This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

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Rules and Regulations Federal Register

10701 

Vol. 82, No. 30 

Wednesday, February 15, 2017 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2012–1327; Directorate 

Identifier 2012–NE–47–AD; Amendment 39– 

18793; AD 2017–03–02] 

RIN 2120–AA64 

Airworthiness Directives; Rolls-Royce 

plc Turbofan Engines 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: We are superseding 

airworthiness directive (AD) 2014–16– 

10 for all Rolls-Royce plc (RR) RB211 

Trent 768–60, 772–60, and 772B–60 

turbofan engines. AD 2014–16–10 

required initial and repetitive ultrasonic 

inspections (UIs) of the affected lowpressure (LP) compressor blades. This 

AD requires the UIs in AD 2014–16–10 

while reducing the inspection 

threshold. This AD was prompted by 

revised service information to reduce 

the inspection threshold for UI of the LP 

compressor blades. We are issuing this 

AD to correct the unsafe condition on 

these products. 

DATES: This AD is effective March 22, 

2017. 

The Director of the Federal Register 

approved the incorporation by reference 

of a certain publication listed in this AD 

as of March 22, 2017. 

ADDRESSES: For service information 

identified in this final rule, contact 

Rolls-Royce plc, Corporate 

Communications, P.O. Box 31, Derby, 

England, DE24 8BJ; phone: 011–44– 

1332–242424; fax: 011–44–1332– 

245418, or email: http://www.rollsroyce.com/contact/civil_team.jsp. You 

may view this service information at the 

FAA, Engine & Propeller Directorate, 

1200 District Avenue, Burlington, MA. 

For information on the availability of 

this material at the FAA, call 781–238– 

7125. It is also available on the Internet 

at http://www.regulations.gov by 

searching for and locating Docket No. 

FAA–2012–1327. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http://

www.regulations.gov by searching for 

and locating Docket No. FAA–2012– 

1327; 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 mandatory 

continuing airworthiness information, 

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: 

Robert Green, Aerospace Engineer, 

Engine Certification Office, FAA, Engine 

& Propeller Directorate, 1200 District 

Avenue, Burlington, MA 01803; phone: 

781–238–7754; fax: 781–238–7199; 

email: robert.green@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Discussion 

We issued a notice of proposed 

rulemaking (NPRM) to amend 14 CFR 

part 39 to supersede AD 2014–16–10, 

Amendment 39–17934 (79 FR 48961, 

August 19, 2014), (‘‘AD 2014–16–10’’). 

AD 2014–16–10 applied to RR RB211 

Trent 768–60, 772–60, and 772B–60 

turbofan engines. The NPRM published 

in the Federal Register on November 1, 

2016 (81 FR 75762). The NPRM 

proposed to continue to require the UIs 

in AD 2014–16–10 while applying the 

revised inspection threshold. 

Comments 

We gave the public the opportunity to 

participate in developing this AD. We 

considered the comments received. 

Request To Change the Costs of 

Compliance 

RR noted the 40 hours in the Costs of 

Compliance to undertake the inspection 

in RR Alert Non-Modification Service 

Bulletin (NMSB) RB.211–72–AH465, 

Revision 2, dated May 11, 2016, exceeds 

the RR guidance provided in the NMSB. 

The NMSB states that the on-wing 

inspection takes 16 hours to accomplish 

if the blades are installed, and total time 

of 28 hours if the blades are removed. 

We disagree. The Costs of Compliance 

estimate assumed the blades would be 

removed for inspection, which includes 

the time required to remove the blades 

and reinstall them afterward to return 

the engine to service. We did not change 

this AD. 

Request To Add Credit for Previous 

Actions 

RR requested that previous inspection 

in accordance with RR Alert NMSB 

RB.211–72–AH465, Revision 1, dated 

July 10, 2015, or earlier revisions, be 

considered as credit for previous action, 

against the inspection requirements of 

this AD to align with European Aviation 

Safety Agency, (EASA) AD 2016–0141, 

dated July 18, 2016 (corrected July 20, 

2016). 

We agree. The inspections done using 

RR Alert NMSB RB.211–72–AH465, 

Revision 1, dated July 10, 2015, or the 

initial issue, dated July 15, 2013, are 

acceptable. We added RR Alert NMSB 

RB.211–72–AH465, Revision 1, dated 

July 10, 2015, and the initial issue, 

dated July 15, 2013, to paragraph (f) of 

this AD. 

Conclusion 

We reviewed the available data, 

including the comments received, and 

determined that air safety and the 

public interest require adopting this AD 

as proposed. 

Related Service Information Under 1 

CFR Part 51 

RR has issued Alert NMSB RB.211– 

72–AH465, Revision 2, dated May 11, 

2016. The NMSB describes procedures 

for performing a UI of the LP 

compressor blades. This service 

information is reasonably available 

because the interested parties have 

access to it through their normal course 

of business or by the means identified 

in the ADDRESSES section. 

Costs of Compliance 

We estimate that this AD affects 56 

engines installed on airplanes of U.S. 

registry. 

We estimate the following costs to 

comply with this AD: 

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10702 Federal Register / Vol. 82, No. 30 / Wednesday, February 15, 2017 / Rules and Regulations 

ESTIMATED COSTS

Action Labor cost Parts cost Cost per 

product 

Cost on U.S. 

operators 

Inspection ......................................... 40 work-hours × $85 per hour = $3,400 ....................... $0 $3,400 $190,400 

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: 

(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 to the extent that it justifies 

making a regulatory distinction, and 

(4) Will not have a significant 

economic impact, positive or negative, 

on a substantial number of small entities 

under the criteria of the Regulatory 

Flexibility Act. 

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Incorporation by reference, 

Safety. 

Adoption of the Amendment 

Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA 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. The FAA amends § 39.13 by 

removing airworthiness directive (AD) 

2014–16–10, Amendment 39–17934 (79 

FR 48961, August 19, 2014), and adding 

the following new AD: 

2017–03–02 Rolls-Royce plc: Amendment 

39–18793; Docket No. FAA–2012–1327; 

Directorate Identifier 2012–NE–47–AD. 

(a) Effective Date 

This AD is effective March 22, 2017. 

(b) Affected ADs 

This AD supersedes AD 2014–16–10, 

Amendment 39–17934 (79 FR 48961, August 

19, 2014). 

(c) Applicability 

This AD applies to Rolls-Royce plc (RR) 

RB211 Trent 768–60, 772–60, and 772B–60 

turbofan engines, with low-pressure (LP) 

compressor blade, part number (P/N) 

FK23411, FK25441, FK25968, FW11901, 

FW15393, FW23643, FW23741, FW23744, 

KH23403, or KH23404, installed. 

(d) Unsafe Condition 

This AD was prompted by LP compressor 

blade partial airfoil release events. We are 

issuing this AD to prevent LP compressor 

blade airfoil separations, damage to the 

engine, and damage to the airplane. 

(e) Compliance 

Comply with this AD within the 

compliance times specified, unless already 

done. 

(1) Ultrasonic Inspection (UI) of LP 

Compressor Blade 

(i) After the effective date of this AD, for 

LP compressor blades that have accumulated 

less than 1,800 cycles since new (CSN) or 

cycles since last inspection (CSLI), perform a 

UI of each LP compressor blade before the 

blade exceeds 2,400 CSN or CSLI. Repeat the 

UI of the blade before exceeding 2,400 CSLI. 

(ii) For any LP compressor blade that 

exceeds 1,800 CSN on the effective date of 

this AD, inspect the blade before exceeding 

600 flight cycles after the effective date of 

this AD or before exceeding 3,600 CSN, 

whichever occurs first. Thereafter, perform 

the repetitive inspections before exceeding 

2,400 CSLI. 

(iii) For any LP compressor blade that 

exceeds 2,200 CSLI on September 23, 2014 

(the effective date of AD 2014–16–10), 

inspect the blade before exceeding 3,000 

CSLI or before further flight, whichever 

occurs later. Thereafter, perform the 

repetitive inspections before exceeding 2,400 

CSLI. 

(iv) Use paragraph 3, excluding 

subparagraphs 3.C.(2)(b), 3.D.(2), and 3.G, of 

RR Alert Non-Modification Service Bulletin 

(NMSB) RB.211–72–AH465, Revision 2, 

dated May 11, 2016, to perform the 

inspections required by this AD. 

(2) Use of Replacement Blades 

(i) After the effective date of this AD, LP 

compressor blade, P/N FK23411, FK25441, 

FK25968, FW11901, FW15393, FW23643, 

FW23741, FW23744, KH23403, or KH23404, 

that has accumulated at least 2,400 CSN or 

CSLI is eligible for installation if the blade 

has passed the UI required by this AD. 

(ii) Reserved. 

(f) Credit for Previous Actions 

You may take credit for the UI required by 

paragraph (e) of this AD, if you performed the 

UI before the effective date of this AD using 

RR Alert NMSB RB.211–72–AH465, Revision 

1, dated July 10, 2015, or the initial issue, 

dated July 15, 2013; or RR NMSB No. 

RB.211–72–G702, dated May 23, 2011; or RR 

NMSB No. RB.211–72–G872, Revision 2, 

dated March 8, 2013, or earlier revisions; or 

RR NMSB No. RB.211–72–H311, dated 

March 8, 2013; or the Engine Manual ETrent-1RR, Task 72–31–11–200–806. 

(g) Alternative Methods of Compliance 

(AMOCs) 

The Manager, Engine Certification Office, 

may approve AMOCs for this AD. Use the 

procedures found in 14 CFR 39.19 to make 

your request. You may email your request to: 

ANE-AD-AMOC@faa.gov. 

(h) Related Information 

(1) For more information about this AD, 

contact Robert Green, Aerospace Engineer, 

Engine Certification Office, FAA, Engine & 

Propeller Directorate, 1200 District Avenue, 

Burlington, MA 01803; phone: 781–238– 

7754; fax: 781–238–7199; email: 

robert.green@faa.gov. 

(2) Refer to MCAI European Aviation 

Safety Agency, (EASA) AD 2016–0141, dated 

July 18, 2016 (corrected July 20, 2016), for 

more information. You may examine the 

MCAI in the AD docket on the Internet at 

http://www.regulations.gov by searching for 

and locating it in Docket No. FAA–2012– 

1327. 

(i) Material Incorporated by Reference 

(1) The Director of the Federal Register 

approved the incorporation by reference 

(IBR) of the service information listed in this 

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Federal Register / Vol. 82, No. 30 / Wednesday, February 15, 2017 / Rules and Regulations 10703 

1 15 U.S.C. 77a et seq. 

2 15 U.S.C. 78a et seq. 

3 15 U.S.C. 77aaa et seq. 

4See 17 CFR 230.240, 17 CFR 240.12a–11, 17 CFR 

240.12h–1, and 17 CFR 260.4d–12. See also 

Exemptions for Security-Based Swaps, Release No. 

33–9231 (Jul. 1, 2011), 76 FR 40605 (Jul. 11, 2011) 

(‘‘Interim Final Rules Adopting Release’’). 

5The Dodd-Frank Wall Street Reform and 

Consumer Protection Act, Public Law 111–203, 124 

Stat. 1376 (2010). The provisions of Title VII 

generally were effective on July 16, 2011 (360 days 

after enactment of the Dodd-Frank Act), unless a 

provision requires a rulemaking. If a Title VII 

provision requires a rulemaking, it will go into 

effect ‘‘not less than’’ 60 days after publication of 

the related final rule or on July 16, 2011, whichever 

is later. See Section 774 of the Dodd-Frank Act. 

6The category of security-based swaps covered by 

the interim final rules involves those that would 

have been defined as ‘‘security-based swap 

agreements’’ prior to the enactment of Title VII. 

That definition of ‘‘security-based swap agreement’’ 

does not include security-based swaps that are 

based on or reference only loans and indexes only 

of loans. The Division of Corporation Finance 

issued a no-action letter that addressed the 

availability of the interim final rules to offers and 

sales of security-based swaps that are based on or 

reference only loans or indexes only of loans. See 

Cleary Gottlieb Steen & Hamilton LLP (Jul. 15, 

2011). The Cleary Gottlieb No-Action Letter will 

remain in effect for so long as the interim final rules 

remain in effect. 

7The security-based swap that is exempt must be 

a security-based swap agreement (as defined prior 

to the Title VII effective date) and entered into 

between eligible contract participants (as defined 

prior to the Title VII effective date). See Rule 240 

under the Securities Act [17 CFR 230.240]. See also 

Interim Final Rules Adopting Release. 

8See Extension of Exemptions for Security-Based 

Swaps, Release No. 33–9383 (Jan. 29, 2013), 78 FR 

7654 (Feb. 4, 2013). 

9See Extension of Exemptions for Security-Based 

Swaps, Release No. 33–9545 (Feb. 5, 2014), 79 FR 

7570 (Feb. 10, 2014) (‘‘Extension Adopting 

Release’’). 

10See Sections 761(a)(2) and 768(a)(1) of the 

Dodd-Frank Act (amending Section 3(a)(10) of the 

Exchange Act [15 U.S.C. 78c(a)(10)] and Section 

2(a)(1) of the Securities Act [15 U.S.C. 77b(a)(1)], 

respectively). 

11The Securities Act requires that any offer and 

sale of a security must be either registered under the 

Securities Act or made pursuant to an exemption 

from registration. See Section 5 of the Securities Act 

[15 U.S.C. 77e]. In addition, certain provisions of 

the Exchange Act relating to the registration of 

classes of securities and the indenture qualification 

provisions of the Trust Indenture Act of 1939 

(‘‘Trust Indenture Act’’) [15 U.S.C. 77aaa et seq.] 

also potentially could apply to security-based 

swaps. The provisions of Section 12 of the 

Exchange Act could, without an exemption, require 

that security-based swaps be registered before a 

transaction could be effected on a national 

securities exchange. See Section 12(a) of the 

Exchange Act [15 U.S.C. 78l(a)]. In addition, 

registration of a class of security-based swaps under 

Section 12(g) of the Exchange Act could be required 

if the security-based swap is considered an equity 

security and held of record by either 2000 persons 

or 500 persons who are not accredited investors at 

the end of a fiscal year. See Section 12(g)(1)(A) of 

the Exchange Act [15 U.S.C. 78l(g)(1)(A)]. Further, 

without an exemption, the Trust Indenture Act 

could require qualification of an indenture for 

security-based swaps considered to be debt. See 15 

U.S.C. 77aaa et seq. 

paragraph under 5 U.S.C. 552(a) and 1 CFR 

part 51. 

(2) You must use this service information 

as applicable to do the actions required by 

this AD, unless the AD specifies otherwise. 

(i) Rolls-Royce plc Alert Non-Modification 

Service Bulletin RB.211–72–AH465, Revision 

2, dated May 11, 2016. 

(ii) Reserved. 

(3) For Rolls-Royce plc service information 

identified in this AD, contact Rolls-Royce 

plc, Corporate Communications, P.O. Box 31, 

Derby, England, DE24 8BJ; phone: 011–44– 

1332– 242424; fax: 011–44–1332–245418, or 

email: http://www.rolls-royce.com/contact/ 

civil_team.jsp. 

(4) You may view this service information 

at FAA, Engine & Propeller Directorate, 1200 

District Avenue, Burlington, MA. For 

information on the availability of this 

material at the FAA, call 781–238–7125. 

(5) You may view this service information 

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/cfr/ibrlocations.html. 

Issued in Burlington, Massachusetts, on 

January 27, 2017. 

Colleen M. D’Alessandro, 

Manager, Engine & Propeller Directorate, 

Aircraft Certification Service. 

[FR Doc. 2017–02921 Filed 2–14–17; 8:45 am] 

BILLING CODE 4910–13–P 

SECURITIES AND EXCHANGE 

COMMISSION 

17 CFR Parts 230, 240, and 260 

[Release Nos. 33–10305; 34–80023; 39– 

2515; File No. S7–26–11] 

RIN 3235–AL17 

Exemptions for Security-Based Swaps 

AGENCY: Securities and Exchange 

Commission. 

ACTION: Interim final rule. 

SUMMARY: We are adopting amendments 

to the expiration dates in our interim 

final rules that provide exemptions 

under the Securities Act of 1933, the 

Securities Exchange Act of 1934, and 

the Trust Indenture Act of 1939 for 

those security-based swaps that prior to 

July 16, 2011 were security-based swap 

agreements and are defined as 

‘‘securities’’ under the Securities Act 

and the Exchange Act as of July 16, 2011 

due solely to the provisions of Title VII 

of the Dodd-Frank Wall Street Reform 

and Consumer Protection Act. Under 

the amendments, the expiration dates in 

the interim final rules will be February 

11, 2018. 

DATES: The amendments are effective 

February 15, 2017. See Section I of the 

SUPPLEMENTARY INFORMATION concerning 

amendment of expiration dates in the 

interim final rules. 

FOR FURTHER INFORMATION CONTACT: 

Andrew Schoeffler, Special Counsel, 

Office of Capital Markets Trends, 

Division of Corporation Finance, at 

(202) 551–3860, U.S. Securities and 

Exchange Commission, 100 F Street NE., 

Washington, DC 20549–3628. 

SUPPLEMENTARY INFORMATION: We are 

adopting amendments to the following 

rules: Interim final Rule 240 under the 

Securities Act of 1933 (‘‘Securities 

Act’’),1 interim final Rules 12a–11 and 

12h–1(i) under the Securities Exchange 

Act of 1934 (‘‘Exchange Act’’),2 and 

interim final Rule 4d–12 under the 

Trust Indenture Act of 1939 (‘‘Trust 

Indenture Act’’).3

I. Amendment of Expiration Dates in 

the Interim Final Rules 

A. Background Regarding the Interim 

Final Rules 

In July 2011, we adopted interim final 

Rule 240 under the Securities Act, 

interim final Rules 12a–11 and 12h–1(i) 

under the Exchange Act, and interim 

final Rule 4d–12 under the Trust 

Indenture Act (collectively, the ‘‘interim 

final rules’’).4 The interim final rules 

provide exemptions under the 

Securities Act, the Exchange Act, and 

the Trust Indenture Act for those 

security-based swaps that prior to July 

16, 2011 (‘‘Title VII effective date’’) were 

‘‘security-based swap agreements’’ and 

are defined as ‘‘securities’’ under the 

Securities Act and the Exchange Act as 

of the Title VII effective date due solely 

to the provisions of Title VII of the 

Dodd-Frank Act.5 The interim final 

rules exempt offers and sales of 

security-based swap agreements that 

became security-based swaps on the 

Title VII effective date from all 

provisions of the Securities Act, other 

than the Section 17(a) anti-fraud 

provisions, as well as from the Exchange 

Act registration requirements and from 

the provisions of the Trust Indenture 

Act,6 provided certain conditions are 

met.7 We have adopted amendments to 

the interim final rules to extend the 

expiration dates in the interim final 

rules, first from February 11, 2013 to 

February 11, 2014,8 and then from 

February 11, 2014 to February 11, 

2017.9

Title VII amended the Securities Act 

and the Exchange Act to include 

‘‘security-based swaps’’ in the definition 

of ‘‘security’’ for purposes of those 

statutes.10 As a result, ‘‘security-based 

swaps’’ became subject to the provisions 

of the Securities Act and the Exchange 

Act and the rules and regulations 

thereunder applicable to ‘‘securities.’’ 11

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