[Federal Register Volume 81, Number 53 (Friday, March 18, 2016)]
[Proposed Rules]
[Pages 14804-14806]
[FR Doc No: 2016-06118]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2016-2042; Directorate Identifier 2016-NE-02-AD]
RIN 2120-AA64

Airworthiness Directives; BRP-Powertrain GmbH & Co KG
Reciprocating Engines

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: We propose to adopt a new airworthiness directive (AD) for
certain BRP-Powertrain GmbH & Co KG Rotax 912 F2, 912 F3, 912 F4, 912
S2, 912 S3, 912 S4, 914 F2, 914 F3, and 914 F4 reciprocating engines.
This proposed AD was prompted by a design change introduced by the
manufacturer that relocated the engine cylinder head temperature sensor
to a different location and converted it to a coolant temperature
sensor. This proposed AD would require re-identification of the engine
model and concurrent modification of the aircraft to indicate the
maximum coolant temperature limit. We are proposing this AD to prevent
exceeding engine coolant temperature limits, which could result in loss
of engine coolant, damage to the engine, and loss of control of the
airplane.

DATES: We must receive comments on this proposed AD by May 17, 2016.

ADDRESSES: You may send comments by any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the instructions for submitting comments.
     Mail: Docket Management Facility, U.S. Department of
Transportation, 1200 New Jersey Avenue SE., West Building Ground Floor,
Room W12-140, Washington, DC 20590-0001.
     Hand Delivery: Deliver to Mail address above between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.
     Fax:<PHONE_NUMBER>.
    For service information identified in this NPRM, contact BRP-
Powertrain GmbH & Co KG, Rotaxstrasse 1, A-4623 Gunskirchen, Austria;
Internet: http://www.FLYROTAX.com. You may view this service
information at the FAA, Engine & Propeller Directorate, 1200 District
Avenue, Burlington, MA. For information on the availability of this
material at the FAA, call<PHONE_NUMBER>.

Examining the AD Docket

    You may examine the AD docket on the Internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2016-
2042; 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 proposed AD, the mandatory continuing airworthiness
information (MCAI), the regulatory evaluation, any comments received,
and other information. The address for the Docket Office (phone: 800-
647-5527) is in the ADDRESSES section. Comments will be available in
the AD docket shortly after receipt.

FOR FURTHER INFORMATION CONTACT: Robert Green, Aerospace Engineer,
Engine Certification Office, FAA, Engine & Propeller Directorate, 1200
District Avenue, Burlington, MA 01803; phone:<PHONE_NUMBER>; fax: 781-
238-7199; email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Comments Invited

    We invite you to send any written relevant data, views, or
arguments about this proposed AD. Send your comments to an address
listed under the ADDRESSES section. Include ``Docket No. FAA-2016-2042;
Directorate Identifier 2016-NE-02-AD'' at the beginning of your
comments. We specifically invite comments on the overall regulatory,
economic, environmental, and energy aspects of this proposed AD. We
will consider all comments received by the closing date and may amend
this proposed AD based on those comments.
    We will post all comments we receive, without change, to http://www.regulations.gov, including any personal information you provide. We
will also post a report summarizing each substantive verbal contact
with FAA personnel concerning this proposed AD.

Discussion

    The European Aviation Safety Agency (EASA), which is the Technical
Agent for the Member States of the European Community, has issued EASA
AD 2015-0240, dated December 18, 2015 (referred to hereinafter as ``the
MCAI''), to correct an unsafe condition for the specified products. The
MCAI states:

    A design change of the engine cylinder heads was introduced by
BRP-Powertrain in March 2013 which modifies the engine/aircraft
interfaces by substituting the previous cylinder head temperature
(CHT) measurement (limit temperature 135 [deg]C/150 [deg]C) with a
coolant temperature (CT) measurement (limit temperature 120 [deg]C).
    The design change was communicated on 15 May 2013 by BRP-
Powertrain Service Instruction (SI) 912-020R7/914-022R7 (single
document) but was not identified by a change of the engine model
designation or of the engine P/N but only through the cylinder head
P/N and the position of the temperature sensor.
    Consequently, engines with the new cylinder heads (installed
during production or replaced in-service during maintenance) may be
installed on an aircraft without concurrent modification of that
aircraft, instructions for which should be provided by the type
certificate (TC) holder or the supplemental type certificate (STC)
holder, as applicable. In this case, the coolant temperature with a
maximum engine operating limit of 120 [deg]C (valid for engines
operated with water diluted glycol coolant) is displayed on a CHT
indicator with a typical limit marking (red radial/range) of more
than 120 [deg]C.

    BRP-Powertrain GmbH & Co KG introduced a design change that
relocated the engine cylinder head temperature sensor from the top of
the cylinder to a new location and converted it to a coolant
temperature sensor. The coolant temperature maximum engine operating
limit is now less than the cylinder head temperature maximum operating
limit. You may obtain further information by examining the MCAI in the
AD docket on the Internet at http://www.regulations.gov by searching
for and locating Docket No. FAA-2016-2042.

Related Service Information Under 1 CFR Part 51

    BRP-Powertrain GmbH & Co KG has issued Service Bulletin (SB) SB-
912-068/SB-914-049 (one document), dated April 16, 2015. The service
information describes procedures for re-identification of the type
plate for certain BRP-Powertrain GmbH & Co KG Rotax 912 and 914
engines. This service information is reasonably available because the
interested parties have access to it through their normal course of
business or by the means identified in the ADDRESSES section of this
NPRM.

FAA's Determination and Requirements of This Proposed AD

    This product has been approved by the aviation authority of
Austria, and is approved for operation in the United States. Pursuant
to our bilateral agreement with the European Community, EASA has
notified us of the unsafe condition described in the MCAI and service
information referenced above. We are proposing this AD because we
evaluated all information provided by EASA and determined the unsafe
condition exists and is likely to exist or develop on other products of
the same type design. This proposed AD would require re-identification
of the engine model and

the concurrent modification of the aircraft to indicate maximum coolant
temperature limit.

Costs of Compliance

    We estimate that this proposed AD affects about 40 engines
installed on aircraft of U.S. registry. We also estimate that it would
take about 5 hours per engine to inspect and re-identify the type
plate. The average labor rate is $85 per hour. Based on these figures,
we estimate the cost of this proposed AD on U.S. operators to be
$17,000.

Authority for This Rulemaking

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

Regulatory Findings

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

List of Subjects in 14 CFR Part 39

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

The Proposed Amendment

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

PART 39--AIRWORTHINESS DIRECTIVES

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

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

Sec.  39.13  [Amended]

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

BRP-Powertrain GmbH & Co KG (formerly BRP-Rotax GmbH & Co KG,
Bombardier-Rotax GmbH & Co. KG, and Bombardier-Rotax GmbH): Docket
No. FAA-2016-2042; Directorate Identifier 2016-NE-02-AD.

(a) Comments Due Date

    We must receive comments by May 17, 2016.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to BRP-Powertrain GmbH & Co KG Rotax model 912
F2, 912 F3, 912 F4, 912 S2, 912 S3, 912 S4, 914 F2, 914 F3, and 914
F4 reciprocating engines with a cylinder head that has a part number
(P/N) listed in Figure 1 to paragraph (c) of this AD and that is
installed in position 2 or 3.

Figure 1 to Paragraph (c) of This AD--Post-Modification Cylinder Head P/
                                    N
------------------------------------------------------------------------
          Engine model                       Cylinder head P/N
------------------------------------------------------------------------
912 F2, 912 F3, 912 F4, 914 F2,   P/N 413235 or P/N 413236.
 914 F3, and 914 F4.
912 S2, 912 S3, and 912 S4......  P/N 413185.
------------------------------------------------------------------------

(d) Reason

    This AD was prompted by a design change introduced by the
manufacturer that relocated the engine cylinder head temperature
sensor to a new location and converted it to a coolant temperature
sensor. We are issuing this AD to prevent exceeding coolant
temperature limits, which could result in loss of engine coolant,
damage to the engine, and loss of control of the airplane.

(e) Actions and Compliance

    Comply with this AD within 6 months after the effective date of
this AD, unless already done.
    (1) For engines with cylinder heads that have a P/N listed in
Figure 1 to paragraph (c) of this AD installed on both position 2
and position 3, change the engine model designation on the engine
type data plate to include a ``-01'' suffix. Use paragraph 3.1.1 of
BRP-Powertrain Service Bulletin (SB) SB-912-068/SB-914-049, dated
April 16, 2015, to make this change.
    (2) For engines with only one cylinder head having a P/N listed
in Figure 1 to paragraph (c) of this AD installed in position 2 or
3, do one of the following:
    (i) Replace the cylinder heads having P/Ns listed in Figure 1 to
paragraph (c) of this AD with a P/N 623682 cylinder head on Rotax
912 F2, 912 F3, 912 F4, 914 F2, 914 F3, and 914 F4 engines and with
a P/N 623687 cylinder head on Rotax 912 S2, 912 S3, and 912 S4
engines. If you complete the actions in paragraph (e)(2)(i), no
further action is required. Or,
    (ii) Install eligible cylinder heads with P/Ns identified in
Figure 1 to paragraph (c) of this AD on both cylinder head positions
2 and 3 and change the engine model designation of the engine type
data plate in accordance with paragraph (e)(1) of this AD.
    (3) For engines re-identified in accordance with paragraph
(e)(1) or (e)(2)(ii) of this AD, before further flight, modify the
aircraft cockpit instrumentation and related documentation to
indicate a maximum coolant temperature limit of 120 degrees Celsius
using FAA-approved procedures. These re-identified engines remain
eligible for installation on approved aircraft-engine combinations.

(f) Alternative Methods of Compliance (AMOCs)

    The Manager, Engine Certification Office, FAA, may approve AMOCs
for this AD. Use the procedures found in 14 CFR 39.19 to make your
request. You may email your request to<EMAIL_ADDRESS>
(g) Related Information

    (1) For more information about this AD, contact Robert Green,
Aerospace Engineer, Engine Certification Office, FAA, Engine &
Propeller Directorate, 1200 District Avenue, Burlington, MA 01803;
phone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>; email<EMAIL_ADDRESS>    (2) For more information about the installation modifications
described in paragraph (e)(3) of this AD, contact Jim Rutherford,
Aerospace Engineer, FAA, Small

Airplane Directorate, 901 Locust Ave. Room 301, Kansas City, MO;
phone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>; email:
<EMAIL_ADDRESS>    (3) Refer to MCAI European Aviation Safety Agency, AD 2015-0240,
dated December 18, 2015, for more information. You may examine the
MCAI in the AD docket on the Internet at http://www.regulations.gov
by searching for and locating it in Docket No. FAA-2016-2042.
    (4) BRP-Powertrain GmbH & Co KG Service Bulletin (SB) SB-912-
068/SB-914-049 (one document), dated April 16, 2015, can be obtained
from BRP-Powertrain GmbH & Co KG, using the contact information in
paragraph (g)(6) of this proposed AD.
    (5) The following aircraft service information contains FAA-
approved procedures for complying with paragraph (e)(3) of this AD
and can be obtained from BRP-Powertrain GmbH & Co. KG, using the
contact information in paragraph (g)(6) of this proposed AD:

  Figure 2 to Paragraph (g) of This AD--Aircraft Type/Model and Service
                               Information
------------------------------------------------------------------------
             Type/model(s)                              SB
------------------------------------------------------------------------
Aquila AT01............................  SB-AT01-029
TECNAM P92, P2002 and P2006T...........  SB-183-CS
TECNAM P2008 JC........................  SB-185-CS
Diamond H 36 ``Dimona'' and HK 36        OSB 36-111
 ``Super Dimona''.
Diamond DV 20 ``Katana''...............  OSB 20-066
Diamond (Canada) DA20-A1 ``Katana''....  SB Da20-72-04
M&D AVO 68 ``Samburo''.................  TM 808-31
Scheibe SF 25 C and SF 36 R............  SI_02-14
------------------------------------------------------------------------

    (6) For service information identified in this proposed AD,
contact BRP-Powertrain GmbH & Co. KG, Rotaxstrasse 1, A-4623
Gunskirchen, Austria; phone: +43 7246 6010; fax: +43 7246 601 9130;
email<EMAIL_ADDRESS>Internet: www.rotax-aircraft-engines.com.
    (7) You may view this service information at the FAA, Engine &
Propeller Directorate, 1200 District Avenue, Burlington, MA. For
information on the availability of this material at the FAA, call
781-238-7125.

    Issued in Burlington, Massachusetts, on March 11, 2016.
Colleen M. D'Alessandro,
Manager, Engine & Propeller Directorate, Aircraft Certification
Service.
[FR Doc. 2016-06118 Filed 3-17-16; 8:45 am]
 BILLING CODE 4910-13-P


[Federal Register Volume 81, Number 162 (Monday, August 22, 2016)]
[Notices]
[Pages 56729-56733]
[FR Doc No: 2016-19898]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78592; File No. SR-NASDAQ-2016-061]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Order
Granting Approval of Proposed Rule Change To List and Trade Shares of
the First Trust Equity Market Neutral ETF of the First Trust Exchange-
Traded Fund VIII

August 16, 2016.

I. Introduction

    On May 4, 2016, The NASDAQ Stock Market LLC (``Exchange'' or
``Nasdaq'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to list and trade shares (``Shares'') of the First
Trust Equity Market Neutral ETF (``Fund''), under Nasdaq Rule 5735. The
proposed rule change was published for comment in the Federal Register
on May 25, 2016.\3\ On July 5, 2016, pursuant to Section 19(b)(2) of
the Act,\4\ the Commission designated a longer period within which to
either approve the proposed rule change, disapprove the proposed rule
change, or institute proceedings to determine whether to disapprove the
proposed rule change.\5\ The Commission received no comments on the
proposed rule change. This order grants approval of the proposed rule
change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 77854 (May 19,
2016), 81 FR 33307 (``Notice'').
    \4\ 15 U.S.C. 78s(b)(2).
    \5\ See Securities Exchange Act Release No. 78227, 81 FR 44907
(July 11, 2016).
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II. Description of the Proposed Rule Change

    The Exchange proposes to list and trade Shares of the Fund, an
actively-managed exchange-traded fund (``ETF''), under Nasdaq Rule
5735, which governs the listing and trading of ``Managed Fund Shares''
on the Exchange. The Shares will be offered by the First Trust
Exchange-Traded Fund VIII (``Trust'').\6\ First Trust Advisors L.P.
will be the investment adviser (``Adviser'') to the Fund.\7\ Perella
Weinberg Partners Capital Management LP will serve as investment sub-
adviser (``Sub-Adviser'') to the Fund and provide day-to-day portfolio
management. First Trust Portfolios L.P. will be the principal
underwriter and distributor of the Fund's Shares. The Bank of New York
Mellon Corporation will act as the administrator, accounting agent,
custodian, and transfer agent to the Fund. The Exchange has made the
following representations and statements in describing the Fund and its
investment strategy, including the Fund's portfolio holdings and
investment restrictions.\8\
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    \6\ The Trust is registered with the Commission as an investment
company and has filed a registration statement on Form N-1A
(``Registration Statement'') with the Commission. See Registration
Statement on Form N-1A for the Trust filed on March 14, 2016 (File
Nos. 333-210186 and 811-23147). In addition, the Exchange represents
that the Trust has obtained certain exemptive relief under the
Investment Company Act of 1940 (``1940 Act''). See Investment
Company Act Release No. 28468 (October 27, 2008) (File No. 812-
13477).
    \7\ The Exchange represents that neither the Adviser nor the
Sub-Adviser is registered as a broker-dealer. The Adviser is
affiliated with a broker-dealer, and the Sub-Adviser is affiliated
with two broker-dealers. Each has implemented and will maintain a
fire wall with respect to its respective broker-dealer affiliate(s)
regarding access to information concerning the composition of and/or
changes to the portfolio. In the event (a) the Adviser or Sub-
Adviser becomes newly affiliated with a broker-dealer or registers
as a broker-dealer, or (b) any new adviser or sub-adviser is a
registered broker-dealer or becomes affiliated with a broker-dealer,
it will implement a fire wall with respect to its relevant personnel
and/or such broker-dealer affiliate, if applicable, regarding access
to information concerning the composition of, or changes to, the
portfolio and will be subject to procedures designed to prevent the
use and dissemination of material non-public information regarding
such portfolio.
    \8\ The Commission notes that additional information regarding
the Fund, the Trust, and the Shares, including investment
strategies, risks, creation and redemption procedures, fees,
portfolio holdings disclosure policies, calculation of net asset
value (``NAV''), distributions, and taxes, among other things, can
be found in the Notice and the Registration Statement, as
applicable. See Notice and Registration Statement, supra notes 3 and
6, respectively.
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A. Exchange's Description of the Fund's Principal Investments

    According to the Exchange, the investment objective of the Fund
will be to seek long-term capital appreciation independent of market
direction. Under normal market conditions,\9\ the Fund will seek to
achieve its investment objective by investing at least 80% of its net
assets in ``Equity Securities'' (as defined below), which may be
represented by certain derivative instruments,\10\ as well as ETFs \11\
that invest primarily in Equity Securities (``80% Investments'').\12\
The Equity Securities in which the Fund will invest will be listed on a
U.S. or a non-U.S. exchange and will consist of the following: (i)
Common stocks; (ii) preferred securities; (iii) warrants to purchase
common stocks or preferred securities; (iv) securities convertible into
common stocks or preferred securities; (v) securities issued by real
estate investment trusts (``REITs''); (vi) securities issued by master
limited partnerships (``MLPs''); and (vii) American Depositary Receipts
(``ADRs''), European Depositary Receipts (``EDRs''), and Global
Depositary Receipts (``GDRs'' and, together with ADRs and EDRs,
``Depositary Receipts'').\13\
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    \9\ The term ``under normal market conditions'' as used herein
includes, but is not limited to, the absence of adverse market,
economic, political or other conditions, including extreme
volatility or trading halts in the securities markets or the
financial markets generally; operational issues causing
dissemination of inaccurate market information; or force majeure
type events such as systems failure, natural or man-made disaster,
act of God, armed conflict, act of terrorism, riot or labor
disruption or any similar intervening circumstance. On a temporary
basis, including for defensive purposes, during the initial invest-
up period and during periods of high cash inflows or outflows, the
Fund may depart from its principal investment strategies; for
example, it may hold a higher than normal proportion of its assets
in cash. During such periods, the Fund may not be able to achieve
its investment objective. The Fund may adopt a defensive strategy
when the Adviser or the Sub-Adviser believes securities in which the
Fund normally invests have elevated risks due to political or
economic factors and in other extraordinary circumstances.
    \10\ Such derivatives are defined as ``Principal Derivatives.''
See ``The Fund's Use of Derivatives,'' infra.
    \11\ ETFs included in the Fund will be listed and traded in the
U.S. on registered exchanges. The Fund may invest in the securities
of ETFs in excess of the limits imposed under the 1940 Act pursuant
to exemptive orders obtained by other ETFs and their sponsors from
the Commission. In addition, the Fund may invest in the securities
of certain other investment companies in excess of the limits
imposed under the 1940 Act pursuant to an exemptive order that the
Trust has obtained from the Commission. See Investment Company Act
Release No. 30377 (February 5, 2013) (File No. 812-13895). The ETFs
in which the Fund may invest include Index Fund Shares (as described
in Nasdaq Rule 5705), Portfolio Depository Receipts (as described in
Nasdaq Rule 5705), and Managed Fund Shares (as described in Nasdaq
Rule 5735). While the Fund may invest in inverse ETFs, the Fund will
not invest in leveraged or inverse leveraged (e.g., 2X or -3X) ETFs.
    \12\ The 80% Investments will take into account such derivative
instruments and ETFs.
    \13\ The Fund will not invest in any unsponsored Depositary
Receipts.
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    The Sub-Adviser will use a long/short strategy in seeking to
construct a portfolio that it believes, based on its proprietary
analysis, will provide the opportunity for capital preservation and
appreciation across a wide variety of market conditions. A portion of
the Fund's portfolio will typically be invested in Equity Securities
selected by the Sub-Adviser through application of an event-driven
strategy that seeks to identify and capitalize on certain corporate
actions which may affect the value of Equity Securities, such as
mergers and acquisitions, divestitures,

tender offers, and other corporate events.\14\
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    \14\ In connection with its event-driven strategy, the Fund may
also invest a portion of its assets in Non-Exchange-Traded Equity
Securities (as defined infra). See infra note 17 and accompanying
text under ``Other Investments.''
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The Fund's Use of Derivatives
    The Fund may engage in transactions in derivative instruments, as
described in this paragraph. As noted above under ``Principal
Investments,'' the Fund's investments in Equity Securities may be
represented by derivatives. Investments in Equity Securities that are
represented by derivatives (referred to collectively as ``Principal
Derivatives'') will be treated as investments in Equity Securities for
purposes of the 80% Investments. Principal Derivatives will consist of
the following: (i) Total return swap agreements; \15\ (ii) exchange-
traded options on stock indices; (iii) exchange-traded options on
equity securities; and (iv) exchange-traded stock index futures
contracts. In addition to purchasing exchange-traded options on stock
indices and exchange-traded options on equity securities, the Fund may
also sell such exchange-traded options, either outright or as part of
an options strategy (such as a collar or an option spread).
Additionally, the Fund may invest in non-U.S. currency swap agreements
and forward foreign currency exchange contracts (collectively, ``Non-
Principal Derivatives'') to the extent described below in ``Other
Investments.'' The Fund may also enter into currency transactions on a
spot (i.e., cash) basis. The Fund will invest (in the aggregate) no
more than 30% of the value of its net assets (calculated at the time of
investment) in Principal Derivatives and Non-Principal Derivatives
(``30% Limitation'').
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    \15\ The Fund will only invest in total return swap agreements
that have (i) referenced assets that are exchange-traded securities
or (ii) referenced indexes that are comprised of exchange-traded
securities.
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    The Fund will only enter into transactions in over-the-counter
(``OTC'') derivatives (including non-U.S. currency swap agreements,
total return swap agreements, and forward foreign currency exchange
contracts) with counterparties that the Adviser and/or the Sub-Adviser
reasonably believes are capable of performing under the applicable
contract or agreement.
    According to the Exchange, the Fund's investments in derivative
instruments will be made in accordance with the 1940 Act, will be
consistent with the Fund's investment objective and policies, and will
not be used to seek to achieve a multiple or inverse multiple of an
index. To limit the potential risk associated with the Fund's
derivatives transactions, the Exchange states that the Fund will
segregate or ``earmark'' assets determined to be liquid by the Adviser
and/or the Sub-Adviser in accordance with procedures established by the
Board of Trustees of the Trust (``Trust Board'') and in accordance with
the 1940 Act (or, as permitted by applicable regulation, enter into
certain offsetting positions) to cover its obligations under derivative
instruments. In addition, the Exchange provides that the Fund will
include appropriate risk disclosure in its offering documents,
including leveraging risk.\16\ The Exchange represents that because the
markets for certain securities, or the securities themselves, may be
unavailable or cost prohibitive as compared to derivative instruments,
suitable derivative transactions may be an efficient alternative for
the Fund to obtain the desired asset exposure.
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    \16\ The Exchange represents that to mitigate leveraging risk,
the Adviser and/or the Sub-Adviser will segregate or ``earmark''
liquid assets or otherwise cover the transactions that may give rise
to such risk.
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    The Exchange states that the Adviser believes there will be
minimal, if any, impact to the arbitrage mechanism as a result of the
use of derivatives. Market makers and participants should be able to
value derivatives as long as the positions are disclosed with relevant
information. The Exchange states that the Adviser believes that the
price at which Shares trade will continue to be disciplined by
arbitrage opportunities created by the ability to purchase or redeem
creation units at their NAV, which should ensure that Shares will not
trade at a material discount or premium in relation to their NAV.
    The Exchange states that the Adviser does not believe there will be
any significant impact to the settlement or operational aspects of the
Fund's arbitrage mechanism due to the use of derivatives. Because
derivatives generally are not eligible for in-kind transfer, they will
typically be substituted with a ``cash in lieu'' amount when the Fund
processes purchases or redemptions of creation units in-kind.

B. Exchange's Description of the Fund's Other Investments

    With respect to up to 20% of its net assets, the Fund may invest in
and/or include in its portfolio (as applicable) the following
securities and instruments (in the aggregate).
    The Fund may invest in non-exchange-traded equity securities
(``Non-Exchange-Traded Equity Securities'') acquired in conjunction
with its event-driven strategy.\17\ The Fund may also invest in
exchange-traded notes (``ETNs'') and in Non-Principal Derivatives.
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    \17\ For example, in conjunction with its event-driven strategy,
the Fund may acquire a Non-Exchange-Traded Equity Security as a
result of a merger or other corporate reorganization. Certain Non-
Exchange-Traded Equity Securities may be Rule 144A securities; the
Fund will not invest in Rule 144A securities other than Non-
Exchange-Traded Equity Securities. Additionally, Non-Exchange-Traded
Equity Securities will not be represented by derivative instruments.
---------------------------------------------------------------------------

    The Fund may invest in short-term debt securities and other short-
term debt instruments described below, as well as cash equivalents, or
it may hold cash. The Fund may invest in the following short-term debt
instruments: (1) Fixed rate and floating rate U.S. government
securities, including bills, notes, and bonds differing as to maturity
and rates of interest, which are either issued or guaranteed by the
U.S. Treasury or by U.S. government agencies or instrumentalities; (2)
certificates of deposit issued against funds deposited in a bank or
savings and loan association; (3) bankers' acceptances; (4) repurchase
agreements,\18\ which involve purchases of debt securities; (5) bank
time deposits; and (6) commercial paper.\19\
---------------------------------------------------------------------------

    \18\ According to the Exchange, the Fund intends to enter into
repurchase agreements only with financial institutions and dealers
believed by the Adviser and/or the Sub-Adviser to present minimal
credit risks in accordance with criteria approved by the Trust
Board. The Adviser and/or the Sub-Adviser will review and monitor
the creditworthiness of such institutions. The Adviser and/or the
Sub-Adviser will monitor the value of the collateral at the time the
transaction is entered into and at all times during the term of the
repurchase agreement.
    \19\ The Fund may only invest in commercial paper rated A-1 or
higher by S&P Ratings, Prime-1 or higher by Moody's or F1 or higher
by Fitch.
---------------------------------------------------------------------------

    The Fund may invest in money market mutual funds, U.S. exchange-
traded closed-end funds, and other ETFs \20\ that, in each case, will
be investment companies registered under the 1940 Act. In addition to
ETFs and closed-end funds, the Fund may invest in certain other
exchange-traded pooled investment vehicles (``ETPs'').\21\
---------------------------------------------------------------------------

    \20\ Such ETFs will not invest primarily in Equity Securities
(and, therefore, will not be taken into account for purposes of the
80% Investments) but may otherwise invest in assets of any type.
    \21\ The Fund may invest in the following ETPs: Trust
certificates, commodity-based trust shares, currency trust shares,
commodity index trust shares, commodity futures trust shares,
partnership units, trust units, and managed trust securities (as
described in Nasdaq Rule 5711); paired class shares (as described in
Nasdaq Rule 5713); trust issued receipts (as described in Nasdaq
Rule 5720); and exchange-traded managed fund shares (as described in
Nasdaq Rule 5745).
---------------------------------------------------------------------------

    The Fund's portfolio may include exchange-traded and OTC contingent

value rights (``CVRs'') received by the Fund as consideration in
connection with a corporate action related to a security held by the
Fund.\22\
---------------------------------------------------------------------------

    \22\ CVRs will not be taken into account for purposes of the 30%
Limitation.
---------------------------------------------------------------------------

C. Exchange's Description of the Fund's Investment Restrictions

    According to the Exchange, the Fund may not invest 25% or more of
the value of its total assets in securities of issuers in any one
industry. This restriction will not apply to (a) obligations issued or
guaranteed by the U.S. government, its agencies, or instrumentalities
or (b) securities of other investment companies.\23\
---------------------------------------------------------------------------

    \23\ See Form N-1A, Item 9. The Commission has taken the
position that a fund is concentrated if it invests more than 25% of
the value of its total assets in any one industry. See, e.g.,
Investment Company Act Release No. 9011 (October 30, 1975), 40 FR
54241 (November 21, 1975).
---------------------------------------------------------------------------

    The Fund may hold up to an aggregate amount of 15% of its net
assets in illiquid assets (calculated at the time of investment),
including Rule 144A securities deemed illiquid by the Adviser and/or
the Sub-Adviser. The Fund will monitor its portfolio liquidity on an
ongoing basis to determine whether, in light of current circumstances,
an adequate level of liquidity is being maintained and will consider
taking appropriate steps in order to maintain adequate liquidity if,
through a change in values, net assets, or other circumstances, more
than 15% of the Fund's net assets are held in illiquid assets.

III. Discussion and Commission's Findings

    The Commission has carefully reviewed the proposed rule change and
finds that it is consistent with the requirements of Section 6 of the
Act \24\ and the rules and regulations thereunder applicable to a
national securities exchange.\25\ In particular, the Commission finds
that the proposal is consistent with Section 6(b)(5) of the Act,\26\
which requires, among other things, that the Exchange's rules be
designed to promote just and equitable principles of trade, to remove
impediments to and perfect the mechanism of a free and open market and
a national market system, and, in general, to protect investors and the
public interest.
---------------------------------------------------------------------------

    \24\ 15 U.S.C. 78f.
    \25\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
    \26\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission also finds that the proposal to list and trade the
Shares on the Exchange is consistent with Section 11A(a)(1)(C)(iii) of
the Act,\27\ which sets forth the finding of Congress that it is in the
public interest and appropriate for the protection of investors and the
maintenance of fair and orderly markets to assure the availability to
brokers, dealers, and investors of information with respect to
quotations for, and transactions in, securities. Quotation and last
sale information for the Shares will be available via Nasdaq
proprietary quote and trade services, as well as in accordance with the
Unlisted Trading Privileges and the Consolidated Tape Association
(``CTA'') plans for the Shares. In addition, an estimated value,
defined in Nasdaq Rule 5735(c)(3) as the Intraday Indicative Value,\28\
will be available on the NASDAQ OMX Information LLC proprietary index
data service,\29\ and will be widely disseminated by one or more major
market data vendors at least every 15 seconds during the Regular Market
Session.\30\ On each business day, before commencement of trading in
Shares in the Regular Market Session on the Exchange, the Fund will
disclose on its Web site the identities and quantities of the Disclosed
Portfolio that will form the basis for the Fund's calculation of NAV at
the end of the business day.\31\
---------------------------------------------------------------------------

    \27\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
    \28\ The Intraday Indicative Value will be based upon the
current value for the components of the Disclosed Portfolio, as
defined in Nasdaq Rule 5735(c)(2).
    \29\ Currently, the NASDAQ OMX Global Index Data Service
(``GIDS'') is the NASDAQ OMX global index data feed service,
offering real-time updates, daily summary messages, and access to
widely followed indexes and ETFs. GIDS provides investment
professionals with the daily and historical information needed to
track or trade NASDAQ OMX indexes, listed ETFs or third-party
partner indexes and ETFs.
    \30\ See Nasdaq Rule 4120(b)(4) (describing the three trading
sessions on the Exchange: (1) Pre-Market Session from 4 a.m. to 9:30
a.m. Eastern Time (``E.T.''); (2) Regular Market Session from 9:30
a.m. to 4 p.m. or 4:15 p.m. E.T.; and (3) Post-Market Session from 4
p.m. or 4:15 p.m. to 8 p.m. E.T.).
    \31\ The Fund's disclosure of derivative positions in the
Disclosed Portfolio will include sufficient information for market
participants to use to value these positions intraday. On a daily
basis, the Fund will disclose on the Fund's Web site the following
information regarding each portfolio holding, as applicable to the
type of holding: Ticker symbol, CUSIP number or other identifier, if
any; a description of the holding (including the type of holding,
such as the type of swap); the identity of the security, commodity,
index or other asset or instrument underlying the holding, if any;
for options, the option strike price; quantity held (as measured by,
for example, par value, notional value or number of shares,
contracts or units); maturity date, if any; coupon rate, if any;
effective date, if any; market value of the holding; and percentage
weighting of the holding in the Fund's portfolio. The Web site
information will be publicly available at no charge.
---------------------------------------------------------------------------

    The Fund's NAV will be determined as of the close of regular
trading on the New York Stock Exchange (``NYSE'') (ordinarily 4:00
p.m., E.T.) on each day the NYSE is open for trading. Additionally,
information regarding market price and trading volume of the Shares
will be continually available on a real-time basis throughout the day
on brokers' computer screens and other electronic services. Information
regarding the previous day's closing price and trading volume
information for the Shares will be published daily in the financial
section of newspapers. Quotation and last sale information for the
following equity securities (to the extent traded on a U.S. exchange)
will be available from the exchanges on which they are traded as well
as in accordance with any applicable CTA plans: Equity Securities;
ETFs; closed-end funds; and ETPs. In addition, quotation and last sale
information for U.S. exchange-traded options (including U.S. exchange-
traded options on equity securities and U.S. exchange-traded options on
stock indices) will be available via the Options Price Reporting
Authority. Quotation and last sale information for U.S. exchange-traded
stock index futures contracts, ETNs and CVRs will be available from the
exchanges on which they are traded. Pricing information for exchange-
traded equity securities (including Equity Securities; closed-end
funds; ETFs; and ETPs), ETNs, exchange-traded CVRs, and exchange-traded
derivatives (including options on stock indices; options on equity
securities; and stock index futures contracts) will be available from
the applicable listing exchange and from major market data vendors.
Pricing information for Non-Exchange-Traded Equity Securities
(including without limitation Rule 144A securities), short-term U.S.
government securities, commercial paper, bankers' acceptances,
repurchase agreements, OTC CVRs, non-U.S. currency swap agreements,
total return swap agreements, forward foreign currency exchange
contracts, bank time deposits, certificates of deposit, and currency
spot transactions will be available from major broker-dealer firms,
major market data vendors, and/or third party pricing services. Money
market mutual funds are typically priced once each business day, and
their prices will be available through the applicable fund's Web site
or from major market data vendors. In addition, the Fund's Web site
will include a form of the prospectus for the Fund and additional data
relating to NAV and other applicable quantitative information.
    The Commission further believes that the proposal to list and trade
the Shares

is reasonably designed to promote fair disclosure of information that
may be necessary to price the Shares appropriately and to prevent
trading when a reasonable degree of transparency cannot be assured. The
Commission notes that the Exchange will obtain a representation from
the issuer of the Shares that the NAV per Share will be calculated
daily and that the NAV and the Disclosed Portfolio will be made
available to all market participants at the same time. Trading in the
Shares will also be subject to Nasdaq Rules 4120 and 4121, including
the trading pause provisions under Nasdaq Rules 4120(a)(11) and (12).
Trading in the Shares may be halted because of market conditions or for
reasons that, in the view of the Exchange, make trading in the Shares
inadvisable. These may include: (1) The extent to which trading is not
occurring in the securities and/or the other assets constituting the
Disclosed Portfolio of the Fund; or (2) whether other unusual
conditions or circumstances detrimental to the maintenance of a fair
and orderly market are present. Trading in the Shares will also be
subject to Nasdaq Rule 5735(d)(2)(D), which sets forth additional
circumstances under which trading in the Shares may be halted. The
Exchange states that it has a general policy prohibiting the
distribution of material, non-public information by its employees. In
addition, the Exchange represents that neither the Adviser nor Sub-
Adviser is registered as a broker-dealer; however, the Adviser is
affiliated with a broker-dealer, and the Sub-Adviser is affiliated with
two broker-dealers, and each has implemented and will maintain a fire
wall with respect to its respective broker-dealer affiliate(s)
regarding access to information concerning the composition and/or
changes to the portfolio.\32\
---------------------------------------------------------------------------

    \32\ See supra note 7. The Exchange further represents that an
investment adviser to an open-end fund is required to be registered
under the Investment Advisers Act of 1940 (``Advisers Act''). As a
result, the Adviser, Sub-Adviser, and their related personnel are
subject to the provisions of Rule 204A-1 under the Advisers Act,
which requires investment advisers to adopt a code of ethics that
reflects the fiduciary nature of their relationship with their
clients as well as compliance with other applicable securities laws.
Accordingly, investment advisers must have procedures designed to
prevent the communication and misuse of non-public information,
consistent with Rule 204A-1 under the Advisers Act. In addition,
Rule 206(4)-7 under the Advisers Act makes it unlawful for an
investment adviser to provide investment advice to clients unless
such investment adviser has (i) adopted and implemented written
policies and procedures reasonably designed to prevent violation, by
the investment adviser and its supervised persons, of the Advisers
Act and the Commission rules adopted thereunder; (ii) implemented,
at a minimum, an annual review regarding the adequacy of the
policies and procedures established pursuant to subparagraph (i)
above and the effectiveness of their implementation; and (iii)
designated an individual (who is a supervised person) responsible
for administering the policies and procedures adopted under
subparagraph (i) above.
---------------------------------------------------------------------------

    The Exchange represents that trading in the Shares will be subject
to the existing trading surveillances, administered by both Nasdaq and
also the Financial Industry Regulatory Authority (``FINRA'') on behalf
of the Exchange, which are designed to detect violations of Exchange
rules and applicable federal securities laws.\33\ The Exchange also
represents that FINRA, on behalf of the Exchange, will communicate as
needed regarding trading in the Shares and the exchange-traded
securities and instruments held by the Fund (including Equity
Securities, closed-end funds, ETFs, ETPs, ETNs, exchange-traded CVRs,
options on stock indices, options on equity securities, and stock index
futures contracts) with other markets and other entities that are
members of the Intermarket Surveillance Group (``ISG''),\34\ and FINRA
may obtain trading information regarding trading in the Shares and such
exchange-traded securities and instruments held by the Fund from such
markets and other entities. In addition, the Exchange may obtain
information regarding trading in the Shares and the exchange-traded
securities and instruments held by the Fund from markets and other
entities that are members of ISG, which includes securities and futures
exchanges, or with which the Exchange has in place a CSSA. Moreover,
FINRA, on behalf of the Exchange, will be able to access, as needed,
trade information for certain fixed income securities held by the Fund
reported to FINRA's Trade Reporting and Compliance Engine (``TRACE'').
---------------------------------------------------------------------------

    \33\ The Exchange states that FINRA surveils trading on the
Exchange pursuant to a regulatory services agreement and that the
Exchange is responsible for FINRA's performance under this
regulatory services agreement.
    \34\ For a list of the current members of ISG, see
www.isgportal.org. The Exchange notes that not all components of the
Disclosed Portfolio may trade on markets that are members of ISG or
with which the Exchange has in place a comprehensive surveillance
sharing agreement (``CSSA'').
---------------------------------------------------------------------------

    The Exchange deems the Shares to be equity securities, thus
rendering trading in the Shares subject to the Exchange's existing
rules governing the trading of equity securities. In support of this
proposal, the Exchange has made representations, including the
following:
    (1) The Shares will be subject to Rule 5735, which sets forth the
initial and continued listing criteria applicable to Managed Fund
Shares.\35\
---------------------------------------------------------------------------

    \35\ See Notice, supra note 3, at 33313.
---------------------------------------------------------------------------

    (2) The Exchange has appropriate rules to facilitate transactions
in the Shares during all trading sessions.\36\ Trading in the Shares
will be subject to the existing trading surveillances, administered by
both Nasdaq and also FINRA on behalf of the Exchange, which are
designed to detect violations of Exchange rules and applicable federal
securities laws, and these procedures are adequate to properly monitor
Exchange trading of the Shares in all trading sessions and to deter and
detect violations of Exchange rules and applicable federal securities
laws.\37\
---------------------------------------------------------------------------

    \36\ Id.
    \37\ Id.
---------------------------------------------------------------------------

    (3) FINRA, on behalf of the Exchange, will communicate as needed
regarding trading in the Shares and the exchange-traded securities and
instruments held by the Fund (including Equity Securities, closed-end
funds, ETFs, ETPs, ETNs, exchange-traded CVRs, options on stock
indices, options on equity securities, and stock index futures
contracts) with other markets and other entities that are members of
the ISG, and FINRA may obtain trading information regarding trading in
the Shares and such exchange-traded securities and instruments held by
the Fund from such markets and other entities. In addition, the
Exchange may obtain information regarding trading in the Shares and the
exchange-traded securities and instruments held by the Fund from
markets and other entities that are members of ISG, which includes
securities and futures exchanges, or with which the Exchange has in
place a CSSA. Moreover, FINRA, on behalf of the Exchange, will be able
to access, as needed, trade information for certain fixed income
securities held by the Fund reported to FINRA's TRACE.\38\
---------------------------------------------------------------------------

    \38\ Id.
---------------------------------------------------------------------------

    (4) At least 90% of the Fund's net assets that are invested (in the
aggregate) in exchange-traded derivatives and in exchange-traded CVRs
will be invested in instruments that trade in markets that are members
of ISG or are parties to a CSSA with the Exchange.\39\
---------------------------------------------------------------------------

    \39\ Id. at 33313-33314.
---------------------------------------------------------------------------

    (5) At least 90% of the Fund's net assets that are invested (in the
aggregate) in ETNs and in exchange-traded equity securities will be
invested in securities that trade in markets that are members of ISG or
are parties to a CSSA with the Exchange.\40\
---------------------------------------------------------------------------

    \40\ Id. at 33314.

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

    (6) The Equity Securities in which the Fund will invest will be
listed on a U.S. or a non-U.S. exchange.\41\
---------------------------------------------------------------------------

    \41\ Id. at 33308.
---------------------------------------------------------------------------

    (7) ETFs included in the Fund will be listed and traded in the U.S.
on registered exchanges.\42\
---------------------------------------------------------------------------

    \42\ Id. at n.10.
---------------------------------------------------------------------------

    (8) The Fund will not invest in any unsponsored Depositary
Receipts.\43\
---------------------------------------------------------------------------

    \43\ Id. at 33309, n.12.
---------------------------------------------------------------------------

    (9) The Fund will only invest in total return swap agreements that
have (i) referenced assets that are exchange-traded securities or (ii)
referenced indexes that are comprised of exchange-traded
securities.\44\
---------------------------------------------------------------------------

    \44\ Id. at 33309, n.15.
---------------------------------------------------------------------------

    (10) While the Fund may invest in inverse ETFs, the Fund will not
invest in leveraged or inverse leveraged (e.g., 2X or -3X) ETFs.\45\
---------------------------------------------------------------------------

    \45\ Id. at 33308, n.10.
---------------------------------------------------------------------------

    (11) The Fund will only enter into transactions in OTC derivatives
with counterparties that the Adviser and/or the Sub-Adviser reasonably
believes are capable of performing under the applicable contract or
agreement.\46\
---------------------------------------------------------------------------

    \46\ Id. at 33309.
---------------------------------------------------------------------------

    (12) The Fund may hold up to an aggregate amount of 15% of its net
assets in illiquid assets (calculated at the time of investment),
including Rule 144A securities deemed illiquid by the Adviser and/or
the Sub-Adviser.\47\
---------------------------------------------------------------------------

    \47\ Id. at 33310.
---------------------------------------------------------------------------

    (13) The Fund will not invest in Rule 144A securities other than
Non-Exchange-Traded Equity Securities. Additionally, Non-Exchange-
Traded Equity Securities will not be represented by derivative
instruments.\48\
---------------------------------------------------------------------------

    \48\ Id. at n.20.
---------------------------------------------------------------------------

    (14) The Fund may not invest 25% or more of the value of its total
assets in securities of issuers in any one industry. This restriction
does not apply to (a) obligations issued or guaranteed by the U.S.
government, its agencies or instrumentalities or (b) securities of
other investment companies.\49\
---------------------------------------------------------------------------

    \49\ Id. at 33310.
---------------------------------------------------------------------------

    (15) The Fund will invest (in the aggregate) no more than 30% of
the value of its net assets (calculated at the time of investment) in
Principal Derivatives and Non-Principal Derivatives.\50\
---------------------------------------------------------------------------

    \50\ Id. at 33314.
---------------------------------------------------------------------------

    (16) Prior to the commencement of trading, the Exchange will inform
its members in an Information Circular of the special characteristics
and risks associated with trading the Shares. Specifically, the
Information Circular will discuss the following: (a) The procedures for
purchases and redemptions of Shares in creation units (and that Shares
are not individually redeemable); (b) Nasdaq Rule 2111A, which imposes
suitability obligations on Nasdaq members with respect to recommending
transactions in the Shares to customers; (c) how information regarding
the Intraday Indicative Value and the Disclosed Portfolio is
disseminated; (d) the risks involved in trading the Shares during the
Pre-Market and Post-Market Sessions when an updated Intraday Indicative
Value will not be calculated or publicly disseminated; (e) the
requirement that members deliver a prospectus to investors purchasing
newly issued Shares prior to or concurrently with the confirmation of a
transaction; and (f) trading information. The Information Circular will
also discuss any exemptive, no-action and interpretive relief granted
by the Commission from any rules under the Act.\51\
---------------------------------------------------------------------------

    \51\ Id.
---------------------------------------------------------------------------

    (17) For initial and continued listing, the Fund must be in
compliance with Rule 10A-3 under the Act.\52\
---------------------------------------------------------------------------

    \52\ See 17 CFR 240.10A-3.
---------------------------------------------------------------------------

    (18) The Fund's investments in derivative instruments will be made
in accordance with the 1940 Act, will be consistent with the Fund's
investment objective and policies, and will not be used to seek to
achieve a multiple or inverse multiple of an index.\53\
---------------------------------------------------------------------------

    \53\ See Notice, supra note 3, at 33309.
---------------------------------------------------------------------------

    (20) To limit the potential risk associated with the Fund's
derivatives transactions, the Fund will segregate or ``earmark'' assets
determined to be liquid by the Adviser and/or the Sub-Adviser in
accordance with procedures established by the Trust Board and in
accordance with the 1940 Act (or, as permitted by applicable
regulation, enter into certain offsetting positions) to cover its
obligations under derivative instruments. These procedures have been
adopted consistent with Section 18 of the 1940 Act and related
Commission guidance. In addition, the Fund will include appropriate
risk disclosure in its offering documents, including leveraging
risk.\54\
---------------------------------------------------------------------------

    \54\ Id.
---------------------------------------------------------------------------

    (21) A minimum of 100,000 Shares will be outstanding at the
commencement of trading on the Exchange.\55\
---------------------------------------------------------------------------

    \55\ Id. at 33313.
---------------------------------------------------------------------------

    The Exchange represents that all statements and representations
made in this filing regarding (a) the description of the portfolio, (b)
limitations on portfolio holdings or reference assets, or (c) the
applicability of Exchange rules and surveillance procedures shall
constitute continued listing requirements for listing the Shares on the
Exchange. In addition, the issuer has represented to the Exchange that
it will advise the Exchange of any failure by the Fund to comply with
the continued listing requirements, and, pursuant to its obligations
under Section 19(g)(1) of the Act, the Exchange will monitor for
compliance with the continued listing requirements. If the Fund is not
in compliance with the applicable listing requirements, the Exchange
will commence delisting procedures under the Nasdaq 5800 Series.
    This approval order is based on all of the Exchange's
representations, including those set forth above and in the Notice, and
the Exchange's description of the Fund. The Commission notes that the
Fund and the Shares must comply with the initial and continued listing
criteria in Nasdaq Rule 5735 for the Shares to be listed and traded on
the Exchange.
    For the foregoing reasons, the Commission finds that the proposed
rule change is consistent with Section 6(b)(5) of the Act \56\ and the
rules and regulations thereunder applicable to a national securities
exchange.
---------------------------------------------------------------------------

    \56\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

IV. Conclusion

    IT IS THEREFORE ORDERED, pursuant to Section 19(b)(2) of the
Act,\57\ that the proposed rule change (SR-NASDAQ-2016-061), be, and it
hereby is, approved.
---------------------------------------------------------------------------

    \57\ 15 U.S.C. 78s(b)(2).
    \58\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\58\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-19898 Filed 8-19-16; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 84, Number 184 (Monday, September 23, 2019)]
[Notices]
[Page 49785]
[FR Doc No: 2019-20547]

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

DEPARTMENT OF TRANSPORTATION

Pipeline and Hazardous Materials Safety Administration

[Docket No.: PHMSA-2018-0004; Notice No. 2018-04]

Hazardous Materials: Public Meeting Notice for the Research and
Development Roundtable

AGENCY: Pipeline and Hazardous Materials Safety Administration (PHMSA),
U.S. Department of Transportation (DOT).

ACTION: Notice of public meeting.

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

SUMMARY: This notice is to inform the interested public that the Office
of Hazardous Materials Safety (OHMS) of the Pipeline and Hazardous
Materials Safety Administration (PHMSA) will hold a public Research and
Development (R&D) Roundtable on October 24, 2019, in Washington, DC
OHMS will host the meeting to provide an overview of its next Broad
Agency Announcement (BAA) which will help the agency meet its goals of
promoting safety and fostering innovation. The meeting will provide an
overview of OHMS' R&D program; internal and external processes behind
the BAA; limits of the BAA; and the results of the 2017 BAA. All
participants will have an equal chance to provide input for future
consideration.

DATES: The meeting will be held on October 24, 2019, from 8:30 a.m. to
2:30 p.m. Eastern Standard Time. Requests to attend the meeting must be
received by October 22, 2019. Requests for accommodations for a
disability must be received by October 21, 2019.

ADDRESSES: The meeting will be held at the U.S. Department of
Transportation Conference Center at 1200 New Jersey Avenue SE,
Washington, DC 20590. The DOT requests that attendees pre-register for
this meeting by completing the form at https://www.surveymonkey.com/r/BJMMQYM. Conference call-in capability will be provided. Specific
information about conference call-in meeting access will be posted,
when available, at: https://www.phmsa.dot.gov/research-and-development/hazmat/rd-meetings-and-events under ``Upcoming Events.''

FOR FURTHER INFORMATION CONTACT: Eva Rodezno or Rick Boyle, Office of
Hazardous Materials Safety, Research and Development, Pipeline and
Hazardous Materials Safety Administration, U.S. Department of
Transportation, Washington, DC. Telephone:<PHONE_NUMBER> and (202)
366-2993. Email<EMAIL_ADDRESS>or 3f4d565c54115d5046535a7f5b504b11585049.

SUPPLEMENTARY INFORMATION:

I. Background

    OHMS' mission is to protect people and the environment from the
risks posed by hazardous materials (hazmat) transportation. To this
end, OHMS is particularly interested in research gaps associated with:

 Development of New Standards for Bulk and Non-Bulk Packaging
 Improved Materials and Designs for Hazardous Materials
Packaging
 Self (Default) Classification of Hazardous Materials and/or
Articles
 Improvements to the North American Emergency Response
Guidebook
 Charge Storage Device Transportation Safety
 Innovative Technologies to Improve Hazmat Transportation
Safety

    The meeting will be hosted and facilitated by PHMSA. Meeting
participants will include modal authorities and external research
partners including other DOT modal partners. OHMS R&D efforts include
laboratory testing, analysis, modeling, product and material
development, and field testing.

II. Agenda

    The meeting agenda will cover the following topics:
 Safety Briefing and Overview
 Welcome and Administrative Remarks
 Research Gaps: Safety
 Research Gaps: Innovation
 Closing Remarks

III. Public Participation

    The meeting will be open to the public on a first come, first
served basis, as space is limited. Members of the public who wish to
attend in person must RSVP by filling out the form listed in the
ADDRESSES section. The U.S. Department of Transportation is committed
to providing equal access to this meeting for all participants. If you
need alternative formats or services because of a disability, such as
sign language, interpretation, or other ancillary aids, please contact
the person listed in the FOR FURTHER INFORMATION CONTACT section.

    Issued in Washington, DC, on September 18, 2019, under authority
delegated in 49 CFR 1.97.
William S. Schoonover,
Associate Administrator for Hazardous Materials Safety, Pipeline and
Hazardous Materials Safety Administration.
[FR Doc. 2019-20547 Filed 9-20-19; 8:45 am]
BILLING CODE 4909-60-P


                               Site Visit Report

ArcelorMittal -- Indiana Harbor
3001 Dickey Road
East Chicago, IN 46312

3210 Watling Street
East Chicago, IN 46312
August 3, 2009

1.0	Background and Objectives

      The Environmental Protection Agency (EPA) is in the process of developing 316(b) cooling water intake structure requirements that reflect the best technology available (BTA) for minimizing adverse environmental impact for all existing power plants and manufacturing facilities. As part of this process, EPA staff is visiting electric generators and manufacturers to better understand the cooling water intake structure (CWIS) technologies in use at facilities, including the site-specific characteristics of each facility and how these affect the selection and performance of CWIS technologies.  EPA is also visiting facilities to better understand cooling water use and specific issues or technologies that can affect 316(b) compliance.  ArcelorMittal's Indiana Harbor facility (Indiana Harbor) was selected for a site visit because it utilizes cooling water in manufacturing steel and other metal products.

2.0	Facility Description

      ArcelorMittal's Indiana Harbor facility is located on a 3300 acre site on the shore of Lake Michigan in East Chicago, IN.  The facility is actually comprised of two formerly separate steel mills; the West side was established in 1914 and the East side began operations in 1907.  Collectively, the facility employs approximately 6500 personnel.  The facility has two NPDES permits, one for each former mill (NPDES permit numbers IN0000205 and IN0000094, respectively).  The permits have expired (September 29, 1991 and May 31, 2001, respectively) and are in the process of being renewed.

3.0	Manufacturing Information

      Indiana Harbor produces over 10 millions tons of steel per year, making it one of the 5 largest steel mills in the world.  It primarily produces high-end metal products (such as rolled steel) that are used in automobiles, appliances, and pipes.  The West side is comprised of two blast furnaces, a hot strip mill, and a finishing mill.  The East side operates the largest blast furnace in the U.S., as well as a second smaller blast furnace.

      The facility has seen production slow substantially and idled over 1000 workers in early 2009, but has recently seen production begin to increase.  The facility's location makes it more viable than other inland locations, as it has ready access to water, cheaper shipping, and is closer to the ore, much of which comes from Canadian mines.

      The West side was closed for approximately 18 months in the early part of this decade, but was purchased by ISG and brought back online in 2002.  ISG merged with Mittal Steel in 2005, which was then purchased by Arcelor in 2006.  The East side began as Inland Steel, was sold to Ispat in 1998, and became part of Mittal.

4.0	Cooling Water System and Intake Structure

      The location of the intake structures (and the configuration of the facility) has evolved over the years; the facility was originally located on the historic lakeshore but expanded outward into the lake.  The West side's CWISs withdraw from the Indiana Harbor Ship Canal, which bisects the two plants; the East side's CWISs are located directly on Lake Michigan.  Most of the water withdrawn is used for once-through non-contact cooling; a large volume of process/contact water is also used onsite, but the facility has worked over the years to recirculate the majority of its process water.  Makeup water for the process water systems is also supplied by the CWISs; the fire suppression system also uses the intake structures.

      The West side has six cooling water systems (CWSs) and four CWISs.  The main CWIS (CWIS #2) is located at the end of a secondary intake canal (approximately 5500 feet in length) that withdraws water from the mouth of the Indiana Harbor Ship Canal through a riprap weir and runs into the center of the West side peninsula.  CWIS #2 is connected to its primary water user (the power plant, which uses approximately 100 million gallons per day [mgd]) via a 14 foot diameter tunnel 250 feet underground.  Two other CWISs are also located in this canal (one low-head intake near the terminus of the canal, the other approximately 2000 feet from the canal entrance), while the other one (CWIS #1) withdraws from the Ship Canal.  In total, the West side's design intake flow is 627 mgd.  Its average actual intake flow (AIF) is approximately 370 mgd.

      The West side uses a mixture of once-through and recirculating cooling systems.  As stated above, most of the once-through cooling water is for the power plant; cooling water at the hot strip mill and hot mill is recycled through onsite lagoons.  The blast furnaces also recycle much of the process water.

      Facility representatives stated that they do not precisely measure the intake flow.  CWIS #2 has 5 pumps, #1 has 4 (with only 1-2 usually operational), and #3 has 3 72 mgd pumps (operating 2 when the hot strip mill is operating).  Each of the pumphouses are linked to the same circulating water system and work cooperatively to maintain proper flow and pressure levels.  CWIS #2 also provides water to the tin plant onsite, which is still owned by US Steel.

      The West side's main intake withdraws water through a bar rack and into the screenhouse with 5 bays.  Each bay has one coarse mesh traveling screen, but two bays have been closed.  CWISs #1 and #3 have a similar configuration, with #1 having three coarse mesh screens and #3 having 11 bays but only 6 screens.  All of the screen use a high pressure wash and discharge any debris or impinged organisms to the trash.

      The East side also uses a mixture of once-through and recirculating cooling systems.  An extensive tunnel system was constructed in the bedrock beneath the facility to facilitate recirculation of cooling water between process areas; facility representatives stated that approximately 569 mgd of water is recycled within the system via 5 pumphouses at various locations.  The East side has been expanded and modified over the years as needed and has two treatment plants.

      The East side has two CWSs, which are each served by a single CWIS.  The primary CWIS (CWIS #2) is located at the end of a 1000 foot long intake canal at the southeastern end of the facility.  This CWIS provides the majority of the cooling water for the East side.  The second CWIS (CWIS #1), located approximately halfway out the peninsula, provides cooling water to the northern half of the East side.  The East side's DIF is 569 mgd and its AIF is approximately 160 mgd.

      The East side's primary CWIS draws water through bar racks and over a "lift wall"  in the canal into a tunnel at the pumphouse.  Within the pumphouse, 5 intake bays (each with a 3/8" coarse mesh traveling screen) feed a common sump with 7 pumps with a design intake flow (DIF) of 360 mgd.  Screens are rotated infrequently, as facility representatives noted that there is normally minimal debris (mostly plastic bags) or impingement (fish are only observed for a few days each year); all materials are disposed in a landfill.

      The main user of cooling water from the East side's CWIS #2 is the blast gas furnace power house, located near the intake canal.  The vast majority of the water withdrawn (approximately 115 mgd) for the power house is once-through non-contact cooling water.

      The East side's second CWIS (CWIS #7) supplies a distribution area on the site for the former coal-fired generating unit.  A concrete culvert in the shoreline opens to Lake Michigan at the end of a small inlet bay; water then passes into the adjacent screenhouse.  The CWIS has a trash rack and seven coarse mesh traveling screens.  There are three circulating pumps (approximately 58 mgd each) and four service water pumps (approximately 43 mgd each) for a total DIF of 345 mgd.  However, due to process changes and reductions in water usage, the facility only operates one service water pump at approximately half capacity (an actual intake flow (AIF) of approximately 20 mgd).  Facility representatives estimated that half of the water withdrawn was used for once-through equipment cooling, with the remainder being used as makeup water for various systems.  The screens are rotated infrequently (debris loading is small) and materials are returned to Lake Michigan via a debris return.  Facility representatives stated that the intake velocity is approximately 0.3 fps.

      The East side's fire suppression system withdraws from both the CWISs and the recirculation tunnels.

      Indiana Harbor withdraws water even when the facility is not producing steel; the volume is much lower, but moving water keeps pipes clear of fouling organisms.  Chlorination is also used at each CWIS to control fouling; zebra mussels and quagga mussels are problematic in the Great Lakes.  Overall, facility representatives stated that they do not experience significant clogging from fouling organisms.

5.0	Flow Diagram

      Following the site visit, the facility provided a water balance diagram for the East side.  (See Attachment C.)  The diagram shows the major recirculation systems.  Attachment D shows the general flow diagram for the West side.

6.0	Electricity Generation and Transmission

      Facility representatives stated that approximately 30-40% of the plant's power needs are generated onsite.  Indiana Harbor Coke provides the majority of the generation via the coke plant in the northern section of the East side.  The West side also has a generating unit that was built in the 1930s.  Facility representatives stated that it is difficult to estimate the electricity generated by these units, as they are used for multiple purposes -- power generation, steam generation, and to drive turboblowers that provide wind within the blast furnaces.

      As noted in Section 4.0 above, the East side previously operated a 400MW coal-fired generating unit, but that unit has been taken out of service.  The coal yard is still active, however, as it stores fuel for the blast furnaces.

7.0	Impingement and Entrainment Information

      Facility representatives noted that scientists from Purdue University conducted a biological survey in the 1980s.

8.0	Cooling Tower Feasibility

      The West side recycles some of its cooling water via cooling lagoons and also has a 4 mechanical draft cooling towers onsite.  Its largest water user of once-through water (the power plant) is located in a congested area, making a cooling tower retrofit difficult; the towers would likely be located over a half mile away.

      The East side employs 35 cooling towers of various sizes across the facility; the facility began adding them in the 1960s and facility representatives noted that virtually every process line has a cooling tower.  The towers are operated by existing staff at each unit or by centralized utilities staff and normally operate year-round, except for a 6-8 week period in winter.  Facility representatives stated that there was no significant problem with drift or plume from the towers.

      Most of the towers at Indiana Harbor have been built since the 1970s, in response to the Clean Water Act and other regulatory initiatives.  Facility representatives estimated the cycles of concentration for all towers range from 1.5 to 3, depending on whether the tower is used for process or non-contact cooling and whether the tower serves a blast furnace.  Facility representatives stated that 11 of the towers (between both sites) are used for exclusively process water cooling and 5 towers are used for exclusively non-contact cooling.

      As noted in Section 4.0 above, the East side's power plant uses a large volume of once-through cooling water.  Facility representatives noted that the existing underground recirculation tunnels do not have sufficient circulating capacity to add the power plant flows.  They also stated that adding cooling towers would be feasible, but given the age of the system, would not be a financially sound decision.  The power house is also likely to be very expensive to demolish.  Facility representatives also stated that they do not expect that a cooling system retrofit could be accomplished during a normal scheduled outage.

      Facility representatives stated that the blast furnaces generally do not have regularly scheduled maintenance outages.  The furnaces are taken offline approximately 10 days per year (one day at a time) for maintenance.  The steel shops are batch processors, however, and may have opportunities for longer downtime periods.  Facility representatives noted that many of the steel shops (including the smaller specialty shops) can operate independently of the remainder of the facility and can share materials with other sites to remain operational.

      Facility representatives noted that a pair of 2-cell cooling towers do cause some problems with plume and visibility under certain conditions; roads may be closed due to the fogging due to the safety hazard posed by rail traffic during slab operations.

9.0	Future Activities

      Facility representatives did not indicate any plans to expand the facility or its intake flows in the foreseeable future.  As noted above, the facility is hopeful that its production will increase soon.

10.0	Cooling Ponds

      As noted in Section 4.0 above, the West side does use some cooling lagoons as part of a recirculating system.

11.0	316(a)

      EPA did not collect any information on thermal discharges.

12.0	Ash Handling

      EPA did not collect any information on ash handling procedures.

13.0	Air Emissions Controls

      Facility representatives stated that a $43 million scrubber was recently installed at the #4 blast furnace.  EPA did not collect any further information on air emissions controls.

14.0	Issues with Debris

      Facility representatives did not note any significant issues with debris management.  Some intake structures are equipped with air bubblers to prevent ice formation in the winter.

15.0	Additional Information

      Facility representatives stated that the age of the site and the incremental expansion over time has created significant process inefficiencies; a newly constructed steel mill would be configured very differently.  The West side is more logically laid out and also has process units that are smaller and require less cooling water.

      The adjacent British Petroleum refinery recently implemented a major expansion in refining capacity to accommodate processing of Canadian crude oil.  As such, there is no nearby land available for purchase.

      Almost all raw materials are delivered by ship to the ship canal.  Coal is delivered by rail.

Attachments

Attachment A		List of Attendees
Attachment B		Aerial Photos
Attachment C	Water Balance Diagram for East Side
Attachment D	Water Flow Diagram for West Side
Attachment E	Site Visit Photos

Attachment A--List of Attendees

Paul Shriner, EPA
Jan Matuszko, EPA
Sean Ramach, EPA Region V
John Sunda, SAIC
Kelly Meadows, Tetra Tech
Tom Barnett, ArcelorMittal
Simonne Benoit, ArcelorMittal
Kevin Doyle, ArcelorMittal
Tom Malinkowski, ArcelorMittal
Richard Dean, ArcelorMittal
Mike Rossner, ArcelorMittal

Attachment B -- Aerial Photos

Please see DCN 10-6551A accompanying this document.

Attachment C -- Water Balance Diagram for East Side

Please see DCN 10-6551B accompanying this document.

Attachment D -- Water Flow Diagram for West Side

Please see DCN 10-6551C accompanying this document.

Attachment E -- Site Visit Photos

Please see DCNs 10-6551D through K accompanying this document.


[Federal Register: March 18, 2008 (Volume 73, Number 53)]
[Rules and Regulations]
[Page 14377-14378]
[DOCID:fr18mr08-4]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2007-29092; Directorate Identifier 2007-NE-30-AD;
Amendment 39-15431; AD 2008-06-19]
RIN 2120-AA64

Airworthiness Directives; Honeywell International Inc. ATF3-6 and
ATF3-6A Series Turbofan Engines

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

ACTION: Final rule.

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

SUMMARY: The FAA is adopting a new airworthiness directive (AD) for
Honeywell International Inc. ATF3-6 and ATF3-6A series turbofan engines
equipped with a certain part number (P/N) low pressure compressor (LPC)
aft shaft. This AD requires removing from service those LPC aft shafts
and installing a serviceable LPC aft shaft. This AD results from
reports of eight LPC aft shafts found cracked during fluorescent
penetrant inspection (FPI). We are issuing this AD to prevent
uncoupling and overspeed of the low pressure turbine, which could
result in uncontained engine failure and damage to the airplane.

DATES: This AD becomes effective April 22, 2008.

ADDRESSES: You can get the service information identified in this AD
from Honeywell International Inc., 111 S. 34th St., Phoenix, AZ 85034-
2802; Web site: http://portal.honeywell.com/wps/portal/aero; telephone
(800) 601-3099.
    The Docket Operations office is located at Docket Management
Facility, U.S. Department of Transportation, 1200 New Jersey Avenue,
SE., West Building Ground Floor, Room W12-140, Washington, DC 20590-
0001.

FOR FURTHER INFORMATION CONTACT: Joseph Costa, Aerospace Engineer, Los
Angeles Aircraft Certification Office, FAA, Transport Airplane
Directorate, 3960 Paramount Blvd., Lakewood, CA 90712-4137; e-mail:
<EMAIL_ADDRESS>telephone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: The FAA proposed to amend 14 CFR part 39
with a proposed AD. The proposed AD applies to Honeywell International
Inc. ATF3-6 and ATF3-6A series turbofan engines equipped with a certain
part numbered LPC aft shaft. We published the proposed AD in the
Federal Register on October 5, 2007 (72 FR 56945). That action proposed
to require removing LPC aft shafts, P/N 3002070-1, from service and
installing serviceable LPC aft shafts.

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, the regulatory evaluation,
any comments received, and other information. The street address for
the Docket Operations office (telephone<PHONE_NUMBER>) is provided in
the ADDRESSES section. Comments will be available in the AD docket
shortly after receipt.

Comments

    We provided the public the opportunity to participate in the
development of this AD. We received no comments on the proposal or on
the determination of the cost to the public.

Conclusion

    We have carefully reviewed the available data and determined that
air safety and the public interest require adopting the AD as proposed.

Costs of Compliance

    We estimate that this AD will affect 32 ATF3-6 and ATF3-6A series
turbofan engines installed on airplanes of U.S. registry. We also
estimate that it will take about 40 work-hours per engine to perform
the actions if unscheduled, 20 work-hours per engine if during
scheduled major periodic inspection (MPI), and 1 work-hour per engine
during scheduled core zone inspection (CZI). We estimate that four
engines would be unscheduled, 14 engines would be scheduled at MPI, and
14 engines would be scheduled at CZI. The average labor rate is $80 per
work-hour. Required parts would cost about $15,000 per engine. Based on
these figures, we estimate the total cost of the proposed AD to U.S.
operators to be $516,320.

Authority for This Rulemaking

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

Regulatory Findings

    We have determined that this AD will not have federalism
implications under Executive Order 13132. This AD will not have a
substantial direct effect on the States, on the relationship between
the national government and the States, or on the distribution of power
and responsibilities among the various levels of government.
    For the reasons discussed above, I certify that this AD:
    (1) Is not a ``significant regulatory action'' under Executive
Order 12866;
    (2) Is not a ``significant rule'' under DOT Regulatory Policies and
Procedures (44 FR 11034, February 26, 1979); 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 a summary of the costs to comply with this AD and
placed it in the AD Docket. You may get a copy of this summary at the
address listed under ADDRESSES.

List of Subjects in 14 CFR Part 39

    Air transportation, Aircraft, Aviation safety, Safety.

Adoption of the Amendment

0
Accordingly, under the authority delegated to me by the Administrator,
the Federal Aviation Administration 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:

2008-06-19 Honeywell International Inc. (formerly AlliedSignal Inc.
and Garrett Turbine Engine Co.): Amendment 39-15431. Docket No. FAA-
2007-29092; Directorate Identifier 2007-NE-30-AD.

Effective Date

    (a) This airworthiness directive (AD) becomes effective April
22, 2008.

Affected ADs

    (b) None.

Applicability

    (c) This AD applies to Honeywell International Inc. ATF3-6-4C,
ATF3-6A-3C, and ATF3-6A-4C turbofan engines equipped with part
number (P/N) 3002070-1 low pressure compressor (LPC) Aft shaft.
These engines are installed on, but not limited to, Dassault
Aviation Fan Jet Falcon Series G (Falcon 20G/HU25), and Dassault
Aviation Mystere-Falcon 200 airplanes.

Unsafe Condition

    (d) This AD results from reports of eight LPC aft shafts found
cracked during fluorescent penetrant inspection (FPI). We are
issuing this AD to prevent uncoupling and overspeed of the low
pressure turbine, which could result in uncontained engine failure
and damage to the airplane.

Compliance

    (e) You are responsible for having the actions required by this
AD performed within the compliance times specified in Table 1 and
Table 2 of this AD, unless the actions have already been done.

    Table 1.--ATF3-6A-4C Turbofan Engines, LPC Aft Shaft Replacement
                           Compliance Schedule
------------------------------------------------------------------------
   For ATF3-6A-4C turbofan
engines, if the  cycles-since-
  new (CSN) on the effective        Then replace the LPC Aft shaft:
     date of this AD are:
------------------------------------------------------------------------
(1) 6,500 or more CSN........  Within an additional 100 cycles-in-
                                service (CIS).
(2) 5,000 to 6,499 CSN.......  Within an additional 800 CIS, but not
                                more than 6,600 CSN, whichever occurs
                                first.
(3) 4,000 to 4,999 CSN.......  Within an additional 1,500 CIS, but not
                                more than 5,800 CSN, whichever occurs
                                first.
(4) Fewer than 4,000 CSN.....  Within an additional 2,000 CIS, but not
                                more than 5,500 CSN, whichever occurs
                                first.
------------------------------------------------------------------------

   Table 2.--ATF3-6-4C and ATF3-6A-3C Turbofan Engines, LPC Aft Shaft
                     Replacement Compliance Schedule
------------------------------------------------------------------------
 For ATF3-6-4C and ATF3-6A-3C
turbofan  engines, if the CSN
on the effective date of this       Then replace the LPC Aft shaft:
           AD are:
------------------------------------------------------------------------
(1) 4,400 or more CSN........  Within an additional 100 CIS.
(2) 3,600 to 4,399 CSN.......  Within an additional 500 CIS, but not
                                more than 4,500 CSN, whichever occurs
                                first.
(3) 3,300 to 3,599 CSN.......  Within an additional 700 CIS, but not
                                more than 4,100 CSN, whichever occurs
                                first.
(4) Fewer than 3,300 CSN.....  Within an additional 1,000 CIS, but not
                                more than 4,000 CSN, whichever occurs
                                first.
------------------------------------------------------------------------

LPC Aft Shaft Replacement

    (f) Using the compliance schedule in Table 1 or Table 2 of this
AD as applicable, remove the LPC aft shaft, P/N 3002070-1, from
service, and install a serviceable LPC aft shaft.

Definition

    (g) For the purpose of this AD, a serviceable LPC aft shaft is
an aft shaft with a P/N not referenced in this AD.

Alternative Methods of Compliance

    (h) The Manager, Los Angeles Aircraft Certification Office, has
the authority to approve alternative methods of compliance for this
AD if requested using the procedures found in 14 CFR 39.19.

Related Information

    (i) Honeywell International Inc. Service Bulletin No. ATF3-72-
6240, Revision 1, dated May 14, 2007, pertains to the subject of
this AD.
    (j) Contact Joseph Costa, Aerospace Engineer, Los Angeles
Aircraft Certification Office, FAA, Transport Airplane Directorate,
3960 Paramount Blvd., Lakewood CA 90712-4137; e-mail:
<EMAIL_ADDRESS>telephone:<PHONE_NUMBER>; fax: (562) 627-
5210, for more information about this AD.

Material Incorporated by Reference

    (k) None.

    Issued in Burlington, Massachusetts, on March 10, 2008.
Robert J. Ganley,
Acting Manager, Engine and Propeller Directorate, Aircraft
Certification Service.
[FR Doc. E8-5274 Filed 3-17-08; 8:45 am]

BILLING CODE 4910-13-P