[Federal Register Volume 77, Number 170 (Friday, August 31, 2012)]
[Notices]
[Pages 53239-53241]
[FR Doc No: 2012-21493]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-67732; File No. SR-NYSEArca-2012-90]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Relating to the
First Trust CBOE S&P 500 VIX Tail Hedge Fund (Formerly, the First Trust
CBOE VIX Tail Hedge Index Fund)

August 27, 2012.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that, on August 13, 2012, NYSE Arca, Inc. (``Exchange'' or ``NYSE
Arca'') 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 self-
regulatory organization. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to correct the reference to the Index
Provider applicable to the First Trust CBOE S&P 500 VIX Tail Hedge Fund
(formerly, the First Trust CBOE VIX Tail Hedge Index Fund) (``Fund''),
and to reflect changes to the name of the index underlying the Fund and
to the name of the Fund, which the Commission has approved for listing
and trading on the Exchange under NYSE Arca Equities Rule 5.2(j)(3).
The text of the proposed rule change is available on the Exchange's Web
site at www.nyse.com, at the principal office of the Exchange, and at
the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Commission has approved listing and trading on the Exchange of
shares (``Shares'') of the Fund \3\ under NYSE Arca Equities Rule
5.2(j)(3), the Exchange's listing standards for Investment Company
Units (``Units'').\4\
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    \3\ See Securities Exchange Act Release No. 67485 (July 23,
2012), 77 FR 44291 (July 27, 2012) (SR-NYSEArca-2012-50) (``Prior
Order''). See also Securities Exchange Act Release No. 67107 (June
4, 2012), 77 FR 34102 (June 8, 2012) (SR-NYSEArca-2012-50) (``Prior
Notice,'' and together with the Prior Order, the ``Prior Release'').
    \4\ An Investment Company Unit is a security that represents an
interest in a registered investment company that holds securities
comprising, or otherwise based on or representing an interest in, an
index or portfolio of securities (or holds securities in another
registered investment company that holds securities comprising, or
otherwise based on or representing an interest in, an index or
portfolio of securities). See NYSE Arca Equities Rule 5.2(j)(3)(A).
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    The Shares will be offered by First Trust Exchange-Traded Fund
(``Trust''), which is organized as a Massachusetts business trust and
is registered with the Commission as an open-end management investment
company.\5\ The investment adviser to the Fund will be First Trust
Advisors L.P. (``Adviser'' or ``First Trust''). First Trust Portfolios
L.P. (``Distributor'') is the principal underwriter and distributor of
the Fund's Shares. The Bank of New York Mellon Corporation (``BNY'')
will serve as administrator, custodian, and transfer agent for the
Fund.
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    \5\ The Trust is registered under the Investment Company Act of
1940 (15 U.S.C. 80a-1) (``1940 Act''). On July 18, 2012, the Trust
filed with the Commission an amendment to its registration statement
on Form N-1A under the Securities Act of 1933 (15 U.S.C. 77a), and
under the 1940 Act relating to the Fund (File Nos. 333-125751 and
811-21774) (``Registration Statement''). The description of the
operation of the Trust and the Fund herein is based, in part, on the
Registration Statement. In addition, the Commission has issued an
order granting certain exemptive relief to the Trust under the 1940
Act. See Investment Company Act Release No. 27068 (September 20,
2005) (File No. 812-13000) (``Exemptive Order'').
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    According to the Prior Release, the Fund will seek investment
results that correspond generally to the price and yield, before the
Fund's fees and expenses, of an equity index called the CBOE S&P VIX
Tail Hedge Index (``Index''). The Index is designed to provide a
benchmark for investors interested in hedging tail risk in an S&P 500
portfolio.
    In the Prior Notice, the Exchange represented that the Index is
rules-based and is owned and was developed by Standard & Poor's
Financial Services LLC (``S&P'') and that S&P is the Index Provider.\6\
The Exchange further represented that the Index Provider will calculate
and maintain the Index.
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    \6\ S&P is not a broker-dealer or affiliated with a broker-
dealer, and has implemented procedures designed to prevent the use
and dissemination of material, non-public information regarding the
Index.
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    The Exchange seeks to correct a representation made regarding the
Index Provider reflected in the Prior Release, as described below. The
Exchange is revising this representation to state that, pursuant to an
arrangement with the Chicago Board Options Exchange, Inc. (``CBOE''),
S&P has certain rights to license the Index to third parties. S&P has
licensed the Index to First Trust for use by First Trust and the Fund.
CBOE compiles, maintains, and owns the Index, and CBOE is the Index
Provider with respect to the Fund. CBOE is not a broker-dealer or
affiliated with a broker-dealer, and has implemented procedures
designed to prevent the use and dissemination of material, non-public
information regarding the Index.\7\
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    \7\ The change to the representation regarding the Index
Provider described herein will be effective upon filing with the
Commission of another amendment to the Trust's Registration
Statement. See note 5, supra.
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    In the Prior Release, the Exchange represented that the name of the
Index underlying the Fund is the CBOE S&P VIX Tail Hedge Index. The
Exchange is changing this representation to state that the name of the
Index underlying the Fund is the CBOE VIX Tail Hedge Index.\8\
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    \8\ The change to the name of the Index underlying the Fund was
reflected in the July 18, 2012 amendment to the Registration
Statement. See note 5, supra.
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    In addition, in the Prior Release, the Exchange represented that
the name of the Fund is the First Trust CBOE VIX Tail Hedge Index Fund.
The Exchange is changing this representation to state that the name of
the Fund has been

changed to First Trust CBOE S&P 500 VIX Tail Hedge Fund.\9\
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    \9\ The change to the name of the Fund was reflected in the July
18, 2012 amendment to the Registration Statement. See note 5, supra.
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    The Adviser represents that there is no change to the Fund's
investment objective. The Fund will comply with all requirements under
NYSE Arca Equities Rule 5.2(j)(3).\10\
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    \10\ As noted in the Prior Release, the Index for the Fund does
not meet all of the ``generic'' listing requirements of Commentary
.01(a)(A) to NYSE Arca Equities Rule 5.2(j)(3) applicable to the
listing of Investment Company Units based upon an index of US
Component Stocks, as defined in NYSE Arca Equities Rule 5.2(j)(3).
Specifically, Commentary .01(a)(A) to NYSE Arca Equities Rule
5.2(j)(3) sets forth the requirements to be met by components of an
index or portfolio of US Component Stocks. As described in the Prior
Release, the Index consists of an S&P 500 Index stock portfolio and
may consist of a position in specified VIX Index (``VIX'') call
options. The Index meets all requirements of NYSE Arca Equities Rule
5.2(j)(3) and Commentary .01(a)(A) thereto except that the Index may
include up to 1% of the Index weight in VIX call options, which are
not NMS Stocks as defined in Rule 600 of Regulation NMS. See notes 3
and 5, supra, and accompanying text.
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    Except for the changes noted above, all other facts presented and
representations made in the Prior Release remain unchanged.
    All terms referenced but not defined herein are defined in the
Prior Release.
2. Statutory Basis
    The basis under the Act for this proposed rule change is the
requirement under Section 6(b)(5) \11\ that an exchange have rules that
are 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, in general, to protect investors and the public interest.
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    \11\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that the proposed rule change is designed to
prevent fraudulent and manipulative acts and practices in that the
proposed rule change corrects the representation made in the Prior
Release to state that CBOE, and not S&P, compiles, maintains, and owns
the Index, and that CBOE is the Index Provider with respect to the
Fund. Both S&P and CBOE are not broker-dealers and are not affiliated
with a broker-dealer and have implemented procedures designed to
prevent the use and dissemination of material, non-public information
regarding the Index. The Fund will comply with all requirements under
NYSE Arca Equities Rule 5.2(j)(3), and Commentary .01(a)(A) thereto,
except that the Index may include up to 1% of the Index weight in VIX
call options, which are not NMS Stocks as defined in Rule 600 of
Regulation NMS.
    The proposed rule change is designed to promote just and equitable
principles of trade and to protect investors and the public interest in
that the Adviser represents that there is no change to the Fund's
investment objective. Both S&P and CBOE are unaffiliated with a broker-
dealer and have implemented procedures designed to prevent the use and
dissemination of material, non-public information regarding the Index.
The functions of the Index Provider are those described in the Prior
Release, and this proposed rule change corrects representations made in
the Prior Release by stating that CBOE, and not S&P, is the Index
Provider and compiles, maintains, and owns the Index. In addition, the
Exchange seeks to reflect changes to the name of the Index underlying
the Fund and to the name of the Fund, as described above.
    The proposed rule change is designed to perfect the mechanism of a
free and open market and, in general, to protect investors and the
public interest in that, except for the changes noted above, all other
representations made in the Prior Release remain unchanged. The Adviser
represents that there is no change to the Fund's investment objective.
In addition, with the exception noted above,\12\ the Fund will comply
with all requirements under NYSE Arca Equities Rule 5.2(j)(3).
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    \12\ See note 10, supra.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.

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

    No written comments were solicited or received with respect to the
proposed rule change.

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

    Because the proposed rule change does not (i) significantly affect
the protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative for 30
days after the date of the filing, or such shorter time as the
Commission may designate if consistent with the protection of investors
and the public interest, the proposed rule change has become effective
pursuant to Section 19(b)(3)(A) of the Act \13\ and Rule 19b-4(f)(6)
thereunder.\14\ The Commission notes that the proposed rule change does
not significantly affect the protection of investors or the public
interest and does not impose any significant burden on competition.
NYSE Arca represents that there is no change to the Fund's investment
objective and seeks to correct a representation made regarding the
Index Provider reflected in the Prior Release to state that, pursuant
to an arrangement with the CBOE, S&P has certain rights to license the
Index to third parties. S&P has licensed the Index to First Trust for
use by First Trust and the Fund. CBOE is the Index Provider and
compiles, maintains, and owns the Index. CBOE is not a broker-dealer or
affiliated with a broker-dealer and has implemented procedures designed
to prevent the use and dissemination of material, non-public
information regarding the Index. In addition, the Exchange seeks to
reflect changes to the name of the Index underlying the Fund and the
name of the Fund, as described above.
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    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written
notice of its intent to file the proposed rule change along with a
brief description and the text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \15\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6) permits the Commission to
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay, noting that the
Commission has previously approved listing and trading of the Fund on
the Exchange, the Shares have not yet commenced trading, the proposed
changes in this filing will not impact the operation of the Fund or the
Index as described in the Prior Release, and the Adviser is prepared to
commence Exchange listing and trading prior to the end of the 30-day
operative-delay period. The Exchange proposes to correct the
representation made in the Prior Release to state that CBOE, and not
S&P, compiles, maintains, and owns the Index, and that CBOE is the
Index Provider. Both S&P and CBOE are not broker-dealers and are not
affiliated with a broker-dealer and have implemented procedures
designed to prevent the use and dissemination of

material, non-public information regarding the Index. In addition, the
Exchange is reflecting changes to the name of the Index underlying the
Fund and to the name of the Fund, as described above. The changes to
the representation regarding the Index Provider described herein will
be effective upon filing with the Commission of another amendment to
the Trust's Registration Statement. The changes to the name of the
Index underlying the Fund and the name of the Fund were reflected in a
July 18, 2012 amendment to the Registration Statement.\16\ The Fund
will comply with all requirements under NYSE Arca Equities Rule
5.2(j)(3).\17\ Except for the changes noted above, all other
representations made in the Prior Release remain unchanged. For the
foregoing reasons, the Commission believes that waiving the 30-day
operative delay would be consistent with the protection of investors
and the public interest.\18\ Therefore, the Commission designates the
proposal operative upon filing.
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    \15\ 17 CFR 240.19b-4(f)(6).
    \16\ See note 5, supra.
    \17\ See note 10, supra.
    \18\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-NYSEArca-2012-90 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSEArca-2012-90. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-NYSEArca-2012-90 and should
be submitted on or before September 21, 2012.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
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    \19\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-21493 Filed 8-30-12; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: December 14, 2005 (Volume 70, Number 239)]
[Notices]
[Page 73995]
[DOCID:fr14de05-46]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. RP99-220-021]

Great Lakes Gas Transmission Limited Partnership; Notice of
Negotiated Rate Agreement

December 8, 2005.
    Take notice that on December 2, 2005, Great Lakes Gas Transmission
Limited Partnership (Great Lakes) filed for disclosure, a
transportation service agreement pursuant to Great Lakes' Rate Schedule
FT entered into by Great Lakes and WPS Energy Services, Inc. (WPS) (FT
Service Agreement). Great Lakes states that the FT Service Agreement
being filed reflects a negotiated rate arrangement between Great Lakes
and WPS commencing December 1, 2005.
    Any person desiring to intervene or to protest this filing must
file in accordance with Rules 211 and 214 of the Commission's Rules of
Practice and Procedure (18 CFR 385.211 and 385.214). Protests will be
considered by the Commission in determining the appropriate action to
be taken, but will not serve to make protestants parties to the
proceeding. Any person wishing to become a party must file a notice of
intervention or motion to intervene, as appropriate. Such notices,
motions, or protests must be filed in accordance with the provisions of
Section 154.210 of the Commission's regulations (18 CFR 154.210).
Anyone filing an intervention or protest must serve a copy of that
document on the Applicant. Anyone filing an intervention or protest on
or before the intervention or protest date need not serve motions to
intervene or protests on persons other than the Applicant.
    The Commission encourages electronic submission of protests and
interventions in lieu of paper using the ``eFiling'' link at http://www.ferc.gov.
 Persons unable to file electronically should submit an

original and 14 copies of the protest or intervention to the Federal
Energy Regulatory Commission, 888 First Street, NE., Washington, DC
20426.
    This filing is accessible on-line at http://www.ferc.gov, using the

``eLibrary'' link and is available for review in the Commission's
Public Reference Room in Washington, DC. There is an ``eSubscription''
link on the Web site that enables subscribers to receive e-mail
notification when a document is added to a subscribed docket(s). For
assistance with any FERC Online service, please e-mail
<EMAIL_ADDRESS>or call<PHONE_NUMBER> (toll free). For

TTY, call<PHONE_NUMBER>.

Magalie R. Salas,
Secretary.
[FR Doc. E5-7308 Filed 12-13-05; 8:45 am]

BILLING CODE 6717-01-P


[Federal Register Volume 77, Number 107 (Monday, June 4, 2012)]
[Rules and Regulations]
[Pages 32884-32887]
[FR Doc No: 2012-12672]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2012-0101; Directorate Identifier 2010-SW-042-AD;
Amendment 39-17046; AD 2012-09-11]
RIN 2120-AA64

Airworthiness Directives; Eurocopter Deutschland GMBH Helicopters

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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SUMMARY: We are adopting a new airworthiness directive (AD) for
Eurocopter Deutschland GMBH (ECD) Model MBB-BK 117 C-1 and C-2
helicopters. This AD requires installing a placard that corresponds to
the maximum permissible flight altitude, amending the Rotorcraft Flight
Manual (RFM) to revise the maximum permissible operating altitude, and
inserting revised performance charts into the RFM. This AD also
requires a repetitive maintenance ``MAX N1 CHECK'' to determine the
appropriate maximum altitudes. This AD also requires, if the engine or
a Fuel Control Unit (FCU) or module 2 or 3 is replaced, repeating the
maintenance ``MAX N1 CHECK.'' Finally, this AD specifies that modifying
both engines would provide terminating action for the AD requirements.
This AD was prompted by the failure of a ``few'' engines to reach the
specified one-engine-inoperative (OEI) rating at altitudes above 10,000
feet. The actions of this AD are intended to prevent flights at
altitudes where the full OEI engine power cannot be reached and
subsequent loss of control of the helicopter if an OEI operation is
required.

DATES: This AD is effective July 9, 2012.
    The Director of the Federal Register approved the incorporation by
reference of certain documents listed in this AD as of July 9, 2012.

ADDRESSES: For the Eurocopter service information identified in this
AD, contact American Eurocopter Corporation, 2701 Forum Drive, Grand
Prairie, Texas 75053-4005; telephone<PHONE_NUMBER>; fax (972) 641-
3710; or at http://www.eurocopter.com. For the Turbomeca Groupe SAFRAN
service information contact SAFRAN Turbomeca, 2709 N. Forum Drive,
Grand Prairie, Texas 75052; telephone<PHONE_NUMBER>; or at http://www.turbomeca-usa.com. You may review the referenced service
information at the FAA, Office of the Regional Counsel, Southwest
Region, 2601 Meacham Blvd., Room 663, Fort Worth, Texas 76137.
    Examining the AD Docket: You may examine the AD docket on the
Internet at http://www.regulations.gov 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, any
incorporated-by-reference service information, the economic evaluation,
any comments received, and other information. The street address for
the Docket Operations Office (phone:<PHONE_NUMBER>) is U.S. Department
of Transportation, Docket Operations Office, M-30, West Building Ground
Floor, Room W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590.

FOR FURTHER INFORMATION CONTACT: Ed Cuevas, Aviation Safety Engineer,
Safety Management Group, Rotorcraft Directorate, FAA, 2601 Meacham
Blvd., Fort Worth, Texas 76137; telephone<PHONE_NUMBER>; email
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Discussion

    On February 10, 2012, at 77 FR 7005, the Federal Register published
our Notice of Proposed Rulemaking (NPRM), which proposed to amend 14
CFR part 39 to include an AD that would apply to ECD Model MBB-BK 117
C-1 and C-2 helicopters with a Turbomeca Arriel 1E2 engine installed,
which has an FCU that has not been modified with Turbomeca Modification
TU 358. That NPRM proposed to require installing a placard that
corresponds to the maximum permissible flight altitude, amending the
RFM to revise the maximum permissible operating altitude for both the
MBB-BK 117 C-1 and C-2 helicopters, and inserting revised performance
charts into the RFM for the C-1 model. That NPRM also proposed to
require maintenance ``MAX N1 CHECKs'' to determine the modified maximum
operational altitudes. Additionally, that NPRM proposed to require, if
the engine or an FCU or module 2 or 3 is replaced, repeating the
maintenance ``MAX N1 CHECK.'' Finally, that NPRM proposal specified
that modifying both engines with Turbomeca Modification TU 358 would be
terminating action for the requirements of the NPRM; and after that
modification of both engines, you would be permitted to remove the
placards and flight manual revisions required by the NPRM. The proposed
requirements were intended to prevent flights at altitudes where the
full OEI engine power cannot be reached and subsequent loss of control
of the helicopter if an OEI operation is required.
    The European Aviation Safety Agency (EASA), which is the Technical
Agent for the Member States of the European Union, has issued EASA AD
No. 2008-0061, dated March 27, 2008, to correct an unsafe condition for
ECD Model MBB-BK 117 C-1 and C-2 helicopters. The EASA states that
during testing at maximum certification altitude, a few helicopters
could not reach the specified OEI power threshold. The cause was
identified as an engine acceleration limitation due to a lower
delivered fuel flow than the engine fuel flow demand needed to achieve
the OEI rating at high altitude. They state that this condition could
occur at altitudes exceeding 10,000 feet depending on the engine and
FCU characteristics.

Comments

    We gave the public the opportunity to participate in developing
this AD, but we did not receive any comments on the NPRM.

FAA's Determination

    These helicopters have been approved by the aviation authority of
Germany and are approved for operation in the United States. Pursuant
to our bilateral agreement with Germany, the EASA, its technical
representative, has notified us of the unsafe condition described in
the EASA AD. We are issuing this AD because we evaluated all
information provided by the EASA and determined the unsafe condition
exists and is likely to exist or develop on other helicopters of these
same type designs and that air safety and the public interest require
adopting the AD requirements as proposed except for minor editorial
changes. These minor editorial changes are consistent with the intent
of the proposals in the NPRM and will not increase the economic burden
on any operator nor increase the scope of the AD.

Differences Between This AD and the EASA AD

    We do not reference the effective date stated in the EASA AD
because it has passed. We have modified the initial placard wording to
make it clear that before performing the topping check, the ``operating
altitude'' for takeoff, landing, and hovering is a pressure altitude
(PA) of 10,000 feet, but flight up to a maximum 13,000 feet is
permitted as long as the helicopter stays at an airspeed above
effective translational lift. After the topping check is performed, the
``operating altitude'' limitation refers to all modes of flight.

Related Service Information

    Eurocopter has issued Alert Service Bulletin (ASB) No. ASB-MBB-
BK117-60-121, Revision 4, (ASB121) for Model MBB-BK 117 C-1 helicopters
and ASB No. MBB BK117 C-2-71A-003, Revision 3 (ASB003), for Model MBB-
BK 117 C-2 helicopters. Both ASBs are dated December 11, 2007, and
apply to Turbomeca Arriel 1E2 engines. Both ASBs specify a ``MAX N1
CHECK'' for helicopters with FCUs that have not been modified by
Turbomeca modification TU 358, for takeoffs, landings, and hovering in-
ground effect (IGE) or hovering out-of-ground effect

(OGE) higher than 10,000 feet or flight above 13,000 feet. The ASBs
specify limiting the maximum permissible flight altitude if the OEI
rating cannot be achieved. The ASBs also specify the measures are no
longer necessary when you modify both engines (Modification TU 358).
The EASA classified these ASBs as mandatory and issued AD No. 2008-
0061, dated March 27, 2008, to ensure the continued airworthiness of
these helicopters.

Costs of Compliance

    We estimate that this AD will affect 108 helicopters of U.S.
Registry. We estimate that operators may incur the following costs in
order to comply with this AD. It will take about 1 work-hour per
helicopter to affix a placard and insert the RFM pages at an average
labor rate of $85 per work-hour. We estimate 54 maintenance flight
checks for higher altitude operators will be required at $1,000 each.
There are no parts costs. Based on these figures, we estimate the total
cost impact of this AD on U.S. operators to be $63,180.

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 helicopters identified in this
rulemaking action.

Regulatory Findings

    This AD will not have federalism implications under Executive Order
13132. This AD will not have a substantial direct effect on the States,
on the relationship between the national government and the States, or
on the distribution of power and responsibilities among the various
levels of government.
    For the reasons discussed above, I certify that this AD:
    (1) Is not a ``significant regulatory action'' under Executive
Order 12866;
    (2) Is not a ``significant rule'' under DOT Regulatory Policies and
Procedures (44 FR 11034, February 26, 1979);
    (3) Will not affect intrastate aviation in Alaska to the extent
that it justifies making a regulatory distinction; 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.
    We prepared an economic evaluation of the estimated costs to comply
with this AD and placed it in the AD docket.

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):

2012-09-11 EUROCOPTER DEUTSCHLAND GMBH: Amendment 39-17046; Docket
No. FAA-2012-0101; Directorate Identifier 2010-SW-042-AD.

(a) Applicability

    This AD applies to Eurocopter Deutschland GMBH Model MBB-BK 117
C-1 and C-2 helicopters with a Turbomeca Arriel 1E2 engine
installed, which has a Fuel Control Unit (FCU) that has not been
modified with Turbomeca Modification TU 358, certificated in any
category.

(b) Unsafe Condition

    This AD defines the unsafe condition as failure of engines to
reach the specified one-engine-inoperative (OEI) rating at altitudes
above 10,000 feet. This condition could result in high altitude
operations when full OEI engine power is not available and
subsequent loss of control of the helicopter if an OEI operation is
required.

(c) Effective Date

    This AD becomes effective July 9, 2012.

(d) Compliance

    You are responsible for performing each action required by this
AD within the specified compliance time.

(e) Required Actions

    (1) For Model MBB-BK117 C-1 helicopters:
    (i) Before any flight operation at or above a pressure altitude
(PA) of 10,000 feet, unless accomplished previously:
    (A) Affix a placard to the instrument panel in plain view of the
pilot(s), which states: ``Maximum altitude for takeoff, landing, and
hovering is 10,000 ft PA. Maximum operating altitude above effective
translational lift is 13,000 ft PA,'' or comply with paragraph
(e)(1)(iii) of this AD. The term ``hovering'' as used in this
placard includes both in-ground effect (IGE) and out-of-ground
effect (OGE) hovering.
    (B) Revise the Altitude Limitations section of the Rotorcraft
Flight Manual (RFM), in accordance with paragraph 2.9 on pages 9 and
10; paragraph B.2.1 on page 15; and paragraph C.2.3.2 on page 16 of
Eurocopter Alert Service Bulletin No. ASB-MBB-BK117-60-121, Revision
4, dated December 11, 2007 (ASB121).
    (C) Attach each revised page 11-1-7 (ASB121, page 11) through
11-1-10 (ASB121, page 14) to the unrevised same-numbered page in the
Performance section of the RFM.
    (ii) Within 50 hours time-in-service (TIS), unless accomplished
previously:
    (A) Revise the RFM as required by paragraphs (e)(1)(i)(B) and
(e)(1)(i)(C) of this AD; and
    (B) Affix the placard as required by paragraph (e)(1)(i)(A) of
this AD or comply with paragraph (e)(1)(iii) of this AD.
    (iii) At intervals not to exceed 600 hours TIS:
    (A) Before operating between a 16,000 ft PA and 18,000 ft PA,
perform the ``MAX N1 CHECK'' by following the Accomplishment
Instructions, paragraph 2.B.1.1., of ASB121. If the OEI rating is
not reached, either affix a placard as required by paragraph
(e)(1)(i)(A) or comply with paragraph (e)(1)(iii)(B) or
(e)(1)(iii)(C) of this AD.
    (B) Before operating between 13,000 ft PA and 16,000 ft PA,
perform the ``MAX N1 CHECK'' by following the Accomplishment
Instructions, paragraph 2.B.1.4., of ASB121.
    (1) If the OEI rating is reached, affix a placard to the
instrument panel in plain view of the pilot(s), which states:
``Maximum operating altitude is 16,000 ft PA.''
    (2) If the OEI rating is not reached, either affix a placard as
required by paragraph (e)(1)(i)(A) of this AD or comply with
paragraph (e)(1)(iii)(C) of this AD.
    (C) Before operating between 10,000 ft PA and 13,000 ft PA,
perform the ``MAX N1 CHECK'' by following the Accomplishment
Instructions, paragraph 2.B.1.7., of ASB121.
    (1) If the OEI rating is reached, affix a placard to the
instrument panel in plain view of the pilot(s), which states:
``Maximum operating altitude is 13,000 ft PA.''
    (2) If the OEI rating is not reached, affix a placard as
required by paragraph (e)(1)(i)(A) of this AD.
    (2) For Model MBB-BK 117 C-2 helicopters:
    (i) Before any flight operation at or above a PA of 10,000 feet,
unless accomplished previously:
    (A) Affix a placard to the instrument panel in plain view of the
pilot(s), which states: ``Maximum altitude for takeoff, landing, and
hovering is 10,000 ft PA. Maximum operating

altitude above effective translational lift is 13,000 ft PA,'' or
comply with paragraph (e)(2)(iii) of this AD. The term ``hovering''
as used in this placard includes both IGE and OGE hovering.
    (B) Revise the Altitude Limitations section of the RFM in
accordance with paragraph A.2.3. on page 10 and paragraph 2.8. on
page 11 of Eurocopter Alert Service Bulletin No. MBB BK117 C-2-71A-
003, Revision 3, dated December 11, 2007 (ASB003).
    (ii) Within 50 hours TIS, unless accomplished previously:
    (A) Revise the RFM as required by paragraph (e)(2)(i)(B) of this
AD; and
    (B) Affix a placard as required by paragraph (e)(2)(i)(A) of
this AD or comply with paragraph (e)(2)(iii) of this AD.
    (iii) At intervals not to exceed 600 hours TIS:
    (A) Before operating between 16,000 ft PA and 18,000 ft PA,
perform the ``MAX N1 CHECK'' by following the Accomplishment
Instructions, paragraph 3.A.(1) (on pages 4 and 5), of ASB003. If
the OEI rating is not reached, either affix a placard as required by
paragraph (e)(2)(i)(A) or comply with paragraph (e)(2)(iii)(B) or
(e)(2)(iii)(C) of this AD.
    (B) Before operating between 13,000 ft PA and 16,000 ft PA,
perform the ``MAX N1 CHECK'' by following the Accomplishment
Instructions, paragraph 3.A.(1) (on pages 5 and 6) of ASB003.
    (1) If the OEI rating is reached, affix a placard to the
instrument panel in plain view of the pilot(s), which states:
``Maximum operating altitude is 16,000 ft PA.''
    (2) If the OEI rating is not reached, either affix a placard as
required by paragraph (e)(2)(i)(A) or comply with paragraph
(e)(2)(iii)(C) of this AD.
    (C) Before operating between 10,000 ft PA and 13,000 ft PA,
perform the ``MAX N1 CHECK'' by following the Accomplishment
Instructions, paragraph 3.A.(1) (on page 7) of ASB003.
    (1) If the OEI rating is reached, affix a placard to the
instrument panel in plain view of the pilot(s), which states:
``Maximum operating altitude is 13,000 ft PA.''
    (2) If the OEI rating is not reached, affix a placard as
required by paragraph (e)(2)(i)(A) of this AD.
    (3) If an engine, FCU, engine module 2, or engine module 3 is
replaced, before any flight operation at or above a PA of 10,000
feet, comply with the requirements of paragraph (e)(1) of this AD
for the Model MBB-BK 117 C-1 helicopter or paragraph (e)(2) of this
AD for the Model MBB-BK 117 C-2 helicopter.
    (4) Modifying both engines with Turbomeca Modification TU 358 in
accordance with Turbomeca Groupe SAFRAN (Turbomeca) Service Bulletin
No. 292 73 0358, dated October 2, 2007, is optional terminating
action for the requirements of this AD. This AD does not require
returning any parts to Turbomeca nor does it require that you
perform the modification at a specific location. After modifying
both engines, remove from the helicopter any placard required by
this AD and remove from the RFM the revised altitude limitations and
the revised performance pages required by this AD.

(f) Alternative Methods of Compliance (AMOCs)

    (1) The Manager, Safety Management Group, FAA, may approve AMOCs
for this AD. Send your proposal to: Ed Cuevas, Aviation Safety
Engineer, Safety Management Group, Rotorcraft Directorate, FAA, 2601
Meacham Blvd., Fort Worth, Texas 76137; telephone<PHONE_NUMBER>;
email<EMAIL_ADDRESS>    (2) For operations conducted under a 14 CFR part 119 operating
certificate or under 14 CFR part 91, subpart K, we suggest that you
notify your principal inspector, or lacking a principal inspector,
the manager of the local flight standards district office or
certificate holding district office, before operating any aircraft
complying with this AD through an AMOC.

(g) Additional Information

    The subject of this AD is addressed in European Aviation Safety
Agency (Germany) AD No. 2008-0061, dated March 27, 2008.

(h) Subject

    Joint Aircraft Service Component (JASC) Code: 1100, Placards and
Markings.

(i) Material Incorporated by Reference

    (1) You must use the specified portions of the following service
information to do the specified actions required by this AD. The
Director of the Federal Register approved the incorporation by
reference of the following service information under 5 U.S.C. 552(a)
and 1 CFR part 51:
    (i) Eurocopter Alert Service Bulletin No. ASB-MBB-BK117-60-121,
Revision 4, dated December 11, 2007; and
    (ii) Eurocopter Alert Service Bulletin No. MBB BK117 C-2-71A-
003, Revision 3, dated December 11, 2007.
    (2) You must use the specified portions of Turbomeca Groupe
SAFRAN Service Bulletin No. 292 73 0358, dated October 2, 2007 to do
the optional terminating action in this AD. The Director of the
Federal Register approved the incorporation by reference of this
service information under 5 U.S.C. 552(a) and 1 CFR part 51.
    (3) For the Eurocopter service information identified in this
AD, contact American Eurocopter Corporation, 2701 Forum Drive, Grand
Prairie, Texas 75053-4005; telephone<PHONE_NUMBER>; fax (972) 641-
3710; or at http://www.eurocopter.com. For the Turbomeca Groupe
SAFRAN service information identified in this AD, contact SAFRAN
Turbomeca, 2709 N. Forum Drive, Grand Prairie, Texas 75052;
telephone<PHONE_NUMBER>; or at http://www.turbomeca-usa.com.
    (4) You may review the referenced service information at the
FAA, Office of the Regional Counsel, Southwest Region, 2601 Meacham
Blvd., Room 663, Fort Worth, Texas 76137 or 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/code_of_federal_regulations/ibr_locations.html

    Issued in Fort Worth, Texas, on May 2, 2012.
Carlton N. Cochran,
Acting Manager, Rotorcraft Directorate, Aircraft Certification Service.
[FR Doc. 2012-12672 Filed 6-1-12; 8:45 am]
BILLING CODE 4910-13-P