74616 Federal Register / Vol. 75, No. 230 / Wednesday, December 1, 2010 / Rules and Regulations 

(1) The Director of the Federal Register 

approved the incorporation by reference of 

the service information contained in Table 9 

of this AD under 5 U.S.C. 552(a) and 1 CFR 

part 51. 

TABLE 9—NEW MATERIAL INCORPORATED BY REFERENCE

Airbus— Revision— Dated— 

Mandatory Service Bulletin A300–57A0246 ....................... 03, including Appendices 1 and 2 ..................................... March 11, 2009. 

04, including Appendices 1 and 2 ..................................... September 9, 2009. 

Mandatory Service Bulletin A300–57–0254 ....................... Original ............................................................................... June 4, 2010. 

Mandatory Service Bulletin A300–57A6087 ....................... 05, including Appendix 1 ................................................... March 10, 2008. 

Mandatory Service Bulletin A300–57A6101 ....................... 03, including Appendices 1 and 2 ..................................... March 11, 2009. 

04, including Appendices 1 and 2 ..................................... September 9, 2009. 

Mandatory Service Bulletin A300–57–6110 ....................... 0, including Appendix 1 ..................................................... June 7, 2010. 

(2) The Director of the Federal Register 

previously approved the incorporation by 

reference of the service information specified 

in Table 10 of this AD on July 18, 2006 (71 

FR 33994, June 13, 2006). 

TABLE 10—MATERIAL PREVIOUSLY INCORPORATED BY REFERENCE IN AD 2006–12–13 

Airbus— Revision— Dated— 

Service Bulletin A300–57A0234 ......................................... 04, including Appendix 01 ................................................. May 19, 2000. 

05, including Appendix 01 ................................................. February 19, 2002. 

Service Bulletin A300–57A6087 ......................................... 03, including Appendix 01 ................................................. May 19, 2000. 

04, including Appendix 01 ................................................. February 19, 2002. 

Service Bulletin A300–57–0235 ......................................... 04 ....................................................................................... March 13, 2003. 

05 ....................................................................................... December 3, 2003. 

Service Bulletin A300–57–6088 ......................................... 04 ....................................................................................... December 3, 2003. 

(3) The Director of the Federal Register 

previously approved the incorporation by 

reference of the service information specified 

in Table 11 of this AD on April 12, 2000 (65 

FR 12077, March 8, 2000). 

TABLE 11—MATERIAL PREVIOUSLY INCORPORATED BY REFERENCE IN AD 2000–05–07 

Airbus— Revision— Dated— 

Service Bulletin A300–57A0234 ......................................... 02 ....................................................................................... June 24, 1999. 

03, including Appendix 01 ................................................. September 2, 1999. 

Service Bulletin A300–57A6087 ......................................... 02, including Appendix 01 ................................................. June 24, 1999. 

(4) For service information identified in 

this AD, contact Airbus SAS—EAW 

(Airworthiness Office), 1 Rond Point Maurice 

Bellonte, 31707 Blagnac Cedex, France; 

telephone +33 5 61 93 36 96; fax +33 5 61 

93 44 51; e-mail account.airwortheas@airbus.com; Internet http:// 

www.airbus.com. 

(5) You may review copies of the service 

information at the FAA, Transport Airplane 

Directorate, 1601 Lind Avenue, SW., Renton, 

Washington. For information on the 

availability of this material at the FAA, call 

425–227–1221. 

(6) You may also review copies of the 

service information that is incorporated by 

reference at the National Archives and 

Records Administration (NARA). For 

information on the availability of this 

material at NARA, call 202–741–6030, or go 

to: http://www.archives.gov/federal_register/ 

code_of_federal_regulations/ 

ibr_locations.html. 

Issued in Renton, Washington, on 

November 3, 2010. 

Dionne Palermo, 

Acting Manager, Transport Airplane 

Directorate, Aircraft Certification Service. 

[FR Doc. 2010–28589 Filed 11–30–10; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2007–28348; Directorate 

Identifier 2007–NM–060–AD; Amendment 

39–16530; AD 2010–24–11] 

RIN 2120–AA64 

Airworthiness Directives; The Boeing 

Company Model 737–600, –700, –700C, 

–800, and –900 Series Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Final rule. 

SUMMARY: The FAA is adopting a new 

airworthiness directive (AD) for certain 

Model 737–600, –700, –700C, –800, and 

–900 series airplanes. This AD requires 

sealing the fasteners on the front and 

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Federal Register / Vol. 75, No. 230 / Wednesday, December 1, 2010 / Rules and Regulations 74617 

rear spars inside the main fuel tank and 

on the lower panel of the center fuel 

tank, inspecting the wire bundle 

support installation in the equipment 

cooling system bays to identify the type 

of clamp installed and determine 

whether the Teflon sleeve is installed, 

and doing related corrective actions if 

necessary. This AD results from a design 

review of the fuel tank systems. We are 

issuing this AD to prevent arcing at 

certain fuel tank fasteners in the event 

of a lightning strike or fault current 

event, which, in combination with 

flammable fuel vapors, could result in a 

fuel tank explosion and consequent loss 

of the airplane. 

DATES: This AD becomes effective 

January 5, 2011. 

The Director of the Federal Register 

approved the incorporation by reference 

of a certain publication listed in the AD 

as of January 5, 2011. 

ADDRESSES: For service information 

identified in this AD, contact Boeing 

Commercial Airplanes, Attention: Data 

& Services Management, P.O. Box 3707, 

MC 2H–65, Seattle, Washington 98124– 

2207; telephone 206–544–5000, 

extension 1; fax 206–766–5680; e-mail 

me.boecom@boeing.com; Internet 

https://www.myboeingfleet.com. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http:// 

www.regulations.gov; or in person at the 

Docket Management Facility between 

9 a.m. and 5 p.m., Monday through 

Friday, except Federal holidays. The AD 

docket contains this AD, the regulatory 

evaluation, any comments received, and 

other information. The address for the 

Docket Office (telephone 800–647–5527) 

is the Document Management Facility, 

U.S. Department of Transportation, 

Docket Operations, M–30, West 

Building Ground Floor, Room W12–140, 

1200 New Jersey Avenue, SE., 

Washington, DC 20590. 

FOR FURTHER INFORMATION CONTACT: Tom 

Thorson, Aerospace Engineer, 

Propulsion Branch, ANM–140S, FAA, 

Seattle Aircraft Certification Office, 

1601 Lind Avenue, SW., Renton, 

Washington 98057–3356; telephone 

(425) 917–6508; fax (425) 917–6590. 

SUPPLEMENTARY INFORMATION: 

Discussion 

The FAA issued a second 

supplemental notice of proposed 

rulemaking (NPRM) to amend 14 CFR 

part 39 to include an AD that would 

apply to certain Model 737–600, –700, 

–700C, –800, and –900 series airplanes. 

That second supplemental NPRM was 

published in the Federal Register on 

March 23, 2009 (74 FR 12094). That 

second supplemental NPRM proposed 

to require sealing the fasteners on the 

front and rear spars inside the main fuel 

tank and on the lower panel of the 

center fuel tank, inspecting the wire 

bundle support installation in the 

equipment cooling system bays to 

identify the type of clamp installed and 

determine whether the Teflon sleeve is 

installed, and doing related corrective 

actions if necessary. 

Relevant Service Information 

The second supplemental NPRM cited 

Boeing Alert Service Bulletin 737– 

57A1279, Revision 1, dated September 

25, 2008, as the appropriate source of 

service information. Boeing has since 

revised the service bulletin. Boeing 

Service Bulletin 737–57A1279, Revision 

2, dated February 2, 2010, incorporates 

additional data that were included in 

Boeing Information Notice (IN) 737– 

57A1279 IN 02, dated September 25, 

2008; 737–57A1279 IN 03, dated 

October 30, 2008; and 737–57A1279 IN 

04, dated March 13, 2009. This 

additional information does not add 

more work. 

Boeing has also issued IN 737– 

57A1279 IN 05, dated April 8, 2010. 

This IN specifies that Model 737–800 

and –900 airplanes may have an 

additional clamp located at stringer 10 

that requires the work shown in the 

steps of Figures 6, 7, 10, and 11 of 

Boeing Service Bulletin 737–57A1279, 

Revision 2, dated February 2, 2010, in 

the environmental control system bay of 

the affected airplanes. 

Comments 

We provided the public the 

opportunity to participate in the 

development of this AD. We have 

considered the comments received on 

the second supplemental NPRM. 

Support for the Second Supplemental 

NPRM 

Boeing reviewed the second 

supplemental NPRM and concurred 

with the contents of the proposed rule. 

Request To Delay AD Action 

Continental Airlines (CAL) expressed 

continued concern that the 

manufacturer needs to update the 

maintenance service documents to 

avoid inadvertently demodifying the 

work that this AD requires, which 

would result in potential enforcement 

action against CAL. CAL commented 

that to ensure compliance with the 

maintenance planning data Fuel System 

Airworthiness Limitations, the 

requirements of Appendix H.1(a) of the 

Federal Aviation Regulations (14 CFR 

25); and the requirements of sections 

26.1(a), 26.1(b)(2), and 26.1(b)(3) of the 

Federal Aviation Regulations (14 CFR 

26.1(a), 14 CFR 26.1(b)(2), and 14 CFR 

26.1(b)(3)); must be complied with by 

the original equipment manufacturer or 

type certificate holder. In addition, the 

operator must also comply with section 

91.1507(e) of the Federal Aviation 

Regulations (14 CFR 91.1507(e)); and 

section 121.1113(e) of the Federal 

Aviation Regulations (14 CFR 

121.1113(e)). CAL stated that these 

procedures conflict with the regulations 

of sections 25.1529 and 25.1729 of the 

Federal Aviation Regulations (14 CFR 

25.1529 and 25.1729) and applicable 

provisions of 14 CFR parts 21 and 26. 

We acknowledge the commenter’s 

concern. However, no new ICAs have 

been developed for the design change 

required by this AD. Operators and 

owners are responsible for ensuring that 

the configuration mandated by this AD 

is maintained in accordance with 

section 39.7 of the Federal Aviation 

Regulations (14 CFR 39.7). 

If any new airworthiness limitations 

(AWLs) related to any of the design 

features mandated by this AD are 

developed, we may consider additional 

rulemaking to mandate incorporations 

of those AWLs into operators’ 

maintenance programs. We have not 

changed the AD in regard to this issue. 

CAL cited sections 91.1507(e) of the 

Federal Aviation Regulations (14 CFR 

91.1507(e)) and other regulations and 

expresses concern that the absence of 

the ICAs could result in enforcement 

action. That section requires operators 

to include in their maintenance 

programs all fuel system ICAs 

developed under Special Federal 

Aviation Regulation (SFAR) 88. 

However, that regulation requires 

operators to incorporate ICAs provided 

by the design approval holder. Since no 

ICAs were developed for the required 

modification, operators do not violate 

that regulation if their maintenance 

programs do not yet contain ICAs for the 

referenced design change. However, 

under section 39.7 of the Federal 

Aviation Regulations (14 CFR 39.7), it is 

still the responsibility of the operators 

to keep their airplanes in a 

configuration that is in compliance with 

the AD. We have not changed the AD in 

regard to this issue. 

The FAA is working with industry to 

evaluate potential changes to the AD 

process that are intended to more 

clearly identify how to maintain 

configurations that are required for AD 

compliance. 

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74618 Federal Register / Vol. 75, No. 230 / Wednesday, December 1, 2010 / Rules and Regulations 

Request To Clarify Airplanes Subject to 

Paragraph (i) of the AD 

The Air Transport Association (ATA), 

on behalf of its member American 

Airlines (AA), requested that we clarify 

the ‘‘applicability requirements’’ in 

paragraph (i) of the second 

supplemental NPRM to state that 

modifications should be acceptable for 

compliance with the AD if they were 

made in accordance with Boeing Alert 

Service Bulletin 737–57A1279, dated 

January 24, 2007, and if the table in 

paragraph 1.A., ‘‘Effectivity,’’ of that 

service bulletin was used to correctly 

determine which airplanes are subject to 

the requirements of paragraph (i) of the 

AD. The commenter noted that the 

variable numbers following the table are 

erroneous. 

Lufthansa Technik (LTK) also 

requested that we revise paragraph (i) of 

the second supplemental NPRM. LTK 

requested that we consider airplanes 

with line numbers 571 through 1691 

inclusive on which the referenced 

actions have been performed in 

accordance with Boeing Alert Service 

Bulletin 737–57A1279, dated January 

24, 2007, to be compliant with the 

proposed AD. 

We agree with the requests to clarify 

which airplanes are subject to the 

requirements of paragraph (i) of this 

final rule. We have revised paragraph (i) 

of this final rule to state that actions 

done using the group assignments by 

line numbers found in the table in 

paragraph 1.A., ‘‘Effectivity,’’ and in 

accordance with the original service 

bulletin, Boeing Service Bulletin 737– 

57A1279, dated January 24, 2007, are 

acceptable for compliance with the 

corresponding requirements of this AD. 

Request To Allow Alternative Teflon 

Sleeving Procedure 

The ATA, on behalf of its member 

AA, proposed an alternative sleeving 

procedure. In its comment, AA stated 

that the Teflon sleeve installation 

cannot be accomplished as shown in 

Figure 13 of Boeing Alert Service 

Bulletin 737–57A1279, dated January 

24, 2007. AA stated that Figure 9 of the 

service bulletin shows that the adjacent 

tube conduit does not allow the sleeve 

to be 3 inches long and centered on the 

clamp. AA proposed that an alternative 

sleeving procedure extend the sleeving 

at least 1 inch beyond the edge of the 

clamp. If 1 inch of sleeving cannot be 

achieved, AA suggested that the 

sleeving be extended as far as possible. 

We agree that clarification may be 

necessary. Boeing is revising Boeing 

Alert Service Bulletin 737–57A1279 to 

address this issue. However, due to the 

urgency of the unsafe condition and in 

consideration of the amount of time that 

has already elapsed since issuance of 

the original service bulletin, we have 

determined that further delay of this 

final rule is not appropriate. We 

disagree with the request to allow an 

alternative Teflon sleeving procedure in 

this final rule. We do not have sufficient 

data that indicate this procedure 

provides an acceptable level of safety. If 

operators can provide sufficient data to 

indicate that an alternative Teflon 

sleeving procedure would provide an 

acceptable level of safety, operators can 

request approvals of AMOCs in 

accordance with the requirements of 

paragraph (j) of this final rule. We have 

not changed the final rule regarding this 

issue. 

Request To Allow Alternative 

Procedure To Seal Fasteners on Wing 

and Main Tanks 

The ATA, on behalf of its member 

AA, requested that we remove the 

proposed requirement to reseal the 

fasteners if already done previously in 

accordance with Boeing Alert Service 

Bulletin 737–57A1279, dated January 

24, 2007. In its comment, AA stated that 

sealant has been previously applied at 

some fastener locations in the center 

tank and the wing tanks during airplane 

assembly. Therefore, AA stated, it is not 

possible to accomplish the steps in 

Figures 14 and 15 of that service 

bulletin, and AA proposed that if the 

fasteners are sealed in accordance with 

that service bulletin, then no further 

work should be required. AA also stated 

that Boeing 737–57A1279 Information 

Notice (IN) 04, dated March 13, 2009, 

addresses this issue. 

We agree with the commenter. Boeing 

737–57A1279 IN 04, dated March 13, 

2009, states that for fasteners that have 

been previously sealed to the 

specifications of Boeing Alert Service 

Bulletin 737–57A1279, it is not required 

for the existing seal to be removed and 

the fastener sealed again. Boeing Service 

Bulletin 737–57A1279, Revision 2, 

dated February 2, 2010, incorporates the 

information included in Boeing 737– 

57A1279 IN 04, dated March 13, 2009. 

We updated this final rule to refer to 

Boeing Alert Service Bulletin 737– 

57A1279, Revision 2, dated February 2, 

2010, as an appropriate source of service 

information. 

Request To Reference Additional 

Service Information 

The ATA, on behalf of its member 

AirTran Airways, requested that we 

approve Boeing Information Notices 03 

and 04 as sources of service information 

for the supplemental NPRM. In its 

comment, AirTran Airways stated that 

the information notices clarify and 

provide corrections to Boeing Service 

Bulletin 737–57A1279, Revision 1, 

dated September 25, 2008. 

We partially agree. We acknowledge 

that the information contained in these 

notices may be useful to operators to 

complete the requirements of this AD. 

However, Boeing has issued Boeing 

Service Bulletin 737–57A1279, Revision 

2, dated February 2, 2010, to include the 

information in the information notices. 

We have revised the final rule 

accordingly. 

Explanation of Change Made to This 

AD 

We have revised this AD to identify 

the legal name of the manufacturer as 

published in the most recent type 

certificate data sheet for the affected 

airplane models. 

Conclusion 

We have carefully reviewed the 

available data, including the comments 

received, and determined that air safety 

and the public interest require adopting 

the AD with the changes described 

previously. We have determined that 

these changes will neither increase the 

economic burden on any operator nor 

increase the scope of the AD. 

Explanation of Change to Costs of 

Compliance 

Since issuance of the NPRM, we have 

increased the labor rate used in the 

Costs of Compliance from $80 per workhour to $85 per work-hour. The Costs of 

Compliance information, below, reflects 

this increase in the specified hourly 

labor rate. 

Costs of Compliance 

There are about 1,754 airplanes of the 

affected design in the worldwide fleet; 

of these, 645 airplanes are U.S.- 

registered. The following table provides 

the estimated costs for U.S. operators to 

comply with this final rule, at an 

average hourly labor rate of $85. 

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Federal Register / Vol. 75, No. 230 / Wednesday, December 1, 2010 / Rules and Regulations 74619 

ESTIMATED COSTS

Action Group Work 

hours 

Cost per 

airplane 

Number of 

U.S.- 

registered 

airplanes 

Fleet cost 

Sealant application ................................................................................... 1 62 $5,270 586 $3,088,220 

2 28 $2,380 44 104,720 

3 28 $2,380 15 35,700 

Inspection ................................................................................................. 1 4 $340 586 199,240

2 4 $340 44 14,960 

3 2 $170 15 2,550 

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 regulatory evaluation 

of the estimated costs to comply with 

this AD and placed it in the AD docket. 

See the ADDRESSES section for a location 

to examine the regulatory evaluation. 

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Incorporation by reference, 

Safety. 

Adoption of the Amendment 

Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA amends 14 CFR part 39 as 

follows: 

PART 39—AIRWORTHINESS 

DIRECTIVES 

■ 1. The authority citation for part 39 

continues to read as follows: 

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

§ 39.13 [Amended] 

■ 2. The Federal Aviation 

Administration (FAA) amends § 39.13 

by adding the following new 

airworthiness directive (AD): 

2010–24–11 The Boeing Company: 

Amendment 39–16530. Docket No. 

FAA–2007–28348; Directorate Identifier 

2007–NM–060–AD. 

Effective Date 

(a) This AD becomes effective January 5, 

2011. 

Affected ADs 

(b) None. 

Applicability 

(c) This AD applies to The Boeing 

Company Model 737–600, –700, –700C, 

–800, and –900 series airplanes, certificated 

in any category; as identified in Boeing 

Service Bulletin 737–57A1279, Revision 2, 

dated February 2, 2010. 

Subject 

(d) Air Transport Association (ATA) of 

America Code 57: Wings. 

Unsafe Condition 

(e) This AD results from a design review 

of the fuel tank systems. The Federal 

Aviation Administration is issuing this AD to 

prevent arcing at certain fuel tank fasteners 

in the event of a lightning strike or fault 

current event, which, in combination with 

flammable fuel vapors, could result in a fuel 

tank explosion and consequent loss of the 

airplane. 

Compliance 

(f) You are responsible for having the 

actions required by this AD performed within 

the compliance times specified, unless the 

actions have already been done. 

Fastener Sealant 

(g) Within 60 months after the effective 

date of this AD: Seal the fasteners on the 

front and rear spars inside the main fuel tank 

and on the lower panel of the center fuel 

tank, as applicable, in accordance with the 

Accomplishment Instructions of Boeing 

Service Bulletin 737–57A1279, Revision 2, 

dated February 2, 2010. 

Inspection and Corrective Action 

(h) Within 60 months after the effective 

date of this AD: Perform a general visual 

inspection of the wire bundle support 

installation in the equipment cooling system 

bays to identify the type of clamp installed, 

and determine whether the Teflon sleeve is 

installed. Do these actions in accordance 

with the Accomplishment Instructions of 

Boeing Service Bulletin 737–57A1279, 

Revision 2, dated February 2, 2010. Do all 

applicable corrective actions before further 

flight in accordance with the 

Accomplishment Instructions of Boeing 

Service Bulletin 737–57A1279, Revision 2, 

dated February 2, 2010. Certain Model 737– 

800 and 737–900 airplanes may have an 

additional clamp location at stringer 10 that 

is required to perform the steps of Figures 6, 

7, 10, and 11 of Boeing Service Bulletin 737– 

57A1279, Revision 2, dated February 2, 2010, 

in the environmental control systems (ECS) 

bay. 

Actions Accomplished Previously 

(i) Actions done before the effective date of 

this AD using the group assignments with the 

line numbers in the table in paragraph 1.A., 

‘‘Effectivity,’’ and in accordance with Boeing 

Alert Service Bulletin 737–57A1279, dated 

January 24, 2007; or Revision 1, dated 

September 25, 2008; are acceptable for 

compliance with the corresponding 

requirements of this AD. 

Alternative Methods of Compliance 

(AMOCs) 

(j)(1) The Manager, Seattle Aircraft 

Certification Office (ACO), FAA, has the 

authority to approve AMOCs for this AD, if 

requested using the procedures found in 14 

CFR 39.19. Send information to ATTN: Tom 

Thorson, Aerospace Engineer, Propulsion 

Branch, ANM–140S, FAA, Seattle Aircraft 

Certification Office, 1601 Lind Avenue SW., 

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74620 Federal Register / Vol. 75, No. 230 / Wednesday, December 1, 2010 / Rules and Regulations 

Renton, Washington 98057–3356; telephone 

(425) 917–6510; fax (425) 917–6508. Or, 

e-mail information to 9-ANM-Seattle-ACOAMOC-Requests@faa.gov. 

(2) To request a different method of 

compliance or a different compliance time 

for this AD, follow the procedures in 14 CFR 

39.19. Before using any approved AMOC on 

any airplane to which the AMOC applies, 

notify your principal maintenance inspector 

(PMI) or principal avionics inspector (PAI), 

as appropriate, or lacking a principal 

inspector, your local Flight Standards District 

Office. The AMOC approval letter must 

specifically reference this AD. 

Material Incorporated by Reference 

(k) You must use Boeing Service Bulletin 

737–57A1279, Revision 2, dated February 2, 

2010, to do the actions required by this AD, 

unless the AD specifies otherwise. 

(1) The Director of the Federal Register 

approved the incorporation by reference of 

this service information under 5 U.S.C. 

552(a) and 1 CFR part 51. 

(2) For service information identified in 

this AD, contact Boeing Commercial 

Airplanes, Attention: Data & Services 

Management, P.O. Box 3707, MC 2H–65, 

Seattle, Washington 98124–2207; telephone 

206–544–5000, extension 1; fax 206–766– 

5680; e-mail me.boecom@boeing.com; 

Internet https://www.myboeingfleet.com. 

(3) You may review copies of the service 

information at the FAA, Transport Airplane 

Directorate, 1601 Lind Avenue, SW., Renton, 

Washington. For information on the 

availability of this material at the FAA, call 

425–227–1221. 

(4) You may also review copies of the 

service information that is incorporated by 

reference at the National Archives and 

Records Administration (NARA). For 

information on the availability of this 

material at NARA, call 202–741–6030, or go 

to: http://www.archives.gov/federal_register/ 

code_of_federal_regulations/ 

ibr_locations.html. 

Issued in Renton, Washington on 

November 18, 2010. 

Ali Bahrami, 

Manager, Transport Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. 2010–29792 Filed 11–30–10; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

24 CFR Part 3500 

[Docket No. FR–5425–IA–02] 

Real Estate Settlement Procedures Act 

(RESPA): Home Warranty Companies’ 

Payments to Real Estate Brokers and 

Agents Interpretive Rule: Response to 

Public Comments 

AGENCY: Office of General Counsel, 

HUD. 

ACTION: Interpretive rule; response to 

public comments. 

SUMMARY: On June 25, 2010, HUD issued 

a rule interpreting certain provisions of 

RESPA as applied to the payment of fees 

to real estate brokers and agents by 

home warranty companies. The public 

was invited to comment on the 

interpretive rule. After reviewing and 

considering the comments, HUD 

determined that changes are not needed 

to the interpretive rule. Through this 

document, HUD responds to certain 

questions raised in the comments. HUD 

believes that its response to these 

questions serves to provide additional 

guidance relating to matters covered in 

the interpretive rule and the comments. 

FOR FURTHER INFORMATION CONTACT: For 

legal questions, contact Paul S. Ceja, 

Assistant General Counsel for RESPA/ 

SAFE, telephone number 202–708– 

3137; or Peter S. Race, Assistant General 

Counsel for Compliance, telephone 

number 202–708–2350; Department of 

Housing and Urban Development, 451 

7th Street, SW., Room 9262, 

Washington, DC 20410. For other 

questions, contact Barton Shapiro, 

Director, or Mary Jo Sullivan, Deputy 

Director, Office of RESPA and Interstate 

Land Sales, Office of Housing, 

Department of Housing and Urban 

Development, 451 7th Street, SW., 

Room 9158, Washington, DC 20410; 

telephone number 202–708–0502. These 

telephone numbers are not toll-free. 

Persons with hearing or speech 

impairments may access these numbers 

via TTY by calling the toll-free Federal 

Information Relay Service at 1–800– 

877–8339. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The requirements and prohibitions 

under RESPA apply to residential real 

estate transactions that include a 

federally related mortgage loan. Section 

8 of RESPA prohibits giving and 

receiving ‘‘kickbacks’’ for the referral of 

real estate settlement services, and 

unearned fees, involving real estate 

transactions. Since 1992, HUD’s RESPA 

regulations have defined ‘‘settlement 

service’’ to include ‘‘homeowner’s 

warranties’’. 24 CFR 3500.2(11). While a 

referral of settlement services is not 

compensable under RESPA, a real estate 

broker or agent (or other person in a 

position to refer settlement service 

business) may be compensated for 

services that are actual, necessary and 

distinct from the primary services 

provided by the real estate broker or 

agent, if the services are not nominal, 

and the payment is not a duplicative 

charge. (See 24 CFR 3500.14(b), (c), 

(g)(1), and (g)(3)). 

On June 25, 2010 (75 FR 36271), HUD 

issued an interpretive rule on the 

propriety under Section 8 of RESPA (12 

U.S.C. 2607) of payments to real estate 

brokers and agents from home warranty 

companies (HWCs). The interpretive 

rule concluded: 

(1) A payment by an HWC for 

marketing services performed by real 

estate brokers or agents on behalf of the 

HWC that are directed to particular 

homebuyers or sellers is an illegal 

kickback for a referral under section 8; 

(2) Depending upon the facts of a 

particular case, an HWC may 

compensate a real estate broker or agent 

for services when those services are 

actual, necessary and distinct from the 

primary services provided by the real 

estate broker or agent, and when those 

additional services are not nominal and 

are not services for which there is a 

duplicative charge; and 

(3) The amount of compensation from 

the HWC that is permitted under section 

8 for such additional services must be 

reasonably related to the value of those 

services and not include compensation 

for referrals of business. 

75 FR at 36273. 

HUD received 72 comments in 

response to publication of the 

interpretive rule. HUD reviewed all of 

the comments, and appreciates the 

input and information provided by the 

commenters. Some commenters 

supported the interpretive rule and 

others did not. HUD found that the 

comments that were not supportive of 

its interpretation did not present 

concerns or information that warrant 

any changes to the interpretive rule. 

HUD, however, has identified and is 

responding to seven specific questions 

to provide additional guidance relating 

to matters covered in the interpretive 

rule and the comments. 

II. Questions and Responses 

1. Question: Is a home warranty 

company’s flat fee payment (e.g., 

monthly or annual payment) to a real 

estate broker or agent for marketing a 

home warranty product directly to 

particular homebuyers or sellers a 

permissible payment under section 8 of 

RESPA? 

HUD Response: No, as provided in the 

interpretive rule, payments for 

marketing services directed to particular 

homebuyers or sellers are considered to 

be payments for affirmatively 

influencing their choice of settlement 

service providers and would therefore 

violate section 8 of RESPA as an illegal 

kickback for a referral, regardless of 

whether the payment is made to the 

broker or agent on a ‘‘per transaction’’ or 

a ‘‘flat fee’’ basis. 

WReier-Aviles on DSKGBLS3C1PROD with RULES