7518 Federal Register / Vol. 77, No. 29 / Monday, February 13, 2012 / Rules and Regulations 

not be impacted to a greater extent than 

large entity applicants. 

Unfunded Mandates 

This rule contains no Federal 

mandates (under the regulatory 

provisions of Title II of the Unfunded 

Mandates Reform Act of 1995) for State, 

local, and tribal Governments or the 

private sector. Thus, this rule is not 

subject to the requirements of sections 

202 and 205 of the Unfunded Mandates 

Reform Act of 1995. 

Executive Order 13175, Consultation 

and Coordination With Indian Tribal 

Governments 

This executive order imposes 

requirements on Rural Development in 

the development of regulatory policies 

that have tribal implications or preempt 

tribal laws. Rural Development has 

determined that the final rule does not 

have a substantial direct effect on one or 

more Indian tribe(s) or on either the 

relationship or the distribution of 

powers and responsibilities between the 

Federal Government and Indian tribes. 

Thus, this final rule is not subject to the 

requirements of Executive Order 13175. 

If a tribe determines that this rule has 

implications of which Rural 

Development is not aware and would 

like to engage with Rural Development 

on this rule, please contact Rural 

Development’s Native American 

Coordinator at AIAN@wdc.usda.gov. 

Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act of 1995, the information 

collection activities associated with this 

rule are covered under the Business and 

Industry Guaranteed Loan Program, 

OMB Number: 0570–0017. 

This rule contains no new reporting 

or recordkeeping burdens under OMB 

control number 0570–0017 that would 

require approval under the Paperwork 

Reduction Act of 1995 (44 U.S.C. 

Chapter 35). 

E-Government Act Compliance 

Rural Development is committed to 

complying with the E-Government Act, 

to promote the use of the Internet and 

other information technologies, to 

provide increased opportunities for 

citizens to access Government 

information and services electronically. 

I. Background 

The Agency reviewed 7 CFR 4279.2 

which is composed of two paragraphs, 

the first of which is pertinent. 

Section 4279.2(a) discusses the 

definitions, which has thirty-seven 

terms used in the Guaranteed 

Loanmaking. The definitions and 

abbreviations contained in § 4279.2 also 

apply to the Business and Industry 

Guaranteed Loan Servicing regulations 

and, unless otherwise noted, the 

Biorefinery Assistance Loan Program 

and the Rural Energy for America 

Program. Currently, the Agency 

regulations do not define or otherwise 

address ‘‘interest’’, ‘‘default interest’’, 

‘‘penalty interest’’, or ‘‘late charges’’. 

However, it is the Agency’s policy not 

to pay out additional cost for default 

interest, penalty interest, and late 

charges calculated and submitted on a 

final report of loss claim under the Loan 

Note Guarantee. However, lender’s 

Promissory Note may contain provisions 

for default or penalty interest, or late 

charges with prior Agency approval. 

II. Discussion of Change 

The Agency is revising § 4279.2(a), to 

address the situation discussed in the 

‘‘Background’’ section. Specifically, the 

Agency is adding a paragraph in 

§ 4279.2(a), after the term ‘‘Holder’’ and 

before the term ‘‘Interim Financing’’, 

which will define ‘‘Interest.’’ The 

change being made by this rule is to 

clarify that ‘‘interest’’ does not include 

default or penalty interest, or late fees. 

The lender may charge the borrower 

these fees with prior Agency approval. 

Accordingly, the Agency is making the 

changes in this direct final rule. 

List of Subjects in 7 CFR Part 4279 

Business and industry, Loan 

programs, Rural development 

assistance. 

For the reasons set forth in the 

preamble, chapter XLII, title 7, of the 

Code of Federal Regulations is amended 

as follows: 

CHAPTER XLII—RURAL BUSINESSCOOPERATIVE SERVICE AND RURAL 

UTILITIES SERVICE, DEPARTMENT OF 

AGRICULTURE 

PART 4279—GUARANTEED 

LOANMAKING 

■ 1. The authority citation for part 4279 

continues to read as follows: 

Authority: 5 U.S.C. 301; 7 U.S.C. 1932(a); 

and 7 U.S.C. 1989. 

Subpart A—General 

■ 2. Paragraph (a) of § 4279.2 is 

amended by adding a new definition of 

Interest, to read as follows: 

§ 4279.2 Definitions and abbreviations. 

* * * * * 

Interest. A fee paid by a borrower to 

the lender as a form of compensation for 

the use of money. When money is 

borrowed, interest is paid as a fee over 

a certain period of time (typically 

months or years) to the lender as a 

percentage of the principal amount 

owed. ‘‘Interest’’ does not include 

default or penalty, or late fees or 

charges. The lender may charge these 

fees and interest with prior Agency 

approval, but they are not covered by 

the Loan Note Guarantee. 

* * * * * 

Dated: February 2, 2012. 

Dallas Tonsager, 

Under Secretary, Rural Development. 

[FR Doc. 2012–3244 Filed 2–10–12; 8:45 am] 

BILLING CODE 3410–XY–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2006–25001; Directorate 

Identifier 2006–NM–079–AD; Amendment 

39–16937; AD 2012–02–14] 

RIN 2120–AA64 

Airworthiness Directives; The Boeing 

Company Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: We are adopting a new 

airworthiness directive (AD) for all The 

Boeing Company Model 737–600, –700, 

–700C, –800, –900, and –900ER series 

airplanes. This AD was prompted by a 

report that the top 3 inches of the aero/ 

fire seals of the blocker doors on the 

thrust reverser torque boxes are not 

fireproof. This AD requires a one-time 

inspection to determine the part 

numbers of the aero/fire seals of the 

blocker doors on the thrust reverser 

torque boxes on the engines, and 

replacing affected aero/fire seals with 

new, improved aero/fire seals. We are 

issuing this AD to prevent a fire in the 

fan compartment (a fire zone) from 

migrating through the seal to a 

flammable fluid in the thrust reverser 

actuator compartment (a flammable 

fluid leakage zone), which could result 

in an uncontrolled fire. 

DATES: This AD is effective March 19, 

2012. 

The Director of the Federal Register 

approved the incorporation by reference 

of a certain publication listed in the AD 

as of March 19, 2012. 

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– 


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Federal Register / Vol. 77, No. 29 / Monday, February 13, 2012 / Rules and Regulations 7519 

2207; telephone 206–544–5000, 

extension 1; fax 206–766–5680; email: 

me.boecom@boeing.com; Internet 

https://www.myboeingfleet.com. You 

may review copies of the referenced 

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. 

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 (phone: 800–647–5527) is 

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: 

Chris Parker, Aerospace Engineer, 

Propulsion Branch, ANM–140S, FAA, 

Seattle Aircraft Certification Office, 

1601 Lind Avenue SW., Renton, 

Washington 98057–3356; phone: 425– 

917–6496; fax: 425–917–6590; email: 

chris.r.parker@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Discussion 

We issued a third supplemental 

notice of proposed rulemaking to amend 

14 CFR part 39 to include an 

airworthiness directive (AD) that would 

apply to the specified products. That 

third supplemental NPRM was 

published in the Federal Register on 

October 11, 2011 (76 FR 62649). The 

original NPRM (71 FR 34025, June 13, 

2006) proposed to require replacing the 

aero/fire seals of the blocker doors on 

the thrust reverser torque boxes on the 

engines with new improved aero/fire 

seals. The first supplemental NPRM (73 

FR 51382, September 3, 2008) proposed 

to add airplanes to the applicability. 

The second supplemental NPRM (74 FR 

34518, July 16, 2009) proposed to 

change the compliance time for the 

replacement of the aero/fire seals. The 

third supplemental NPRM (76 FR 

62649, October 11, 2011) proposed to 

additionally prohibit the installation of 

certain non-fireproof thrust reverser 

seals. 

Comments 

We gave the public the opportunity to 

participate in developing this AD. We 

have considered the comments received. 

The Boeing Company and American 

Airlines both support the third 

supplemental NPRM (76 FR 62649, 

October 11, 2011). 

Conclusion 

We reviewed the relevant data, 

considered the comments received, and 

determined that air safety and the 

public interest require adopting the AD 

as proposed except for minor editorial 

changes. We have determined that these 

minor changes: 

• Are consistent with the intent that 

was proposed in the third supplemental 

NPRM (76 FR 62649, October 11, 2011), 

for correcting the unsafe condition; and 

• Do not add any additional burden 

upon the public than was already 

proposed in the third supplemental 

NPRM (76 FR 62649, October 11, 2011). 

Costs of Compliance 

We estimate that this AD affects 803 

airplanes of U.S. registry. 

We estimate the following costs to 

comply with this AD: 

ESTIMATED COSTS

Action Labor cost Parts cost Cost per product Cost on U.S. 

operators 

Inspection for part number ..... 1 work-hour × $85 per hour = 

$85 per inspection cycle.

None ................. $85 per inspection cycle ....... $68,255 per inspection cycle. 

We estimate the following costs to do 

any necessary replacements that would 

be required based on the results of the 

inspection. We have no way of 

determining the number of aircraft that 

might need this replacement: 

ON-CONDITION COSTS

Action Labor cost Parts cost Cost per product 

Replacement ................................. 5 work-hours × $85 per hour = $425 .................................................. $4,770 $5,195 

According to the manufacturer, some 

of the costs of this AD may be covered 

under warranty, thereby reducing the 

cost impact on affected individuals. We 

do not control warranty coverage for 

affected individuals. As a result, we 

have included all costs in our cost 

estimate. 

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 

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: 


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7520 Federal Register / Vol. 77, No. 29 / Monday, February 13, 2012 / Rules and Regulations 

(1) Is not a ‘‘significant regulatory 

action’’ under Executive Order 12866, 

(2) Is not a ‘‘significant rule’’ under 

DOT Regulatory Policies and Procedures 

(44 FR 11034, February 26, 1979), 

(3) Will not affect intrastate aviation 

in Alaska, and 

(4) Will not have a significant 

economic impact, positive or negative, 

on a substantial number of small entities 

under the criteria of the Regulatory 

Flexibility Act. 

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Incorporation by reference, 

Safety. 

Adoption of the Amendment 

Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA amends 14 CFR part 39 as 

follows: 

PART 39—AIRWORTHINESS 

DIRECTIVES 

■ 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 FAA amends § 39.13 by adding 

the following new airworthiness 

directive (AD): 

2012–02–14 The Boeing Company: 

Amendment 39–16937; Docket No. 

FAA–2006–25001; Directorate Identifier 

2006–NM–079–AD. 

(a) Effective Date 

This AD is effective March 19, 2012. 

(b) Affected ADs 

None. 

(c) Applicability 

This AD applies to all The Boeing 

Company Model 737–600, –700, –700C, 

–800, –900, and –900ER series airplanes, 

certificated in any category. 

(d) Subject 

Joint Aircraft System Component (JASC)/ 

Air Transport Association (ATA) of America 

Code 78, Engine exhaust. 

(e) Unsafe Condition 

This AD was prompted by a report that the 

top 3 inches of the aero/fire seals of the 

blocker doors on the thrust reverser torque 

boxes are not fireproof. We are issuing this 

AD to prevent a fire in the fan compartment 

(a fire zone) from migrating through the seal 

to a flammable fluid in the thrust reverser 

actuator compartment (a flammable fluid 

leakage zone), which could result in an 

uncontrolled fire. 

(f) Compliance 

Comply with this AD within the 

compliance times specified, unless already 

done. 

(g) Inspection To Determine Type of Aero/ 

Fire Seals 

For airplanes having an original 

airworthiness certificate issued before the 

effective date of this AD, and for airplanes on 

which the date of issuance of the original 

export certificate of airworthiness is before 

the effective date of this AD: Within 60 

months or 8,200 flight cycles, whichever 

occurs first, after the effective date of this 

AD, perform a one-time detailed inspection 

to determine the color of the aero/fire seals 

of the blocker doors on the thrust reverser 

torque boxes on the engines. For any aero/fire 

seal having a completely grey color (which is 

the color of seals with part number (P/N) 

315A2245–1 or 315A2245–2), with no red at 

the upper end of the seal, do the actions 

specified in paragraph (i) of this AD. For any 

aero/fire seal having a red color at the upper 

end of the seal (which indicates installation 

of seals with P/N 315A2245–7 or 315A2245– 

8), no further action is required by this AD. 

A review of airplane maintenance records is 

acceptable in lieu of this inspection if from 

that review the part number of the correct 

aero/fire seals (P/N 315A2245–7 or 

315A2245–8) can be conclusively determined 

to be installed. 

(h) Definition 

For the purposes of this AD, a detailed 

inspection is: ‘‘An intensive examination of 

a specific item, installation, or assembly to 

detect damage, failure, or irregularity. 

Available lighting is normally supplemented 

with a direct source of good lighting at an 

intensity deemed appropriate. Inspection 

aids such as mirrors, magnifying lenses, etc., 

may be necessary. Surface cleaning and 

elaborate procedures may be required.’’ 

(i) Replacement of the Aero/Fire Seals 

For any aero/fire seal identified during the 

inspection/records check required by 

paragraph (g) of this AD to have a nonfireproof seal: Within six months after doing 

the actions required by paragraph (g) of this 

AD, replace the aero/fire seals of the blocker 

doors on the thrust reverser torque boxes on 

the engines with new, improved aero/fire 

seals, in accordance with the 

Accomplishment Instructions of Boeing 

Special Attention Service Bulletin 737–78– 

1074, Revision 1, dated September 15, 2005. 

Replacing the aero/fire seals of the blocker 

doors on the thrust reverser torque boxes on 

the engines with new, improved aero/fire 

seals, in accordance with the 

Accomplishment Instructions of Boeing 

Special Attention Service Bulletin 737–78– 

1074, Revision 1, dated September 15, 2005, 

is terminating action for the inspection 

required by paragraph (g) of this AD. 

(j) Parts Installation 

As of the effective date of this AD, no 

person may install a non-fireproof thrust 

reverser seal having P/N 315A2245–1 or 

P/N 315A2245–2 on any airplane. 

(k) Credit for Actions Accomplished in 

Accordance With Previous Service 

Information 

Replacements done before the effective 

date of this AD in accordance with the 

Accomplishment Instructions of Boeing 

Special Attention Service Bulletin 737–78– 

1074, dated April 7, 2005, are acceptable for 

compliance with the requirements of 

paragraph (i) of this AD. 

(l) Alternative Methods of Compliance 

(AMOCs) 

(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. In accordance with 14 CFR 39.19, 

send your request to your principal inspector 

or local Flight Standards District Office, as 

appropriate. If sending information directly 

to the manager of the ACO, send it to the 

attention of the person identified in the 

Related Information section of this AD. 

Information may be emailed to: 9-ANMSeattle-ACO-AMOC-Requests@faa.gov. 

(2) Before using any approved AMOC, 

notify your appropriate principal inspector, 

or lacking a principal inspector, the manager 

of the local flight standards district office/ 

certificate holding district office. 

(m) Related Information 

For more information about this AD, 

contact Chris Parker, Aerospace Engineer, 

Propulsion Branch, ANM–140S, 1601 Lind 

Avenue SW., Renton, Washington 98057– 

3356; phone: 425–917–6496; fax: 425–917– 

6590; email: chris.r.parker@faa.gov. 

(n) Material Incorporated by Reference 

(1) You must use the following service 

information to do the actions required by this 

AD, unless the AD specifies otherwise. The 

Director of the Federal Register approved the 

incorporation by reference (IBR) under 5 

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

(i) Boeing Special Attention Service 

Bulletin 737–78–1074, Revision 1, dated 

September 15, 2005. 

(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; email: 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 an NARA facility, 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 January 

12, 2012. 

Michael J. Kaszycki, 

Acting Manager, Transport Airplane 

Directorate, Aircraft Certification Service. 

[FR Doc. 2012–2679 Filed 2–10–12; 8:45 am] 

BILLING CODE 4910–13–P 


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