[Federal Register Volume 87, Number 230 (Thursday, December 1, 2022)]
[Proposed Rules]
[Pages 73683-73686]
[FR Doc No: 2022-26126]

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Proposed Rules
                                                Federal Register
________________________________________________________________________

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

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

Federal Register / Vol. 87, No. 230 / Thursday, December 1, 2022 /
Proposed Rules

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2022-1405; Project Identifier AD-2022-01070-E]
RIN 2120-AA64

Airworthiness Directives; CFM International, S.A. Turbofan
Engines

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: The FAA proposes to supersede Airworthiness Directive (AD)
2021-10-09, which applies to all CFM International, S.A. (CFM) CFM56-5B
and CFM56-7B model turbofan engines with a certain high-pressure
turbine (HPT) inner stationary seal installed. AD 2021-10-09 requires
removal, inspection, and replacement of the affected HPT inner
stationary seal and, depending on the findings, replacement of the
rotating air HPT front seal, HPT rotor blades, and No. 3 ball bearing.
Since the FAA issued AD 2021-10-09, the manufacturer notified the FAA
that the service information incorrectly lists the year of certain
honeycomb repairs. Additionally, the manufacturer notified the FAA that
affected HPT inner stationary seals could potentially be installed on
CFM CFM56-5C model turbofan engines. This proposed AD would require
removal, inspection, and replacement of the affected HPT inner
stationary seal and, depending on the findings, replacement of the
rotating air HPT front seal, HPT rotor blades, and No. 3 ball bearing.
This proposed AD would also revise the applicability to add CFM CFM56-
5C model turbofan engines. The FAA is proposing this AD to address the
unsafe condition on these products.

DATES: The FAA must receive comments on this proposed AD by January 17,
2023.

ADDRESSES: You may send comments, using the procedures found in 14 CFR
11.43 and 11.45, by any of the following methods:
     Federal eRulemaking Portal: Go to 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: Deliver to Mail address above between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.
    AD Docket: You may examine the AD docket at regulations.gov by
searching for and locating Docket No. FAA-2022-1405; or in person at
Docket Operations between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays. The AD docket contains this NPRM, any comments
received, and other information. The street address for Docket
Operations is listed above.
    Material Incorporated by Reference:
     For CFM service information identified in this NPRM,
contact CFM International Inc., Aviation Operations Center, 1 Neumann
Way, M/D Room 285, Cincinnati, OH 45125; phone:<PHONE_NUMBER>; email:
[email protected].
     You may view this service information at the FAA,
Airworthiness Products Section, Operational Safety Branch, 1200
District Avenue, Burlington, MA 01803. For information on the
availability of this material at the FAA, call<PHONE_NUMBER>.

FOR FURTHER INFORMATION CONTACT: Kevin Clark, Aviation Safety Engineer,
ECO Branch, FAA, 1200 District Avenue, Burlington, MA 01803; phone:
(781) 238-7088; email: [email protected].

SUPPLEMENTARY INFORMATION:

Comments Invited

    The FAA invites you to send any written relevant data, views, or
arguments about this proposal. Send your comments to an address listed
under ADDRESSES. Include ``Docket No. FAA-2022-1405; Project Identifier
AD-2022-01070-E'' at the beginning of your comments. The most helpful
comments reference a specific portion of the proposal, explain the
reason for any recommended change, and include supporting data. The FAA
will consider all comments received by the closing date and may amend
the proposal because of those comments.
    Except for Confidential Business Information (CBI) as described in
the following paragraph, and other information as described in 14 CFR
11.35, the FAA will post all comments received, without change, to
regulations.gov, including any personal information you provide. The
agency will also post a report summarizing each substantive verbal
contact received about this NPRM.

Confidential Business Information

    CBI is commercial or financial information that is both customarily
and actually treated as private by its owner. Under the Freedom of
Information Act (FOIA) (5 U.S.C. 552), CBI is exempt from public
disclosure. If your comments responsive to this NPRM contain commercial
or financial information that is customarily treated as private, that
you actually treat as private, and that is relevant or responsive to
this NPRM, it is important that you clearly designate the submitted
comments as CBI. Please mark each page of your submission containing
CBI as ``PROPIN.'' The FAA will treat such marked submissions as
confidential under the FOIA, and they will not be placed in the public
docket of this NPRM. Submissions containing CBI should be sent to Kevin
Clark, Aviation Safety Engineer, ECO Branch, FAA, 1200 District Avenue,
Burlington, MA 01803. Any commentary that the FAA receives which is not
specifically designated as CBI will be placed in the public docket for
this rulemaking.

Background

    The FAA issued AD 2021-10-09, Amendment 39-21542 (86 FR 27264, May
20, 2021) (AD 2021-10-09), for all CFM CFM56-5B and CFM56-7B model
turbofan engines with an HPT inner stationary seal, part number (P/N)
1808M56G01, installed. AD 2021-10-09 was prompted by cracks found in
the rotating air HPT front seal. After investigation, CFM determined
that the HPT inner stationary seal, P/N 1808M56G01, may not have
received the correct braze heat treat cycle at the time of the
honeycomb replacement. As a result, the affected HPT inner stationary
seal may have a condition that could lead to a localized separation

of the replaced honeycomb, which may reduce the life of the rotating
air HPT front seal. AD 2021-10-09 requires removal, inspection, and
replacement of the affected HPT inner stationary seal and, depending on
the findings, replacement of the rotating air HPT front seal, HPT rotor
blades, and No. 3 ball bearing. The agency issued AD 2021-10-09 to
prevent failure of the HPT inner stationary seal and the rotating air
HPT front seal, which could result in uncontained release of the
rotating air HPT front seal, damage to the engine, and damage to the
airplane.

Actions Since AD 2021-10-09 Was Issued

    Since the FAA issued AD 2021-10-09, the manufacturer notified the
FAA that the service information, which is incorporated by reference,
incorrectly lists the year of certain honeycomb repairs. The
manufacturer subsequently published revised service information that
establishes a single date for the honeycomb repairs. Additionally, the
manufacturer notified the FAA that affected HPT inner stationary seals
could be installed on CFM CFM56-5C model turbofan engines. The FAA,
therefore, determined that the unsafe condition is likely to exist or
develop on CFM CFM56-5C model turbofan engines with an affected HPT
inner stationary seal installed.

FAA's Determination

    The FAA is issuing this NPRM after determining that the unsafe
condition described previously is likely to exist or develop on other
products of the same type design.

Related Service Information Under 1 CFR Part 51

    The FAA reviewed the following service information:
     CFM Service Bulletin (SB) CFM56-5C S/B 72-0796, Revision
02, dated August 10, 2022.
     CFM SB CFM56-5B S/B 72-0952, Revision 02, dated August 10,
2022.
     CFM SB CFM56-7B S/B 72-1054, Revision 02, dated August 10,
2022.
    This service information, differentiated by engine model, specifies
procedures for inspecting the HPT inner stationary seal honeycomb. This
service information is reasonably available because the interested
parties have access to it through their normal course of business or by
the means identified in ADDRESSES.

Proposed AD Requirements in This NPRM

    This proposed AD would retain none of the requirements of AD 2021-
10-09. This proposed AD would require removal, inspection, and
replacement of the affected HPT inner stationary seal and, depending on
the findings, replacement of the rotating air HPT front seal, HPT rotor
blades, and No. 3 ball bearing. This proposed AD would also revise the
applicability to add CFM CFM56-5C model turbofan engines.

Costs of Compliance

    The FAA estimates that this AD, if adopted as proposed, would
affect 210 engines installed on airplanes of U.S. registry. Operators
have the option to replace or repair the affected HPT inner stationary
seal. The parts cost includes the estimated costs for replacement with
a repaired HPT inner stationary seal.
    The FAA estimates the following costs to comply with this proposed
AD:

                                                 Estimated Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per      Cost on U.S.
                Action                         Labor cost           Parts cost        product        operators
----------------------------------------------------------------------------------------------------------------
Replace HPT inner stationary seal.....  1 work-hour x $85 per             $7,910          $7,995      $1,678,950
                                         hour = $85.
Inspect HPT inner stationary seal.....  1 work-hour x $85 per                  0              85          17,850
                                         hour = $85.
----------------------------------------------------------------------------------------------------------------

    The FAA estimates the following costs to do any necessary
replacements that would be required based on the results of the
proposed inspection. The agency has no way of determining the number of
engines that might need these replacements:

                                               On-Condition Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per
                    Action                                 Labor cost               Parts cost        product
----------------------------------------------------------------------------------------------------------------
Replace rotating air HPT front seal...........  1 work-hour x $85 per hour = $85        $344,600        $344,685
Replace HPT rotor blades (pair)...............  1 work-hour x $85 per hour = $85          31,000          31,085
Replace No. 3 ball bearing....................  1 work-hour x $85 per hour = $85          30,000          30,085
----------------------------------------------------------------------------------------------------------------

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.
    The FAA is 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

    The FAA determined that this proposed AD would not have federalism
implications under Executive Order 13132. This proposed AD would not
have a substantial direct effect on the States, on the relationship
between the national Government and the States, or on the distribution
of power and responsibilities among the various levels of government.
    For the reasons discussed above, I certify that the proposed
regulation:
    (1) Is not a ``significant regulatory action'' under Executive
Order 12866,
    (2) Would not affect intrastate aviation in Alaska, and
    (3) Would not have a significant economic impact, positive or
negative, on a substantial number of small entities

under the criteria of the Regulatory Flexibility Act.

List of Subjects in 14 CFR Part 39

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

The Proposed Amendment

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

PART 39--AIRWORTHINESS DIRECTIVES

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

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

Sec.  39.13  [Amended]

0
2. The FAA amends Sec.  39.13 by:
0
a. Removing Airworthiness Directive 2021-10-09, Amendment 39-21542 (86
FR 27264, May 20, 2021); and
0
b. Adding the following new airworthiness directive:

CFM International, S.A.: Docket No. FAA-2022-1405; Project
Identifier AD-2022-01070-E.

(a) Comments Due Date

    The FAA must receive comments on this airworthiness directive
(AD) action by January 17, 2023.

(b) Affected ADs

    This AD replaces AD 2021-10-09, Amendment 39-21542 (86 FR 27264,
May 20, 2021) (AD 2021-10-09).

(c) Applicability

    This AD applies to CFM International, S.A. (CFM) model turbofan
engines identified in Table 1 to paragraph (c) of this AD with an
installed high-pressure turbine (HPT) inner stationary seal, part
number (P/N) 1808M56G01, that has a serial number (S/N) listed in
Table 1 of CFM Service Bulletin (SB) CFM56-5B S/B 72-0952, Revision
02, dated August 10, 2022 (CFM SB CFM56-5B S/B 72-0952); Table 1 of
CFM SB CFM56-5C S/B 72-0796, Revision 02, dated August 10, 2022 (CFM
SB CFM56-5C S/B 72-0796); or Table 1 of CFM SB CFM56-7B S/B 72-1054,
Revision 02, dated August 10, 2022 (CFM SB CFM56-7B S/B 72-1054).

          Table 1 to Paragraph (c)--CFM Model Turbofan Engines
------------------------------------------------------------------------
          Make                                Model
------------------------------------------------------------------------
CFM....................  CFM56-5B1, CFM56-5B1/2P, CFM56-5B1/3, CFM56-5B1/
                          P, CFM56-5B2, CFM56-5B2/2P, CFM56-5B2/3, CFM56-
                          5B2/P, CFM56[dash]5B3/2P, CFM56[dash]5B3/2P1,
                          CFM56-5B3/3, CFM56-5B3/3B1, CFM56-5B3/P,
                          CFM56[dash]5B3/P1, CFM56[dash]5B4, CFM56-5B4/
                          2P, CFM56[dash]5B4/2P1, CFM56[dash]5B4/3,
                          CFM56[dash]5B4/3B1, CFM56-5B4/P, CFM56-5B4/P1,
                          CFM56[dash]5B5, CFM56-5B5/3, CFM56-5B5/P,
                          CFM56[dash]5B6, CFM56-5B6/2P, CFM56-5B6/3,
                          CFM56-5B6/P, CFM56-5B7, CFM56-5B7/3,
                          CFM56[dash]5B7/P, CFM56-5B8/3, CFM56-5B8/P,
                          CFM56-5B9/2P, CFM56[dash]5B9/3, CFM56[dash]5B9/
                          P.
CFM....................  CFM56-5C2, CFM56-5C2/4, CFM56-5C2/F, CFM56-5C2/
                          F4, CFM56[dash]5C2/G, CFM56-5C2/G4, CFM56-5C2/
                          P, CFM56-5C3/F, CFM56[dash]5C3/F4, CFM56-5C3/
                          G, CFM56-5C3/G4, CFM56-5C3/P, CFM56[dash]5C4,
                          CFM56-5C4/1, CFM56-5C4/1P, CFM56-5C4/P.
CFM....................  CFM56-7B20, CFM56-7B20/2, CFM56-7B20/3,
                          CFM56[dash]7B20E, CFM56[dash]7B22, CFM56-7B22/
                          2, CFM56-7B22/3, CFM56-7B22/3B1,
                          CFM56[dash]7B22/B1, CFM56-7B22E, CFM56-7B22E/
                          B1, CFM56[dash]7B24, CFM56[dash]7B24/2, CFM56-
                          7B24/3, CFM56-7B24/3B1, CFM56-7B24/B1, CFM56-
                          7B24E, CFM56-7B24E/B1, CFM56[dash]7B26, CFM56-
                          7B26/2, CFM56[dash]7B26/3, CFM56-7B26/3B1,
                          CFM56-7B26/3B2, CFM56[dash]7B26/3B2F,
                          CFM56[dash]7B26/3F, CFM56[dash]7B26/B1, CFM56-
                          7B26/B2, CFM56-7B26E, CFM56[dash]7B26E/B1,
                          CFM56-7B26E/B2, CFM56[dash]7B26E/B2F,
                          CFM56[dash]7B26E/F, CFM56-7B27, CFM56-7B27/2,
                          CFM56-7B27/3, CFM56[dash]7B27/3B1, CFM56-7B27/
                          3B1F, CFM56[dash]7B27/3B3, CFM56[dash]7B27/3F,
                          CFM56-7B27/B1, CFM56-B27/B3, CFM56-7B27A,
                          CFM56-7B27A/3, CFM56-7B27AE, CFM56-7B27E,
                          CFM56-7B27E/B1, CFM56-7B27E/B1F, CFM56-7B27E/
                          B3, CFM56[dash]7B27E/F.
------------------------------------------------------------------------

(d) Subject

    Joint Aircraft System Component (JASC) Code 7230, Turbine Engine
Compressor Section.

(e) Unsafe Condition

    This AD was prompted by cracks found in the rotating air HPT
front seal. The FAA is issuing this AD to prevent failure of the HPT
inner stationary seal and the rotating air HPT front seal. The
unsafe condition, if not addressed, could result in uncontained
release of the rotating air HPT front seal, damage to the engine,
and damage to the airplane.

(f) Compliance

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

(g) Required Actions

    (1) At the next engine shop visit after the effective date of
this AD, remove the affected HPT inner stationary seal and replace
with an HPT inner stationary seal that is eligible for installation.
    (2) After removing the affected HPT inner stationary seal
required by paragraph (g)(1) of this AD, inspect the removed HPT
inner stationary seal for honeycomb separation in accordance with
the Accomplishment Instructions, paragraph 3.C.(1), of CFM SB CFM56-
5B S/B 72-0952; CFM SB CFM56-5C S/B 72-0796; or CFM SB CFM56-7B S/B
72-1054, as applicable by engine model.
    (3) If honeycomb separation is found during the inspection
required by paragraph (g)(2) of this AD, before further flight:
    (i) Remove the rotating air HPT front seal from service and
replace with a rotating air HPT front seal that is eligible for
installation.
    (ii) Remove the HPT rotor blades and replace with HPT rotor
blades eligible for installation.
    (iii) Remove the No. 3 ball bearing from service and replace
with a No. 3 ball bearing eligible for installation.

(h) Definitions

    (1) For the purpose of this AD, an ``engine shop visit'' is the
induction of an engine into the shop for maintenance involving the
separation of pairs of major mating engine case flanges, except for
the following situations, which do not constitute an engine shop
visit.
    (i) Separation of engine flanges solely for the purpose of
transportation of the engine without subsequent maintenance.
    (ii) Separation of engine flanges solely for the purpose of
replacing the fan or propulsor without subsequent maintenance.
    (2) For the purpose of this AD, an ``HPT inner stationary seal
that is eligible for installation'' is an HPT inner stationary seal:
    (i) That is not listed in Table 1 of CFM SB CFM56-5B S/B 72-
0952; Table 1 of CFM SB CFM56-5C S/B 72-0796; or Table 1 CFM SB
CFM56-7B S/B 72-1054; or
    (ii) With a P/N 1808M56G01 and an S/N listed in Table 1 of CFM
SB CFM56-5B S/B 72-0952; Table 1 of CFM SB CFM56-5C S/B 72-0796; or
Table 1 of CFM SB CFM56-7B S/B 72-1054, that has been repaired as
specified in CFM56-5B ESM, 72-41-03, REPAIR 003; CFM56-5C ESM, 72-
41-03, REPAIR 003; or CFM56-7B ESM, 72-41-03, REPAIR 003, as
applicable by engine model, after December 31, 2012.
    (3) For the purpose of this AD, a ``rotating air HPT front seal
that is eligible for installation'' is any rotating air HPT front
seal that was not removed from service as a result of the inspection
of the HPT inner stationary seal required by paragraph (g)(2) of
this AD in which there was a finding of honeycomb separation.
    (4) For the purpose of this AD, ``HPT rotor blades eligible for
installation'' are new HPT rotor blades with zero flight hours since
new or HPT rotor blades that have been inspected and returned to a
serviceable condition using FAA-approved maintenance procedures.

    (5) For the purpose of this AD, a ``No. 3 ball bearing eligible
for installation'' is any No. 3 ball bearing that was not removed
from service as a result of the inspection of the HPT inner
stationary seal required by paragraph (g)(2) of this AD in which
there was a finding of honeycomb separation.

(i) Credit for Previous Actions

    You may take credit for the actions specified in paragraphs
(g)(1) through (3) of this AD, if you performed those actions before
the effective date of this AD using CFM SB CFM56-5B S/B 72-0952,
Revision 01, dated January 15, 2020, CFM SB CFM56-7B S/B 72-1054,
Revision 01, dated January 15, 2020, or CFM SB CFM56-5C S/B 72-0796
Revision 01, dated January 15, 2020.

(j) Alternative Methods of Compliance (AMOCs)

    (1) The Manager, ECO Branch, FAA, has the authority to approve
AMOCs for this AD, if requested using the procedures found in 14 CFR
39.19. In accordance with 14 CFR 39.19, send your request to your
principal inspector or local Flight Standards District Office, as
appropriate. If sending information directly to the manager of the
certification office, send it to the attention of the person
identified in paragraph (k)(1) of this AD and email to: [email protected].
    (2) Before using any approved AMOC, notify your appropriate
principal inspector, or lacking a principal inspector, the manager
of the local flight standards district office/certificate holding
district office.
    (3) AMOCs approved for AD 2021-10-09 (86 FR 27264, May 20, 2021)
are approved as AMOCs for the corresponding provisions of this AD.

(k) Related Information

    (1) For more information about this AD, contact Kevin Clark,
Aviation Safety Engineer, ECO Branch, FAA, 1200 District Avenue,
Burlington, MA 01803; phone:<PHONE_NUMBER>; email:
[email protected].
    (2) Service information identified in this AD that is not
incorporated by reference is available at the addresses specified in
paragraphs (1)(3) and (4) of this AD.

(l) 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) CFM Service Bulletin (SB) CFM56-5C S/B 72-0796, Revision 02,
dated August 10, 2022.
    (ii) CFM SB CFM56-5B S/B 72-0952, Revision 02, dated August 10,
2022.
    (iii) CFM SB CFM56-7B S/B 72-1054, Revision 02, dated August 10,
2022.
    (3) For CFM service information identified in this AD, contact
CFM International Inc., Aviation Operations Center, 1 Neumann Way,
M/D Room 285, Cincinnati, OH 45125; phone:<PHONE_NUMBER>; email:
[email protected].
    (4) You may view this service information at FAA, Airworthiness
Products Section, Operational Safety Branch, 1200 District Avenue,
Burlington, MA 01803. 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, email: [email protected], or go to: www.archives.gov/federal-register/cfr/ibr-locations.html.

    Issued on October 27, 2022.
Christina Underwood,
Acting Director, Compliance & Airworthiness Division, Aircraft
Certification Service.
[FR Doc. 2022-26126 Filed 11-30-22; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 82, Number 80 (Thursday, April 27, 2017)]
[Notices]
[Pages 19427-19429]
[FR Doc No: 2017-08464]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80504; File No. SR-Phlx-2017-32]

Self-Regulatory Organizations; NASDAQ PHLX, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Rule 1002
of the Exchange's Rules To Establish Certain Exemptions From Exercise
Limits

April 21, 2017.
    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 April 11, 2017, NASDAQ PHLX, LLC (``PHLX'' or ``Exchange'') filed
with the Securities and Exchange Commission (``SEC'' or ``Commission'')
the proposed rule change as described in Items I and II 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 amend Rule 1002 of the Exchange's Rules,
as described in further detail below.
    The text of the proposed rule change is available on the Exchange's
Web site at http://www.nasdaqphlx.cchwallstreet.com, at the principal
office of

the Exchange, and at the Commission's Public Reference Room.

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

    In its filing with the Commission, the 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
    The purpose of the proposed rule change is to amend Rule 1002 of
the Exchange's rules (the ``Rules''), which pertains to exercise
limits, so that it is more consistent with the rules of PHLX's sister
exchange, Nasdaq ISE, LLC (``ISE'').
    Although Rule 1001 of the Exchange's Rules provides for numerous
exemptions to the position limits that the Exchange imposes, Rule
1002(c) provides that ``[t]he Exchange will not approve exercises
exceeding the [exercise] limits established pursuant to this Rule
except in highly unusual circumstances.'' Rule 1002(c) further provides
that an exemption request must be made in writing and set forth the
facts justifying the exemption, and that such a request is subject to
the approval of an Options Exchange Official.\3\
---------------------------------------------------------------------------

    \3\ See PHLX Rule 1002(c).
---------------------------------------------------------------------------

    In contrast to PHLX, the rules of ISE do not impose such onerous
requirements for approving exemptions from exercise limits. ISE Rule
414(c) states that ``[f]or a Member that has been granted an exemption
to position limits pursuant to Rule 413(a), the number of contracts
which can be exercised over a five (5) business day period shall equal
the Member's exempted position.'' Rule 413(a) provides for equity hedge
and delta-based equity hedge position limit exemptions.
    The Exchange proposes to harmonize Rule 1002 with ISE Rule 414(c)
by authorizing exercise limit exemptions as a matter of course, and
without requiring members and member organizations to submit written
requests and obtain specific approvals for these exemptions, to the
extent that such members or member organizations are exempt from
position limits as set forth in Rule 1001. Specifically, the Exchange
proposes to replace the existing language of Rule 1002(c) with the
language of ISE Rule 414(c), except that the Exchange proposes to
specify that exercise exemption limits are available to members and
member organizations to the extent that they are exempt from position
limits pursuant to Rule 1001(l) (exempting equity option hedges) or
Rule 1001(n) (exempting delta-based equity hedges).
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\4\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\5\ in particular, in that it is designed to prevent
fraudulent and manipulative acts and practices, to promote just and
equitable principles of trade, to remove impediments to and perfect the
mechanisms of a free and open market and a national market system and,
in general, to protect investors and the public interest.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that its proposal promotes just and equitable
principles of trade and a free and open market by granting exercise
limit exemptions to a similar extent and under similar circumstances as
do other options exchanges, while eliminating the onerous requirement
that the Exchange's members and member organizations must obtain
approval for such exemptions in each instance and pursuant to written
requests. Additionally, broadening the availability of exercise limit
exemptions would facilitate risk management practices of members and
member organizations.

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.

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

    Because the proposed rule change does not: (i) Significantly affect
the protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.\6\
---------------------------------------------------------------------------

    \6\ In addition, Rule 19b-4(f)(6)(iii) requires the Exchange to
give the Commission written notice of the Exchange's intent to file
the proposed rule change, along with a brief description and text of
the proposed rule change, at least five business days prior to the
date of filing of the proposed rule change, or such shorter time as
designated by the Commission. The Exchange has satisfied this
requirement.
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \7\ normally
does not become operative prior to 30 days after the date of the
filing. However, Rule 19b-4(f)(6)(iii) \8\ permits the Commission to
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative immediately upon filing.
---------------------------------------------------------------------------

    \7\ 17 CFR 240.19b-4(f)(6).
    \8\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

    The Commission believes that waiver of the 30-day operative delay
is consistent with the protection of investors and the public interest.
The Commission notes that the Exchange's proposal to adopt exemptions
from exercise limits tracks the exemptions from such limits already in
place in the rules of ISE. Accordingly, the Commission hereby waives
the 30-day operative delay and designates the proposed rule change as
operative upon filing.\9\
---------------------------------------------------------------------------

    \9\ For purposes only of waiving the 30-day operative delay, the
Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings

under Section 19(b)(2)(B) \10\ of the Act to determine whether the
proposed rule change should be approved or disapproved.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

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-Phlx-2017-32 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-Phlx-2017-32. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-Phlx-2017-32 and should be
submitted on or before May 18, 2017.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-08464 Filed 4-26-17; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 85, Number 45 (Friday, March 6, 2020)]
[Rules and Regulations]
[Pages 12997-12998]
[FR Doc No: 2020-04419]

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

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2019-0846; Airspace Docket No. 19-AWP-78]
RIN 2120-AA66

Amendment of Air Traffic Service (ATS) Route V-165; Western
United States

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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

SUMMARY: This action amends one domestic Very High Frequency
Omnidirectional Range (VOR) Federal airway V-165 in the western United
States. The modifications are necessary due to the planned
decommissioning of Clovis, CA, VOR portion of the VOR/Tactical Air
Navigation (VORTAC) navigation aid (NAVAID), which provides navigation
guidance for portions of the affected ATS route. The Clovis, CA, VOR is
being decommissioned as part of the FAA's VOR Minimum Operational
Network (MON) program.

DATES: Effective date 0901 UTC, May 21, 2020. The Director of the
Federal Register approves this incorporation by reference action under
Title 1 Code of Federal Regulations part 51, subject to the annual
revision of FAA Order 7400.11 and publication of conforming amendments.

ADDRESSES: FAA Order 7400.11D, Airspace Designations and Reporting
Points, and subsequent amendments can be viewed online at https://www.faa.gov/air_traffic/publications/. For further information, you can
contact the Rules and Regulations Group, Federal Aviation
Administration, 800 Independence Avenue SW, Washington, DC 20591;
telephone:<PHONE_NUMBER>. The Order is also available for inspection
at the National Archives and Records
    Administration (NARA). For information on the availability of FAA
Order 7400.11D at NARA, email<EMAIL_ADDRESS>or go to https://www.archives.gov/federal-register/cfr/ibr-locations.html.

FOR FURTHER INFORMATION CONTACT: Kenneth Ready, Rules and Regulations
Group, Office of Policy, Federal Aviation Administration, 800
Independence Avenue SW, Washington, DC 20591; telephone: (202) 267-
8783.

SUPPLEMENTARY INFORMATION:

Authority for This Rulemaking

    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the United States Code. 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. This rulemaking is promulgated under the authority described
in Subtitle VII, Part A, Subpart I, Section 40103. Under that section,
the FAA is charged with prescribing regulations to assign the use of
the airspace necessary to ensure the safety of aircraft and the
efficient use of airspace. This regulation is within the scope of that
authority as it supports modifying the air traffic service route
structure in the western United States to maintain the efficient flow
of air traffic.

History

    The FAA published a notice of proposed rulemaking for Docket No.
FAA-2019-0846 in the Federal Register (84 FR 67385; December 10, 2019),
amending VOR Federal airway V-165 in the western United States.
Interested parties were invited to participate in this rulemaking
effort by submitting written comments on the proposal. No comments were
received.
    Domestic VOR Federal airways are published in paragraph 6010, of
FAA Order 7400.11D dated August 8, 2019, and effective September 15,
2019, which is incorporated by reference in 14 CFR 71.1. The VOR
Federal airway listed in this document will be subsequently published
in the Order.
    FAA Order 7400.11, Airspace Designations and Reporting Points, is
published yearly and effective on September 15.

Availability and Summary of Documents for Incorporation by Reference

    This document amends FAA Order 7400.11D, Airspace Designations and
Reporting Points, dated August 8, 2019, and effective September 15,
2019. FAA Order 7400.11D is publicly available as listed in the
ADDRESSES section of this document. FAA Order 7400.11D lists Class A,
B, C, D, and E airspace areas, air traffic service routes, and
reporting points.

The Rule

    The FAA is amending Title 14 Code of Federal Regulations (14 CFR)
part 71 by amending domestic VOR Federal airway V-165. The route change
is outlined below.
    V-165: V-165 is amended on the segment between Tule, CA, VOR/DME
and the Mustang, NV, VORTAC. The ATS route will stop at EXTRA
intersection (INT Tule, CA 339[deg] and Avenal, CA, 042[deg] radials)
and then resume at MARRI intersection (INT Squaw Valley, CA 133[deg]
and Mustang, NV, 183[deg] radials). The unaffected portion of the
existing federal airway will remain as charted.

Regulatory Notices and Analyses

    The FAA has determined that this regulation only involves an
established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current.
It, therefore: (1) Is not a ``significant regulatory action'' under
Executive Order 12866; (2) is not a ``significant rule'' under
Department of Transportation (DOT) Regulatory Policies and Procedures
(44 FR 11034; February 26, 1979); and (3) does not warrant preparation
of a regulatory evaluation as the anticipated impact is so minimal.
Since this is a routine matter that only affects air traffic procedures
and air navigation, it is certified that this rule, when promulgated,
does not have a significant economic impact on a substantial number of
small entities under the criteria of the Regulatory Flexibility Act.

Environmental Review

    The FAA has determined that this action of amending domestic VOR
Federal airway V-165 in the western United States qualifies for
categorical exclusion under the National Environmental Policy Act and
its implementing regulations at 40 CFR part 1500, and in accordance
with FAA Order 1050.1F, Environmental Impacts: Policies and Procedures,
paragraph 5-6.5a, which categorically excludes from further
environmental impact review rulemaking actions that designate or modify
classes of airspace areas, airways, routes, and reporting points (see
14 CFR part 71, Designation of Class A, B, C, D, and E Airspace Areas;
Air Traffic Service Routes; and Reporting Points). As such, this action
is not expected to cause any potentially significant environmental
impacts. In accordance with FAA Order 1050.1F, paragraph 5-2 regarding
Extraordinary Circumstances, the FAA has reviewed this action for
factors and circumstances in which a normally categorically excluded
action may have a significant environmental impact requiring further
analysis. The FAA determined that no extraordinary circumstances exist
that warrant preparation of an environmental assessment or
environmental impact study.

List of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

The Amendment

    In consideration of the foregoing, the Federal Aviation
Administration amends 14 CFR part 71 as follows:

PART 71--DESIGNATION OF CLASS A, B, C, D, AND E AIRSPACE AREAS; AIR
TRAFFIC SERVICE ROUTES; AND REPORTING POINTS

0
1. The authority citation for part 71 continues to read as follows:

    Authority: 49 U.S.C. 106(f), 106(g); 40103, 40113, 40120; E.O.
10854, 24 FR 9565, 3 CFR, 1959-1963 Comp., p. 389.

Sec.  71.1  [Amended]

0
2. The incorporation by reference in 14 CFR 71.1 of FAA Order 7400.11D,
Airspace Designations and Reporting Points, dated August 8, 2019 and
effective September 15, 2019, is amended as follows:
* * * * *

Paragraph 6010 Domestic VOR Federal Airways.

V-165 [Amended]

    From Mission Bay, CA; INT Mission Bay 270[deg] and Oceanside,
CA, 177[deg] radials; Oceanside; 24 miles, 6 miles wide, Seal Beach,
CA; six (6) miles wide, INT Seal Beach 287[deg] and Los Angeles, CA,
138[deg] radials; Los Angeles; INT Los Angeles 357[deg] and Lake
Hughes, CA, 154[deg] radials; Lake Hughes; INT Lake Hughes 344[deg]
and Shafter, CA, 137[deg] radials; Shafter; Tule, CA; INT Tule
339[deg] and Avenal, CA, 042[deg]radials. From INT Squaw Valley, CA
133[deg] and Mustang, NV, 183[deg] radials; 72 miles, 50 miles, 131
MSL, Mustang, NV; 40 miles, 12 AGL, seven (7) miles, 115 MSL, 54
miles, 135 MSL, 81 miles, 12 AGL, Lakeview, OR; 5 miles, 72 miles,
90 MSL, Deschutes, OR; 16 miles, 19 miles, 95 MSL, 24 miles, 75 MSL,
12 miles, 65 MSL, Newberg, OR; 32 miles, 45 MSL, INT Newberg
355[deg] and Olympia, WA, 195[deg] radials; Olympia; Penn Cove, WA;
to Whatcom, WA.

    Issued in Washington, DC, on February 25, 2020.
Scott Rosenbloom,
Acting Manager, Rules and Regulations Group.
[FR Doc. 2020-04419 Filed 3-5-20; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 82, Number 160 (Monday, August 21, 2017)]
[Rules and Regulations]
[Pages 39511-39513]
[FR Doc No: 2017-17202]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2017-0131; Product Identifier 2016-NM-186-AD; Amendment
39-18996; AD 2017-17-06]
RIN 2120-AA64

Airworthiness Directives; The Boeing Company Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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

SUMMARY: We are adopting a new airworthiness directive (AD) for certain
The Boeing Company Model 737-300, -400, and -500 series airplanes. This
AD was prompted by a report of fatigue cracking found in a certain
fuselage frame common to the water tank support intercostal clip
located between certain stringers. This AD requires inspections for any
cracking of a certain fuselage frame, and repair if necessary. We are
issuing this AD to address the unsafe condition on these products.

DATES: This AD is effective September 25, 2017.
    The Director of the Federal Register approved the incorporation by
reference of a certain publication listed in this AD as of September
25, 2017.

ADDRESSES: For service information identified in this final rule,
contact Boeing Commercial Airplanes, Attention: Contractual & Data
Services (C&DS), 2600 Westminster Blvd., MC 110-SK57, Seal Beach, CA
90740-5600; telephone<PHONE_NUMBER>; Internet https://www.myboeingfleet.com. You may view this service information at the
FAA, Transport Standards Branch, 1601 Lind Avenue SW., Renton, WA. For
information on the availability of this material at the FAA, call 425-
227-1221. It is also available on the Internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2017-
0131.

Examining the AD Docket

    You may examine the AD docket on the Internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2017-
0131; or in person at the Docket Management Facility between 9 a.m. and
5 p.m., Monday through Friday, except Federal holidays. The AD docket
contains this final rule, the regulatory evaluation, any comments
received, and other information. The address for the Docket Office
(phone:<PHONE_NUMBER>) is Docket Management Facility, U.S. Department of
Transportation, Docket Operations, M-30, West Building Ground Floor,
Room W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590.

FOR FURTHER INFORMATION CONTACT: Galib Abumeri, Aerospace Engineer,
Airframe Section, FAA, Los Angeles ACO Branch, 3960 Paramount
Boulevard, Lakewood, CA 90712-4137; phone:<PHONE_NUMBER>; fax: 562-627-
5210; email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Discussion

    We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR
part 39 by adding an AD that would apply to certain The Boeing Company
Model 737-300, -400, and -500 series airplanes. The NPRM published in
the Federal Register on March 23, 2017 (82 FR 14835). The NPRM was
prompted by a report of fatigue cracking found in a certain fuselage
frame common to the water tank support intercostal clip located between
certain stringers. The NPRM proposed to require inspections for any
cracking of a certain fuselage frame, and repair if necessary. We are
issuing this AD to detect and correct fatigue cracking that could grow
in size and result in a severed frame. Multiple adjacent severed frames
would result in reduced structural integrity of the airplane.

Comments

    We gave the public the opportunity to participate in developing
this AD. The following presents the comments received on the NPRM and
the FAA's

response to each comment. Boeing supported the NPRM.

Effect of Winglets on Accomplishment of the Proposed Actions

    Aviation Partners Boeing stated that accomplishing the supplemental
type certificate (STC) ST01219SE does not affect the actions specified
in the NPRM.
    We concur with the commenter. We have redesignated paragraph (c) of
the proposed AD as paragraph (c)(1) and added paragraph (c)(2) to this
AD to state that installation of STC ST01219SE does not affect the
ability to accomplish the actions required by this AD. Therefore, for
airplanes on which STC ST01219SE is installed, a ``change in product''
alternative method of compliance (AMOC) approval request is not
necessary to comply with the requirements of 14 CFR 39.17.

Conclusion

    We reviewed the relevant data, considered the comments received,
and determined that air safety and the public interest require adopting
this final rule with the change described previously and minor
editorial changes. We have determined that these minor changes:
     Are consistent with the intent that was proposed in the
NPRM for correcting the unsafe condition; and
     Do not add any additional burden upon the public than was
already proposed in the NPRM.
    We also determined that these changes will not increase the
economic burden on any operator or increase the scope of this final
rule.

Related Service Information Under 1 CFR Part 51

    We reviewed Boeing Alert Service Bulletin 737-53A1357, dated August
9, 2016. The service information describes procedures for inspections
for any cracking of a certain fuselage frame, and repair if necessary.
This service information is reasonably available because the interested
parties have access to it through their normal course of business or by
the means identified in the ADDRESSES section.

Costs of Compliance

    We estimate that this AD affects 140 airplanes of U.S. registry. We
estimate the following costs to comply with this AD:

                                                                     Estimated Costs
--------------------------------------------------------------------------------------------------------------------------------------------------------
              Action                        Labor cost            Parts cost       Cost per product                  Cost on U.S. operators
--------------------------------------------------------------------------------------------------------------------------------------------------------
Inspection........................  2 work-hours x $85 per                  $0  $170 per inspection    $23,800 per inspection cycle.
                                     hour = $170 per.                            cycle.
                                    inspection cycle..........
--------------------------------------------------------------------------------------------------------------------------------------------------------

    We estimate the following costs to do any necessary repairs that
would be required based on the results of the inspection. We have no
way of determining the number of aircraft that might need this repair:

                                               On-Condition Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per
                   Action                                 Labor cost                Parts cost        product
----------------------------------------------------------------------------------------------------------------
Repair.....................................  18 work-hours x $85 per hour =                 $100          $1,630
                                              $1,530.
----------------------------------------------------------------------------------------------------------------

Authority for This Rulemaking

    Title 49 of the United States Code specifies the FAA's authority to
issue rules on aviation safety. Subtitle I, section 106, describes the
authority of the FAA Administrator. Subtitle VII: Aviation Programs,
describes in more detail the scope of the Agency's authority.
    We are issuing this rulemaking under the authority described in
Subtitle VII, Part A, Subpart III, Section 44701: ``General
requirements.'' Under that section, Congress charges the FAA with
promoting safe flight of civil aircraft in air commerce by prescribing
regulations for practices, methods, and procedures the Administrator
finds necessary for safety in air commerce. This regulation is within
the scope of that authority because it addresses an unsafe condition
that is likely to exist or develop on products identified in this
rulemaking action.
    This AD is issued in accordance with authority delegated by the
Executive Director, Aircraft Certification Service, as authorized by
FAA Order 8000.51C. In accordance with that order, issuance of ADs is
normally a function of the Compliance and Airworthiness Division, but
during this transition period, the Executive Director has delegated the
authority to issue ADs applicable to transport category airplanes to
the Director of the System Oversight Division.

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, and
    (4) Will not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.

List of Subjects in 14 CFR Part 39

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

Adoption of the Amendment

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

PART 39--AIRWORTHINESS DIRECTIVES

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

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

Sec.  39.13  [Amended]

0
2. The FAA amends Sec.  39.13 by adding the following new airworthiness
directive (AD):

2017-17-06 The Boeing Company: Amendment 39-18996; Docket No. FAA-
2017-0131; Product Identifier 2016-NM-186-AD.

(a) Effective Date

    This AD is effective September 25, 2017.

(b) Affected ADs

    None.

(c) Applicability

    (1) This AD applies to The Boeing Company Model 737-300, -400,
and -500 series airplanes, certificated in any category, as
identified in Boeing Alert Service Bulletin 737-53A1357, dated
August 9, 2016.
    (2) Installation of Supplemental Type Certificate (STC)
ST01219SE (http://rgl.faa.gov/Regulatory_and_Guidance_Library/
rgstc.nsf/0/ebd1cec7b301293e86257cb30045557a/$FILE/ST01219SE.pdf)
does not affect the ability to accomplish the actions required by
this AD. Therefore, for airplanes on which STC ST01219SE is
installed, a ``change in product'' alternative method of compliance
(AMOC) approval request is not necessary to comply with the
requirements of 14 CFR 39.17.

(d) Subject

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

(e) Unsafe Condition

    This AD was prompted by a report of fatigue cracking found in a
certain fuselage frame common to the water tank support intercostal
clip located between certain stringers. We are issuing this AD to
detect and correct cracking, which could grow in size and result in
a severed frame. Multiple adjacent severed frames would result in
reduced structural integrity of the airplane.

(f) Compliance

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

(g) Inspection

    Before the accumulation of 34,000 total flight cycles or within
6,000 flight cycles after the effective date of this AD, whichever
occurs later, do a high frequency eddy current (HFEC) inspection for
any cracking in the fuselage frame at station (STA) 947.5 common to
the water tank support intercostal clip located between stringers S-
24R and S-25R, in accordance with the Accomplishment Instructions of
Boeing Alert Service Bulletin 737-53A1357, dated August 9, 2016.
    (1) If no cracking is found, repeat the inspection thereafter at
intervals not to exceed 12,000 flight cycles.
    (2) If any cracking is found: Before further flight, repair in
accordance with the Accomplishment Instructions of Boeing Alert
Service Bulletin 737-53A1357, dated August 9, 2016.

(h) Terminating Action

    Accomplishing the repair in accordance with the Accomplishment
Instructions of Boeing Alert Service Bulletin 737-53A1357, dated
August 9, 2016, terminates the inspection requirements of paragraph
(g) of this AD.

(i) Alternative Methods of Compliance (AMOCs)

    (1) The Manager, Los Angeles ACO Branch, FAA, has the authority
to approve AMOCs for this AD, if requested using the procedures
found in 14 CFR 39.19. In accordance with 14 CFR 39.19, send your
request to your principal inspector or local Flight Standards
District Office, as appropriate. If sending information directly to
the manager of the certification office, send it to the attention of
the person identified in paragraph (j) of this AD. Information may
be emailed to<EMAIL_ADDRESS>    (2) Before using any approved AMOC, notify your appropriate
principal inspector, or lacking a principal inspector, the manager
of the local flight standards district office/certificate holding
district office.
    (3) An AMOC that provides an acceptable level of safety may be
used for any repair, modification, or alteration required by this AD
if it is approved by the Boeing Commercial Airplanes Organization
Designation Authorization (ODA) that has been authorized by the
Manager, Los Angeles ACO Branch, to make those findings. To be
approved, the repair method, modification deviation, or alteration
deviation must meet the certification basis of the airplane, and the
approval must specifically refer to this AD.
    (4) For service information that contains steps that are labeled
as Required for Compliance (RC), the provisions of paragraphs
(i)(4)(i) and (i)(4)(ii) of this AD apply.
    (i) The steps labeled as RC, including substeps under an RC step
and any figures identified in an RC step, must be done to comply
with the AD. If a step or substep is labeled ``RC Exempt,'' then the
RC requirement is removed from that step or substep. An AMOC is
required for any deviations to RC steps, including substeps and
identified figures.
    (ii) Steps not labeled as RC may be deviated from using accepted
methods in accordance with the operator's maintenance or inspection
program without obtaining approval of an AMOC, provided the RC
steps, including substeps and identified figures, can still be done
as specified, and the airplane can be put back in an airworthy
condition.

(j) Related Information

    For more information about this AD, contact Galib Abumeri,
Aerospace Engineer, Airframe Section, FAA, Los Angeles ACO Branch,
3960 Paramount Boulevard, Lakewood, CA 90712-4137; phone: 562-627-
5324; fax:<PHONE_NUMBER>; email<EMAIL_ADDRESS>
(k) 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) Boeing Alert Service Bulletin 737-53A1357, dated August 9,
2016.
    (ii) Reserved.
    (3) For service information identified in this AD, contact
Boeing Commercial Airplanes, Attention: Contractual & Data Services
(C&DS), 2600 Westminster Blvd., MC 110-SK57, Seal Beach, CA 90740-
5600; telephone<PHONE_NUMBER>; Internet https://www.myboeingfleet.com.
    (4) You may view this service information at the FAA, Transport
Standards Branch, 1601 Lind Avenue SW., Renton, WA. 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 Renton, Washington, on August 8, 2017.
Dionne Palermo,
Acting Director, System Oversight Division, Aircraft Certification
Service.
[FR Doc. 2017-17202 Filed 8-18-17; 8:45 am]
 BILLING CODE 4910-13-P