5584 Federal Register / Vol. 71, No. 22 / Thursday, February 2, 2006 / Rules and Regulations 

May I Request an Alternative Method of 

Compliance? 

(f) You may request a different method of 

compliance or a different compliance time 

for this AD by following the procedures in 14 

CFR 39.19. Unless FAA authorizes otherwise, 

send your request to your principal 

inspector. The principal inspector may add 

comments and will send your request to the 

Manager, Wichita Aircraft Certification 

Office, FAA. For information on any already 

approved alternative methods of compliance, 

contact James P. Galstad, Propulsion 

Aerospace Engineer, ACE 116W, Wichita 

Aircraft Certification Office, 1801 Airport 

Road, Room 100, Wichita, Kansas 67209; 

telephone: 316–946–4135; facsimile: 316– 

946–4107. 

Does This AD Incorporate Any Material by 

Reference? 

(g) You must do the actions required by 

this AD following the instructions in 

Raytheon Mandatory Service Bulletin No. SB 

29–3771, dated January, 2006; and Raytheon 

Safety Communique No. 267, dated January 

2006. The Director of the Federal Register 

approved the incorporation by reference of 

this service information in accordance with 

5 U.S.C. 552(a) and 1 CFR part 51. To get a 

copy of this service information, contact 

Raytheon Aircraft Company, P.O. Box 85, 

Wichita, Kansas 67201–0085; telephone: 

(800) 625–7043. To review copies of this 

service information, go to the National 

Archives and Records Administration 

(NARA). For information on the availability 

of this material at NARA, go to: http:// 

www.archives.gov/federal_register/ 

code_of_federal_regulations/ 

ibr_locations.html or call (202) 741–6030. To 

view the AD docket, go to the Docket 

Management Facility; U.S. Department of 

Transportation, 400 Seventh Street, SW., 

Nassif Building, Room PL–401, Washington, 

DC 20590–001 or on the Internet at http:// 

dms.dot.gov. The docket number is FAA– 

2005–23221; Directorate Identifier 2005–CE– 

51–AD. 

Issued in Kansas City, Missouri, on January 

26, 2006. 

David R. Showers, 

Acting Manager, Small Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. 06–921 Filed 2–1–06; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2005–22157; Directorate 

Identifier 2005–CE–44–AD; Amendment 39– 

14464; AD 2006–02–12] 

RIN 2120–AA64 

Airworthiness Directives; Glaser-Dirks 

Flugzeugbau GmbH Models DG–100 

and DG–400 Sailplanes and DG 

Flugzeugbau GmbH Models DG–500 

Elan Series and DG–500M Sailplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: The FAA adopts a new 

airworthiness directive (AD) for all 

Glaser-Dirks Flugzeugbau GmbH Models 

DG–100 and DG–400 sailplanes and 

certain DG Flugzeugbau GmbH Models 

DG–500 Elan Series and DG–500M 

sailplanes. This AD requires you to 

modify or replace the complete rudder 

mount assembly and ensure that the 

securing washer, castellated nut, and 

new split pins are installed. This AD 

results from mandatory continuing 

airworthiness information (MCAI) 

issued by the airworthiness authority for 


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Federal Register / Vol. 71, No. 22 / Thursday, February 2, 2006 / Rules and Regulations 5585 

Germany. We are issuing this AD to 

prevent the universal bearing of the 

lower rudder mounting from slipping 

out of the bearing support. The 

universal bearing slipping out could 

result in the rudder separating from its 

support. This failure could lead to loss 

of sailplane control during flight 

operations. 

DATES: This AD becomes effective on 

March 15, 2006. 

As of March 15, 2006, the Director of 

the Federal Register approved the 

incorporation by reference of certain 

publications listed in the regulation. 

ADDRESSES: To get the service 

information identified in this AD, 

contact DG Flugzeugbau, Postbox 41 20, 

D–76625 Bruchsal, Federal Republic of 

Germany; telephone: 011–49 7257–890; 

facsimile: 011–49 7257–8922. 

To view the AD docket, go to the 

Docket Management Facility; U.S. 

Department of Transportation, 400 

Seventh Street, SW., Nassif Building, 

Room PL–401, Washington, DC 20590– 

001 or on the Internet at http:// 

dms.dot.gov. The docket number is 

FAA–2005–22157; Directorate Identifier 

2005–CE–44–AD. 

FOR FURTHER INFORMATION CONTACT: 

Gregory Davison, Aerospace Engineer, 

FAA, Small Airplane Directorate, ACE– 

112, Room 301, 901 Locust, Kansas City, 

Missouri 64106; telephone: 816–329– 

4130; facsimile: 816–329–4090. 

SUPPLEMENTARY INFORMATION: 

Discussion 

What events have caused this AD? 

The Luftfahrt-Bundesamt (LBA), which 

is the airworthiness authority for 

Germany, recently notified FAA that an 

unsafe condition may exist on all 

Glaser-Dirks Flugzeugbau GmbH Models 

DG–100 and DG–400 sailplanes and 

certain DG Flugzeugbau GmbH Models 

DG–500 Elan Series and DG–500M 

sailplanes. The LBA reports that on a 

Model DG–100 sailplane the universal 

bearing of the lower rudder mounting 

slipped out of the bearing support and 

the rudder fell out. Further, the LBA 

reports that this kind of failure may 

occur on other DG series sailplanes. 

What is the potential impact if FAA 

took no action? The universal bearing 

slipping out could result in the rudder 

separating from its support. This failure 

could lead to loss of sailplane control 

during flight operations. 

Has FAA taken any action to this 

point? We issued a proposal to amend 

part 39 of the Federal Aviation 

Regulations (14 CFR part 39) to include 

an AD that would apply to all GlaserDirks Flugzeugbau GmbH Models DG– 

100 and DG–400 sailplanes and certain 

DG Flugzeugbau GmbH Models DG–500 

Elan Series and DG–500M sailplanes. 

This proposal was published in the 

Federal Register as a notice of proposed 

rulemaking (NPRM) on October 5, 2005 

(70 FR 58110). The NPRM proposed to 

require you to modify or replace the 

complete rudder mount assembly and 

ensure that the securing washer, 

castellated nut, and new split pins are 

installed. 

Comments 

Was the public invited to comment? 

We provided the public the opportunity 

to participate in developing this AD. We 

received no comments on the proposal 

or on the determination of the cost to 

the public. 

Conclusion 

What is FAA’s final determination on 

this issue? We have carefully reviewed 

the available data and determined that 

air safety and the public interest require 

adopting the AD as proposed except for 

minor editorial corrections. We have 

determined that these minor 

corrections: 

—Are consistent with the intent that 

was proposed in the NPRM for 

correcting the unsafe condition; and 

—Do not add any additional burden 

upon the public than was already 

proposed in the NPRM. 

Changes to 14 CFR Part 39—Effect on 

the AD 

How does the revision to 14 CFR part 

39 affect this AD? On July 10, 2002, the 

FAA published a new version of 14 CFR 

part 39 (67 FR 47997, July 22, 2002), 

which governs the FAA’s AD system. 

This regulation now includes material 

that relates to altered products, special 

flight permits, and alternative methods 

of compliance. This material previously 

was included in each individual AD. 

Since this material is included in 14 

CFR part 39, we will not include it in 

future AD actions. 

Costs of Compliance 

How many sailplanes does this AD 

impact? We estimate that this AD affects 

75 sailplanes in the U.S. registry. 

What is the cost impact of this AD on 

owners/operators of the affected 

sailplanes? We estimate the following 

costs to do the replacement of the 

complete rudder mount assembly. We 

have no way of determining the number 

of sailplanes that may need this 

replacement: 

Labor cost Parts cost Total cost 

per sailplane 

2 work hours × $65 = $130 ......................................................................................................................................... $265 $395 

We estimate the following costs to do 

the modification of the complete rudder 

mount assembly. We have no way of 

determining the number of sailplanes 

that may need this modification: 

Labor cost Parts cost Total cost 

per sailplane 

3 work hours × $65 = $195 ........................................................................................... Not applicable ........................................... $195 

Authority for This Rulemaking 

What authority does FAA have for 

issuing this rulemaking action? 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 


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5586 Federal Register / Vol. 71, No. 22 / Thursday, February 2, 2006 / Rules and Regulations 

because it addresses an unsafe condition 

that is likely to exist or develop on 

products identified in this AD. 

Regulatory Findings 

Will this AD impact various entities? 

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. 

Will this AD involve a significant rule 

or regulatory action? 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 the 

DOT Regulatory Policies and Procedures 

(44 FR 11034, February 26, 1979); and 

3. Will not have a significant 

economic impact, positive or negative, 

on a substantial number of small entities 

under the criteria of the Regulatory 

Flexibility Act. 

We prepared a summary of the costs 

to comply with this AD (and other 

information as included in the 

Regulatory Evaluation) and placed it in 

the AD Docket. You may get a copy of 

this summary by sending a request to us 

at the address listed under ADDRESSES. 

Include ‘‘Docket No. FAA–2005–22157; 

Directorate Identifier 2005–CE–44–AD’’ 

in your request. 

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 Federal Aviation Administration 

amends part 39 of the Federal Aviation 

Regulations (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. FAA amends § 39.13 by adding a 

new AD to read as follows: 

2006–02–12 DG Flugzeugbau GmbH and 

Glaser-Dirks Flugzeugbau GmbH: 

Amendment 39–14464; Docket No. 

FAA–2005–22157; Directorate Identifier 

2005–CE–44–AD. 

When Does This AD Become Effective? 

(a) This AD becomes effective on March 15, 

2006. 

What Other ADs Are Affected by This 

Action? 

(b) None. 

What Sailplanes Are Affected by This AD? 

(c) This AD affects the following sailplane 

models and serial numbers that are 

certificated in any category: 

Model Serial numbers 

DG–100 ................... All Serial Numbers. 

DG–400 ................... All Serial Numbers. 

DG–500 ...................

Elan Series ..............

All Serial Numbers 

Through 5E23. 

DG–500M ................ All Serial Numbers 

Through 5E23. 

What Is the Unsafe Condition Presented in 

This AD? 

(d) This AD is the result of mandatory 

continuing airworthiness information (MCAI) 

issued by the airworthiness authority for 

Germany. The actions specified in this AD 

are intended to prevent the universal bearing 

of the lower rudder mounting from slipping 

out of the bearing support. The universal 

bearing slipping out could result in the 

rudder separating from its support. This 

failure could lead to loss of sailplane control 

during flight operations. 

(e) To address this problem, you must do 

the following: 

Actions Compliance Procedures 

(1) Modify or replace the complete rudder 

mounting assembly.

Within the next 25 hours time-in-service (TIS) 

after March 15, 2006 (the effective date of 

this AD), unless already done.

Follow DG Flugzeugbau GmbH Technical 

Note No. 301/23 issue 2, 323/14 issue 2, 

348/18 issue 2, 359/21 issue 2, 370/9 issue 

2, 826/44 issue 2, 843/21 issue 2, 866/10 

issue 2, dated June 11, 2004, amended 

July 7, 2004. 

(2) Ensure that the securing washer, castellated 

nut, and split pins are installed as specified 

by the DG Flugzeugbau GmbH Technical 

Note No. 301/23 issue 2, 323/14 issue 2, 

348/18 issue 2, 359/21 issue 2, 370/9 issue 

2, 826/44 issue 2, 370/9 issue, 2, 826/44 

issue 2, 843/21 issue 2, 866/10 issue 2, 

dated June 11, 2004, amended July 7, 2004.

Before further flight after the modification or 

replacement of the mounting assembly required by paragraph (e)(1) of this AD.

Follow DG Flugzeugbau GmbH Technical 

Note No. 301/23 issue 2, 323/14 issue 2, 

348/18 issue 2, 359/21 issue 2, 370/9 issue 

2, 826/44 issue 2, 843/21 issue 2, 866/10 

issue 2, dated June 11, 2004, amended 

July 7, 2004. 

May I Request an Alternative Method of 

Compliance? 

(f) You may request a different method of 

compliance or a different compliance time 

for this AD by following the procedures in 14 

CFR 39.19. Unless FAA authorizes otherwise, 

send your request to your principal 

inspector. The principal inspector may add 

comments and will send your request to the 

Manager, Standards Office, Small Airplane 

Directorate, FAA. For information on any 

already approved alternative methods of 

compliance, contact Gregory Davison, 

Aerospace Engineer, FAA, Small Airplane 

Directorate, ACE–112, Room 301, 901 Locust, 

Kansas City, Missouri 64106; telephone: 816– 

329–4130; facsimile: 816–329–4090. 

Is There Other Information That Relates to 

This Subject? 

(g) German AD Number D–2004–348R1, 

dated September 16, 2004, also addresses the 

subject of this AD. 

Does This AD Incorporate Any Material by 

Reference? 

(h) You must do the actions required by 

this AD following the instructions in DG 

Flugzeugbau GmbH Technical Note No. 301/ 

23 issue 2, 323/14 issue 2, 348/18 issue 2, 

359/21 issue 2, 370/9 issue 2, 826/44 issue 

2, 843/21 issue 2, 866/10 issue 2, dated June 

11, 2004, amended July 7, 2004 (LBAapproved). The Director of the Federal 

Register approved the incorporation by 

reference of this service bulletin in 

accordance with 5 U.S.C. 552(a) and 1 CFR 

part 51. To get a copy of this service 

information, contact DG Flugzeugbau, 

Postbox 41 20, D–76625 Bruchsal, Federal 

Republic of Germany; telephone: 011–49 

7257–890; facsimile: 011–49 7257–8922. To 

review copies of this service information, go 

to the National Archives and Records 

Administration (NARA). For information on 

the availability of this material at NARA, go 

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

code_of_federal_regulations/ 

ibr_locations.html or call (202) 741–6030. To 

view the AD docket, go to the Docket 

Management Facility; U.S. Department of 

Transportation, 400 Seventh Street, SW., 

Nassif Building, Room PL–401, Washington, 

DC 20590–001 or on the Internet at http:// 


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Federal Register / Vol. 71, No. 22 / Thursday, February 2, 2006 / Rules and Regulations 5587 

1 The RIN Number for the release published in 

the Federal Register on October 11, 2005 was 

identified as 3038–AC19. See 70 FR 58985 (October 

11, 2005). The correct RIN Number, 3038–AC05, 

has been used in this release. 

2 The October 11 Release may be accessed 

electronically on the Commission’s Web site, at 

http://www.cftc.gov/. 

3 The original deadline for the receipt for 

comments was extended from November 10th to 

November 30, 2005. See 70 FR 70749 (November 

23, 2005). 

4 The comment letters are available for inspection 

and copying at the Commission’s Washington office 

in its public reading room, Room 4072, Three 

Lafayette Centre, 1155 21st Street, NW., 

Washington, DC 20581. The telephone number for 

the public reading room is (202) 418–5025. The 

comment letters also are available on the 

Commission’s public Web site, at http:// 

www.cftc.gov/foia/comment05/foi05--006_1.htm. 

5 The rules of the Commission cited in this 

release may be found at 17 CFR Ch. I (2005). SEC 

rules cited in this release may be found at 17 CFR 

Ch. II (2005). 

dms.dot.gov. The docket number is FAA– 

2005–22157; Directorate Identifier 2005–CE– 

44–AD. 

Issued in Kansas City, Missouri, on January 

20, 2006. 

John Colomy, 

Acting Manager, Small Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. 06–735 Filed 2–1–06; 8:45 am] 

BILLING CODE 4910–13–P 

COMMODITY FUTURES TRADING 

COMMISSION 

17 CFR Parts 1, 145 and 147 

RIN 3038–AC05 

Alternative Market Risk and Credit Risk 

Capital Charges for Futures 

Commission Merchants and Specified 

Foreign Currency Forward and 

Inventory Capital Charges 

AGENCY: Commodity Futures Trading 

Commission. 

ACTION: Final rule. 

SUMMARY: The Commodity Futures 

Trading Commission (‘‘Commission’’ or 

‘‘CFTC’’) is amending Commission 

regulations that impose minimum 

financial and related reporting 

requirements upon each person 

registered as a futures commission 

merchant (‘‘FCM’’). The amended 

regulations address the capital 

computations of FCMs that are 

registered with the Securities and 

Exchange Commission (‘‘SEC’’) as 

securities brokers or dealers (‘‘FCM/ 

BDs’’), and, who, pursuant to SEC’s 

regulations governing consolidated 

supervised entities (‘‘CSEs’’), have 

received SEC approval to use internal 

mathematical models to determine the 

deductions from their capital for market 

risk and credit risk associated with their 

proprietary trading assets. Subject to the 

reporting and other requirements 

specified in the amended regulations, 

these FCM/BDs may elect to compute 

their adjusted net capital using their 

SEC-approved alternative market risk 

and credit risk capital deductions in 

lieu of CFTC requirements. The 

Commission is also adopting other rule 

amendments that address confidential 

treatment for the reports and statements 

that would be required to be filed under 

the amended regulations, and also 

address the confidential treatment of 

certain other information that all FCMs 

must file with both the Commission and 

the SEC. 

Finally, the Commission is also 

adopting amendments that will affect 

the minimum financial requirements of 

FCMs and introducing brokers (‘‘IBs’’) 

by reducing the capital deductions for 

their uncovered inventory or forward 

contracts in specified foreign currencies. 

This reduction is consistent with 

guidance currently provided by the 

Commission to FCMs and IBs. 

DATES: Effective February 2, 2006. 

FOR FURTHER INFORMATION CONTACT: 

Thomas J. Smith, Deputy Director and 

Chief Accountant, at (202) 418–5430, or 

Thelma Diaz, Special Counsel, at (202) 

418–5137, Division of Clearing and 

Intermediary Oversight, Commodity 

Futures Trading Commission, Three 

Lafayette Centre, 1155 21st Street, NW., 

Washington, DC 20581. Electronic mail: 

(tsmith@cftc.gov) or (tdiaz@cftc.gov). 

SUPPLEMENTARY INFORMATION: 

I. Background 

On October 11, 2005, the Commission 

published a release in the Federal 

Register to provide public notice of, and 

request comment on, proposed 

amendments to its capital rules.1 The 

Commission encourages interested 

persons to read the detailed analysis of 

the proposing amendments in the 

October 11 release, and has included 

citations to pertinent pages of the 

release as part of the discussion in this 

final rulemaking release.2 In response to 

the proposals issued by the 

Commission, four commenters sent 

letters that were generally supportive of 

the proposed regulations.3 The 

commenters included the National 

Futures Association (‘‘NFA’’), a 

registered futures association; Goldman, 

Sachs and Co., an FCM/BD; and two 

industry trade groups, the Futures 

Industry Association (‘‘FIA’’) and the 

Securities Industry Association 

(‘‘SIA’’).4 The comments received from 

each of these organizations are 

addressed elsewhere in this release, in 

connection with the specific 

Commission regulations discussed in 

these letters. 

II. Amendments Allowing Alternative 

Capital Computation for Proprietary 

Trading Assets of Qualifying FCM/BDs 

That Are Part of CSEs 

A. Request to Commission for 

Amendment to Rule 1.17 

As noted in the October 11 release, 

Commission Rule 1.17(a) requires each 

FCM to maintain a minimum amount of 

‘‘adjusted net capital’’, which is defined 

as the FCM’s net capital less the 

deductions, or ‘‘haircuts’’, that are 

specified in Rule 1.17(c)(5) and (8).5 For 

purposes of the required haircuts on the 

FCM’s proprietary positions in 

securities, Rule 1.17(c)(5) incorporates 

by reference percentage deductions that 

are set forth in SEC regulations 17 CFR 

240.15c3–1(c)(2)(vi) and (vii). Also, 

Commission Rule 1.17(c)(2)(ii), in a 

manner similar to the SEC’s 

requirements for BDs under 17 CFR 

240.15c3–1(c)(2)(iv), requires unsecured 

receivables arising from an FCM’s 

transactions in over-the-counter 

(‘‘OTC’’) derivatives to be excluded from 

the FCM’s current assets for purposes of 

determining the firm’s regulatory 

capital. The deductions required for 

other proprietary assets of the FCM are 

set forth in other parts of Commission 

Rule 1.17(c). 

The October 11 release also noted that 

the Commission and SEC have, to the 

extent practical, harmonized their 

respective capital rules in order to avoid 

creating inconsistent regulatory 

obligations for firms that are duallyregistered FCMs and securities brokers 

or dealers (‘‘BDs’’). This harmonization 

of capital rules extends to the 

computation of net capital and adjusted 

net capital, and to the qualifications that 

subordinated debt must meet in order to 

qualify as regulatory capital. 

Furthermore, if an FCM is also 

registered as a BD, it may file an SEC 

Form X–17a–5, ‘‘Financial and 

Operational Combined Uniform Single 

Report’’ (‘‘FOCUS Report’’) to satisfy its 

requirement to file with the Commission 

a Form 1–FR–FCM financial report. In 

particular, Commission Rule 1.10(h) 

treats Part II and Part IIA of the FOCUS 

report as acceptable substitutes for the 

Form 1–FR–FCM, provided that the 

FOCUS report includes all information 

required to be furnished on and 

submitted with Form 1–FR–FCM. Also, 

for those portions of the Form 1–FR– 

FCM that the Commission has 

designated as either publicly available 

or as exempt from mandatory public 


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