Federal Register / Vol. 72, No. 88 / Tuesday, May 8, 2007 / Rules and Regulations 25957 

indirectly a savings and loan holding 

company, or who otherwise participated 

directly or indirectly in the conduct of 

the affairs of a savings and loan holding 

company on October 13, 2006, may 

continue to hold the position with the 

savings and loan holding company. 

(2) This exemption expires on 

September 5, 2007, unless the savings 

and loan holding company or the person 

files an application seeking a case-bycase exemption for the person under 

§ 585.110 by that date. If the savings and 

loan holding company or the person 

files such an application, the temporary 

exemption expires on: 

(i) The date of issuance of an OTS 

order approving the application under 

§ 585.130(a); 

(ii) The expiration of the 20-day 

period for filing a request for hearing 

under § 585.130(b) provided there is no 

timely request for hearing following the 

issuance of an OTS order denying the 

application under that section; 

(iii) The date that OTS denies a timely 

request for hearing under § 585.140(a) 

following the issuance of an OTS order 

denying the application under 

§ 585.130(b); 

(iv) The date that the Director issues 

a decision under § 585.140(d); or 

(v) The date an applicant withdraws 

the application. 

§ 585.110 How do I apply for a case-bycase exemption? 

(a) Who may file. (1) A savings and 

loan holding company or a person who 

was convicted of a criminal offense 

described in § 585.40 or who has agreed 

to enter into a pre-trial diversion or 

similar program in connection with a 

prosecution for such a criminal offense 

(‘‘you’’) may file an application seeking 

an OTS order granting an exemption 

from the prohibitions in this part. 

(2) You may seek an exemption only 

for a designated position (or positions) 

with respect to a named savings and 

loan holding company. 

(3) You may not file an application 

less than one year after the latter of the 

date of OTS’s denial of the same 

exemption under § 585.130(b), 

§ 585.140(a)(2) or § 585.140(d). 

(b) Application and review 

procedures. You may seek OTS 

approval by filing your application with 

OTS under the standard treatment 

described in 12 CFR part 516, subpart A 

of this chapter. OTS will review your 

application under 12 CFR part 516, 

subpart E of this chapter (excluding 12 

CFR 516.270 and 516.280). 

(c) Prohibition pending OTS action. 

Unless you are exempt under 

§ 585.100(b), the prohibitions in 

§ 585.30 continue to apply pending OTS 

action on your application. 

§ 585.120 What factors will OTS consider 

in reviewing my application? 

(a) OTS review. (1) In determining 

whether to approve an exemption 

application filed under § 585.110, OTS 

will consider the extent to which the 

position that is the subject of your 

application enables a person to: 

(i) Participate in the major 

policymaking functions of the savings 

and loan holding company; or 

(ii) Threaten the safety and soundness 

of any insured depository institution 

that is controlled by the savings and 

loan holding company, the interests of 

its depositors, or the public confidence 

in the insured depository institution. 

(2) OTS will also consider whether 

you have demonstrated the person’s 

fitness to hold the described position. 

Some positions may be approved 

without an extensive review of a 

person’s fitness because the position 

does not enable a person to take the 

actions described in paragraph (a)(1) of 

this section. 

(b) Factors. In making the 

determinations under paragraph (a) of 

this section, OTS will consider the 

following factors: 

(1) The position; 

(2) The amount of influence and 

control a person holding the position 

will be able to exercise over the affairs 

and operations of the savings and loan 

holding company and the insured 

depository institution; 

(3) The ability of the management of 

the savings and loan holding company 

to supervise and control the activities of 

a person holding the position; 

(4) The level of ownership that the 

person will have at the savings and loan 

holding company; 

(5) The specific nature and 

circumstances of the criminal offense. 

The question whether a person who was 

convicted of a crime or who agreed to 

enter into a pretrial diversion or similar 

program for a crime was guilty of that 

crime is not relevant; 

(6) Evidence of rehabilitation; and 

(7) Any other relevant factor. 

§ 585.130 How will I know if my application 

is approved? 

(a) Approval. If OTS approves your 

application, OTS will issue an approval 

order. An approval order will include a 

summary of the relevant factors that 

OTS considered under § 585.120, will 

require fidelity bond coverage for the 

position to the same extent as similar 

positions with the SLHC. The approval 

order may include such other 

conditions as may be appropriate. 

(b) Denial. If OTS denies your 

application, OTS will issue a denial 

order. The denial order will include the 

following written information: 

(1) A summary of the relevant factors 

that OTS considered under § 585.120; 

and 

(2) A statement indicating that you 

may file a written request demonstrating 

good cause for a hearing on the denial 

of your application, and that you must 

file this request with OTS within 20 

days of the date of issuance of the order. 

§ 585.140 What procedures govern a 

hearing on my application? 

(a) OTS review of hearing request. 

OTS will review your hearing request to 

determine if you have demonstrated 

good cause for a hearing on your 

application. Within 30 days after the 

filing of a timely request for a hearing, 

OTS will notify you in writing of its 

decision to grant or deny the hearing 

request. If OTS grants your request for 

a hearing, it will order a hearing to be 

commenced within 60 days of the 

issuance of the notification. Upon the 

request of a party, the OTS may order 

a later hearing date. 

(b) Hearing procedures. Hearing 

procedures are set out at 12 CFR part 

509, subpart D of this chapter. 

Dated: April 30, 2007. 

By the Office of Thrift Supervision. 

John M. Reich, 

Director. 

[FR Doc. E7–8677 Filed 5–7–07; 8:45 am] 

BILLING CODE 6720–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2006–26775; Directorate 

Identifier 2007–CE–01–AD; Amendment 39–

15042; AD 2007–10–01] 

RIN 2120–AA64 

Airworthiness Directives; Air Tractor, 

Inc. Model AT–602 Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Final rule. 

SUMMARY: We are adopting a new 

airworthiness directive (AD) for certain 

Air Tractor, Inc. (Air Tractor) Model 

AT–602 airplanes. This AD requires you 

to install access holes to do repetitive 

detailed visual inspections for cracks in 

the horizontal stabilizer brace tube 

assembly, and if any cracks are found as 

a result of a visual inspection, to replace 


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25958 Federal Register / Vol. 72, No. 88 / Tuesday, May 8, 2007 / Rules and Regulations 

the horizontal stabilizer brace tube 

assembly with a new design horizontal 

stabilizer brace tube assembly. The 

installation of the new design horizontal 

stabilizer brace tube assembly is 

terminating action for the repetitive 

inspection requirement. This AD results 

from two reports of Model AT–602 

airplanes with cracked horizontal 

stabilizer brace tube assemblies. We are 

issuing this AD to detect and correct 

cracks in the horizontal stabilizer brace 

tube assembly, which could result in 

failure of the horizontal stabilizer. This 

failure could affect the ability to control 

pitch with consequent loss of control. 

DATES: This AD becomes effective on 

June 12, 2007. 

On June 12, 2007 the Director of the 

Federal Register approved the 

incorporation by reference of certain 

publications listed in this AD. 

ADDRESSES: For service information 

identified in this AD, contact Air 

Tractor Inc., P.O. Box 485, Olney, Texas 

76374; telephone: (940) 564–5616; fax: 

(940) 564–5612. 

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–2006–26775; Directorate Identifier 

2007–CE–01–AD. 

FOR FURTHER INFORMATION CONTACT: 

Andrew McAnaul, Aerospace Engineer, 

ASW–150 (c/o MIDO–43), 10100 

Reunion Place, Suite 650, San Antonio, 

Texas 78216; telephone: (210) 308–

3365; fax: (210) 308–3370. 

SUPPLEMENTARY INFORMATION: 

Discussion 

On January 31, 2007, 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 

certain Air Tractor Model AT–602 

airplanes. This proposal was published 

in the Federal Register as a notice of 

proposed rulemaking (NPRM) on 

February 6, 2007 (72 FR 5359). The 

NPRM proposed to require you to install 

access holes to do repetitive detailed 

visual inspections for cracks in the 

horizontal stabilizer brace tube 

assembly, and if any cracks are found as 

a result of a visual inspection, to replace 

the horizontal stabilizer brace tube 

assembly with a new design horizontal 

stabilizer brace tube assembly. The 

installation of the new design horizontal 

stabilizer brace tube assembly is 

terminating action for the repetitive 

inspection requirement. 

Comments 

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 

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. 

Costs of Compliance 

We estimate that this AD affects 128 

airplanes in the U.S. registry. 

We estimate the following costs to do 

the installation of access holes to do 

visual inspections: 

Labor cost Parts cost Total cost per 

airplane 

Total cost on 

U.S. operators 

1 work-hour × $80 per hour = $80 .............................................................................................. $5 $85 $10,880 

We estimate the following costs to do 

each visual inspection for cracks of the 

horizontal stabilizer brace tube 

assembly: 

Labor cost Parts cost Total cost per 

airplane 

Total cost on 

U.S. operators 

for initial 

inspection 

1 work-hour × $80 per hour = $80 .............................................................................................. Not Applicable $80 $10,240 

We estimate the following costs to do 

any necessary replacement of the 

horizontal stabilizer brace tube 

assembly with a new design horizontal 

stabilizer brace tube assembly that will 

be required based on the results of the 

inspection or as the terminating action 

for the repetitive inspection 

requirement. We have no way of 

determining the number of airplanes 

that will need this replacement: 

Labor cost Parts cost Total cost per 

airplane 

35 work-hours × $80 per hour = $2,800 ................................................................................................................. $896 $3,696 

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 AD. 


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Federal Register / Vol. 72, No. 88 / Tuesday, May 8, 2007 / Rules and Regulations 25959 

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 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–2006–26775; 

Directorate Identifier 2007–CE–01–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 the 

following new AD: 

2007–10–01 Air Tractor Inc.: Amendment 

39–15042; Docket No. FAA–2006–26775; 

Directorate Identifier 2007–CE–01–AD. 

Effective Date 

(a) This AD becomes effective on June 12, 

2007. 

Affected ADs 

(b) None. 

Applicability 

(c) This AD applies to Model AT–602 

airplanes, all serial numbers through 602–

0695 that: 

(1) Have horizontal stabilizer brace tube 

assembly, part number (P/N) 30012–7, 

installed; and 

(2) Are certificated in any category. 

Unsafe Condition 

(d) This AD results from two reports of 

Model AT–602 airplanes with cracked 

horizontal stabilizer brace tube assemblies. 

We are issuing this AD to detect and correct 

cracks in the horizontal stabilizer brace tube 

assembly, which could result in failure of the 

horizontal stabilizer. This failure could affect 

the ability to control pitch with consequent 

loss of control. 

Compliance 

(e) To address this problem, you must do 

the following, unless already done: 

Actions Compliance Procedures 

(1) Do the following: 

(i) Install access holes for visual inspection 

of the P/N 30012–7, horizontal stabilizer 

brace tube assembly. 

(ii) Conduct a detailed visual inspection for 

cracks in the P/N 30012–7 horizontal 

stabilizer brace tube assembly. 

Install the access holes and do the initial inspection upon accumulating 2,000 hours 

time-in-service (TIS) or within the next 60 

days after June 12, 2007 (the effective date 

of this AD), whichever occurs later. Repetitively inspect thereafter at intervals not to 

exceed 100 hours TIS. Replacement of the 

P/N 30012–7 horizontal stabilizer brace 

tube assembly with a new design P/N 

30766–1 horizontal stabilizer brace tube assembly following paragraph (e)(2) of this AD 

is terminating action for the repetitive inspection requirement of this AD.

Follow Snow Engineering Co. Service Letter 

#235, dated August 25, 2004, revised October 24, 2006. 

(2) Replace the P/N 30012–7 horizontal stabilizer brace tube assembly with a new design P/N 30766–1 horizontal stabilizer brace 

tube assembly.

Before further flight after any inspection required by paragraph (e)(1) of this AD where 

cracks are found. The installation of a new 

design P/N 30766–1 horizontal stabilizer 

brace tube assembly is terminating action 

for the repetitive inspection requirement of 

this AD.

Follow Snow Engineering Co. Service Letter 

#129A, dated August 7, 2004, revised November 15, 2005; Snow Engineering Co. 

Service Letter #235, dated August 25, 2004, 

revised October 24, 2006; and Snow Engineering Co. Drill Template—602, Drawing 

Number SL129–602, dated August 2, 2004. 

(3) Do not install any P/N 30012–7 horizontal 

stabilizer brace tube assembly.

As of June 12, 2007 (the effective date of this 

AD).

Not Applicable. 

Alternative Methods of Compliance 

(AMOCs) 

(f) The Manager, Fort Worth Airplane 

Certification Office, 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: Andrew 

McAnaul, Aerospace Engineer, ASW–150 

(c/o MIDO–43), 10100 Reunion Place, Suite 

650, San Antonio, Texas 78216; telephone: 

(210) 308–3365; fax: (210) 308–3370. Before 

using any approved AMOC on any airplane 

to which the AMOC applies, notify your 

appropriate principal inspector (PI) in the 

FAA Flight Standards District Office (FSDO), 

or lacking a PI, your local FSDO. 

Related Information 

(g) To get copies of the service information 

referenced in this AD, contact Air Tractor 

Inc., P.O. Box 485, Olney, Texas 76374; 

telephone: (940) 564–5616; fax: (940) 564–

5612. 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, or on the Internet at http:// 

dms.dot.gov. The docket number is Docket 

No. FAA–2006–26775; Directorate Identifier 

2007–CE–01–AD. 

Material Incorporated by Reference 

(h) You must use Snow Engineering Co. 

Service Letter #129A, dated August 7, 2004, 

revised November 15, 2005; Snow 

Engineering Co. Service Letter #235, dated 

August 25, 2004, revised October 24, 2006; 

and Snow Engineering Co. Drill Template—

602, Drawing Number SL129–602, dated 

August 2, 2004, 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 Air Tractor Inc., P.O. Box 


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25960 Federal Register / Vol. 72, No. 88 / Tuesday, May 8, 2007 / Rules and Regulations 

485, Olney, Texas 76374; telephone: (940) 

564–5616; fax: (940) 564–5612. 

(3) You may review copies at the FAA, 

Central Region, Office of the Regional 

Counsel, 901 Locust, Kansas City, Missouri 

64106; or at the National Archives and 

Records Administration (NARA). For 

information on the availability of this 

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

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

code_of_federal_regulations/ 

ibr_locations.html. 

Issued in Kansas City, Missouri, on April 

27, 2007. 

David R. Showers, 

Acting Manager, Small Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. E7–8671 Filed 5–7–07; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2007–28100; Directorate 

Identifier 2007–NM–103–AD; Amendment 

39–15045; AD 2007–10–04] 

RIN 2120–AA64 

Airworthiness Directives; McDonnell 

Douglas Model DC–9–81 (MD–81), DC–

9–82 (MD–82), DC–9–83 (MD–83), DC–

9–87 (MD–87), and MD–88 Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Final rule; request for 

comments. 

SUMMARY: The FAA is adopting a new 

airworthiness directive (AD) for all 

McDonnell Douglas Model DC–9–81 

(MD–81), DC–9–82 (MD–82), DC–9–83 

(MD–83), DC–9–87 (MD–87), and MD–

88 airplanes. This AD requires repetitive 

inspections to detect cracks in the 

horizontal stabilizer, and related 

investigative/corrective actions if 

necessary. This AD results from reports 

of cracks found in the horizontal 

stabilizer—in the upper and lower aft 

skin panels at the aft inboard corner at 

station XH = 8.2, and in the rear spar 

upper caps adjacent to the aft skin panel 

at station XH = 10.0. We are issuing this 

AD to detect and correct cracks in the 

upper and lower aft skin panels and rear 

spar upper caps, which, if not corrected, 

could lead to the loss of overall 

structural integrity of the horizontal 

stabilizer. 

DATES: This AD becomes effective May 

23, 2007. 

The Director of the Federal Register 

approved the incorporation by reference 

of a certain publication listed in the AD 

as of May 23, 2007. 

We must receive comments on this 

AD by July 9, 2007. 

ADDRESSES: Use one of the following 

addresses to submit comments on this 

AD. 

• DOT Docket Web site: Go to http:// 

dms.dot.gov and follow the instructions 

for sending your comments 

electronically. 

• Government-wide rulemaking Web 

site: Go to http://www.regulations.gov 

and follow the instructions for sending 

your comments electronically. 

• Mail: Docket Management Facility; 

U.S. Department of Transportation, 400 

Seventh Street SW., Nassif Building, 

Room PL–401, Washington, DC 20590. 

• Fax: (202) 493–2251. 

• Hand Delivery: Room PL–401 on 

the plaza level of the Nassif Building, 

400 Seventh Street SW., Washington, 

DC, between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

Contact Boeing Commercial 

Airplanes, Long Beach Division, 3855 

Lakewood Boulevard, Long Beach, 

California 90846, Attention: Data and 

Service Management, Dept. C1–L5A 

(D800–0024), for service information 

identified in this AD. 

FOR FURTHER INFORMATION CONTACT: 

Roger Durbin, Aerospace Engineer, 

Airframe Branch, ANM–120L, FAA, Los 

Angeles Aircraft Certification Office, 

3960 Paramount Boulevard, Lakewood, 

California 90712–4137; telephone (562) 

627–5233; fax (562) 627–5210. 

SUPPLEMENTARY INFORMATION: 

Discussion 

We have received reports of cracks 

found in the horizontal stabilizer—in 

the upper and lower aft skin panels at 

the aft inboard corner at station XH = 

8.2, and in the rear spar upper caps 

adjacent to the aft skin panel at station 

XH = 10.0. These cracks were found 

during maintenance visual inspections. 

The cause of the cracking is still 

under investigation. If not corrected, the 

cracked upper and lower aft skin panels 

and rear spar upper caps could lead to 

the loss of overall structural integrity of 

the horizontal stabilizer. 

Relevant Service Information 

We have reviewed Boeing Alert 

Service Bulletin MD80–55A065, dated 

April 25, 2007. The service bulletin 

describes procedures for repetitive lowand high-frequency eddy current 

inspections to detect cracks of the 

horizontal stabilizer’s upper and lower 

aft skin panels and rear spar upper caps. 

The service bulletin provides options 

for corrective action based on crack 

length, location, and repairability; these 

options include some combination of 

the following actions: 

• Stop drilling the end of the crack; 

• Trimming the crack and installing a 

filler; 

• Installing a skin panel splice or rear 

spar upper cap splice; 

• Replacing the skin panel or rear 

spar upper cap with a new part; and 

• Repeating the inspection of the 

cracked area (including aft skin panels, 

skin panel splice, and rear spar upper 

cap). 

The repetitive inspection intervals, 

which range from 200 to 2,600 flight 

cycles, depend on the option used. 

Accomplishing the actions specified 

in the service information is intended to 

adequately address the unsafe 

condition. 

FAA’s Determination and Requirements 

of This AD 

The unsafe condition described 

previously is likely to exist or develop 

on other airplanes of the same type 

design. For this reason, we are issuing 

this AD to detect and correct cracks in 

the upper and lower aft skin panels and 

rear spar upper caps, which, if not 

corrected, could lead to the loss of 

overall structural integrity of the 

horizontal stabilizer. This AD requires 

accomplishing the actions specified in 

the service information described 

previously, except as discussed under 

‘‘Differences Between the AD and the 

Service Bulletin’’ below. 

Differences Between the AD and the 

Service Bulletin 

The service bulletin specifies that any 

splice installed as part of a crack repair 

option be inspected within 20,000 flight 

cycles after the repair. But the service 

bulletin notes that the type, method, 

and repetitive interval for this 

inspection will be identified by Boeing 

at a later date. (See paragraph 1.E., note 

(a) of Tables 1 and 2 of the service 

bulletin.) To ensure continued safety, 

we have determined that this inspection 

and its repetitive interval must be 

adequately defined. Therefore, this AD 

requires that the inspection type, 

method, and repetitive interval be 

approved either by the FAA, or in 

accordance with data that meet the 

certification basis of the airplane and 

that have been approved by an 

Authorized Representative for the 

Boeing Commercial Airplanes 

Delegation Option Authorization 

Organization whom we have authorized 

to make those findings. 

For a crack that meets the Condition 

2 criteria specified in Table 1 or Table 

3 in paragraph 1.E. of the service 

bulletin, Options 1 and 2 specify 

temporary repairs followed by repetitive 

inspections of the area, but provide no 


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