[Federal Register: August 24, 2007 (Volume 72, Number 164)]
[Rules and Regulations]
[Page 48558-48559]
[DOCID:fr24au07-7]

=======================================================================
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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52 and 81

[EPA-RO4-OAR-2006-0584-200723(c); FRL-8460-6]

Approval and Promulgation of Implementation Plans and Designation
of Areas for Air Quality Planning Purposes; Kentucky: Redesignation of
the Kentucky Portion of the Louisville 8-Hour Ozone Nonattainment Area
to Attainment for Ozone; Technical Amendment

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule; technical amendment.

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

SUMMARY: On July 5, 2007, EPA published in the Federal Register a final
rule redesignating the Kentucky portion of the bi-state Louisville 8-
hour ozone nonattainment area to attainment for the 8-hour ozone
National Ambient Air Quality Standard (NAAQS). EPA inadvertently
omitted the State effective date in the regulatory text in the final
rule for the Louisville 8-hour ozone maintenance plan. This action
corrects the July 5, 2007, final rule by adding a State effective date
of September 29, 2006.

DATES: This action is effective August 24, 2007.

ADDRESSES: Copies of the documentation used in the action being
corrected are available for inspection during normal business hours at
the following location: U.S. Environmental Protection Agency, Region 4,
61 Forsyth Street, SW., Atlanta, Georgia 30303-8960. The Regional
Office's official hours of business are Monday through Friday, 8:30 to
4:30, excluding federal holidays.

FOR FURTHER INFORMATION CONTACT: Heidi LeSane, Regulatory Development
Section, Air Planning Branch, Air, Pesticides and Toxics Management
Division, U.S. Environmental Protection Agency, Region 4, 61 Forsyth
Street, SW., Atlanta, Georgia 30303-8960. The telephone number is (404)
562-9074. Ms. LeSane can also be reached via electronic mail at
<EMAIL_ADDRESS>

SUPPLEMENTARY INFORMATION: On July 5, 2007 (72 FR 36601), EPA published
in the Federal Register a final rule redesignating the Kentucky portion
of the bi-state Louisville 8-hour ozone nonattainment area to
attainment for the 8-hour ozone NAAQS. On page 33604 in the table
titled ``EPA-Approved Kentucky Non-Regulatory Provisions'' under the
subject ``State submittal date/effective date'' for the entry
``Louisville 8-hour Ozone Maintenance Plan'' EPA inadvertently omitted
the State effective date. This omission is being corrected by adding
the State effective date of September 29, 2006.
    EPA has determined that today's action falls under the ``good
cause'' exemption in section 553(b)(3)(B) of the Administrative
Procedure Act (APA) which, upon finding ``good cause,'' authorizes
agencies to dispense with public participation where public notice and
comment procedures are impracticable, unnecessary or contrary to the
public interest. Public notice and comment for this action are
unnecessary because today's action to add the State effective date of
the Louisville 8-hour ozone maintenance plan has no substantive impact
on EPA's July 5, 2007, redesignation approval. That is, the addition of
the State effective date makes no substantive difference to EPA's
redesignation analysis as set out in our July 5, 2007, rule, and merely
corrects an error made in that prior rulemaking. In addition, EPA can
identify no particular reason why the public would be interested in
being notified of the correction of this error or in having the
opportunity to comment on the correction prior to this action being
finalized, since this correction action does not change the
redesignation approval and merely states when the Louisville 8-hour
ozone maintenance plan was State effective.
    EPA also finds that there is good cause under APA section 553(d)(3)
for this correction to become effective on the date of publication of
this action. Section 553(d)(3) of the APA allows an effective date less
than 30 days after publication ``as otherwise provided by the agency
for good cause found and published with the rule.'' 5 U.S.C. 553(d)(3).
The purpose of the 30-day waiting period prescribed in APA section
553(d)(3) is to give affected parties a reasonable time to adjust their
behavior and prepare before the final rule takes effect. Today's rule,
however, does not create any new regulatory requirements such that
affected parties would need time to prepare before the rule takes
effect. Rather, today's rule merely corrects an inadvertent omission by
adding the State effective date of the Louisville 8-hour ozone
maintenance plan. For these reasons, EPA finds good cause under APA
section 553(d)(3) for this correction to become effective on the date
of publication of this action.

Statutory and Executive Order Reviews

    Under Executive Order 12866 (58 FR 51735, October 4, 1993), this
action is not a ``significant regulatory action'' and therefore is not
subject to review by the Office of Management and Budget. For this
reason, this action is also not subject to Executive Order 13211,
``Actions Concerning Regulations That Significantly Affect Energy
Supply, Distribution, or Use'' (66 FR 28355, May 22, 2001). This action
merely corrects an inadvertent omission and imposes no additional
requirements beyond those imposed by State law. Accordingly, the
Administrator certifies that this rule will not have a significant
economic impact on a substantial number of small entities under the
Regulatory Flexibility Act (5 U.S.C. 601 et seq.). Because this rule
merely corrects an inadvertent omission by adding the State effective
date of the Louisville 8-hour ozone maintenance plan and does not
impose any additional enforceable duty beyond that required by State
law, it does not contain any unfunded mandate or significantly or
uniquely affect small governments, as described in the Unfunded
Mandates Reform Act of 1995 (Pub. L. 104-4).
    This rule also does not have tribal implications because it will
not have a substantial direct effect on one or more Indian tribes, on
the relationship between the Federal Government and Indian tribes, or
on the distribution of power and responsibilities between the Federal
Government and Indian tribes, as specified by Executive Order 13175 (65
FR 67249, November 9, 2000). This action also does not have Federalism
implications because it does not have substantial direct effects 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, as specified in Executive Order 13132 (64
FR 43255, August 10, 1999). This action merely corrects an inadvertent
omission, does not impose any new requirements on sources or allow a
State to avoid adopting or implementing other requirements, and does
not alter the relationship or the distribution of power and
responsibilities established in the Clean Air Act (CAA). This rule also
is not subject to Executive Order 13045, ``Protection of Children from
Environmental Health Risks and Safety Risks'' (62 FR 19885, April 23,
1997), because it is not economically significant and because the
Agency does not have reason to believe that the rule concerns an
environmental health risk or safety risk that may disproportionately
affect children.
    In reviewing SIP submissions, EPA's role is to approve State
choices, provided that they meet the criteria of the CAA. In this
context, in the absence

of a prior existing requirement for the State to use voluntary
consensus standards (VCS), EPA has no authority to disapprove a SIP
submission for failure to use VCS. It would thus be inconsistent with
applicable law for EPA, when it reviews a SIP submission, to use VCS in
place of a SIP submission that otherwise satisfies the provisions of
the CAA. Thus, the requirements of section 12(d) of the National
Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) do
not apply. This rule does not impose an information collection burden
under the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C.
3501 et seq.).
    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small Business Regulatory Enforcement Fairness Act of 1996, generally
provides that before a rule may take effect, the agency promulgating
the rule must submit a rule report, which includes a copy of the rule,
to each House of the Congress and to the Comptroller General of the
United States. EPA will submit a report containing this rule and other
required information to the U.S. Senate, the U.S. House of
Representatives, and the Comptroller General of the United States prior
to publication of the rule in the Federal Register. A major rule cannot
take effect until 60 days after it is published in the Federal
Register. This action is not a ``major rule'' as defined by 5 U.S.C.
804(2).
    Under section 307(b)(1) of the CAA, petitions for judicial review
of this action must be filed in the United States Court of Appeals for
the appropriate circuit by October 23, 2007. Filing a petition for
reconsideration by the Administrator of this final rule does not affect
the finality of this rule for the purposes of judicial review nor does
it extend the time within which a petition for judicial review may be
filed, and shall not postpone the effectiveness of such rule or action.
This action may not be challenged later in proceedings to enforce its
requirements. (See section 307(b)(2) of the CAA.)

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Intergovernmental
relations, Nitrogen dioxide, Ozone, Reporting and recordkeeping
requirements, Volatile organic compounds.

    Dated: August 16, 2007.
J.I. Palmer, Jr.,
Regional Administrator, Region 4.

0
40 CFR part 52 is amended as follows:

PART 52--[AMENDED]

0
1. The authority citation for part 52 continues to read as follows:

    Authority: 42 U.S.C. 7401 et seq.

Subpart S--Kentucky

0
2. Section 52.920(e) is amended by revising the entry for ``Louisville
8-hour Ozone Maintenance Plan'' to read as follows:

Sec.  52.920  Identification of plan.

* * * * *
    (e) * * *

                                 EPA-Approved Kentucky Non-regulatory Provisions
----------------------------------------------------------------------------------------------------------------
                                       Applicable           State
   Name of non-regulatory SIP        geographic or     submittal date/  EPA  approval date       Explanation
            provision              nonattainment area  effective date
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
Louisville 8-hour Ozone           Bullitt County,          09/26/2006  07/05/07, 72 FR
 Maintenance Plan.                 Jefferson County,                    36601.
                                   Oldham County.
----------------------------------------------------------------------------------------------------------------

 [FR Doc. E7-16804 Filed 8-23-07; 8:45 am]

BILLING CODE 6560-50-P


[Federal Register: March 18, 2009 (Volume 74, Number 51)]
[Notices]
[Page 11548-11549]
[DOCID:fr18mr09-53]

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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-ORD-2007-0484; FRL-8782-8]

Board of Scientific Counselors, National Center for Environmental
Research (NCER) Standing Subcommittee Meeting--2009

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of Meeting.

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SUMMARY: Pursuant to the Federal Advisory Committee Act, Public Law 92-
463, the Environmental Protection Agency, Office of Research and
Development (ORD), gives notice of a meeting of the Board of Scientific
Counselors (BOSC) National Center for Environmental Research (NCER)
Standing Subcommittee.

DATES: The meeting (a teleconference call) will be held on Thursday,
April 16, 2009 from 10 a.m. to 12 noon. All times noted are eastern
time. The meeting may adjourn early if all business is finished.
Requests for the draft agenda or for making oral presentations at the
conference call will be accepted up to 1 business day before the
meeting.

ADDRESSES: Participation in the meeting will be by teleconference
only--meeting rooms will not be used. Members of the public may obtain
the call-in number and access code for the call from Susan Peterson,
whose contact information is listed under the FOR FURTHER INFORMATION
CONTACT section of this notice. Submit your comments, identified by
Docket ID No. EPA-HQ-ORD-2007-0484, by one of the following methods:
     http://www.regulations.gov: Follow the on-line
instructions for submitting comments.
     E-mail: Send comments by electronic mail (e-mail) to:
<EMAIL_ADDRESS>Attention Docket ID No. EPA-HQ-ORD-2007-0484.
     Fax: Fax comments to:<PHONE_NUMBER>, Attention Docket ID
No. EPA-HQ-ORD-2007-0484.
     Mail: Send comments by mail to: Board of Scientific
Counselors, National Center for Environmental Research (NCER) Standing
Subcommittee--2007 Docket, Mailcode: 28221T, 1200 Pennsylvania Ave.,
NW., Washington, DC 20460, Attention Docket ID No. EPA-HQ-ORD-2007-
0484.
     Hand Delivery or Courier. Deliver comments to: EPA Docket
Center (EPA/DC), Room B102, EPA West Building, 1301 Constitution
Avenue, NW., Washington, DC, Attention Docket ID No. EPA-HQ-ORD-2007-
0484.

    Note:  This is not a mailing address. Such deliveries are only
accepted during the docket's normal hours of operation, and special
arrangements should be made for deliveries of boxed information.

    Instructions: Direct your comments to Docket ID No. EPA-HQ-ORD-
2007-0484. EPA's policy is that all comments received will be included
in the public docket without change and may be made available online at
http://www.regulations.gov, including any personal information
provided, unless the comment includes information claimed to be
Confidential Business Information (CBI) or other information whose
disclosure is restricted by statute. Do not submit information that you
consider to be CBI or otherwise protected through http://
www.regulations.gov or e-mail. The http://www.regulations.gov Web site
is an ``anonymous access'' system, which means EPA will not know your
identity or contact information unless you provide it in the body of
your comment. If you send an e-mail comment directly to EPA without
going through http://www.regulations.gov, your e-mail address will be
automatically captured and included as part of the comment that is
placed in the public docket and made available on the Internet. If you
submit an electronic comment, EPA

recommends that you include your name and other contact information in
the body of your comment and with any disk or CD-ROM you submit. If EPA
cannot read your comment due to technical difficulties and cannot
contact you for clarification, EPA may not be able to consider your
comment. Electronic files should avoid the use of special characters,
any form of encryption, and be free of any defects or viruses. For
additional information about EPA's public docket visit the EPA Docket
Center homepage at http://www.epa.gov/epahome/dockets.htm.
    Docket: All documents in the docket are listed in the http://
www.regulations.gov index. Although listed in the index, some
information is not publicly available, e.g., CBI or other information
whose disclosure is restricted by statute. Certain other material, such
as copyrighted material, will be publicly available only in hard copy.
Publicly available docket materials are available either electronically
in http://www.regulations.gov or in hard copy at the Board of
Scientific Counselors, National Center for Environmental Research
(NCER) Standing Subcommittee--2007 Docket, EPA/DC, EPA West, Room B102,
1301 Constitution Ave., NW., Washington, DC. The Public Reading Room is
open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding
legal holidays. The telephone number for the Public Reading Room is
(202) 566-1744, and the telephone number for the ORD Docket is (202)
566-1752.

FOR FURTHER INFORMATION CONTACT: The Designated Federal Officer via
mail at: Susan Peterson, Mail Code 8104-R, Office of Science Policy,
Office of Research and Development, Environmental Protection Agency,
1200 Pennsylvania Avenue, NW., Washington, DC 20460; via phone/voice
mail at:<PHONE_NUMBER>; via fax at:<PHONE_NUMBER>; or via e-mail at:
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

General Information

    Participation in the meeting will be by teleconference only--
meeting rooms will not be used. Members of the public who wish to
obtain the call-in number and access code to participate in the
conference call may contact Susan Peterson, the Designated Federal
Officer, via any of the contact methods listed in the FOR FURTHER
INFORMATION CONTACT section above, by 4 working days prior to the
conference call.
    The purpose of the meeting is to discuss the subcommittee's draft
letter report. Proposed agenda items for the conference call include,
but are not limited to: discussion of action items that resulted from
the February 2-3, 2009 face to face meeting, and subcommittee responses
to the charge questions. The conference call is open to the public.
    Information on Services for Individuals with Disabilities: For
information on access or services for individuals with disabilities,
please contact Susan Peterson at<PHONE_NUMBER> or
<EMAIL_ADDRESS>To request accommodation of a disability,
please contact Susan Peterson, preferably at least 10 days prior to the
meeting, to give EPA as much time as possible to process your request.

    Dated: March 11, 2009.
Fred Hauchman,
Director, Office of Science Policy.
[FR Doc. E9-5872 Filed 3-17-09; 8:45 am]

BILLING CODE 6560-50-P


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<TITLE>NRC Statistics - Incident Types</TITLE>
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::
      STATISTICS > Incident
      Type  2000 - 2009::

Incident Type

          2000
          2001
          2002
          2003
          2004
          2005
          2006
          2007
          2008
          2009

          Fixed
          11,813
          12,441
          11,917
          11,975
          12,975
          13,017
          13,621
          11,913
          10,909
          10,123

          Unknown Sheen
          4,016
          4,147
          3,426
          3,733
          3,411
          3,934
          3,797
          4,199
          4,278
          4,254

          Vessel
          3,945
          4,378
          3,919
          3,962
          4,385
          4,611
          4,767
          4,931
          5,030
          4,597

          Mobile
          3,597
          3,216
          2,942
          2,947
          3,192
          3,215
          3,267
          3,297
          3,238
          2,854

          Pipeline
          1,618
          1,841
          1,621
          1,643
          1,574
          1,896
          1,839
          1,580
          1,379
          1,275

          Platform
          1,428
          1,355
          1,233
          1,344
          1,198
          1,395
          1,606
          1,407
          1,362
          1,761

          Storage Tank
          1,379
          3,140
          3,044
          2,808
          2,838
          2,687
          2,577
          2,519
          2,460
          1,973

          Railroad Non-Release
          1,335
          1,235
          1,124
          1,173
          1,476
          1,685
          1,868
          1,913
          1,482
          1,435

          Railroad
          1,332
          1,241
          1,200
          1,074
          1,276
          1,532
          1,451
          1,390
          1,649
          1,306

          Continuous
          938
          238
          393
          462
          112
          189
          150
          284
          62
          94

          Aircraft
          248
          297
          278
          262
          277
          211
          217
          214
          204
          175

          Drill/Exercise
          669
          789
          908
          743
          1,073
          1,223
          1,578
          1,584
          1,829
          2,039

          Unknown
          84
          N/A
          N/A
          N/A
          N/A
          N/A
          N/A
          N/A
          N/A
          N/A

          Terrorist Non-Release
          33
          42
          180
          105
          125
          119
          117
          43
          0
          0

          TOTAL INCIDENTS
          32,435
          34,360
          32,185
          32,231
          33,912
          35,714
          36,855
          35,274
          33,882
          31,886

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[Federal Register Volume 74, Number 79 (Monday, April 27, 2009)]
[Rules and Regulations]
[Pages 18977-18978]
[FR Doc No: E9-9301]

========================================================================
Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
week.

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

Federal Register / Vol. 74, No. 79 / Monday, April 27, 2009 / Rules
and Regulations

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2009-0351; Directorate Identifier 2009-SW-08-AD;
Amendment 39-15886; AD 2009-07-53]
RIN 2120-AA64

Airworthiness Directives; Sikorsky Aircraft Corporation Model S-
92A Helicopters

AGENCY: Federal Aviation Administration, DOT.

ACTION: Final rule; request for comments.

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

SUMMARY: This document publishes in the Federal Register an amendment
adopting Airworthiness Directive (AD) 2009-07-53, which was sent
previously to all known U.S. owners and operators of Sikorsky Aircraft
Corporation (Sikorsky) Model S-92A helicopters by individual letters.
This amendment is prompted by the failure of 2 main gearbox filter bowl
assembly studs (studs) that were found broken during a fatal accident
investigation in Canada. Prior to the accident, the manufacturer was
investigating a July 2008 incident that also involved broken studs. In
both cases, the broken studs resulted in rapid loss of oil. The
failures have been tied to fretting and galling of the original
titanium studs; therefore, this AD requires removing all titanium studs
and replacing them with steel studs. The actions specified by this AD
are intended to prevent failure of a stud, which could result in rapid
loss of oil, failure of the main gearbox, and subsequent loss of
control of the helicopter.

DATES: Effective April 27, 2009, to all persons except those persons to
whom it was made immediately effective by Emergency AD 2009-07-53,
issued on March 23, 2009, which contained the requirements of this
amendment.
    The incorporation by reference of certain publications listed in
the regulations is approved by the Director of the Federal Register as
of April 27, 2009.
    Comments for inclusion in the Rules Docket must be received on or
before June 26, 2009.

ADDRESSES: Use one of the following addresses to submit comments on
this AD:
     Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue, SE., Washington, DC 20590.
     Hand Delivery: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue, SE., Washington, DC 20590, between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays.
    You may get the service information identified in this AD from
Sikorsky Aircraft Corporation, Attn: Manager, Commercial Technical
Support, Mailstop s581a, 6900 Main Street, Stratford, CT, telephone
(203) 383-4866, e-mail address<EMAIL_ADDRESS>or at http://www.sikorsky.com.
    Examining the Docket: You may examine the docket that contains the
AD, any comments, and other information 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 Docket Operations office (telephone<PHONE_NUMBER>) is
located in Room W12-140 on the ground floor of the West Building at the
street address stated in the ADDRESSES section. Comments will be
available in the AD docket shortly after receipt.

FOR FURTHER INFORMATION CONTACT: Kirk Gustafson, Aviation Safety
Engineer, Boston Aircraft Certification Office, Engine and Propeller
Directorate, FAA, 12 New England Executive Park, Burlington, MA 01803,
telephone<PHONE_NUMBER>, fax<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: On March 23, 2009, we issued Emergency AD
2009-07-53 for Sikorsky Model S-92A helicopters, which requires, before
further flight, removing all titanium studs that attach the main
gearbox filter bowl assembly to the main gearbox and replacing them
with steel studs. That action was prompted by the failure of 2 studs
that were found broken during a fatal accident investigation in Canada.
Prior to the accident, the manufacturer was investigating a July 2008
incident that also involved broken studs. In both cases, the broken
studs resulted in rapid loss of oil. The failures have been tied to
fretting and galling of the original titanium studs. This condition, if
not corrected, could result in failure of a stud, which could result in
rapid loss of oil, failure of the main gearbox, and subsequent loss of
control of the helicopter.
    We have reviewed Sikorsky Alert Service Bulletin No. 92-63-014A,
Revision A, dated March 20, 2009 (ASB), which describes procedures for
removing the main gearbox filter bowl assembly titanium mounting studs
and replacing them with steel mounting studs.
    Since the unsafe condition described is likely to exist or develop
on other Sikorsky Model S-92A helicopters of the same type design, we
issued Emergency AD 2009-07-53 to prevent failure of a stud, which
could result in rapid loss of oil, failure of the main gearbox, and
subsequent loss of control of the helicopter. The AD requires, before
further flight, removing all titanium studs and replacing them with
steel studs. The actions must be accomplished in accordance with
specified portions of the ASB described previously. The short
compliance time involved is required because the previously described
critical unsafe condition can adversely affect the structural integrity
of the helicopter. Therefore, removing all titanium studs and replacing
them with steel studs is required before further flight, and this AD
must be issued immediately.
    Since it was found that immediate corrective action was required,
notice and opportunity for prior public comment thereon were
impracticable and contrary to the public interest, and good cause
existed to make the AD effective immediately by individual letters
issued on March 23, 2009 to all known U.S. owners and operators of
Sikorsky Model S-92A helicopters. These conditions still exist, and the
AD

is hereby published in the Federal Register as an amendment to 14 CFR
39.13 to make it effective to all persons.
    We estimate that this AD will affect 32 helicopters of U.S.
registry. Replacing the studs will take approximately 6 work hours per
helicopter to accomplish at an average labor rate of $80 per work hour.
Per the ASB, required parts and tooling are available at no cost. Based
on these figures, we estimate the total cost impact of the AD on U.S.
operators to be $15,360, assuming there are no parts and tooling costs.

Comments Invited

    This AD is a final rule that involves requirements that affect
flight safety and was not preceded by notice and an opportunity for
public comment; however, we invite you to submit any written data,
views, or arguments regarding this AD. Send your comments to an address
listed under ADDRESSES. Include ``Docket No. FAA-2009-0351; Directorate
Identifier 2009-SW-08-AD'' at the beginning of your comments. We
specifically invite comments on the overall regulatory, economic,
environmental, and energy aspects of the AD. We will consider all
comments received by the closing date and may amend the AD in light of
those comments.
    We will post all comments we receive, without change, to http://www.regulations.gov, including any personal information you provide. We
will also post a report summarizing each substantive verbal contact
with FAA personnel concerning this AD. Using the search function of our
docket web site, you can find and read the comments to any of our
dockets, including the name of the individual who sent the comment. You
may review the DOT's complete Privacy Act Statement in the Federal
Register published on April 11, 2000 (65 FR 19477-78).

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 the regulation:
    1. Is not a ``significant regulatory action'' under Executive Order
12866;
    2. Is not a ``significant rule'' under the DOT Regulatory Policies
and Procedures (44 FR 11034, February 26, 1979); and
    3. 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. See the AD docket to examine the economic evaluation.

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.

List of Subjects in 14 CFR Part 39

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

Adoption of the Amendment

0
Accordingly, pursuant to the authority delegated to me by the
Administrator, the Federal Aviation Administration amends part 39 of
the Federal Aviation Regulations (14 CFR part 39) as follows:

PART 39--AIRWORTHINESS DIRECTIVES

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

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

Sec.  39.13  [Amended]

0
2. Section 39.13 is amended by adding a new airworthiness directive to
read as follows:

2009-07-53 Sikorsky Aircraft Corporation: Amendment 39-15886. Docket
No. FAA-2009-0351; Directorate Identifier 2009-SW-08-AD.

    Applicability: Model S-92A helicopters with a main gearbox
housing assembly, part number (P/N) 92351-15110-042, -043, or -044,
that is not marked with ``TS-062-01'' near the P/N, certificated in
any category.
    Compliance: Required before further flight, unless accomplished
previously.
    To prevent failure of a main gearbox filter bowl assembly
mounting stud (stud), which could result in rapid loss of oil,
failure of the main gearbox, and subsequent loss of control of the
helicopter, accomplish the following:
    (a) Remove the titanium studs by following the Accomplishment
Instructions in Sikorsky Alert Service Bulletin No. 92-63-014, Rev.
A, dated March 20, 2009 (ASB), paragraph 3.A.

    Note:  Figure 1 of the ASB contains guidance for removal and
installation of the studs.

    (b) Visually inspect the tapped holes and the main gearbox
housing lockring counterbore for damage. If you find damage in the
tapped holes or in the main gearbox housing lockring counterbore,
contact the Boston Aircraft Certification Office for an approved
repair.
    (c) Install steel studs and mark the main gearbox housing as
``TS-062-01'' near the P/N by following the Accomplishment
Instructions in the ASB, paragraph 3.C.
    (d) To request a different method of compliance or a different
compliance time for this AD, follow the procedures in 14 CFR 39.19.
Contact the Manager, Boston Aircraft Certification Office, Engine
and Propeller Directorate, FAA, Attn: Kirk Gustafson, Aviation
Safety Engineer, 12 New England Executive Park, Burlington, MA
01803, telephone<PHONE_NUMBER>, fax<PHONE_NUMBER>, for information
about previously approved alternative methods of compliance.
    (e) Special flight permits will not be issued.
    (f) Remove and replace the studs by following the specified
portions of Sikorsky Alert Service Bulletin No. 92-63-014, Rev. A,
dated March 20, 2009. The Director of the Federal Register approved
this incorporation by reference in accordance with 5 U.S.C. 552(a)
and 1 CFR part 51. Copies may be obtained from Sikorsky Aircraft
Corporation, Attn: Manager, Commercial Technical Support, Mailstop
s581a, 6900 Main Street, Stratford, CT, telephone<PHONE_NUMBER>, e-
mail address<EMAIL_ADDRESS>or at http://www.sikorsky.com.
Copies may be inspected at the FAA, Office of the Regional Counsel,
Southwest Region, 2601 Meacham Blvd., Room 663, Fort Worth, Texas or
at the National Archives and Records Administration (NARA). For
information on the availability of this material at NARA, call 202-
741-6030, or go to: http://www.archives.gov/federal_register/code_of_federal_regulations/ibr_locations.html.
    (g) This amendment becomes effective on April 27, 2009, to all
persons except those persons to whom it was made immediately
effective by Emergency AD 2009-07-53, issued March 23, 2009, which
contained the requirements of this amendment.

    Issued in Fort Worth, Texas, on April 9, 2009.
Mark R. Schilling,
Acting Manager, Rotorcraft Directorate, Aircraft Certification Service.
[FR Doc. E9-9301 Filed 4-24-09; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 85, Number 241 (Tuesday, December 15, 2020)]
[Notices]
[Pages 81237-81242]
[FR Doc No: 2020-27484]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-90616; File No. SR-NASDAQ-2020-086]

Self-Regulatory Organizations; The Nasdaq Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Lower the Enterprise License Fee for Broker-Dealers Distributing Nasdaq
Basic to Internal Professional Subscribers as Set Forth in the Equity 7
Pricing Schedule, Section 147, and the Enterprise License Fee for
Broker-Dealers Distributing Nasdaq Last Sale to Professional
Subscribers at Equity 7, Section 139

December 9, 2020.
    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 December 7, 2020, The Nasdaq Stock Market LLC (``Nasdaq'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I, II,

and III, below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------

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

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

    The Exchange proposes to lower the enterprise license fee for
broker-dealers distributing Nasdaq Basic to internal Professional
Subscribers as set forth in the Equity 7 Pricing Schedule, Section 147,
and the enterprise license fee for broker-dealers distributing Nasdaq
Last Sale (``NLS'') to Professional Subscribers at Equity 7, Section
139.
    The text of the proposed rule change is available on the Exchange's
website at https://listingcenter.nasdaq.com/rulebook/nasdaq/rules, 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 Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.

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

1. Purpose
    Nasdaq proposes to lower the enterprise license fee for broker-
dealers distributing Nasdaq Basic to internal Professional Subscribers
\3\ from a two-tiered fee of $365,000, plus $2 for any Professional
Subscribers over 16,000, to a flat fee of $155,000. The license would
otherwise remain unchanged. The enterprise license fee for broker-
dealers distributing NLS to internal Professional Subscribers would be
changed in a similar fashion: The two-tiered fee of $365,000, plus $2
for any Professional Subscribers over 16,000, would be replaced with a
flat fee of $155,000. Both fee reductions are designed to help Nasdaq
compete against other exchanges selling top-of-book \4\ market data
products.
---------------------------------------------------------------------------

    \3\ A ``Professional Subscriber'' is any Subscriber other than a
Non-Professional Subscriber. A ``Non-Professional Subscriber'' is
``a natural person who is not (i) registered or qualified in any
capacity with the Commission, the Commodity Futures Trading
Commission, any state securities agency, any securities exchange or
association, or (ii) any commodities or futures contract market or
association; engaged as an `investment adviser' as that term is
defined in Section 201(11) of the Investment Advisers Act of 1940
(whether or not registered or qualified under that Act); or (iii)
employed by a bank or other organization exempt from registration
under federal or state securities laws to perform functions that
would require registration or qualification if such functions were
performed for an organization not so exempt.'' See Equity 7 Pricing
Schedule, Section 147(d)(4).
    \4\ ``Top-of-book'' market data products provide last sale
information, or both last sale and best bid and offer information to
the user, without additional ``depth of book'' data. Both Nasdaq
Last Sale and Nasdaq Basic are examples of top-of-book products.
---------------------------------------------------------------------------

    The Exchange initially filed the proposed pricing changes on
September 30, 2020 (SR-NASDAQ-2020-065). On November 23, 2020, the
Exchange withdrew that filing and replaced it with SR-NASDAQ-2020-080.
On December 3, 2020, the Exchange withdrew SR-NASDAQ-2020-080 and
replaced it with SR-NASDAQ-2020-085. On December 7, 2020, the Exchange
replaced SR-NASDAQ-2020-085 with this filing.
Nasdaq Basic and Nasdaq Last Sale
    Nasdaq Basic is a real-time market data product that offers best
bid and offer and last sale information for all U.S. exchange-listed
securities based on liquidity within the Nasdaq market center and
trades reported to the FINRA/Nasdaq Trade Reporting Facility (``TRF'').
It is a subset of the ``core'' quotation and last sale data provided by
securities information processors (``SIPs'') distributing consolidated
data pursuant to the CTA/CQ Plan and the UTP Plan. Nasdaq Basic is
separated into three components, which may be purchased individually or
in combination: (i) Nasdaq Basic for Nasdaq, which contains the best
bid and offer on the Nasdaq market center and last sale transaction
reports for Nasdaq and the FINRA/Nasdaq TRF for Nasdaq-listed stocks;
(ii) Nasdaq Basic for NYSE, which covers NYSE-listed stocks, and (iii)
Nasdaq Basic for NYSE American, which provides data on stocks listed on
NYSE American and other listing venues that disseminate quotes and
trade reports on Tape B. The specific data elements available through
Nasdaq Basic are: (i) Nasdaq Basic Quotes (``QBBO''), the best bid and
offer and associated size available in the Nasdaq Market Center, as
well as last sale transaction reports; (ii) Nasdaq opening and closing
prices, as well as IPO and trading halt cross prices; and (iii) general
exchange information, including systems status reports, trading halt
information, and a stock directory.
    NLS provides real-time last sale information for executions
occurring within the Nasdaq market center and trades reported to the
jointly-operated FINRA/Nasdaq TRF.\5\ The NLS data feed, which provides
price, volume and time of execution data for last sale transactions,
includes transaction information for Nasdaq-listed stocks (``NLS for
Nasdaq'') and for stocks listed on NYSE, NYSE American, and other Tape
B listing venues (``NLS for NYSE/NYSE American'').\6\ This is also a
non-core product that provides a subset of the core last sale data
distributed by the SIPs under the CTA/CQ Plan and the UTP Plan.\7\
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 57965 (June 16,
2008), 73 FR 35178 (June 20, 2008) (SR-NASDAQ-2006-060) (proposing
NLS); see also Securities Exchange Act Release No. 57965 (June 16,
2008), 73 FR 35178 (June 20, 2008) (SR-NASDAQ-2006-060) (approving
SR-NASDAQ-2006-060, as amended by Amendment Nos. 1 and 2, to
implement NLS on a pilot basis).
    \6\ See Securities Exchange Act Release No. 57965 (June 16,
2008), 73 FR 35178 (June 20, 2008) (SR-NASDAQ-2006-060).
    \7\ See Securities Exchange Act Release No. 34-82723 (February
15, 2018), 83 FR 7812 (February 22, 2018) (SR-NASDAQ-2018-010).
---------------------------------------------------------------------------

Current Top-of-Book Enterprise Licenses for Internal Professional
Subscribers
    Broker-dealers may purchase Nasdaq Basic, or Derived Data \8\
therefrom, for internal professional use for a monthly per-Subscriber
fee of $26,\9\ or, in lieu of a per-Subscriber fee, purchase an
enterprise license for the internal distribution of Nasdaq Basic to
Professional Subscribers for $365,000, plus $2 for any Professional
Subscribers over 16,000 if an external Distributor \10\ controls the
display of the product.\11\

The license also allows the broker-dealer to display NLS data for its
own stock price and that of up to ten of its competitors or peers on
its internal website. Separate licenses must be purchased if more than
one external Distributor controls display of the product. The license
excludes Distributor fees, which are $1,500 per month for internal
distribution.\12\
---------------------------------------------------------------------------

    \8\ ``Derived Data'' is ``pricing data or other information that
is created in whole or in part from Nasdaq information; it cannot be
reverse engineered to recreate Nasdaq information, or be used to
create other data that is recognizable as a reasonable substitute
for Nasdaq information.'' See Equity 7, Section 147(d)(6).
    \9\ See Equity 7 Pricing Schedule, Section 147(b)(1). The $26
monthly per-Subscriber fee consists of monthly charges of $13 for
Nasdaq Basic for Nasdaq, $6.50 for Nasdaq Basic for NYSE, and $6.50
for Nasdaq Basic for NYSE MKT.
    \10\ ``Distributor'' refers to ``any entity that receives Nasdaq
Basic data directly from Nasdaq or indirectly through another entity
and then distributes it to one or more Subscribers. (A) ``Internal
Distributors'' are Distributors that receive Nasdaq Basic data and
then distribute that data to one or more Subscribers within the
Distributor's own entity. (B) ``External Distributors'' are
Distributors that receive Nasdaq Basic data and then distribute that
data to one or more Subscribers outside the Distributor's own
entity. See Equity 7, Section 147(d)(1).
    \11\ The additional $2 fee was introduced to defray additional
costs incurred by Nasdaq when distributing Nasdaq Basic through an
External Distributor that controls display of the product. See
Securities Exchange Act Release No. 71507 (February 7, 2014), 79 FR
8763 (February 13, 2014) (SR-NASDAQ-2014-011).
    \12\ See Equity 7 Pricing Schedule, Section 147(c)(1).
---------------------------------------------------------------------------

    Although NLS was initially designed for general distribution to
individual investors,\13\ a broker-dealer may elect to distribute this
data to its registered representatives through an employer-provided
workstation or software application. To allow for such usage, Nasdaq
adopted a fee schedule for ``specialized usage'' of NLS not associated
with distribution of data to the general investing public. In general,
broker-dealers paying for specialized usage track either the number of
Subscribers receiving data or the number of queries for the data, and
pay the corresponding fee.
---------------------------------------------------------------------------

    \13\ See Securities Exchange Act Release No. 82723 (February 15,
2018), 83 FR 7812 (February 22, 2018) (SR-Nasdaq-2018-010)
(explaining that ``NLS was designed to enable market-data
`distributors to provide free access to the data contained in NLS to
millions of individual investors via the internet and television'
and was expected to `increase the availability of Nasdaq proprietary
market data to individual investors.' '').
---------------------------------------------------------------------------

    As an alternative to per-Subscriber or per-query fees, however, a
broker-dealer may purchase an enterprise license for internal
Subscribers to receive NLS, or Derived Data therefrom, through an
external Distributor that controls display of the product. The fee is
$365,000 per month for up to 16,000 internal Subscribers, plus $2 for
each additional internal Subscriber over 16,000, the same fee structure
as the enterprise license for the internal distribution of Nasdaq Basic
to Professionals. A separate enterprise license must be purchased for
each external Distributor that controls the display of the product. The
enterprise license does not include distributor fees.
Proposed Fee Reduction for Nasdaq Basic and NLS Enterprise Licenses
    Nasdaq proposes to reduce its enterprise license fees for Nasdaq
Basic and NLS to bolster its ability to compete effectively against
other exchanges selling top-of-book market data products, which are
substitutes for Nasdaq Basic and NLS. Nasdaq faces vigorous competition
for the sale of this data, including from the ``Best Quote and Trade''
(``BQT'') product sold by the NYSE-affiliated exchanges and the Cboe
One Summary Feed.
    Nasdaq received customer feedback requesting that it lower the
price of the professional licenses for its top-of-book products. This
feedback prompted a reexamination of Nasdaq's four enterprise licenses
for top-of-book data: (i) The license for internal Professional
distribution of Nasdaq Basic to Professionals for $365,000 per month
(the subject of this proposal); (ii) the license for external
distribution of Nasdaq Basic to Professionals and Non-Professionals in
the context of the brokerage relationship for $100,000 per month; \14\
(iii) the license for external distribution of NLS data to the General
Investing Public for Display Usage for $41,500; \15\ and (iv) the
license for internal and external distribution of top-of-book \16\ and
depth-of-book \17\ products for $500,000 with a twelve-month
commitment, or a month-to-month fee of $600,000.\18\
---------------------------------------------------------------------------

    \14\ See Equity 7 Pricing Schedule, Section 147(b)(5).
    \15\ See Equity 7 Pricing Schedule, Section 139(b)(4).
    \16\ The top-of-book products distributed under this license are
Nasdaq Basic, NLS and NLS Plus.
    \17\ The depth-of-book products distributed under this license
are TotalView and Level 2.
    \18\ See Equity 7 Pricing Schedule, Section 132.
---------------------------------------------------------------------------

    Fees for three of these four licenses have been reduced in the last
several years. In 2016, Nasdaq lowered the fee for external
distribution of Nasdaq Basic in the context of the brokerage
relationship from $350,000 to $100,000.\19\ Also in 2016, the Exchange
reduced the monthly fee for the external distribution of NLS data from
$50,000 to $41,500.\20\ In 2018, Nasdaq introduced an enterprise
license that substantially lowered the cost of purchasing top-of-book
and depth-of-book data together by replacing three separate enterprise
licenses--$365,000 for internal distribution of Nasdaq Basic, $100,000
for external distribution in a brokerage relationship, and $500,000 for
distribution of depth-of-book products--with a single license for a
monthly fee of $500,000, with a twelve-month service commitment.\21\
---------------------------------------------------------------------------

    \19\ See Securities Exchange Act Release No. 79456 (December 2,
2016), 81 FR 88716 (December 8, 2016) (SR-NASDAQ-2016-162).
    \20\ See Securities Exchange Act Release No. 77578 (April 11,
2016), 81 FR 22344 (April 15, 2016) (SR-NASDAQ-2016-048).
    \21\ See Securities Exchange Act Release No. 83751 (July 31,
2018), 83 FR 38428 (August 6, 2018) (SR-Nasdaq-2018-058).
---------------------------------------------------------------------------

    In light of customer feedback and Nasdaq's history of lowering fees
for top-of-book products, Nasdaq determined that the proposed fee will
better position it to operate in the current competitive environment.
Fees for Nasdaq's other three enterprise licenses have been lowered
over the course of the last four years, while the license fee for
internal professionals has not changed since the enterprise license was
introduced in 2014.\22\ Nasdaq believes that this fourth fee reduction
will allow it to continue to compete in the market for top-of-book
products.
---------------------------------------------------------------------------

    \22\ See Securities Exchange Act Release No. 71507 (February 7,
2014), 79 FR 8763 (February 13, 2014) (SR-NASDAQ-2014-011).
---------------------------------------------------------------------------

    The new enterprise license fee will substantially lower total and
per-Subscriber costs for broker-dealers with approximately 5,962 or
more internal Professional Subscribers. All current enterprise license
purchasers will save the difference between the current base fee of
$365,000 and the proposed fee of $155,000 (which is $210,000 per
month), plus $2 times the number of internal Professional Subscribers
over 16,000. A broker-dealer with 17,000 internal Professional
Subscribers, for example, would save a total of $212,000 per month as
compared to the current license,\23\ reducing average per-Subscriber
monthly charges from $21.60 \24\ to $9.12.\25\
---------------------------------------------------------------------------

    \23\ The broker-dealer would save the difference between
$365,000 and $155,000 ($210,000), plus an additional $2,000 for the
1,000 Professional Subscribers over 16,000.
    \24\ The hypothetical current average per-Subscriber monthly
charge is estimated as the current fee of $365,000 plus $2,000 for
the 1,000 Professional Subscribers over 16,000 divided by 17,000
internal Professional Subscribers.
    \25\ The hypothetical per-Subscriber monthly charge for the
Proposal is estimated as the flat fee of $155,000 divided by 17,000
internal Professional Subscribers.
---------------------------------------------------------------------------

    In addition, a number of the mid-size broker-dealers that currently
have too few professional subscribers to benefit from the license would
be able to achieve substantial savings at the new, lower rate. The
``break even'' point--i.e., the point at which the average per-
Subscriber rate of a licensee falls below the per-Subscriber rate of
$26--is currently 14,038 internal Professional Subscribers.\26\ Under
the new fee schedule, broker-dealers with as few as 5,962 internal
Professional Subscribers would be able to save money.\27\ A
hypothetical broker-dealer with 10,000 internal Professional
Subscribers would

be able to save $105,000 per month,\28\ reducing per-Subscriber fees
from $26 \29\ to $15.50.\30\
---------------------------------------------------------------------------

    \26\ See Securities Exchange Act Release No. 71507 (February 7,
2014), 79 FR 8763 (February 13, 2014) (SR-NASDAQ-2014-011)
(explaining that the $365,000 monthly fee for all internal
subscribers, divided by $26 monthly fee for each internal
Subscriber, is equal to 14,038).
    \27\ This estimated cutoff point is calculated as the Proposed
license fee of $155,000 divided by the per-Subscriber rate of $26
per month.
    \28\ Savings are calculated as follows: 10,000 internal
Professional Subscribers multiplied by $26 per-Subscriber equals
$260,000. The difference between $260,000 and $155,000 is $105,000.
    \29\ See Equity 7 Pricing Schedule, Section 147(b)(1).
    \30\ This figure is calculated as the proposed flat fee of
$155,000 divided by 10,000 internal Professional Subscribers.
---------------------------------------------------------------------------

    In addition to lowering Nasdaq's fees, the proposed rule change
will allow users to lower internal administrative costs by eliminating
the need to report monthly usage. Nasdaq does not have sufficient
information about broker-dealer operations and costs to accurately
estimate these savings, but believes that monthly savings in
administrative expenditures--as well as the improved ability to project
future expenditures achieved by eliminating audit liability for errors
in reporting usage--to be substantial.
    Staff of the Commission's Division of Trading and Markets have
indicated that self-regulatory organizations (``SROs'') proposing fee
changes should provide ``the projected number of purchasers (including
members, as well as non-members) of any new or modified product or
service . . . .'' \31\ Prior to the proposed change, two customers had
purchased the Nasdaq Basic Professional Subscriber enterprise license
for $365,000, plus $2 for any Professional Subscriber over 16,000 if an
external Distributor controls the display of the product.\32\ Of these
two customers, one informed Nasdaq that it would abandon the Nasdaq
license in favor of a license offered by one of its two major
competitors, Cboe and NYSE. After the proposed license fee was
instituted on October 1, 2020, the complaining customer decided to
retain the license. Nasdaq is also in discussions with additional
customers to purchase the license, including both customers that do not
currently purchase Nasdaq Basic, and customers that do purchase Nasdaq
Basic, but not through an enterprise license. To date, however, no new
firms have purchased the enterprise license.
---------------------------------------------------------------------------

    \31\ See Division of Trading and Markets, U.S. Securities and
Exchange Commission, ``Staff Guidance on SRO Filings Related to Fees
(May 21, 2019), available at https://www.sec.gov/tm/staff-guidance-sro-rule-filings-fees.
    \32\ No customers purchased the comparable license for NLS,
discussed above.
---------------------------------------------------------------------------

    While any broker-dealer with approximately 5,962 or more internal
Subscribers will be able to benefit from the proposed license, Nasdaq
does not know, and is unable to ascertain with precision, the number of
internal Professional Subscribers utilized by various broker-dealers,
nor can it anticipate the actions of its competitors in response to the
lower enterprise license fee, and therefore cannot project precisely
the number of expected purchasers. Nevertheless, judging from
expressions of interest and Nasdaq's experience in the financial
services industry, Nasdaq estimates that between fifteen and twenty
broker-dealers worldwide may elect to purchase the license.\33\
---------------------------------------------------------------------------

    \33\ This estimate is based on customer conversations and the
experience and judgment of Nasdaq staff.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that its Proposal is consistent with Section
6(b) of the Act,\34\ in general, and furthers the objectives of
Sections 6(b)(4) and 6(b)(5) of the Act,\35\ in particular, in that it
provides for the equitable allocation of reasonable dues, fees and
other charges among members and issuers and other persons using any
facility, and is not designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------

    \34\ See 15 U.S.C. 78f(b).
    \35\ See 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

    As a preliminary manner, the statutory basis for the current Nasdaq
Basic and NLS enterprise licenses have already been explained in prior
filings.\36\ The Proposal lowers fees for enterprise licenses that have
already been shown to be consistent with Section 6(b) of the Act, and
this analysis therefore focuses on the new, lower fees.\37\
---------------------------------------------------------------------------

    \36\ See, e.g., Securities Exchange Act Release No. 81697
(September 25, 2017), 82 FR 45639 (September 29, 2017) (SR-NASDAQ-
2017-095); Securities Exchange Act Release No. 72620 (July 16,
2014), 79 FR 42572 (July 22, 2014) (SR-NASDAQ-2014-070); Securities
Exchange Act Release No. 72153 (May 12, 2014), 79 FR 28575 (May 16,
2014) (SR-NASDAQ-2014-045); Securities Exchange Act Release No.
71507 (February 7, 2014), 79 FR 8763 (February 13, 2014) (SR-NASDAQ-
2014-011); see Securities Exchange Act Release No. 82723 (February
15, 2018), 83 FR 7812 (February 22, 2018) (SR-Nasdaq-2018-010).
    \37\ The statutory bases for both the Nasdaq Basic and NLS
enterprise licenses are identical. Both are top-of-book products
sold to broker-dealers for internal distribution to Professionals.
The fee structure and use requirements are currently the same for
both, and will continue to be the same under the Proposal. The
discussion contained herein therefore applies to both licenses.
---------------------------------------------------------------------------

The Proposal Is an Equitable Allocation of Reasonable Dues, Fees and
Other Charges
    As the Commission and courts \38\ have recognized, ``[i]f
competitive forces are operative, the self-interest of the exchanges
themselves will work powerfully to constrain unreasonable or unfair
behavior.'' \39\ Accordingly, ``the existence of significant
competition provides a substantial basis for finding that the terms of
an exchange's fee proposal are equitable, fair, reasonable, and not
unreasonably or unfairly discriminatory.'' \40\ Nasdaq believes that
competitive forces constrain the price of top-of-book products based on
competition among exchanges for top-of-book data. The proposed fee
change is a direct response to this competition.
---------------------------------------------------------------------------

    \38\ The decision of the United States Court of Appeals for the
District of Columbia Circuit in NetCoalition v. SEC, 615 F.3d 525
(D.C. Cir. 2010) upheld the Commission's reliance upon competitive
markets to set reasonable and equitably allocated fees for market
data. ``In fact, the legislative history indicates that the Congress
intended that the market system evolve through the interplay of
competitive forces as unnecessary regulatory restrictions are
removed and that the SEC wield its regulatory power in those
situations where competition may not be sufficient, such as in the
creation of a consolidated transactional reporting system.''
NetCoalition I, at 535 (quoting H.R. Rep. No. 94-229, at 92 (1975),
as reprinted in 1975 U.S.C.C.A.N. 321, 323) (internal quotation
marks omitted). The court agreed with the Commission's conclusion
that ``Congress intended that competitive forces should dictate the
services and practices that constitute the U.S. national market
system for trading equity securities.'' Id. (quoting Securities
Exchange Act Release No. 59039 (December 2, 2008), 73 FR 74770,
74,771 (December 9, 2008) (SR-NYSEArca-2006-21)).
    \39\ See Securities Exchange Act Release No. 59039 (December 2,
2008), 73 FR 74770 (December 9, 2008) (SR-NYSEArca-2006-21).
    \40\ Id.
---------------------------------------------------------------------------

    Nasdaq Basic and NLS provide choices to broker-dealers and other
data consumers by providing less than the quantum of data provided
through the consolidated tape feeds, but at a lower price. The same is
true for the top-of-book proprietary products offered by other
exchanges. All of these top-of-book products are substitutes for each
other. Nasdaq Basic provides data derived from liquidity within the
Nasdaq market center and trades reported to the FINRA/Nasdaq TRF. The
NYSE BQT feed disseminates top-of-book information from the NYSE, NYSE
American, NYSE Arca and NYSE National exchanges.\41\ The Cboe One
Summary Feed provides data from the four Cboe equities exchanges: BZX
Exchange, BYX Exchange, EDGX Exchange and EDGA Exchange.\42\ These
exchanges compete on price and quality

for their top-of-book feeds. NYSE \43\ and Cboe,\44\ like Nasdaq, offer
enterprise licenses. Cboe touts its price in promotional
literature,\45\ and reduced its fee for certain top-of-book customers
just this year.\46\
---------------------------------------------------------------------------

    \41\ See https://www.nyse.com/market-data/real-time/nyse-bqt.
    \42\ See https://markets.cboe.com/us/equities/
market_data_services/
#:~:text=Cboe%20Top%20is%20a%20real,time%20on%20a%20Cboe%20book.&text
=It%20is%20a%20real%2Dtime,time%20on%20a%20Cboe%20book We note that
Cboe recently proposed a fee reduction for top-of-book data as well.
See Securities Exchange Act Release No. 86670 (August 14, 2019), 84
FR 43207 (August 20, 2019) (SR-CboeBYX-2019-012).
    \43\ See https://www.nyse.com/market-data/real-time/nyse-bqt.
    \44\ See https://markets.cboe.com/us/equities/market_data_services/cboe_one/.
    \45\ See https://markets.cboe.com/us/equities/
market_data_services/
#:~:text=Cboe%20Top%20is%20a%20real,time%20on%20a%20Cboe%20book.&text
=It%20is%20a%20real%2Dtime,time%20on%20a%20Cboe%20book (``The Cboe
One Feed is 60% less expensive per professional user and more than
85% less expensive for an enterprise license for professional users
and non-professional users when compared to a similar competitor
exchange product.'').
    \46\ See Securities Exchange Act Release No. 88221 (February 14,
2020), 85 FR 9904 (February 20, 2020) (SR-CboeBYX-2020-007) (stating
that ``the Exchange's top of book market data products are among the
most competitively priced in the industry due to modest subscriber
fees, and a lower Enterprise cap . . . .''). The filing included a
table comparing its pricing to Nasdaq Basic.
---------------------------------------------------------------------------

    Top-of-book data can be used for many purposes--from a retail
investor casually surveying the market to sophisticated market
participants using it for a variety of applications, such as investment
analysis, risk management, or portfolio valuation. The value of that
data depends on its quality and how well it approximates the NBBO,
which is determined by the amount of order flow attracted by the
exchange--the more order flow, the more quotes and trades, and the
better the exchange data will be able to match the NBBO.
    Nasdaq's own experience with sales of top-of-book feeds underscores
their substitutability, as the customer whose feedback motivated this
price change informed Nasdaq that it would drop Nasdaq Basic in favor
of a competing product unless a change is made.
    The constraint imposed by direct competition on the price of top-
of-book data is further illustrated by proposals to reduce fees for
three of the four top-of-book enterprise licenses in the past several
years: (i) The enterprise license for external distribution of Nasdaq
Basic; \47\ (ii) the enterprise license for the external distribution
of NLS; \48\ and (iii) the combined enterprise license for distribution
of top-of-book and depth-of-book data.\49\ Nasdaq is not alone in
lowering fees to compete against the other exchanges. Just this year,
Cboe proposed a fee reduction for its top-of-book data.\50\
---------------------------------------------------------------------------

    \47\ See Securities Exchange Act Release No. 79456 (December 2,
2016), 81 FR 88716 (December 8, 2016) (SR-NASDAQ-2016-162).
    \48\ See Securities Exchange Act Release No. 77578 (April 11,
2016), 81 FR 22344 (April 15, 2016) (SR-NASDAQ-2016-048).
    \49\ See Securities Exchange Act Release No. 83751 (July 31,
2018), 83 FR 38428 (August 6, 2018) (SR-Nasdaq-2018-058).
    \50\ See Securities Exchange Act Release No. 86670 (August 14,
2019), 84 FR 43207 (August 20, 2019) (SR-CboeBYX-2019-012).
---------------------------------------------------------------------------

    As shown, Nasdaq competes against other exchanges in the sale of
top-of-book products. That competition constrains the price of top-of-
book market data, and provides a substantial basis for finding that the
terms of an exchange's fee proposal are equitable, fair, reasonable,
and not unreasonably or unfairly discriminatory.
The Proposal Does Not Permit Unfair Discrimination
    The Proposal is not unfairly discriminatory. As previously noted,
the Nasdaq Basic enterprise license subject to this Proposal was shown
to be non-discriminatory and otherwise consistent with the Act over six
years ago.\51\ The only difference between that initial proposal and
the change under consideration today is that the new license costs less
and more broker-dealers will be able to benefit from the lower prices.
Enterprise licenses in general have been widely recognized as an
effective and not unfairly discriminatory method of distributing market
data. This applies to Nasdaq's enterprise licenses as well as those
offered by the NYSE and Cboe exchanges.\52\
---------------------------------------------------------------------------

    \51\ See Securities Exchange Act Release No. 71507 (February 7,
2014), 79 FR 8763 (February 13, 2014) (SR-NASDAQ-2014-011)
(initially adopting the current enterprise license).
    \52\ See, e.g., Sections 123(c) and 147 (b); Securities Exchange
Act Release No. 82182 (November 30, 2017), 82 FR 57627 (December 6,
2017) (SR-NYSE-2017-60) (changing an enterprise fee for NYSE BBO and
NYSE Trades).
---------------------------------------------------------------------------

    The Act does not prohibit all distinctions among customers; only
discrimination that is unfair. It is not unfair discrimination to
charge those Distributors that are able to reach the largest audiences
of retail investors a lower fee for incremental investors in order to
encourage the widespread distribution of market data.
    The instant Proposal, like other enterprise licenses, will cause
top-of-book data to become more widely available to investors. It will
save current enterprise license purchasers the $210,000 per month
difference between the current base fee of $365,000 and $155,000, plus
$2 times the number of internal Professional Subscribers over 16,000.
Broker-dealers that do not currently purchase the license will
nevertheless benefit because the ``break even'' point--i.e., the point
where the average per-Subscriber rate of a licensee falls below per-
Subscriber rate of $26--will fall from 14,038 to 5,962 internal
Professional Subscribers.\53\ All purchasers of the proposed license
will also be able to save in administrative expenditures by eliminating
monthly reporting requirements and periodic review of such reports by
compliance staff.
---------------------------------------------------------------------------

    \53\ See Securities Exchange Act Release No. 71507 (February 7,
2014), 79 FR 8763 (February 13, 2014) (SR-NASDAQ-2014-011)
(explaining that the $365,000 monthly fee for all internal
subscribers, divided by $26 monthly fee for each internal
Subscriber, is equal to 14,038).
---------------------------------------------------------------------------

    It is of particular importance now to expand the availability of
top-of-book data. In recent months, retail investors have become
increasingly interested in equities markets. Many of these retail
investors will require advice and assistance from equity market
professionals, and this license will enable broker-dealers that serve
such clients to do so at a lower cost.
    In addition, the proposed enterprise license will be subject to
significant competition, and that competition will ensure that there is
no unfair discrimination. Each Distributor will be able to accept or
reject the license depending on whether it will or will not lower costs
for that particular Distributor, and, if the license is not
sufficiently competitive, the Exchange may lose market share.
    For all of these reasons, the Proposal is not unreasonably
discriminatory.

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 not necessary or appropriate in
furtherance of the purposes of the Act. With respect to inter-market
competition--the competition among SROs--the Exchange's ability to
price market data products is constrained by competition among
exchanges for top-of-book data. With respect to intra-market
competition--the competition among consumers of exchange data--the
Exchange expects the Proposal to promote competition through lower-cost
data.
Intermarket Competition
    As discussed in detail under Statutory Basis, Nasdaq competes with
other exchanges in the sale of top-of-book products. In order to better
compete for this segment of the market, the Exchange is proposing to
reduce the cost of top-of-book data by lowering the enterprise license
fee for internal Professional Subscribers. The proposed price reduction
will not cause any unnecessary or inappropriate burden on intermarket
competition, as other

exchanges and data vendors are free to lower their prices to better
compete with the Exchange's offering. Nasdaq's main competitors, in
particular, offer directly competing enterprise licenses for their top-
of-book products, and are readily able to lower enterprise license fees
in response to Nasdaq. Indeed, the Exchange's decision to lower its
enterprise license fee was itself generated by the need to compete with
other exchanges. The Proposal may in turn generate competitive
responses from other exchanges, enhancing overall competition.
Intramarket Competition
    The Proposal will not cause any unnecessary or inappropriate burden
on intramarket competition. In fact, it will foster competition among
broker-dealers by lowering costs for current licensees, while at the
same time increasing the number of broker-dealers able to purchase that
license. The current enterprise license, just like all of the
enterprise licenses offered by Nasdaq's competitors, does not itself
impose an unnecessary or inappropriate burden on intramarket
competition. Relatively smaller broker-dealers have fewer internal
Professional Subscribers and therefore operate with lower fixed costs,
helping them compete with the larger broker-dealers. Moreover, the
underlying fee of $26 per Professional Subscriber fee has itself been
shown not to place an undue burden on competition, and, if that fee
proves to be excessive, broker-dealers would be able to purchase top-
of-book data from one of the Exchange's competitors offering a
substitute product. For all of these reasons, the Proposal will not
place any unnecessary or inappropriate burden on intramarket
competition.

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

    No written comments were either solicited or received.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act.\54\
---------------------------------------------------------------------------

    \54\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------

    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: (i)
Necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) otherwise in furtherance of the
purposes of the Act. If the Commission takes such action, the
Commission shall institute proceedings to determine whether the
proposed rule should be approved or disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-NASDAQ-2020-086 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NASDAQ-2020-086. 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 website (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 website 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. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-NASDAQ-2020-086 and should be submitted
on or before January 5, 2021.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\55\
---------------------------------------------------------------------------

    \55\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-27484 Filed 12-14-20; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 78, Number 23 (Monday, February 4, 2013)]
[Rules and Regulations]
[Pages 7645-7647]
[FR Doc No: 2013-02238]

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

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2012-0082; Directorate Identifier 2010-SW-036-AD;
Amendment 39-17318; AD 2013-01-04]
RIN 2120-AA64

Airworthiness Directives; Bell Helicopter Textron, Inc.,
Helicopters

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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

SUMMARY: We are adopting a new airworthiness directive (AD) for Bell
Helicopter Textron, Inc. (Bell), Model 412 and 412EP helicopters. This
AD requires creating a component history card or equivalent record and
begin counting and recording the number of accumulated landings for
each high aft crosstube assembly (crosstube). Also, this AD requires
installing ``caution'' decals regarding towing of a helicopter at or
above 8,900 pounds. This AD also requires confirming the crosstube is
within the horizontal deflection limits and replacing it if it is not.
This AD also requires a recurring fluorescent penetrant inspection
(FPI) of each crosstube and upper center support for a crack, any
corrosion, nick, scratch, dent, or any other damage. This AD requires
repairing damaged crosstubes and upper center supports that are within
acceptable limits, reworking crosstubes by bonding on abrasion strips,
and replacing each unairworthy crosstube with an airworthy crosstube.
This AD was prompted by analysis of the crosstubes conducted as a
result of recent field failures and corrosion problems of the affected
crosstubes. The actions are intended to prevent failure of a crosstube,
collapse of the landing gear, and subsequent loss of control of the
helicopter.

DATES: This AD is effective March 11, 2013.
    The Director of the Federal Register approved the incorporation by
reference of a certain document listed in this AD as of March 11, 2013.

ADDRESSES: For service information identified in this AD, contact Bell
Helicopter Textron, Inc., P.O. Box 482, Fort Worth, Texas 76101;
telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>; or at http://www.bellcustomer.com/files/. 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: Michael Kohner, Aviation Safety
Engineer, Rotorcraft Certification Office, Rotorcraft Directorate, FAA,
2601 Meacham Blvd., Fort Worth, Texas 76137; telephone<PHONE_NUMBER>;
email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Discussion

    On February 3, 2012, at 77 FR 5427, 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 Bell Model 412 and
412EP helicopters. That NPRM proposed to require counting and recording
the number of accumulated landings for each crosstube on a component
history card or equivalent record and installing CAUTION decals
regarding towing a helicopter that weighs at or above 8,900 pounds. The
NPRM also proposed to require confirming that the crosstube is within
the horizontal deflection limits and replacing it if it is not. Also,
the NPRM proposed to require a recurring FPI of each crosstube and
upper center support for a crack, any corrosion, a nick, scratch, dent,
or other damage, repairing each damaged crosstube and upper center
support if there is damage within acceptable limits, reworking each
crosstube by bonding abrasion strips, and replacing each unairworthy
crosstube.
    The affected crosstubes are the older non-anodized configuration
and have had a service history of corrosion problems. In response to
reports of field failures, Bell has completed a load level survey,
material coupon testing, and additional analysis of the crosstubes. The
results indicate that fatigue damage can occur during towing and
landing. The proposed requirements were intended to prevent failure of
a crosstube, collapse of the landing gear, and subsequent loss of
control of the helicopter.

Comments

    After our NPRM (77 FR 5427, February 3, 2012) was published, we
received comments from one commenter.

Request

    One commenter objected to the proposal because of ``continual
noise, pollution and aggravation as a result of low flying planes.''
The commenter expressed concern about additional airplanes operating at
lower altitudes for longer periods of time over her home near
Peachtree-Dekalb Airport, Georgia. We find that this comment does not
pertain to the NPRM (77 FR 5427,

February 3, 2012) regarding Bell Model 412 and 412EP helicopters, and
believe the comment was attached to the NPRM in error. We find the
comment does not warrant extending the comment period or withdrawing
the proposed action.

FAA's Determination

    We have reviewed the relevant information, considered the comment
received, and determined that an 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.

Related Service Information

    We have reviewed Bell Helicopter Alert Service Bulletin No. 412-09-
135, dated August 25, 2009 (ASB). The ASB specifies, within 6 months
after receiving the ASB, for each affected crosstube, a recurring 12
month/2500 landing FPI, a recurring 12 month/2500 landing deflection
check, and use of a towing retention kit per BHT-412-SI-58 Gross Weight
Towing Kit Provisions and Puller Equipment for helicopters that weigh
8900 pounds or higher.

Costs of Compliance

    We estimate that this AD will affect 115 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 to create
a component history card or equivalent record and begin to determine
and record the number of accumulated landings; 0.5 work-hour to install
caution decals on the pilot and co-pilot side of each helicopter; 0.5
work-hour to measure the horizontal deflection of each crosstube; 3
work-hours to inspect and prepare the area and do an FPI on each
crosstube; 4 work-hours to rework a crosstube, assuming 5 will need to
be reworked; and 2 work-hours to replace a crosstube, assuming 3 will
need to be replaced. The average labor rate is $85 per work-hour and
required parts for a replacement crosstube will cost about $9,315 per
helicopter. Based on these figures, we estimate the total cost impact
of this AD on U.S. operators to be $79,030.

Authority for This Rulemaking

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

Regulatory Findings

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

2013-01-04 Bell Helicopter Textron, Inc.: Amendment 39-17318; Docket
No. FAA-2012-0082; Directorate Identifier 2010-SW-036-AD.

(a) Applicability

    This AD applies to Bell Helicopter Textron, Inc. (Bell), Model
412 and 412EP helicopters with a high aft crosstube assembly
(crosstube), part number (P/N) 412-050-011-101, -103, -105, -107; or
412-050-045-105, installed, certificated in any category.

(b) Unsafe Condition

    This AD defines the unsafe condition as failure and corrosion of
the affected crosstubes. This condition could result in collapse of
the landing gear and subsequent loss of control of the helicopter.

(c) Effective Date

    This AD becomes effective March 11, 2013.

(d) Compliance

    You are responsible for performing each action required by this
AD within the specified compliance time unless it has already been
accomplished prior to that time.

(e) Required Actions

    (1) Within 50 hours time-in-service (TIS):
    (i) For each crosstube, create a component history card or
equivalent record. Begin to count and record the number of
accumulated landings for each crosstube. For the purposes of this
AD, a landing would be counted anytime the helicopter lifts off into
the air and then lands again with any further reduction of the
collective after the landing gear touches the ground.
    (ii) Install CAUTION decals, P/N 212-070-600-143, on the pilot
and co-pilot sides of each helicopter as depicted in Figure 3 of
Bell Helicopter Alert Service Bulletin No. 412-09-135, dated August
25, 2009 (ASB), and by following the Accomplishment Instructions,
Part III--Towing, paragraph 1., of the ASB.
    (2) Within 6 months and thereafter at intervals not to exceed 12
months or 2,500 landings, whichever occurs first, determine the
horizontal deflection of each crosstube from the centerline of the
helicopter (BL 0.0) to the outside edge of each skid tube. Before
further flight, replace any crosstube that exceeds any maximum
allowable deflection limit contained in the maintenance manual.
    (3) Within 6 months and thereafter at intervals not to exceed 12
months or 2,500 landings, whichever occurs first:
    (i) Remove and disassemble the landing gear assembly to prepare
each crosstube for a fluorescent penetrant inspection (FPI) by
following the Accomplishment Instructions, Part I, paragraphs 1.
through 9., of the ASB.

    Note 1 to paragraph (e)(3)(i) of this AD: Abrasion strip, P/N
206-050-301-111; lower center support, P/N 412-050-007-101, with the
incorporated Larson L101 abrasion strip; and lower center support,
P/N 604-026-003, if installed on any crosstube, P/N 412-050-045-105,
or reworked crosstubes, P/N 412-050-011-101, -103, -105, or -107,
are only removed if required by following the instructions in the
ASB (see items 2, 5, and 6 in Figure 1 of the ASB).

    (ii) Clean and prepare the crosstube for the FPI by removing the
sealant and paint in the

area depicted in Figure 2 of the ASB by following the Accomplishment
Instructions, Part I, ``Cleaning and Preparation,'' paragraphs 1.
through 5., of the ASB.
    (iii) Perform an FPI of each crosstube and upper center support,
P/N 412-050-006-101, for a crack, any corrosion, a nick, scratch,
dent, or any other damage by following the Accomplishment
Instructions, Part I, ``Inspection,'' paragraphs 1. through 3. of
the ASB. Use Table 2 in the ASB to determine the appropriate
Inspection Criteria Table to use in the maintenance manual, which
list the maximum repair damage limits for each crosstube P/N
applicable to this AD.
    (iv) Repair the crosstube or upper center support if there is
any corrosion, a nick, scratch, dent, or any other damage that is
within the maximum repair damage limits, before further flight, or
replace the crosstube with an airworthy crosstube.

    Note 2 to paragraph (e)(3)(iv) of this AD: The repair procedures
are specified in the Component Repair and Overhaul Manual.

    (v) If there is a crack or other damage beyond any of the
maximum repair damage limits, before further flight, replace the
crosstube with an airworthy crosstube.
    (4) Before further flight, after completing paragraph (e)(3) of
this AD, rework each crosstube P/N 412-050-011-101, -103, -105, or -
107 by applying the bonding procedures and abrasion strips on the
under side of the crosstubes at BL 0.0 and BL 14 by following the
Accomplishment Instructions, Part I, ``Rework of Crosstubes,''
paragraphs 1. through 10. of the ASB. Record on the component
history card or equivalent record an ``FM'' to the end of the part
number sequence of each crosstube that has been reworked (for
example, 412-050-011-107FM). Omit the Larson L101 abrasion strip at
BL 0.0 on each crosstube when installing lower center support, P/N
604-026-003 (see item 6 in Figure 1 of the ASB).

(f) Special Flight Permits

    Special flight permits for inspections only may be issued under
14 CFR 21.197 and 21.199 to operate the helicopter to a location
where the requirements of this AD can be accomplished.

(g) Alternative Methods of Compliance (AMOCs)

    (1) The Manager, Rotorcraft Certification Office, FAA, may
approve AMOCs for this AD. Send your proposal to: Michael Kohner,
Aviation Safety Engineer, Rotorcraft Certification Office,
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.

(h) Subject

    Joint Aircraft Service Component (JASC) Code: 3210, Main Landing
Gear.

(i) Material Incorporated by Reference

    (1) The Director of the Federal Register approved the
incorporation by reference (IBR) of the service information listed
in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51.
    (2) You must use this service information as applicable to do
the actions required by this AD, unless the AD specifies otherwise.
    (i) Bell Helicopter Alert Service Bulletin No. 412-09-135, dated
August 25, 2009.
    (ii) Reserved.
    (3) For Bell Helicopter service information identified in this
AD, contact Bell Helicopter Textron, Inc., P.O. Box 482, Fort Worth,
Texas 76101; telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>; or at
http://www.bellcustomer.com/files/.
    (4) You may view this service information at FAA, Office of the
Regional Counsel, Southwest Region, 2601 Meacham Blvd., Room 663,
Fort Worth, Texas 76137. For information on the availability of this
material at the FAA, call<PHONE_NUMBER>.
    (5) 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 Fort Worth, Texas, on January 9, 2013.
Kim Smith,
Directorate Manager, Rotorcraft Directorate, Aircraft Certification
Service.
[FR Doc. 2013-02238 Filed 2-1-13; 8:45 am]
BILLING CODE 4910-13-P