AD action.

FAA's Determination

    We are proposing 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 the same type design.
Certain changes described above expand the scope of the NPRM. As a
result, we have determined that it is necessary to reopen the comment
period to provide additional opportunity for the public to comment on
this SNPRM.

Proposed Requirements of This SNPRM

    This SNPRM would require repetitive visual inspections of the
exhaust tailpipe v-band coupling and add a life limit to the exhaust
tailpipe v-band coupling (clamp).

Costs of Compliance

    We estimate that this proposed AD affects 731 airplanes of U.S.
registry.
    We estimate the following costs to comply with this proposed AD:

                                                 Estimated Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per      Cost on U.S.
            Action                Labor cost                Parts cost                product        operators
----------------------------------------------------------------------------------------------------------------
Visual inspection of the       .5 work-hour x    Not applicable.................          $42.50      $31,067.50
 exhaust tailpipe v-band        $85 per hour =
 coupling (Installed).          $42.50.
Replacement of the exhaust     2 work-hours x    $300...........................             470         343,570
 tailpipe v-band coupling.      $85 per hour =
                                $170.
----------------------------------------------------------------------------------------------------------------

    We estimate the following costs to do any necessary inspection that
would require removal and reinstallation of the exhaust tailpipe v-band
coupling. We have no way of determining the number of airplanes that
might need this inspection:

                                               On-Condition Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per
                 Action                          Labor cost                  Parts cost               product
----------------------------------------------------------------------------------------------------------------
Inspection of the exhaust tailpipe v-    1.5 work-hours x $127.50   Not applicable..............         $127.50
 band coupling (Not installed, includes   per hour = $127.50.
 removal and reinstallation).
----------------------------------------------------------------------------------------------------------------

    We estimate the following costs for the installation of part number
N1000897-40 exhaust tailpipe v-band coupling on Models S35, V35, V35A,
and V35B airplanes equipped with the Continental TSIO-520-D engine with
AiResearch turbocharger during manufacture. We have no way of
determining the number of airplanes that may do this installation:

                                               On-Condition Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per
                    Action                                 Labor cost               Parts cost        product
----------------------------------------------------------------------------------------------------------------
Installation of part number N1000897-40         2 work-hours x $85 per hour =               $632            $802
 exhaust tailpipe v-band coupling.               $170.
----------------------------------------------------------------------------------------------------------------

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.
    This AD is issued in accordance with authority delegated by the
Executive Director, Aircraft Certification Service, as authorized by
FAA Order 8000.51C. In accordance with that order, issuance of ADs is
normally a function of the Compliance and Airworthiness Division, but
during this transition period, the Executive Director has delegated the
authority to issue ADs applicable to small airplanes and domestic
business jet transport airplanes to the Director of the Policy and
Innovation Division.

Regulatory Findings

    We 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 this 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

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 adding the following new airworthiness
directive (AD):

Textron Aviation Inc.: Docket No. FAA-2017-0288; Product Identifier
2017-CE-007-AD.

(a) Comments Due Date

    We must receive comments by December 26, 2017.

(b) Affected ADs

    None.

(c) Applicability

    (1) This AD applies to the following Textron Aviation Inc.
airplanes; all serial numbers, that are certificated in any
category:
    (i) Models A36TC and B36TC airplanes equipped with a
turbocharged engine.
    (ii) Models S35, V35, V35A, and V35B airplanes equipped with the
Continental TSIO-520-D engine with AiResearch turbocharger during
manufacture; and
    (iii) Models S35, V35, V35A, and V35B airplanes equipped with
StandardAero Supplemental Type Certificate (STC) SA1035WE.
    (2) If the one-piece v-band coupling (clamp), part number (P/N)
NH1000897-40, is installed on Textron Aviation Inc. Models S35, V35,
V35A, and V35B airplanes equipped with the Continental TSIO-520-D
engine with AiResearch turbocharger during manufacture, this AD does
not apply to those airplanes.

(d) Subject

    Joint Aircraft System Component (JASC)/Air Transport Association
(ATA) of America Code 81, Turbocharging.

(e) Unsafe Condition

    This AD was prompted by a fatal accident where the exhaust
tailpipe fell off during takeoff. We are issuing this AD to prevent
failure of the exhaust tailpipe v-band coupling (clamp) that may
lead to detachment of the exhaust tailpipe from the turbocharger and
allow high-temperature exhaust gases to enter the engine
compartment, which could result in an inflight fire.

(f) Compliance

    Comply with this AD within the compliance times specified,
unless already done. For the purposes of this AD, the exhaust
tailpipe v-band coupling may also be referred to as the exhaust
tailpipe v-band clamp.

(g) Review of the Maintenance Records

    Within 50 hours time-in-service (TIS) after the effective date
of this AD, do a maintenance records review to determine the hours
TIS of the exhaust tailpipe v-band coupling. If unable to determine
the hours TIS of the exhaust tailpipe v-band coupling, use the
compliance time specified in paragraph (h)(2) of this AD.

(h) Compliance Times for Repetitive Replacement of the V-Band Coupling

    Use the following compliance times in paragraph (h)(1) or (2)
for the repetitive replacement of the exhaust tailpipe v-band
coupling as specified in paragraph (i) of this AD.
    (1) If from a review of the maintenance records you can
positively identify that the hours TIS for the exhaust tailpipe v-
band coupling is less than 500 hours TIS: Do the initial replacement
within 500 hours TIS on the exhaust tailpipe v-band coupling or
within the next 50 hours TIS after the effective date of this AD,
whichever occurs later, and replace repetitively thereafter at
intervals not to exceed 500 hours TIS on the exhaust tailpipe v-band
coupling.
    (2) If from a review of the maintenance records you can
positively identify that the hours TIS for the exhaust tailpipe v-
band coupling is 500 hours TIS or more or you cannot positively
identify the hours TIS for the exhaust tailpipe v-band coupling: Do
the initial replacement within 50 hours TIS after the effective date
of this AD and replace repetitively thereafter at intervals not to
exceed 500 hours TIS on the exhaust tailpipe v-band coupling.

(i) Replacement of the Exhaust Tailpipe V-Band Coupling

    Replace the exhaust tailpipe v-band coupling for the airplanes
in paragraphs (i)(1) through (3) at the applicable compliance time
as specified in paragraph (h).

    Note 1 to paragraph (i) of this AD: We recommend after
installation of the exhaust tailpipe v-band coupling, you do an
engine run and recheck the torque of the v-band coupling.

    (1) Models A36TC and B36TC airplanes: Replace the exhaust
tailpipe v-band coupling part number (P/N) N4211-375-M or P/N 5322C-
375-Z with a new exhaust tailpipe v-band coupling. When installing
the new part, tighten the v-band coupling to 40 in-lbs., tap the
periphery of the band to distribute tension, and torque again to 40
in-lbs.

    Note 2 to paragraph (i)(1) of this AD:  P/Ns N4211-375-M and P/N
5322C-375-Z are also known as P/N N4211-375M and P/N 5322C3752. The
engineering drawings list the applicable part number v-band
couplings as P/N N4211-375-M and P/N 5322C-375-Z; however, the parts
catalog lists the applicable v-band couplings as P/N N4211-375M and
P/N 5322C3752.

    (2) Models S35, V35, V35A, and V35B airplanes:
    (i) For airplanes equipped with the Continental TSIO-520-D
engine with AiResearch turbocharger during manufacture: Replace the
exhaust tailpipe v-band coupling P/N U4211-375-M or P/N 4404C375-M
with a new exhaust tailpipe v-band coupling. When installing a new
P/N U4211-375-M, tighten the v-band coupling to 60 in-lbs., tap the
periphery of the band to distribute tension, and torque again to 60
in-lbs. When installing a new P/N 4404C375-M, add 20 in-lbs after
the running torque is overcome. Replacement of exhaust tailpipe v-
band coupling P/N U4211-375-M or P/N 4404C375-M with the one-piece
v-band coupling, P/N NH1000897-40, terminates the requirements of
this AD.

    Note 3 to paragraph (i)(2)(i) and (ii) of this AD: P/Ns U4211-
375-M and 4404C375-M may also be known as P/Ns U4211-375M and
4404C375M or 4404C-375-M.

    (ii) For airplanes equipped with STC SA1035WE: Replace the
exhaust tailpipe v-band coupling P/N U4211-375-M with a new exhaust
tailpipe v-band coupling. When installing the new part, tighten the
v-band coupling to 60 in-lbs., tap the periphery of the band to
distribute tension, and torque again to 60 in-lbs.

(j) Repetitive Visual Inspection of the Installed Exhaust Tailpipe V-
Band Coupling

    (1) If you remove the exhaust tailpipe v-band coupling during
your annual inspection or within the compliance time specified in
paragraph (j)(2) of this AD, you may do the inspection specified in
paragraph (k) of this AD in lieu of the inspection required in
paragraph (j) of this AD. If you already have the v-band coupling
removed, doing the detailed inspection as specified in paragraph (k)
of this AD eliminates the possibility of having to remove and
reinstall the v-band coupling more than once if certain conditions
are found during the inspection required in paragraph (j) of this
AD.
    (2) At the next annual inspection after the effective date of
this AD or within the next 12 months after the effective date of
this AD, whichever occurs later, and repetitively thereafter at
intervals not to exceed 12

months, do a visual inspection of the installed exhaust tailpipe v-
band coupling. Use the inspection steps listed in paragraphs
(j)(2)(i) through (vii) of this AD.
    (i) Inspect the coupling and area around the coupling for signs
of exhaust stains, sooting, or other evidence of exhaust leakage. If
any of those conditions are found, remove the coupling and go to the
inspection steps in paragraph (k) of this AD for inspection of a v-
band coupling that has been removed.
    (ii) Inspect the coupling outer band for cracks, paying
particular attention to the spot weld areas. If cracks are found,
before further flight, you must replace the v-band coupling with a
new v-band coupling and restart the hours TIS for the repetitive
replacement of the v-band coupling.
    (iii) Inspect the coupling for looseness or separation of the
outer band to the v-retainer segments(s) at all spot welds. If
looseness or separation of the outer band to any or multiple
retainer segments(s) is found, before further flight, you must
replace the v-band coupling with a new v-band coupling and restart
the hours TIS for the repetitive replacement of the v-band coupling.
    (iv) Inspect the coupling outer band for cupping, bowing, or
crowning. If any of these conditions are found, before further
flight, remove the coupling and go to the inspection steps in
paragraph (k) of this AD for inspection of a v-band coupling that
has been removed.
    (v) Inspect the area of the coupling, including the outer band,
opposite the t-bolt for damage or distortion. If any damage or
distortion is found, before further flight, you must replace the v-
band coupling with a new v-band coupling and restart the hours TIS
for the repetitive replacement of the v-band coupling.
    (vi) Using a mirror, verify there is a space between each v-
retainer coupling segment below the t-bolt. If there is no space
between each v-retainer coupling segment below the t-bolt, before
further flight, you must replace the v-band coupling with a new v-
band coupling and restart the hours TIS for the repetitive
replacement of the v-band coupling.
    (vii) Verify the v-band coupling nut is properly torqued as
specified in paragraphs (j)(2)(vii)(A) through (C) of this AD:
    (A) For P/N N4211-375-M or P/N 5322C-375-Z exhaust tailpipe v-
band coupling, torque to 40 in-lbs.
    (B) For P/N U4211-375-M exhaust tailpipe v-band coupling, torque
to 60 in-lbs.
    (C) For 4404C375-M exhaust tailpipe v-band coupling, verify the
nut is secure. If not secure, before further flight, loosen and
verify running torque and add 20 in-lbs to the running torque when
tightened.
    (3) These inspections do not terminate the 500-hour TIS
repetitive replacement of the v-band coupling and do not restart the
hours TIS for the repetitive replacement of the v-band coupling.

(k) Visual Inspection of a Removed Exhaust Tailpipe V-Band Coupling

    (1) If during the visual inspection required in paragraph (j) of
this AD you are required to remove of the exhaust tailpipe v-band
coupling to do a more detailed inspection, you must do the
inspection steps listed in paragraphs (k)(1) and (2) of this AD. If
you removed the exhaust tailpipe v-band coupling during the annual
inspection or within the compliance time specified in paragraph
(j)(2) of this AD, you may do the inspection specified in paragraph
(k) of this AD in lieu of the inspection required in paragraph (j)
of this AD. If you already have the v-band coupling removed, doing
the detailed inspection as specified in paragraph (k) of this AD
eliminates the possibility of having to remove and reinstall the v-
band coupling more than once if certain conditions are found during
the inspection required in paragraph (j) of this AD.
    (i) Use crocus cloth and mineral spirits/Stoddard solvent, to
clean the outer band of the v-band coupling. Pay particular
attention to the spot weld areas on the coupling. If during cleaning
corrosion cannot be removed or pitting of the v-band coupling is
found, do not re-install the v-band coupling. Before further flight,
you must install a new v-band coupling and restart the hours TIS for
the repetitive replacement of the v-band coupling.
    (ii) Use a 10X magnifier to visually inspect the outer band for
cracks, paying particular attention to the spot weld areas. If
cracks are found during this inspection, do not re-install the v-
band coupling. Before further flight, you must install a new v-band
coupling and restart the hours TIS for the repetitive replacement of
the v-band coupling.
    (iii) Visually inspect the flatness of the outer band using a
straight edge. Lay the straight edge across the width of the outer
band. The gap must be less than 0.062 inches. See figure 1 to
paragraphs (k)(1)(iii) and (v) of this AD. If the gap exceeds 0.062
inches between the outer band and the straight edge, do not re-
install the v-band coupling. Before further flight, you must install
a new v-band coupling and restart the hours TIS for the repetitive
replacement of the v-band coupling.
[GRAPHIC] [TIFF OMITTED] TP08NO17.000

    (iv) With the t-bolt in the 12 o'clock position, visually
inspect the coupling for the attachment of the outer band to the v-
retainer coupling segments by inspecting for gaps between the outer
band and the v-retainer coupling segments between approximately

the 1 o'clock through 11 o'clock position. It is recommended to use
backlighting to see gaps. If gaps between the outer band and the v-
retainer coupling segments are found, do not re-install the v-band
coupling. Before further flight, you must install a new v-band
coupling and restart the hours TIS for the repetitive replacement of
the v-band coupling.
    (v) Visually inspect the bend radii of the coupling v-retainer
coupling segments for cracks. Inspect the radii throughout the
length of the segment. See figure 1 to paragraphs (k)(1)(iii) and
(v) of this AD. If any cracks are found, do not re-install the v-
band coupling. Before further flight, you must install a new v-band
coupling and restart the hours TIS for the repetitive replacement of
the v-band coupling.
    (vi) Visually inspect the outer band opposite the t-bolt for
damage (distortion, creases, bulging, or cracks), which may be
caused from excessive spreading of the coupling during installation
and/or removal. If any damage is found, do not re-install the v-band
coupling. Before further flight, you must install a new v-band
coupling and restart the hours TIS for the repetitive replacement of
the v-band coupling.
    (2) If the removed exhaust tailpipe v-band coupling passes all
of the inspection steps listed in paragraphs (k)(1)(i) through (vi)
of this AD, you may re-install the same v-band coupling. After the
coupling is re-installed and torqued as specified in Replacement of
the V-Band Coupling, paragraph (i) of this AD, verify there is space
between each v-retainer coupling segment below the t-bolt. If there
is no space between each v-retainer coupling segment below the t-
bolt, before further flight, you must install a new v-band coupling
and restart the hours TIS for the repetitive replacement of the v-
band coupling.
    (3) The inspections required in paragraphs (k)(1) and (2) of
this AD only apply to re-installing the same exhaust tailpipe v-band
coupling that was removed as specified in paragraph (j) of this AD.
It does not apply to installation of a new v-band coupling. These
inspections do not terminate the 500-hour TIS repetitive replacement
of the v-band coupling and do not restart the hours TIS for the
repetitive replacement of the v-band coupling.
    (4) As of the effective date of this AD, do not install a used
exhaust tailpipe v-band coupling on the airplane except for the
reinstallation of the inspected exhaust tailpipe v-band coupling
that was removed as specified in paragraphs (j) and (k) of this AD.

(l) Alternative Methods of Compliance (AMOCs)

    (1) The Manager, Wichita ACO Branch, FAA, has the authority to
approve AMOCs for this AD, if requested using the procedures found
in 14 CFR 39.19. The Manager, Chicago ACO Branch, FAA, has the
authority to approve AMOCs concerning STC SA1035WE, 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 Wichita ACO Branch, send
it to the attention of the person identified in paragraph (m) of
this AD. If sending information directly to the manager of the
Chicago ACO Branch, send it to the attention of John Tallarovic,
Aerospace Engineer, AIR-7C3 Chicago ACO Branch, 2300 East Devon
Avenue, Des Plaines, IL 60018-4696; telephone:<PHONE_NUMBER>; fax:
(847) 294-7834; email: [email protected].
    (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.

(m) Related Information

    For more information about this AD, contact Thomas Teplik,
Aerospace Engineer, Wichita ACO Branch, FAA, 1801 Airport Road, Room
100, Wichita, Kansas 67209; phone:<PHONE_NUMBER>; fax: (316) 946-
4107; email: [email protected].

    Issued in Kansas City, Missouri, on October 23, 2017.
William Schinstock,
Acting Deputy Director, Policy & Innovation Division, Aircraft
Certification Service.
[FR Doc. 2017-24065 Filed 11-7-17; 8:45 am]
BILLING CODE 4910-13-P