[Federal Register Volume 77, Number 40 (Wednesday, February 29, 2012)]
[Rules and Regulations]
[Pages 12158-12163]
[FR Doc No: 2012-4449]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2011-0994; Directorate Identifier 2010-NM-143-AD;
Amendment 39-16949; AD 2012-03-08]
RIN 2120-AA64

Airworthiness Directives; Bombardier, Inc. Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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SUMMARY: We are superseding an existing airworthiness directive (AD)
for certain Bombardier, Inc. Model CL-600-2C10 (Regional Jet Series
700, 701, & 702), CL-600-2D15 (Regional Jet Series 705), and CL-600-
2D24 (Regional Jet Series 900) airplanes. That AD currently requires
repetitive detailed inspections for cracking or deformation, or pulled
or missing fasteners, on the lower panel of the left- and right-hand
main landing gear (MLG) doors, as applicable, and corrective actions if
necessary. That AD also reduces the repetitive inspection interval for
certain airplanes. This new AD adds a new modification of the MLG door
configuration, and removes certain airplanes from the applicability.
This AD was prompted by further analysis of the MLG door by the
manufacturer. We are issuing this AD to prevent failure of the lower
panel of the MLG door, departure of the lower panel from the airplane,
and consequent damage to airplane structure, which could adversely
affect the airplane's continued safe flight and landing.

DATES: This AD is effective April 4, 2012.
    The Director of the Federal Register approved the incorporation by
reference of certain publications listed in the AD as of April 4, 2012.

ADDRESSES: For service information identified in this AD, contact
Bombardier, Inc., 400 C[ocirc]te-Vertu Road West, Dorval, Qu[eacute]bec
H4S 1Y9, Canada; telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>; email
<EMAIL_ADDRESS>Internet http://www.bombardier.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 AD, the regulatory evaluation,
any comments received, and other information. The address for the
Docket Office (phone:<PHONE_NUMBER>) is Document Management Facility,
U.S. Department of Transportation, Docket Operations, M-30, West
Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE.,
Washington, DC 20590.

FOR FURTHER INFORMATION CONTACT: Aziz Ahmed, Aerospace Engineer,
Airframe and Mechanical Systems Branch, ANE-171, FAA, New York Aircraft
Certification Office (ACO), 1600 Stewart Avenue, Suite 410, Westbury,
New York 11590; phone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>; email:
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Discussion

    We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR
part 39 to supersede AD 2006-14-05, Amendment 39-14676 (71 FR 38979,
July 11, 2006). That AD applies to the specified products. The NPRM was
published in the Federal Register on October 5, 2011 (76 FR 61633).
That NPRM proposed to continue to require repetitive detailed
inspections for cracking or deformation, or pulled or missing
fasteners, on the lower panel of the left- and right-hand main landing
gear (MLG) doors, as applicable, and corrective actions if necessary.
That NPRM also proposed to reduce the repetitive inspection interval
for certain airplanes. In addition, that NPRM proposed to add a new
modification of the MLG door configuration, and remove certain
airplanes from the applicability.

Comments

    We gave the public the opportunity to participate in developing
this AD. We have considered the comment received. The Air Line Pilots
Association International supports the NPRM (76 FR 61633, October 5,
2011).

Explanation of Changes Made to This AD

    We have revised certain headers throughout this AD. We have also
revised the wording in paragraphs (q) and (s) of this AD; this change
has not changed the intent of these paragraphs.

Conclusion

    We reviewed the available data, including the comment received, and
determined that air safety and the public interest require adopting the
AD with the changes described previously--and minor editorial changes.
We have determined that these minor changes:
     Are consistent with the intent that was proposed in the
NPRM (76 FR 61633, October 5, 2011) for correcting the unsafe
condition; and
     Do not add any additional burden upon the public than was
already proposed in the NPRM (76 FR 61633, October 5, 2011).

Costs of Compliance

    We estimate that this AD affects about 220 products of U.S.
registry.
    The actions that are required by AD 2006-14-05, Amendment 39-14676
(71 FR 38979, July 11, 2006), and retained in this AD take about 3
work-hours per product, at an average labor rate of $85 per work hour.
Based on these figures, the estimated cost of the currently required
actions is $255 per product.
    We estimate that it will take about 115 work-hours per product to
comply with the new basic requirements of this AD. The average labor
rate is $85 per work-hour. Required parts will cost about $0 per
product. Where the service information lists required parts costs that
are covered under warranty, we have assumed that there will be no
charge for these costs. As we do not control warranty coverage for
affected parties, some parties may incur costs higher than estimated
here. Based on these figures, we estimate the cost of the AD on U.S.
operators to be $2,150,500, or $9,775 per product.

Authority for This Rulemaking

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

Regulatory Findings

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

List of Subjects in 14 CFR Part 39

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

Adoption of the Amendment

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

PART 39--AIRWORTHINESS DIRECTIVES

0
1. The authority citation for part 39 continues to read as follows:

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

Sec.  39.13  [Amended]

0
2. The FAA amends Sec.  39.13 by removing airworthiness directive (AD)
2006-14-05, Amendment 39-14676 (71 FR 38979, July 11, 2006), and adding
the following new AD:

2012-03-08 Bombardier Inc.: Amendment 39-16949; Docket No. FAA-2011-
0994; Directorate Identifier 2010-NM-143-AD.

(a) Effective Date

    This airworthiness directive (AD) is effective April 4, 2012.

(b) Affected ADs

    This AD supersedes AD 2006-14-05, Amendment 39-14676 (71 FR
38979, July 11, 2006).

(c) Applicability

    This AD applies to Bombardier, Inc. Model CL-600-2C10 (Regional
Jet Series 700, 701, & 702) airplanes having serial numbers (S/Ns)
10003 through 10230 inclusive; and Model CL-600-2D15 (Regional Jet
Series 705) airplanes; and Model CL-600-2D24 (Regional Jet Series
900) airplanes having S/Ns 15001 through 15053 inclusive, 15055, and
15056; certificated in any category.

(d) Subject

    Air Transport Association (ATA) of America Code 32: Landing
gear.

(e) Reason

    This AD was prompted by further analysis of the main landing
gear (MLG) door by the manufacturer. We are issuing this AD to
prevent failure of the lower panel of the MLG door, departure of the
lower panel from the airplane, and consequent damage to airplane
structure, which could adversely affect the airplane's continued
safe flight and landing.

(f) Compliance

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

(g) Restatement of Requirements of AD 2003-19-51, Amendment 39-13353
(68 FR 61615, October 29, 2003), With Revised Serial Numbers and
Service Information: Initial Compliance Time

    For Model CL-600-2C10 (Regional Jet series 700 & 701) series
airplanes, S/Ns 10003 through 10230 inclusive; and Model CL-600-2D24
(Regional Jet series 900) series airplanes, S/Ns 15002 through 15053
inclusive, 15055, and 15056: Perform the initial inspection
specified in paragraph (h) of this AD at the applicable time
specified in paragraph (g)(1) or (g)(2) of this AD.
    (1) For airplanes with fewer than 1,500 total flight cycles as
of November 3, 2003 (the effective date of AD 2003-19-51, Amendment
39-13353 (68 FR 61615, October 29, 2003)): Do the inspections before
the accumulation of 1,050 total flight cycles, or within 50 flight
cycles after August 15, 2006 (the effective date of AD 2006-14-05,
Amendment 39-14676 (71 FR 38979, July 11, 2006)), whichever is
later.
    (2) For airplanes with 1,500 or more total flight cycles as of
November 3, 2003: Do the inspections within 10 flight cycles after
August 15, 2006.

(h) Restatement of Requirements of AD 2003-19-51, Amendment 39-13353
(68 FR 61615, October 29, 2003), With Revised Serial Numbers and
Service Information: Inspections

    For Model CL-600-2C10 (Regional Jet series 700 & 701) series
airplanes, S/Ns 10003 through 10230 inclusive; and Model CL-600-2D24
(Regional Jet series 900) series airplanes, S/Ns 15002 through 15053
inclusive, 15055 and 15056: At the applicable time specified in
paragraph (g) of this AD, perform detailed inspections of the lower
panel, part number (P/N) CC670-10520, of the left- and right-hand
MLG doors for the conditions and in the areas specified in
paragraphs (h)(1), (h)(2), (h)(3), and (h)(4) of this AD; and
Figures 1, 2, and 3 of this AD. 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.''
    (1) Inspect the cross member, P/N CC670-10572, of the MLG door
lower panel for cracking or deformation, in accordance with Figure 2
of this AD.
    (2) Inspect the inner skin, P/N CC670-10577, of the MLG door
lower panel at the cross member (P/N CC670-10572) for cracking or
deformation, or pulled or missing fasteners, in accordance with
Figure 2 of this AD.
    (3) Inspect the outer skin, P/N CC670-10574, of the MLG door
lower panel at the cross member (P/N CC670-10572) for cracking or
deformation, or pulled or missing fasteners, in accordance with
Figure 2 of this AD.
    (4) Inspect the forward member, P/N CC670-10570, and aft member,
P/N CC670-10571, of the MLG door lower panel for cracking or
deformation, or pulled or missing fasteners, in accordance with
Figure 3 of this AD. Figures 1 through 3 of this AD follow.
BILLING CODE 4910-13-P

[GRAPHIC] [TIFF OMITTED] TR29FE12.001

[GRAPHIC] [TIFF OMITTED] TR29FE12.002

[GRAPHIC] [TIFF OMITTED] TR29FE12.003

BILLING CODE 4910-13-C

(i) Restatement of Requirements of AD 2003-19-51, Amendment 39-13353
(68 FR 61615, October 29, 2003), With Revised Serial Numbers and
Service Information: Repetitive Inspections

    If no cracking or deformation, or pulled or missing fastener, as
applicable, is found during any inspection required by paragraph (h)
or (i) of this AD, repeat the inspections thereafter at intervals
not to exceed 100 flight cycles.

(j) Restatement of Requirements of AD 2003-19-51, Amendment 39-13353
(68 FR 61615, October 29, 2003), With Revised Serial Numbers and
Service Information: Corrective Actions

    If any cracking or deformation, or pulled or missing fastener,
as applicable, is found during any inspection done in accordance
with paragraph (h) or (i) of this AD: Before further flight,
accomplish paragraph (j)(1), (j)(2), or (j)(3) of this AD.
    (1) Repair the damage in accordance with a method approved by
either the Manager, New York Aircraft Certification Office (ACO),
FAA; or Transport Canada Civil Aviation (TCCA) (or its delegated
agent); and accomplish repetitive inspections in accordance with a
method and at a repetitive interval approved by same.
    (2) Replace the lower panel assembly, P/N CC670-10520, of the
affected MLG door with a new or serviceable lower panel assembly
having the same P/N, according to a method approved by either the
Manager, New York ACO, FAA; or TCCA (or its delegated agent). Repeat
the inspections specified in paragraph (h) of this AD at intervals
not to exceed 100 flight cycles.

    Note 1 to paragraph (j)(2) of this AD: Guidance on replacing the
lower panel assembly can be found in Task Cards 32-12-01-000-801-A01
and 32-12-01-400-801-A01 of the Bombardier CRJ 700/900 Series
Regional Jet Aircraft Maintenance Manual.

    (3) Remove the lower panel assembly, P/N CC670-10520, of the
affected MLG door, and accomplish paragraph (j)(3)(i) or (j)(3)(ii)
of this AD, as applicable.
    (i) For Model CL600-2C10 (Regional Jet series 700 & 701) series
airplanes: Revise the Configuration Deviation List (CDL), Appendix
1, of the airplane flight manual (AFM), to include the following
limitations. This may be accomplished by inserting a copy of this AD
into the CDL of the AFM.
    For Model CL600-2C10 series airplanes: If one or both door panel
assemblies, part number CC670-10520, is missing:
    (1) Take-off Weight is reduced by 202.5 kg/door, or 450 lb/door.
    (2) Enroute Climb Weight is reduced by 445.5 kg/door, or 990 lb/
door.
    (3) Landing Weight is reduced by 202.5 kg/door, or 450 lb/door.
    (4) Fuel Consumption is increased by +3.42% on fuel used/door.
    (5) Cruise Airspeed is limited to not more than 0.78 Mach.
    (ii) For Model CL-600-2D24 (Regional Jet series 900) series
airplanes: Revise the CDL, Appendix 1, of the AFM, to include the
following limitations. This may be accomplished by inserting a copy
of this AD into the CDL of the AFM.
    For Model CL600-2D24 series airplanes: If one or both door panel
assemblies, part number CC670-10520, is missing:
    (1) Take-off Weight is reduced by 245 kg/door, or 540 lb/door.
    (2) Enroute Climb Weight is reduced by 551 kg/door, or 1,215 lb/
door.
    (3) Landing Weight is reduced by 245 kg/door, or 540 lb/door.
    (4) Fuel Consumption is increased by +3.42% on fuel used/door.
    (5) Cruise Airspeed is limited to not more than 0.78 Mach.

(k) Restatement of Requirements of AD 2006-14-05, Amendment 39-14676
(71 FR 38979, July 11, 2006), With Revised Service Information: Inboard
MLG Door Inspections

    For all airplanes on which an inspection has not been done in
accordance with paragraph (h) of this AD on or before August 15,
2006: At the applicable time specified in paragraph (k)(1) or (k)(2)
of this AD, do the inspections of the left- and right-hand inboard
MLG doors for damage, in accordance with Part A of the
Accomplishment Instructions of Bombardier

Alert Service Bulletin A670BA-32-016, Revision A, dated June 7,
2005, excluding Appendix A, dated June 2, 2005, and including
Appendix B, dated June 2, 2005; or Bombardier Alert Service Bulletin
A670BA-32-016, Revision F, dated May 14, 2010, excluding Appendix A,
dated June 2, 2005, and including Appendix B, dated June 2, 2005.
Doing the inspections required by this paragraph terminates the
actions required by paragraphs (g) through (j) of this AD. As of the
effective date of this AD, use only Bombardier Alert Service
Bulletin A670BA-32-016, Revision F, dated May 14, 2010, excluding
Appendix A, dated June 2, 2005, and including Appendix B, dated June
2, 2005.
    (1) For airplanes that have accumulated fewer than 1,500 total
flight cycles as of August 15, 2006: Before the accumulation of
1,000 total flight cycles, or within 50 flight cycles after August
15, 2006, whichever occurs later.
    (2) For airplanes that have accumulated 1,500 flight cycles or
more as of August 15, 2006: Within 10 flight cycles after August 15,
2006.

(l) Restatement of Requirements of AD 2006-14-05, Amendment 39-14676
(71 FR 38979, July 11, 2006), With Revised Service Information: Inboard
MLG Door Inspections

    For airplanes on which an inspection has been done in accordance
with paragraph (h) of this AD on or before August 15, 2006: At the
applicable time specified in paragraph (l)(1) or (l)(2) of this AD,
inspect installed door(s) as specified in paragraph (k) of this AD.
Doing the inspections required by this paragraph terminates the
actions required by paragraphs (g) through (j) of this AD.
    (1) For airplanes that are not subject to an approved
alternative method of compliance (AMOC) that extends the inspection
interval to 450 flight cycles: Within 100 flight cycles since the
last inspection done in accordance with paragraph (h) of this AD.
    (2) For airplanes that are subject to an approved AMOC that
extends the inspection interval to 450 flight cycles: At the earlier
of the times specified in paragraphs (l)(2)(i) and (l)(2)(ii) of
this AD:
    (i) Within 450 flight cycles since the last inspection done in
accordance with paragraph (h) of this AD.
    (ii) Within 100 flight cycles since the last inspection done in
accordance with paragraph (h) of this AD, or within 50 cycles after
August 15, 2006, whichever occurs later.

(m) Restatement of Requirements of AD 2006-14-05, Amendment 39-14676
(71 FR 38979, July 11, 2006), With Revised Service Information:
Repetitive Inspections

    If no damage is found during any inspection done in accordance
with paragraph (k) of this AD, repeat the inspections specified in
paragraph (k) of this AD thereafter at intervals not to exceed 100
flight cycles.

(n) Restatement of Requirements of AD 2006-14-05, Amendment 39-14676
(71 FR 38979, July 11, 2006), With Revised Service Information:
Corrective Action--Replace or Remove MLG Door

    If any damage is found during any inspection done in accordance
with paragraph (k) of this AD, before further flight, do the actions
in paragraph (n)(1) or (n)(2) of this AD. Repeat the inspections
specified in paragraph (k) of this AD thereafter at intervals not to
exceed 100 flight cycles.
    (1) Replace the inboard MLG door with a new or repaired door in
accordance with Part B of the Accomplishment Instructions of the
Bombardier Alert Service Bulletin A670BA-32-016, Revision A, dated
June 7, 2005, excluding Appendix A, dated June 2, 2005, and
including Appendix B, dated June 2, 2005; or Bombardier Alert
Service Bulletin A670BA-32-016, Revision F, dated May 14, 2010,
excluding Appendix A, dated June 2, 2005, and including Appendix B,
dated June 2, 2005; except where those service bulletins specify to
contact the manufacturer for repair if no generic repair engineering
order (REO) is available, before further flight, repair using a
method approved by either the Manager, New York ACO, FAA; or TCCA
(or its delegated agent). As of the effective date of this AD, use
only Bombardier Alert Service Bulletin A670BA-32-016, Revision F,
dated May 14, 2010, excluding Appendix A, dated June 2, 2005, and
including Appendix B, dated June 2, 2005.
    (2) Remove the inboard MLG door in accordance with Part B of the
Accomplishment Instructions of the Bombardier Alert Service Bulletin
A670BA-32-016, Revision A, dated June 7, 2005, excluding Appendix A,
dated June 2, 2005, and including Appendix B, dated June 2, 2005; or
Bombardier Alert Service Bulletin A670BA-32-016, Revision F, dated
May 14, 2010, excluding Appendix A, dated June 2, 2005, and
including Appendix B, dated June 2, 2005; and accomplish paragraph
(n)(2)(i) or (n)(2)(ii) of this AD, as applicable. As of the
effective date of this AD, use only Bombardier Alert Service
Bulletin A670BA-32-016, Revision F, dated May 14, 2010, excluding
Appendix A, dated June 2, 2005, and including Appendix B, dated June
2, 2005.
    (i) For Model CL-600-2C10 (Regional Jet Series 700, 701, & 702)
airplanes and Model CL-600-2D15 (Regional Jet Series 705) airplanes:
Revise the Configuration Deviation List (CDL), Appendix 1, of the
Bombardier Canadair Regional Jet AFM, to include the following
limitations. This may be accomplished by inserting a copy of this AD
into the CDL of the AFM. Remove any existing CDL limitation required
by paragraph (j)(3)(i) of this AD from the AFM.
    For Model CL-600-2C10 (Regional Jet Series 700, 701, & 702)
airplanes and Model CL-600-2D15 (Regional Jet Series 705) airplanes:
If one or both door panel assemblies, part number CC670-10520, is
missing:
    (1) Take-off Weight is reduced by 202.5 kg/door, or 450 lb/door.
    (2) Enroute Climb Weight is reduced by 445.5 kg/door, or 990 lb/
door.
    (3) Landing Weight is reduced by 202.5 kg/door, or 450 lb/door.
    (4) Fuel Consumption is increased by +2.5% on fuel used/door.
    (5) Cruise Airspeed is limited to not more than 0.78 Mach.
    (6) The climb ceiling obtained from the Flight Planning and
Cruise Control Manual (FPCCM) must be reduced by 1,000 ft/door.

    Note 2 to paragraph (n)(2)(i) of this AD: When a statement with
the information specified in paragraph (n)(2)(i) of this AD has been
included in the general revisions of the AFM, the general revisions
may be inserted into the AFM, and the copy of this AD may be removed
from the AFM.

    (ii) For Model CL-600-2D24 (Regional Jet Series 900) airplanes:
Revise the CDL, Appendix 1, of the Bombardier Canadair Regional Jet
AFM, to include the following limitations. This may be accomplished
by inserting a copy of this AD into the CDL of the AFM. Remove any
existing CDL limitation required by paragraph (j)(3)(ii) of this AD
from the AFM.
    For Model CL-600-2D24 (Regional Jet Series 900) airplanes: If
one or both door panel assemblies, part number CC670-10520, is
missing:
    (1) Take-off Weight is reduced by 245 kg/door, or 540 lb/door.
    (2) Enroute Climb Weight is reduced by 551 kg/door, or 1,215 lb/
door.
    (3) Landing Weight is reduced by 245 kg/door, or 540 lb/door.
    (4) Fuel Consumption is increased by +2.5% on fuel used/door.
    (5) Cruise Airspeed is limited to not more than 0.78 Mach.
    (6) The climb ceiling obtained from the Flight Planning and
Cruise Control Manual (FPCCM) must be reduced by 1,000 ft/door.

    Note 3 to paragraph (n)(2)(ii) of this AD: When a statement with
the information specified in paragraph (n)(2)(ii) of this AD has
been included in the general revisions of the AFM, the general
revisions may be inserted into the AFM, and the copy of this AD may
be removed from the AFM.

(o) Restatement of Requirements of AD 2006-14-05, Amendment 39-14676
(71 FR 38979, July 11, 2006), With Revised Service Information: Revise
CDL

    For airplanes on which the door(s) have been removed in
accordance with paragraph (j)(3) of this AD: Within 30 days after
August 15, 2006, do the revision specified in paragraph (n)(2)(i) or
(n)(2)(ii) of this AD, as applicable, and remove any revision
required by paragraph (j)(3)(i) or (j)(3)(ii) of this AD.

(p) Restatement of Requirements of AD 2006-14-05, Amendment 39-14676
(71 FR 38979, July 11, 2006), With Revised Service Information: No
Reporting Required

    Although Bombardier Alert Service Bulletin A670BA-32-016,
Revision A, dated June 7, 2005, excluding Appendix A, dated June 2,
2005, and including Appendix B, dated June 2, 2005; and Bombardier
Alert Service Bulletin A670BA-32-016, Revision F, dated May 14,
2010, excluding Appendix A, dated June 2, 2005, and including
Appendix B, dated June 2, 2005; specify to submit certain
information to the manufacturer, this AD does not include that
requirement.

(q) Restatement of Requirements of AD 2006-14-05, Amendment 39-14676
(71 FR 38979, July 11, 2006), With Revised Service Information: Credit
for Previous Actions

    This paragraph provides credit for actions required by
paragraphs of (g) through (q) of this AD, if those actions were
performed before August 15, 2006 (the effective date of AD 2006-14-
05, Amendment 39-14767 (71 FR 38979, July 11, 2006), using
Bombardier Alert Service Bulletin A670BA-32-016, dated June 2, 2005.

(r) New Requirements of This AD: Terminating Modification for MLG Door
Configuration

    Within 6,000 flight hours after the effective date of this AD,
modify the MLG door, in accordance with the Accomplishment
Instructions of Bombardier Service Bulletin 670BA-32-017, Revision
C, dated May 14, 2010. Doing this modification terminates the
requirements of this AD.

(s) New Requirements of This AD: Credit for Previous Actions

    This paragraph provides credit for the modification of the MLG
door required by paragraph (r) of this AD, if the modification was
performed before the effective date of this AD using Bombardier
Service Bulletin 670BA-32-017, dated July 24, 2006; Revision A,
dated September 26, 2006; or Revision B, dated July 31, 2008; as
applicable.

(t) Other FAA AD Provisions

    The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager, New
York ACO, ANE-170, FAA, has the authority to approve AMOCs for this
AD, if requested using the procedures found in 14 CFR 39.19. Send
information to ATTN: Program Manager, Continuing Operational Safety,
FAA, New York ACO, 1600 Stewart Avenue, Suite 410, Westbury, New
York 11590; telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>. 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. The
AMOC approval letter must specifically reference this AD. AMOCs
approved previously in accordance with AD 2006-14-05, Amendment 39-
14676 (71 FR 38979, July 11, 2006), are acceptable for compliance
with this AD.
    (2) Airworthy Product: For any requirement in this AD to obtain
corrective actions from a manufacturer or other source, use these
actions if they are FAA-approved. Corrective actions are considered
FAA-approved if they are approved by the State of Design Authority
(or their delegated agent). You are required to assure the product
is airworthy before it is returned to service.

(u) Related Information

    Refer to MCAI TCCA Airworthiness Directive CF-2003-23R3, dated
May 21, 2010, and the following service information for related
information:
    (1) Bombardier Alert Service Bulletin A670BA-32-016, Revision F,
dated May 14, 2010, excluding Appendix A, dated June 2, 2005, and
including Appendix B, dated June 2, 2005.
    (2) Bombardier Service Bulletin 670BA-32-017, Revision C, dated
May 14, 2010.

(v) Material Incorporated by Reference

    (1) You must use the following service information to do the
actions required by this AD, unless the AD specifies otherwise. The
Director of the Federal Register approved the incorporation by
reference (IBR) of the following service information under 5 U.S.C.
552(a) and 1 CFR part 51:
    (i) Bombardier Service Bulletin 670BA-32-017, Revision C, dated
May 14, 2010.
    (ii) Bombardier Alert Service Bulletin A670BA-32-016, Revision
F, dated May 14, 2010, excluding Appendix A, dated June 2, 2005, and
including Appendix B, dated June 2, 2005.
    (2) For service information identified in this AD, contact
Bombardier, Inc., 400 C[ocirc]te-Vertu Road West, Dorval,
Qu[eacute]bec H4S 1Y9, Canada; telephone<PHONE_NUMBER>; fax 514-855-
7401; email<EMAIL_ADDRESS>Internet http://www.bombardier.com.
    (3) You may review copies of the service information at the FAA,
Transport Airplane Directorate, 1601 Lind Avenue SW., Renton,
Washington. For information on the availability of this material at
the FAA, call<PHONE_NUMBER>.
    (4) You may also review copies of the service information that
is incorporated by reference at the National Archives and Records
Administration (NARA). For information on the availability of this
material at NARA, call<PHONE_NUMBER>, or go to: http://www.archives.gov/federal-register/cfr/ibr_locations.html.

    Issued in Renton, Washington, on January 27, 2012.
Kalene C. Yanamura,
Acting Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. 2012-4449 Filed 2-28-12; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 80, Number 149 (Tuesday, August 4, 2015)]
[Rules and Regulations]
[Pages 46187-46190]
[FR Doc No: 2015-18710]

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

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2015-3139; Directorate Identifier 2012-NM-139-AD;
Amendment 39-18224; AD 2015-15-14]
RIN 2120-AA64

Airworthiness Directives; BAE Systems (Operations) Limited
Airplanes

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

ACTION: Final rule; request for comments.

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

SUMMARY: We are adopting a new airworthiness directive (AD) for all BAE
Systems (Operations) Limited Model ATP airplanes. This AD requires a
one-time inspection for solder deposited on the frangible plug of
certain engine and auxiliary power unit (APU) fire extinguishers. This
AD was prompted by reports of a fire extinguisher that failed to
discharge due to solder deposited on the frangible plug of the fire
extinguisher. We are issuing this AD to detect and correct solder
deposited on the frangible plug of the fire extinguisher, which could
result in failure of the fire extinguisher to discharge, and consequent
inability to put out a fire in an engine or in the APU.

DATES: This AD becomes effective August 19, 2015.
    The Director of the Federal Register approved the incorporation by
reference of certain publications listed in this AD as of August 19,
2015.
    We must receive comments on this AD by September 18, 2015.

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, between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.
    For BAE Systems (Operations) Limited service information identified
in this AD, contact BAE Systems (Operations) Limited, Customer
Information Department, Prestwick International Airport, Ayrshire, KA9
2RW, Scotland, United Kingdom;

telephone: +44 1292 675207; fax: +44 1292 675704; email:
<EMAIL_ADDRESS>Internet http://www.baesystems.com/Businesses/RegionalAircraft/index.htm.
    For Kidde Graviner service information identified in this AD,
contact Kidde Graviner Limited, Mathisen Way, Colnbrook, Slough,
Berkshire, SL3 0HB, United Kingdom; telephone: +44 (0)1753 683245, fax:
+44 (0)1753 685040.
    You may view this referenced service information at the FAA,
Transport Airplane Directorate, 1601 Lind Avenue SW., Renton, WA. For
information on the availability of this material at the FAA, call 425-
227-1221. It is also available on the Internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2015-
3139.

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-2015-
3139; or in person at the Docket Operations office between 9 a.m. and 5
p.m., Monday through Friday, except Federal holidays. The AD docket
contains this AD, the regulatory evaluation, any comments received, and
other information. The street address for the Docket Operations office
(telephone:<PHONE_NUMBER>) is in the ADDRESSES section. Comments will be
available in the AD docket shortly after receipt.

FOR FURTHER INFORMATION CONTACT: Todd Thompson, Aerospace Engineer,
International Branch, ANM-116, Transport Airplane Directorate, FAA,
1601 Lind Avenue SW., Renton, WA 98057-3356; telephone:<PHONE_NUMBER>;
fax:<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Discussion

    The European Aviation Safety Agency (EASA), which is the Technical
Agent for the Member States of the European Union, has issued EASA
Airworthiness Directive 2012-0127R1, dated September 10, 2012 (referred
to after this as the Mandatory Continuing Airworthiness Information, or
``the MCAI''), to correct an unsafe condition for all BAE Systems
(Operations) Limited Model ATP airplanes. The MCAI states:

    A fire handle on a BAe 146 aeroplane was operated on the ground
as a precautionary measure after the throttle cable on the affected
engine failed, due to corrosion. The extinguisher failed to
discharge.
    Investigation results revealed that excess solder, which had
been deposited during overhaul on the frangible plug of the
extinguisher, prevented the release of the extinguishant. Prompted
by this report, Kidde Graviner, the fire extinguisher manufacturer,
identified four further extinguishers of similar design that had the
same issue. The ATP aeroplane extinguisher is one of those of a
similar design.
    This condition, if not detected and corrected, could result in
the failure of a fire bottle to discharge, which reduces the ability
of the fire protection system to extinguish fires in the engine or
Auxiliary Power Unit (APU) fire zones, possibly resulting in damage
to the aeroplane and injury to the occupants.
    For the reasons described above, EASA issued AD 2012-0127 [dated
July 10, 2012, http://ad.easa.europa.eu/ad/2012-0127R1] to require a
one-time inspection of the affected Part Number (P/N) 57183 engine
and APU fire extinguishers. In addition, this [EASA] AD prohibited
installation of a fire extinguisher, unless it has passed the
inspection as required by AD 2012-0127.
    Revision 1 of this [EASA] AD is issued to clarify that new
extinguishers P/N 57183 may be fitted with no additional inspection
required by this [EASA] AD.

    You may examine the MCAI on the Internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2015-
3139.

Related Service Information Under 1 CFR Part 51

    BAE Systems (Operations) Limited and Kidde Graviner have issued the
following service information.
     BAE Systems (Operations) Limited Service Bulletin ATP-26-
016, dated October 4, 2011. The service information describes
procedures for an inspection for solder deposited on the frangible plug
of certain engine and APU fire extinguishers.
     Kidde Graviner Service Bulletin 26-080, Revision 1, dated
July 27, 2011. The service information describes procedures for an
inspection for solder deposited on the frangible plug of certain engine
and APU fire extinguishers.
    This service information is reasonably available because the
interested parties have access to it through their normal course of
business or by the means identified in the ADDRESSES section of this
AD.

FAA's Determination and Requirements of This AD

    This product has been approved by the aviation authority of another
country, and is approved for operation in the United States. Pursuant
to our bilateral agreement with the State of Design Authority, we have
been notified of the unsafe condition described in the MCAI and service
information referenced above. We are issuing this AD because we
evaluated all pertinent information and determined the unsafe condition
exists and is likely to exist or develop on other products of the same
type design.

FAA's Determination of the Effective Date

    Since there are currently no domestic operators of this product,
notice and opportunity for public comment before issuing this AD are
unnecessary.

Comments Invited

    This AD is a final rule that involves requirements affecting flight
safety, and we did not precede it by notice and opportunity for public
comment. We invite you to send any written relevant data, views, or
arguments about this AD. Send your comments to an address listed under
the ADDRESSES section. Include ``Docket No. FAA-2015-3139; Directorate
Identifier 2012-NM-139-AD'' at the beginning of your comments. We
specifically invite comments on the overall regulatory, economic,
environmental, and energy aspects of this AD. We will consider all
comments received by the closing date and may amend this AD based on
those comments.
    We will post all comments we receive, without change, to http://www.regulations.gov, including any personal information you provide. We
will also post a report summarizing each substantive verbal contact we
receive about this AD.

Costs of Compliance

    Currently, there are no affected airplanes on the U.S. Register.
However, if an affected airplane is imported and placed on the U.S.
Register in the future, the required actions will take about 1 work-
hour, at an average labor rate of $85 per work-hour. Based on these
figures, we estimate the cost of this AD to be $85 per airplane.
    In addition, we estimate that any necessary follow-on actions will
take about 1 work-hour and require parts costing $7,042, for a cost of
$7,127 per product.

Authority for This Rulemaking

    Title 49 of the United States Code specifies the FAA's authority to
issue rules on aviation safety. Subtitle I, section 106, describes the
authority of the FAA Administrator. ``Subtitle VII: Aviation
Programs,'' describes in more detail the scope of the Agency's
authority.
    We are issuing this rulemaking under the authority described in
``Subtitle VII, Part A, Subpart III, Section 44701: General
requirements.'' Under that section, Congress charges the FAA with

promoting safe flight of civil aircraft in air commerce by prescribing
regulations for practices, methods, and procedures the Administrator
finds necessary for safety in air commerce. This regulation is within
the scope of that authority because it addresses an unsafe condition
that is likely to exist or develop on products identified in this
rulemaking action.

Regulatory Findings

    We determined that this AD will not have federalism implications
under Executive Order 13132. This AD will not have a substantial direct
effect on the States, on the relationship between the national
government and the States, or on the distribution of power and
responsibilities among the various levels of government.
    For the reasons discussed above, I certify that this AD:
    1. Is not a ``significant regulatory action'' under Executive Order
12866;
    2. Is not a ``significant rule'' under 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.

Adoption of the Amendment

    Accordingly, under the authority delegated to me by the
Administrator, the FAA amends 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):

2015-15-14 BAE Systems (Operations) Limited: Amendment 39-18224.
Docket No. FAA-2015-3139; Directorate Identifier 2012-NM-139-AD.

(a) Effective Date

    This AD becomes effective August 19, 2015.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to all BAE Systems (Operations) Limited Model
ATP airplanes, certificated in any category, all manufacturer serial
numbers.

(d) Subject

    Air Transport Association (ATA) of America Code 26, Fire
Protection.

(e) Reason

    This AD was prompted by reports of a fire extinguisher that
failed to discharge due to solder deposited on the frangible plug of
the fire extinguisher. We are issuing this AD to detect and correct
solder deposited on the frangible plug of the fire extinguisher,
which could result in failure of the fire extinguisher to discharge,
and consequent inability to put out a fire in an engine or in the
APU.

(f) Compliance

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

(g) Inspection of Fire Extinguishers

    (1) For airplanes equipped with Kidde Graviner fire
extinguishers having part number (P/N) 57183 (all dash numbers):
Within 12 months after the effective date of this AD, inspect each
affected fire extinguisher for solder deposited on the frangible
plug of the fire extinguisher, in accordance with the Accomplishment
Instructions of BAE Systems (Operations) Limited Service Bulletin
ATP-26-016, dated October 4, 2011, and Kidde Graviner Service
Bulletin 26-080, Revision 1, dated July 27, 2011. If any solder
deposit is detected, replace the fire extinguisher with a
serviceable fire extinguisher before further flight, in accordance
with the Accomplishment Instructions of BAE Systems (Operations)
Limited Service Bulletin ATP-26-016, dated October 4, 2011.
    (2) Fire extinguishers that meet any condition identified in
paragraph (g)(2)(i), (g)(2)(ii), or (g)(2)(iii) of this AD are
compliant with the requirements of paragraph (g)(1) of this AD.
    (i) Fire extinguishers that have been overhauled by Kidde
Graviner or Hugen.
    (ii) Fire extinguishers that have been overhauled as specified
in Kidde Graviner Service Information Letter (SIL) 01-10, dated July
29, 2010.
    (iii) Fire extinguishers that have been overhauled as specified
in Kidde Graviner Component Maintenance Manual with Illustrated
Parts List 26-21-52, Automatic Extinguishers with Steel Containers
Part Numbers 57133, 57135, 57145, and 57183 Series, Revision 17,
dated June 13, 2012.

(h) Definition of ``Overhaul''

    For the purpose of this AD, an overhaul is considered to include
replacement of the operating head. Replacement of the pressure
relief plug assembly only is not considered an overhaul.

(i) Parts Installation Limitations

    As of the effective date of this AD, do not install a Kidde
Graviner fire extinguisher having P/N 57183 (all dash numbers) on
any airplane, unless the fire extinguisher meets any condition
specified in paragraph (i)(1), (i)(2), (i)(3), (i)(4), or (i)(5) of
this AD.
    (1) The fire extinguisher is new.
    (2) The fire extinguisher has passed the inspection as specified
in the instructions of Kidde Graviner Service Bulletin 26-080,
Revision 1, dated July 27, 2011.
    (3) The fire extinguisher has been overhauled by Kidde Graviner
or Hugen.
    (4) The fire extinguisher has been overhauled as specified in
the instructions of Kidde Graviner SIL 01-10, dated July 29, 2010.
    (5) The fire extinguisher has been overhauled in accordance with
Kidde Graviner Component Maintenance Manual with Illustrated Parts
List 26-21-52, Automatic Extinguishers with Steel Containers Part
Numbers 57133, 57135, 57145, and 57183 Series, Revision 17, dated
June 13, 2012.

(j) Credit for Previous Actions

    This paragraph provides credit for the actions specified in
paragraphs (g)(2)(iii) and (i)(5) of this AD, if those actions were
performed before the effective date of this AD in accordance with
the service information identified in paragraph (j)(1), (j)(2),
(j)(3), or (j)(4) of this AD. These documents are not incorporated
by reference in this AD.
    (1) Kidde Graviner Component Maintenance Manual with Illustrated
Parts List 26-21-52, Automatic Extinguishers with Steel Containers
Part Numbers 57133, 57135, 57145, and 57183 Series, Revision 13,
dated August 9, 2010.
    (2) Kidde Graviner Component Maintenance Manual with Illustrated
Parts List 26-21-52, Automatic Extinguishers with Steel Containers
Part Numbers 57133, 57135, 57145, and 57183 Series, Revision 14,
dated August 8, 2011.
    (3) Kidde Graviner Component Maintenance Manual with Illustrated
Parts List 26-21-52, Automatic Extinguishers with Steel Containers
Part Numbers 57133, 57135, 57145, and 57183 Series, Revision 15,
dated January 16, 2012.
    (4) Kidde Graviner Component Maintenance Manual with Illustrated
Parts List 26-21-52, Automatic Extinguishers with Steel Containers
Part Numbers 57133, 57135, 57145, and 57183 Series, Revision 16,
dated May 21, 2012.

(k) Other FAA AD Provisions

    The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager,
International Branch, ANM-116, Transport Airplane Directorate, 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 International Branch, send it to ATTN: Todd
Thompson, Aerospace Engineer, International Branch, ANM-116,
Transport Airplane Directorate, FAA, 1601 Lind Avenue SW., Renton,
WA 98057-3356; telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>. Information
may be emailed to: 9-ANM-116-

<EMAIL_ADDRESS>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. The AMOC approval letter must
specifically reference this AD.
    (2) Contacting the Manufacturer: For any requirement in this AD
to obtain corrective actions from a manufacturer, the action must be
accomplished using a method approved by the Manager, International
Branch, ANM-116, Transport Airplane Directorate, FAA; or the
European Aviation Safety Agency (EASA); or BAE Systems (Operations)
Limited's EASA Design Organization Approval (DOA). If approved by
the DOA, the approval must include the DOA-authorized signature.

(l) Related Information

    (1) Refer to Mandatory Continuing Airworthiness Information
(MCAI) EASA Airworthiness Directive 2012-0127R1, dated September 10,
2012, for related information. You may examine the MCAI on the
Internet at http://www.regulations.gov by searching for and locating
Docket No. FAA-2015-3139.
    (2) Service information identified in this AD that is not
incorporated by reference is available at the addresses specified in
paragraphs (m)(4), (m)(5), and (m)(6) of this AD.

(m) Material Incorporated by Reference

    (1) The Director of the Federal Register approved the
incorporation by reference (IBR) of the service information listed
in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51.
    (2) You must use this service information as applicable to do
the actions required by this AD, unless this AD specifies otherwise.
    (i) BAE Systems (Operations) Limited Service Bulletin ATP-26-
016, dated October 4, 2011.
    (ii) Kidde Graviner Service Bulletin 26-080, Revision 1, dated
July 27, 2011.
    (3) For BAE Systems (Operations) Limited service information
identified in this AD, contact BAE Systems (Operations) Limited,
Customer Information Department, Prestwick International Airport,
Ayrshire, KA9 2RW, Scotland, United Kingdom; telephone +44 1292
675207; fax +44 1292 675704; email<EMAIL_ADDRESS>
Internet http://www.baesystems.com/Businesses/RegionalAircraft/index.htm.
    (4) For Kidde Graviner service information identified in this
AD, contact Kidde Graviner Limited, Mathisen Way, Colnbrook, Slough,
Berkshire, SL3 0HB, United Kingdom; Telephone: +44 (0)1753 683245,
Fax: +44 (0)1753 685040.
    (5) You may view this service information at the FAA, Transport
Airplane Directorate, 1601 Lind Avenue SW., Renton, WA. For
information on the availability of this material at the FAA, call
425-227-1221.
    (6) You may view this service information that is incorporated
by reference at the National Archives and Records Administration
(NARA). For information on the availability of this material at
NARA, call<PHONE_NUMBER>, or go to: http://www.archives.gov/federal-register/cfr/ibr-locations.html.

    Issued in Renton, Washington, on July 23, 2015.
Victor Wicklund,
Acting Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. 2015-18710 Filed 8-3-15; 8:45 am]
 BILLING CODE 4910-13-P


[Federal Register: December 7, 2009 (Volume 74, Number 233)]
[Notices]
[Page 64103-64105]
[DOCID:fr07de09-932]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61072; File No. SR-NYSE-2009-106]

Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing of Amendment No. 1 and Order Granting Accelerated
Approval to a Proposed Rule Change, as Modified by Amendment No. 1
Thereto, Amending Rule 70 in Order To Update d-Quote Functionality and
Provide for e-Quotes To Peg to the National Best Bid or Offer

November 30, 2009.

I. Introduction

    On October 26, 2009, New York Stock Exchange LLC (``NYSE'' or the
``Exchange''), filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to amend Rule 70 in order to update d-Quote
functionality and provide for e-Quotes to peg to the National best bid
or offer. The proposed rule change was published for comment in the
Federal Register on November 3, 2009.\3\ NYSE filed Amendment No. 1 to
the proposed rule change on November 19, 2009.\4\ The Commission
received no comment letters on the proposed rule change. This notice
and order provides notice of filing of Amendment No. 1 to the proposed
rule change, and grants accelerated approval to the proposed rule
change, as modified by Amendment No. 1.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 60888 (October 27,
2009), 74 FR 56902 (``Notice'').
    \4\ The text of Amendment No. 1 is available on the Exchange's
Web site (http://www.nyse.com), at the Exchange, and at the
Commission's Public Reference Room.
---------------------------------------------------------------------------

Description of the Proposed Rule, as Modified by Amendment No. 1
Background \5\
---------------------------------------------------------------------------

    \5\ The Notice contains additional discussion and examples
regarding the current operation of d-Quotes and e-Quotes. See supra
note 3.
---------------------------------------------------------------------------

    Rule 70.25 governs the entry, validation, and execution of bids and
offers represented electronically by a Floor broker on the Floor of the
Exchange that include discretionary instructions as to size and/or
price.\6\ The discretionary instructions that a Floor broker may
include with an e-Quote can relate to the price range within which the
e-Quote may trade and the number of shares to which the discretionary
price instruction applies. D-Quote functionality is available for both
displayed and reserve interest.
---------------------------------------------------------------------------

    \6\ For purposes of these rules, floor broker agency interest
files (that is, electronic bids or offers from the Floor) are
referred to as ``e-Quotes.'' E-quotes that include discretionary
instructions are referred to a ``d-Quotes.''
---------------------------------------------------------------------------

    In particular, Rule 70.25(a) provides that d-Quotes are eligible
for execution only when they are at or join the existing Exchange BBO,
would establish a new Exchange BBO, or at the opening and closing
transactions. Under current rules, d-Quotes at or joining the Exchange
BBO may be displayed or undisplayed interest. In addition, Rule
70.25(d)(ii) currently provides that, once it has been activated, a d-
Quote will automatically execute against a contra-side order if the
contra-side order's price is within the discretionary pricing
instructions and the contra-side order's size meets any minimum or
maximum size requirements that have been set for the d-Quote.
    Rule 70.26 provides for the entry, validation, and execution of an
e-Quote that remains available for execution at the Exchange BBO as the
Exchange BBO moves. Floor brokers are able to designate a range of
prices within which their e-Quotes and d-Quotes will peg and, as long
as the Exchange BBO is within that range, the e-Quote and d-Quote will
be included in the quote.

Proposed Amendments \7\
---------------------------------------------------------------------------

    \7\ The Notice contains additional discussion and examples
regarding the proposed operation of d-Quotes and e-Quotes. See supra
note 3.
---------------------------------------------------------------------------

D-Quotes Active When Their Filed Price is Not at the Exchange BBO
    The Exchange proposes to amend Rule 70.25(a)(ii) to provide that d-
Quotes would be active and available to execute whenever incoming
interest satisfies the discretionary instructions, without regard to
whether the d-Quote's filed price is or becomes the Exchange BBO.
    The Exchange also proposes to add clarifying language to Rule
70.25(a)(i) to provide that d-Quotes that exercise discretion would be
considered non-displayable interest for purposes of Rule 72, and to
amend Rule 70.25(d)(i) (as proposed Rule 70.25(e)(i)) to provide that a
d-Quote with discretionary pricing instructions above the best bid if a
buy order or below the best offer if a sell order would seek to secure
the largest execution for the d-Quote using the least amount of price
discretion to exercise at or above the bid if a buy order or at or
below the offer if a sell order. The Exchange proposes to further
clarify that a d-Quote with discretionary pricing instructions equal to
or less than

the best bid if a buy order or equal to or greater than the best offer
if a sell order would extend to its maximum discretion.
    The Exchange states that the proposed d-Quote functionality would
provide Floor brokers with functionality that is similar to
functionality that was previously available to Floor brokers, via CAP-
DI orders, when the Exchange operated in a manual auction.\8\ In
addition, the Exchange notes that the proposed functionality would
allow d-Quotes to interact with interest (such as fully dark reserve
interest) that did not exist when d-Quotes were first introduced, and
which would otherwise be unable to easily interact with under the
current rules. The Exchange believes that the d-Quote functionality
proposed in this rule filing therefore would enable d-Quotes to trade
with all willing contra-side liquidity, including reserve interest. In
this way, the Exchange believes that the proposed changes will allow
the brokers' tools to keep pace with the ways in which trading on the
Exchange has evolved.
---------------------------------------------------------------------------

    \8\ The Notice contains a discussion regarding CAP-DI orders.
See supra note 3.
---------------------------------------------------------------------------

Minimum Trade Size (``MTS'') Instruction for d-Quotes

    The Exchange also proposes to add a new subsection to Rule 70.25 to
provide that a Floor broker may include additional discretionary
instructions with a d-Quote such that the d-Quote would only execute if
the designated MTS is met. Currently, d-Quotes may include instructions
of a minimum size requirement that would trigger discretionary pricing,
but such requirement would not guarantee a minimum execution size
(e.g., if there is other interest on the same side as the d-Quote that
can trade with a contra-side order that meets the d-Quote's minimum
size requirement). As proposed, if the amount of an execution that
would be allocated to a d-Quote is less than the MTS quantity, the d-
Quote would not be eligible to participate in the execution and will
not compete with other same-side interest from other Floor brokers.
Additionally, MTS instructions would not be active at the open or
close.
    Rule 70.25(a)(vi) provides that same-side d-Quotes from the same
Floor broker do not compete with each other for executions allocated to
that Floor broker, as they would if from different Floor brokers, when
the d-Quote with the most aggressive price range executes first. The
Exchange proposes to add new paragraph (d)(ii) to Rule 70.25 such that
when a Floor broker designates an MTS for a d-Quote, such d-Quote may
compete with other same-side d-Quotes from the same Floor broker by
improving the price if necessary to satisfy its MTS.

Pegging to the NBBO

    Currently, a pegging e-Quote or d-Quote is activated at the
Exchange BBO and, subject to its price range, moves when the Exchange
BBO moves. Under current rules, pegging e-Quotes and d-Quotes cannot be
the sole interest at the Exchange BBO, but must peg to other non-
pegging interest at the Exchange BBO. Accordingly, under current rules
and functionality, pegging e-Quotes are unable to set the Exchange BBO.
    The Exchange proposes that pegging e-Quotes and d-Quotes would peg
to the NBBO rather than the Exchange BBO. As a result, a pegging e-
Quote or d-Quote may set the Exchange BBO, even if there is no other
displayed bid or offer at the Exchange at that price. Accordingly, the
Exchange proposes to amend Rule 70.26(vi) to provide that pegging e-
Quotes or d-Quotes may be entitled to priority pursuant to Rule 72 if
such e-Quote or d-Quote sets the Exchange BBO. Under the Exchange's
proposal and similar to its current rule, if the NBBO moves, the
pegging e-Quote or d-Quote would move to follow the NBBO, provided that
the NBBO is in the price range of the pegging e-Quote or d-Quote. In
addition, a pegging e-Quote or d-Quote would never set the NBBO.

III. Discussion and Commission's Findings

    After careful review of the proposed rule change, as amended, the
Commission finds that the proposed rule change is consistent with the
requirements of the Act and the rules and regulations thereunder
applicable to a national securities exchange.\9\ In particular, the
Commission finds that the proposed rule change is consistent with
Section 6(b)(5) of the Act,\10\ which requires, among other things,
that exchange rules be designed to prevent fraudulent and manipulative
acts and practices, to promote just and equitable principles of trade,
to remove impediments to and perfect the mechanism of a free and open
market and a national market system, and, in general, protect investors
and the public interest. The Exchange stated in its filing that it
believes that the updates to Floor broker functionality meet such goals
because they should ensure that customer orders eligible to trade will
execute against willing contra-side liquidity. In particular, d-Quotes
that are active outside the Exchange BBO provide Floor brokers with
functionality to replace the now defunct CAP-DI functionality and
permit d-Quotes to better participate in sweeps or to execute against
reserve interest. The addition of the MTS instruction provides
investors with the ability to ensure that an execution will not be
fragmented and therefore should promote larger-sized executions. In
addition, the Exchange stated in its filing that it believes that the
proposed change to provide for e-Quotes and d-Quotes to peg to the NBBO
should ensure that investors' orders will be executed in the best
market because more liquidity will be available at the NBBO.
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    \9\ In approving this proposal, the Commission has considered
the proposed rule's impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
    \10\ 15 U.S.C. 78f(b)(5).
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    The Commission notes that the proposal to allow d-Quotes to be
active when their filed price is inferior to the BBO should contribute
to market depth by making the Floor brokers' d-Quote liquidity
available for execution in a greater number of situations. The proposal
to permit minimum trade size instructions for d-Quotes should allow
Floor brokers additional flexibility in the handling of their orders
without adversely affecting the executions of other market
participants, since Floor brokers would remain subject to the existing
parity allocation rules.\11\ Finally, the proposal to peg d-Quotes to
the NBBO rather than the BBO should contribute to market quality by
providing additional liquidity at the NBBO, thus encouraging the
tightening of spreads to the NBBO on the Exchange. For the foregoing
reasons, the Commission finds the proposed rule change is consistent
with the Act.
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    \11\ See NYSE Rule 72.
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning Amendment No. 1, including whether Amendment No. 1
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 No. SR-NYSE-2009-106 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSE-2009-106. 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,\12\ 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, on official
business days between the hours of 10 a.m. and 3 p.m. Copies of such
filing also will be available for inspection and copying at the
principal office of the Exchange. All comments received will be posted
without change; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File Number SR-NYSE-2009-106 and should be submitted on or before
December 28, 2009.
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    \12\ The text of the proposed rule change is available on the
Commission's Web site at http://www.sec.gov.
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V. Accelerated Approval of Proposed Rule Change, as Modified by
Amendment No. 1

    The Commission also finds good cause to approve the proposed rule
change, as modified by Amendment No. 1, prior to the thirtieth day
after publication in the Federal Register. The Commission notes that no
comments were received during the 21-day comment period allotted for
the initial proposal. The Commission notes that the Exchange's
representation that the proposal seeks to replace functionality that
was previously eliminated. In addition, in this case, accelerated
approval of the proposed rule change will permit the Exchange to
implement systems changes related to the proposed rule change in a
timely fashion.
    In addition, the changes proposed in Amendment No. 1, discussed in
Part III above, seek to clarify the proposed handling of d-Quotes with
a filed price outside the BBO. The proposal as modified by Amendment
No. 1 does not differ materially from the proposal as described in the
Notice and the Commission believes the revision helps clarify the
proposed operation of d-Quotes.
    In light of the foregoing, the Commission finds good cause,
consistent with Section 19(b)(2) of the Act,\13\ to approve the
proposed rule change, as modified by Amendment No. 1, on an accelerated
basis.
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    \13\ 15 U.S.C. 78s(b)(2).
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VI. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\14\ that the proposed rule change (SR-NYSE-2009-106), as modified
by Amendment No. 1, be, and hereby is, approved on an accelerated
basis.
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    \14\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-28998 Filed 12-4-09; 8:45 am]

BILLING CODE 8011-01-P