54152 Federal Register / Vol. 78, No. 170 / Tuesday, September 3, 2013 / Rules and Regulations 

(f)(3) of this AD. You are still required to 

perform the repetitive inspections required 

by paragraphs (f)(2) and (f)(3) of this AD. 

(2) For RB211–Trent 800 series engines: 

(i) If you borescope inspected your RB211– 

Trent 800 series engine using RB211 Trent 

800 Series Propulsion System NMASB No. 

RB.211–72–AG264, Revision 3, dated 

December 21, 2010, or Revision 4, dated 

February 25, 2011, before the effective date 

of this AD, you have satisfied the 

requirements of paragraph (g)(1) of this AD. 

(ii) If you performed the ECI and in-shop 

visual inspection of your RB211–Trent 800 

series engine using RB211 Trent 700 and 

Trent 800 Series Propulsion Systems NMASB 

No. RB.211–72–AG085, Revision 1, dated 

September 27, 2010, before the effective date 

of this AD, you have satisfied the ECI and 

visual inspections required by paragraph 

(g)(3) of this AD. You are still required to 

perform the repetitive inspections required 

by paragraphs (g)(2) and (g)(3) of this AD. 

(3) For RB211–Trent 500 and 900 series 

engines: 

(i) If you borescope inspected your RB211– 

Trent 500 series engine using RB211 Trent 

500, 700 and 800 Series Propulsion Systems 

NMASB No. RB.211–72–AF260, Revision 4, 

dated July 28, 2009, or using RB211 Trent 

500 and Trent 900 Series Propulsion Systems 

NMSB No. RB.211–72–G448, Revision 2, 

dated December 23, 2010 before the effective 

date of this AD, you have satisfied the ECIs 

required by paragraph (h)(3) of this AD. 

(ii) If you performed the ECI and in-shop 

visual inspection of your RB211–Trent 500 

series engine using RB211 Trent 500 and 

Trent 900 Series Propulsion Systems NMSB 

No. RB.211–72–G448, Revision 2, dated 

December 23, 2010, before the effective date 

of this AD, you have satisfied the ECI and 

visual inspections required by paragraph 

(h)(3) of this AD. You are still required to 

perform the repetitive inspections required 

by paragraphs (h)(2) and (h)(3) of this AD. 

(4) For RB211–Trent 900 series engines: 

(i) If you borescope inspected your RB211– 

Trent 900 series engine using RB211 Trent 

500 and Trent 900 Series Propulsion Systems 

NMSB No. RB.211–72–G448, Revision 2, 

dated December 23, 2010, before the effective 

date of this AD, you have satisfied the 

requirements of paragraph (i)(1) of this AD. 

(ii) If you performed the ECI and in-shop 

visual inspection of your RB211–Trent 900 

series engine using RB211 Trent 500 and 

Trent 900 Series Propulsion Systems NMSB 

No. RB.211–72–G448, Revision 2, dated 

December 23, 2010, before the effective date 

of this AD, you have satisfied the ECI and 

visual inspections required by paragraph 

(i)(3) of this AD. You are still required to 

perform the repetitive inspections required 

by paragraphs (i)(2) and (i)(3) of this AD. 

(l) Definitions 

For the purpose of this AD, a shop visit is 

defined as introduction of an engine into the 

shop and disassembly sufficient to expose 

the IP compressor module rear face. 

(m) Alternative Methods of Compliance 

(AMOCs) 

The Manager, Engine Certification Office, 

FAA, may approve AMOCs for this AD. Use 

the procedures in 14 CFR 39.19 to make your 

request. 

(n) Related Information 

(1) For more information about this AD, 

contact Frederick Zink, Aerospace Engineer, 

Engine Certification Office, FAA, Engine & 

Propeller Directorate, 12 New England 

Executive Park, Burlington, MA 01803; 

phone: 781–238–7779; fax: 781–238–7199; 

email: frederick.zink@faa.gov. 

(2) Refer to European Aviation Safety 

Agency, AD 2013–0002, dated January 4, 

2013, for more information. You may 

examine this AD on the Internet at http://

www.regulations.gov/

#!documentDetail;D=FAA–2007–28059–0022. 

(o) Material Incorporated by Reference 

(1) The Director of the Federal Register 

approved the incorporation by reference 

(IBR) of the service information listed in this 

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. 

(3) The following service information was 

approved for IBR on October 8, 2013. 

(i) Rolls-Royce plc Non-Modification Alert 

Service Bulletin No. RB211 Trent 900 Series 

Propulsion Systems NMASB No. RB.211–72– 

AH059, dated December 11, 2012. 

(ii) Rolls-Royce plc Non-Modification Alert 

Service Bulletin No. RB211 Trent 500 Series 

Propulsion Systems RB.211–72–AH058, 

dated December 13, 2012. 

(4) The following service information was 

approved for IBR on June 29, 2012, (77 FR 

31176, May 25, 2012). 

(i) Rolls-Royce plc RB211 Trent 700 Series 

Propulsion System Non-Modification Alert 

Service Bulletin No. RB.211–72–AG270, 

Revision 4, dated March 21, 2011. 

(ii) Rolls-Royce plc RB211 Trent 700 and 

800 Series Propulsion Systems NonModification Alert Service Bulletin No. 

RB.211–72–AG085, Revision 2, dated July 7, 

2011. 

(iii) Rolls-Royce plc RB211 Trent 800 

Series Propulsion System Non-Modification 

Alert Service Bulletin No. RB.211–72– 

AG264, Revision 5, dated March 21, 2011. 

(iv) Rolls-Royce plc RB211 Trent 500 

Series Propulsion System Non-Modification 

Alert Service Bulletin No. RB.211–72–AF260, 

Revision 5, dated July 7, 2011. 

(v) Rolls-Royce plc RB211 Trent 500 and 

900 Series Propulsion Systems NonModification Service Bulletin No. RB.211– 

72–G448, Revision 3, dated July 7, 2011. 

(5) For service information identified in 

this AD, contact Rolls-Royce plc, Corporate 

Communications, P.O. Box 31, Derby, 

England, DE248BJ; phone: 011–44–1332– 

242424; fax: 011–44–1332–245418; Internet: 

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

team.jsp. 

(6) You may view this service information 

at the FAA, Engine & Propeller Directorate, 

12 New England Executive Park, Burlington, 

MA 01803. For information on the 

availability of this material at the FAA, call 

781–238–7125. 

(7) You may also view this service 

information that is IBR 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/federalregister/cfr/ibr_locations.html. 

Issued in Burlington, Massachusetts, on 

July 22, 2013. 

Colleen M. D’Alessandro, 

Assistant Manager, Engine & Propeller 

Directorate, Aircraft Certification Service. 

[FR Doc. 2013–21108 Filed 8–30–13; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2013–0143; Directorate 

Identifier 2013–NE–06–AD; Amendment 39– 

17561; AD 2013–16–23] 

RIN 2120–AA64 

Airworthiness Directives; Rolls-Royce 

plc Turbofan Engines 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: We are adopting a new 

airworthiness directive (AD) for certain 

Rolls-Royce plc (RR) RB211–524B–02; 

–524B2–19; –524B3–02; –524B4–02; 

–524C2–19; –524D4–19; –524D4–B–19; 

–524D4–39; –535C–37; –535E4–37; 

–535E4–B–37, and –535E4–B–75 

turbofan engines, and all RB211– 

524G2–19; –524G3–19; –524H2–19; and 

–524H–36 turbofan engines. This AD 

requires a one-time inspection of the 

front combustion liner (FCL) metering 

panel to determine if it is made from 

N75 material and, if so, replacing it with 

an FCL made from C263 material. This 

AD was prompted by the discovery of a 

cracked and distorted FCL metering 

panel, which was made from N75 

material. We are issuing this AD to 

prevent hot gases from burning through 

the engine casing, which could result in 

an under-cowl fire and damage to the 

airplane. 

DATES: This AD becomes effective 

October 8, 2013. 

The Director of the Federal Register 

approved the incorporation by reference 

of certain publications listed in this AD 

as of October 8, 2013. 

ADDRESSES: The Docket Operations 

office is located at Docket Management 

Facility, U.S. Department of 

Transportation, 1200 New Jersey 

Avenue SE., West Building Ground 

Floor, Room W12–140, Washington, DC 

20590–0001. 


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Examining the AD Docket 

You may examine the AD docket on 

the Internet at http://

www.regulations.gov; or in person at the 

Docket Operations office 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 

(MCAI), the regulatory evaluation, any 

comments received, and other 

information. The street address for the 

Docket Operations office (phone: 800– 

647–5527) is provided in the ADDRESSES

section. Comments will be available in 

the AD docket shortly after receipt. 

FOR FURTHER INFORMATION CONTACT: 

Robert Green, Aerospace Engineer, 

Engine Certification Office, FAA, Engine 

& Propeller Directorate, 12 New England 

Executive Park, 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 include an AD that would 

apply to the specified products. The 

NPRM was published in the Federal 

Register on April 5, 2013 (78 FR 20505). 

The NPRM proposed to correct an 

unsafe condition for the specified 

products. The MCAI states: 

During investigation of a starting problem 

with an RB211–535E4–B–37 engine, the Fuel 

Spray Nozzles (FSNs) appeared misaligned 

and the engine was removed. Further 

investigation found that the FSNs were 

correctly positioned but that the Front 

Combustion Liner (FCL) metering panel 

(reference Engine Illustrated Parts Catalogue 

(EIPC) section 72–41–13, Figure/Item 02– 

324) was cracked and distorted. Laboratory 

investigation revealed that the FCL metering 

panel was made of N75 material rather than 

the specified C263 material. 

Rolls-Royce (RR) issued SB RB.211–72– 

7221 in 1984, to address the issue of cracking 

of FCL metering panels manufactured in N75 

material. SB RB.211–72–7221 replaces the 

FCL metering panel manufactured in N75 

material with one manufactured in C263 

material. The FCL metering panel in socalled Phase 2 combustors of the RB211– 

524G/H and RB211–535C/E4/E4–B series 

engines was specified in C263 material from 

engine type at entry into service. 

Based on these findings, it was determined 

that installation of N75 material FCL 

metering panels on an engine where C263 

was the intended material may result in 

metering panel cracking and distortion. 

Comments 

We gave the public the opportunity to 

participate in developing this AD. We 

considered the comments received. 

Request To Correct an Applicability 

Date 

American Airlines (AAL) requested 

that we correct a date cited in paragraph 

(c)(4)(i) of the NPRM (78 FR 20505, 

April 5, 2013) used to determine the 

affected engines. The NPRM states that 

combustion liners supplied by RR after 

April 23, 2011 are not affected by this 

AD, whereas RR Alert Non-Modification 

Service Bulletin (NMSB) No. RB.211– 

72–AG046, Revision 3, dated December 

6, 2012, and RR Alert NMSB No. 

RB.211–72–AF572, Revision 2, dated 

April 2, 2009, cite the correct date as 

April 23, 2007. 

We agree. We changed the date. 

Paragraph (c)(4) of this AD now states 

that combustion liners supplied by RR 

after April 23, 2007, are not affected by 

this AD. 

Request To Allow Alternative 

Inspection Method During Engine Shop 

Visits 

AAL and Texas Aero Engine Services, 

LLC (TAESL) requested that we allow 

using RR Alert NMSB No. RB.211–72– 

AF572, Revision 2, dated April 2, 2009, 

as a means to comply with the FCL 

inspections. AAL indicated that the 

Alert NMSB defines an inspection 

equivalent to that in the AD, which 

therefore should allow using the NMSB 

at the shop level. In addition, TAESL 

requested that we allow using Revision 

1, Revision 2, or later revisions of RR 

Alert NMSB No.RB.211–72–AF572 to 

comply with the AD. 

We partially agree. We agree that RR 

Alert NMSB No. RB.211–72–AF572, 

Revision 2, dated April 2, 2009, or 

Revision 1, dated October 10, 2008, 

provide an acceptable inspection. We 

changed the AD to add RR Alert NMSB 

No. RB.211–72–AF572, Revision 2, 

dated April 2, 2009, and Revision 1, 

dated October 10, 2008, to the 

compliance paragraph, by adding 

paragraphs (e)(2)(ii) and (e)(3)(ii). 

New paragraph (e)(2)(ii) states: ‘‘You 

may use paragraph 3.B. of the 

Accomplishment Instructions in RR 

Alert NMSB No. RB.211–72–AF572, 

Revision 2, dated April 2, 2009, or 

Revision 1, dated October 10, 2008, or 

paragraph 3. of RR Alert NMSB No. 

RB.211–72–AG183, Revision 3, dated 

December 6, 2012, for engine shop visit 

inspections.’’ 

New paragraph (e)(3)(ii) states: ‘‘You 

may use paragraph 3.B. of the 

Accomplishment Instructions in RR 

Alert NMSB No. RB.211–72–AF572, 

Revision 2, dated April 2, 2009, or 

Revision 1, dated October 10, 2008, or 

paragraph 3. of RR Alert NMSB No. 

RB.211–72–AG046, Revision 3, dated 

December 6, 2012, for engine shop visit 

inspections.’’ 

We disagree with including possible 

future versions of the Alert NMSB 

because what future versions may 

contain is speculation. We did not 

change the AD. 

Request To Use Spectroscopic Analysis 

To Determine if the FCL Metering Panel 

Is Made From N75 Material 

AAL requested that we allow an 

alternate procedure to obtain and 

analyze the FCL material. RR Alert 

NMSB No. RB.211–72–AG046, Revision 

3, dated December 6, 2012, requires the 

use of an alloy sorter to identify the FCL 

material as either C263 or N75. If the 

sorter identifies the material as N75, the 

Alert NMSB requires that a sample be 

provided to RR for confirmation by 

spectroscopic analysis. AAL proposed 

an alternate procedure be accepted to 

obtain and analyze a sample of material 

from the FCL in accordance with 

RB.211–72–AG046, paragraph 

3.(B).5.(p)(i) for all inspections instead 

of using the alloy sorter as a preliminary 

step. The alternative procedure includes 

the use of a local laboratory for the 

spectroscopic analysis. 

We agree. Paragraph 3.(B).5.(p)(i) 

identifies, among other things, how to 

obtain the sample. AAL’s alternate 

process uses paragraph 3.(B).5.(p)(i) to 

obtain the sample. AAL’s proposed 

follow-on analysis is simpler as it 

avoids use of the alloy sorter. However, 

spectroscopic analysis then becomes 

required. The analysis need not be 

limited to RR facilities, but can be 

conducted locally in the context of an 

FAA-accepted maintenance or quality 

plan. 

We changed the AD by adding 

paragraphs (e)(2)(iii) and (e)(2)(iv), and 

also (e)(3)(iii) and (e)(3)(iv). 

New paragraph (e)(2)(iii) states: ‘‘You 

may use paragraph 3.B.(5)(p)(i) of RR 

Alert NMSB No. RB.211–72–AG183, 

Revision 3, dated December 6, 2012, and 

a spectroscopic analysis, instead of 

paragraphs 3.B.(3) through 3.B.(5)(p) 

and paragraphs 3.C.(5)(q) and (r).’’ 

New paragraph (e)(3)(iii) states: ‘‘You 

may use paragraph 3.C.(5)(p)(i) of RR 

Alert NMSB No. RB.211–72–AG046, 

Revision 3, dated December 6, 2012, and 

a spectroscopic analysis, instead of 

paragraphs 3.C.(3) through 3.C.(5)(p), 

and paragraph 3.C.(5)(q).’’ 

New paragraphs (e)(2)(iv) and 

(e)(3)(iv) state: ‘‘You may use a local 

facility in the context of an FAAaccepted maintenance or quality plan to 

perform the spectroscopic analysis.’’ 


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54154 Federal Register / Vol. 78, No. 170 / Tuesday, September 3, 2013 / Rules and Regulations 

Request To Substitute Locally Sourced 

Tools To Conduct Pressure Test 

AAL requested that we allow the use 

of a locally sourced pressure test 

adaptor and pressure gauge in place of 

tools specified by part number in RR 

Alert NMSB No. RB.211–72–AG046, 

Revision 3, dated December 6, 2012. 

We agree. Locally sourced tooling 

approved under an FAA-accepted 

maintenance or quality plan is 

acceptable for use. We changed the AD 

by adding paragraph (e)(3)(v) which 

states: ‘‘The accomplishment 

instructions in paragraphs 3.B.(6)(g)(iii) 

and 3.B.(6)(j)(i) of RR Alert NMSB No. 

RB.211–72–AG046, Revision 3, dated 

December 6, 2012, specify use of RR 

tooling for the post-inspection fuel 

manifold pressure test. However, you 

may use locally sourced tooling in the 

context of an FAA-accepted 

maintenance or quality plan.’’ 

Request To Be Less Precise in 

References to NMSB Revision Numbers 

TAESL requested that we not specify 

use of RR Alert NMSB No. RB.211–72– 

AG046, Revision 3, dated December 6, 

2012, for the inspection, and that we 

either remove the revision number or 

add the words ‘‘or later revision’’ 

because service bulletins can be revised 

frequently. Similarly, TAESL requested 

that in paragraph (c)(ii), Applicability, 

we change the reference to RR Alert 

NMSB No. RB.211–72–AF572 to say 

‘‘Revision 1 or 2, or later revision.’’ 

We partially agree. 

We agree that RR Alert NMSB No. 

RB.211–72–AF572, Revision 2, dated 

April 2, 2009, and Revision 1, dated 

October 10, 2008, and Initial Issue, 

dated October 15, 2007 are acceptable 

inspections for prior compliance. We 

changed the AD by adding paragraph (f), 

Credit for Previous Actions. 

New paragraph (f) states: ‘‘(1) You 

have satisfied the inspection 

requirement of paragraph (e) of this AD 

if, before the effective date of this AD, 

you performed the actions prescribed in 

this AD using: (i) RR Alert NMSB No. 

RB.211–72–AG183, Revision 3, dated 

December 6, 2012, or Revision 2, dated 

June 8, 2012, or Revision 1, dated 

November 16, 2010, or Initial Issue, 

dated December 17, 2009; or (ii) RR 

Alert NMSB No. RB.211–72–AG046, 

Revision 3, dated December 6, 2012, or 

Revision 2, dated June 7, 2012, or 

Revision 1, dated January 17, 2011, or 

Initial Issue, dated December 17, 2009; 

or (iii) RR Alert NMSB No. RB.211–72– 

AF572, Revision 2, dated April 2, 2009, 

or Revision 1, dated October 10, 2008, 

or Initial Issue, dated October 15, 2007; 

or (iv) RR Repeater Technical Variance 

No. 75295, Issue 1, dated April 20, 

2007.’’ 

We disagree with including possible 

future versions of the Alert NMSB 

because what future versions may 

contain is speculation. We did not 

change the AD. 

Request To Replace Flight Cycle 

Requirement With Compliance at Next 

Shop Visit 

UPS requested that we remove from 

compliance the flight cycle requirement 

and instead require compliance at the 

next shop visit. UPS has completed 

inspection of 67 of 89 affected engines, 

with no findings. The remaining engines 

are locked in specific geographic areas 

that do not afford favorable 

opportunities to accomplish material 

verification. UPS believes the risk of 

finding a combustion liner metering 

panel fabricated of N75 material is low. 

We disagree. The RR risk assessment 

that we reviewed estimates 25 field 

findings. There have been seven 

findings to date, leaving 18 potential 

additional findings. The cyclic 

compliance requirement, average fleet 

utilization, and alternative inspection 

methods provide adequate ability to 

manage remaining inspections in a 

timely manner during scheduled 

maintenance opportunities. We did not 

change the AD. 

Request To Lower the Estimated Costs 

of Compliance 

AAL requested that we lower, based 

on the inspection results to date, our 

estimate of costs of compliance. The 

NPRM (78 FR 20505, April 5, 2013) 

estimates that 315 engines of U.S. 

registry are affected, and that 12 engines 

will test positive for N75. AAL believes 

that this estimate is too high. 

AAL stated that, to date, 770 engines 

of the worldwide fleet have been 

inspected using RR NMSB No. RB.211– 

72–AF572 and RB.211–72–AG046. Two 

engines were confirmed to have an N75 

material FCL metering panel in the shop 

using RB.211–72–AF572 and one was 

the original event engine. No engines 

with confirmed FCL metering panel 

with N75 material have been found in 

the worldwide fleet using RR NMSB No. 

RB.211–72–AG046. 

We disagree. As of March 15, 2013, 

we are aware of seven findings—the 

known failure of one engine, two 

findings for new productions engines, 

and four findings for engines inspected 

in the field. We did not change the AD. 

Conclusion 

We reviewed the available data, 

including the comments received, and 

determined that air safety and the 

public interest require adopting this AD 

with the changes described previously. 

We determined that these changes will 

not increase the economic burden on 

any operator or increase the scope of 

this AD. 

Costs of Compliance 

We estimate that this AD will affect 

about 315 RR RB211–524 and RB211– 

535 turbofan engines installed on 

airplanes of U.S. registry. We also 

estimate that it will take about 11 hours 

per engine to comply with this AD. The 

average labor rate is $85 per hour. 

Required parts will cost about $108,887 

per engine. We anticipate that 12 FCL 

metering panels will fail inspection. 

Based on these figures, we estimate the 

cost of the AD on U.S. operators to be 

$1,601,169. 

Authority for This Rulemaking 

Title 49 of the United States Code 

specifies the FAA’s authority to issue 

rules on aviation safety. Subtitle I, 

section 106, describes the authority of 

the FAA Administrator. ‘‘Subtitle VII: 

Aviation Programs,’’ describes in more 

detail the scope of the Agency’s 

authority. 

We are issuing this rulemaking under 

the authority described in ‘‘Subtitle VII, 

Part A, Subpart III, Section 44701: 

General requirements.’’ Under that 

section, Congress charges the FAA with 

promoting safe flight of civil aircraft in 

air commerce by prescribing regulations 

for practices, methods, and procedures 

the Administrator finds necessary for 

safety in air commerce. This regulation 

is within the scope of that authority 

because it addresses an unsafe condition 

that is likely to exist or develop on 

products identified in this rulemaking 

action. 

Regulatory Findings 

We 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 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), 

(3) Will not affect intrastate aviation 

in Alaska to the extent that it justifies 

making a regulatory distinction, and 


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(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. 

We prepared a regulatory evaluation 

of the estimated costs to comply with 

this AD and placed it in the AD docket. 

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 AD: 

2013–16–23 Rolls-Royce plc: Amendment 

39–17561; Docket No. FAA–2013–0143; 

Directorate Identifier 2013–NE–06–AD. 

(a) Effective Date 

This airworthiness directive (AD) becomes 

effective October 8, 2013. 

(b) Affected ADs 

None. 

(c) Applicability 

This AD applies to: 

(1) All Rolls-Royce plc (RR) RB211–524G2– 

19; –524G3–19; –524H2–19; and –524H–36 

turbofan engines; 

(2) RR RB211–524B–02; –524B2–19; 

–524B3–02; –524B4–02; –524C2–19; 

–524D4–19; –524D4–B–19; and –524D4–39 

turbofan engines that have incorporated RR 

Service Bulletin (SB) No. RB.211–72–7221, 

dated December 7, 1984; 

(3) All RR RB211–535C–37; –535E4–37; 

–535E4–B–37, and –535E4–B–75 turbofan 

engines, except those engines that have 

incorporated RR SB No. RB.211–72–C230, 

Revision 1, dated November 22, 2012, or 

Initial Issue, dated November 16, 1999. 

(4) This AD does not apply to engines 

listed in paragraphs (c)(1) through (c)(3) of 

this AD that have installed a front 

combustion liner (FCL) metering panel 

delivered from RR after April 23, 2007. 

(d) Reason 

This AD was prompted by the discovery of 

a cracked and distorted FCL metering panel, 

made from N75 material. We are issuing this 

AD to prevent hot gases from burning 

through the engine casing, which could 

result in an under-cowl fire and damage to 

the airplane. 

(e) Actions and Compliance 

Unless already done, do the following 

actions. 

(1) At the next engine shop visit or within 

625 flight cycles, whichever occurs first after 

the effective date of this AD, perform a onetime inspection of the FCL metering panel to 

determine if it is made from N75 material, 

and if made from N75 material, replace it 

with one made from C263 material. 

(2) To inspect RR RB211–524 series 

turbofan engines: 

(i) Use paragraph 3. of the 

Accomplishment Instructions of RR Alert 

Non-Modification Service Bulletin (NMSB) 

No. RB.211–72–AG183, Revision 3, dated 

December 6, 2012; or 

(ii) You may use paragraph 3.B. of the 

Accomplishment Instructions in RR Alert 

NMSB No. RB.211–72–AF572, Revision 2, 

dated April 2, 2009, or Revision 1, dated 

October 10, 2008, or paragraph 3. of RR Alert 

NMSB No. RB.211–72–AG183, Revision 3, 

dated December 6, 2012, for engine shop visit 

inspections. 

(iii) You may use paragraph 3.B.(5)(p)(i) of 

RR Alert NMSB No. RB.211–72–AG183, 

Revision 3, dated December 6, 2012, and a 

spectroscopic analysis, instead of paragraphs 

3.B.(3) through 3.B.(5)(p), and paragraphs 

3.C.(5)(q) and (r). 

(iv) You may use a local facility in the 

context of an FAA-accepted maintenance or 

quality plan to perform the spectroscopic 

analysis. 

(3) To inspect RR RB211–535 series 

turbofan engines: 

(i) Use paragraph 3. of the 

Accomplishment Instructions of RR Alert 

NMSB No. RB.211–72–AG046, Revision 3, 

dated December 6, 2012; or 

(ii) You may use paragraph 3.B. of the 

Accomplishment Instructions in RR Alert 

NMSB No. RB.211–72–AF572, Revision 2, 

dated April 2, 2009, or Revision 1, dated 

October 10, 2008, or paragraph 3. of RR Alert 

NMSB No. RB.211–72–AG046, Revision 3, 

dated December 6, 2012, for engine shop visit 

inspections. 

(iii) You may use paragraph 3.C.(5)(p)(i) of 

RR Alert NMSB No. RB.211–72–AG046, 

Revision 3, dated December 6, 2012, and a 

spectroscopic analysis, instead of paragraphs 

3.C.(3) through 3.C.(5)(p), and paragraph 

3.C.(5)(q). 

(iv) You may use a local facility to perform 

the spectroscopic analysis in the context of 

an FAA-accepted maintenance or quality 

plan. 

(v) The accomplishment instructions in 

paragraphs 3.B.(6)(g)(iii) and 3.B.(6)(j)(i) of 

RR Alert NMSB No. RB.211–72–AG046, 

Revision 3, dated December 6, 2012, specify 

use of RR tooling for the post-inspection fuel 

manifold pressure test. However, you may 

use locally sourced tooling in the context of 

an FAA-accepted maintenance or quality 

plan. 

(f) Credit for Previous Actions 

(1) You have satisfied the inspection 

requirement of paragraph (e) of this AD if, 

before the effective date of this AD, you 

performed the actions prescribed in this AD 

using: 

(i) RR Alert NMSB No. RB.211–72–AG183, 

Revision 3, dated December 6, 2012, or 

Revision 2, dated June 8, 2012, or Revision 

1, dated November 16, 2010, or Initial Issue, 

dated December 17, 2009; or 

(ii) RR Alert NMSB No. RB.211–72–AG046, 

Revision 3, dated December 6, 2012, or 

Revision 2, dated June 7, 2012, or Revision 

1, dated January 17, 2011, or Initial Issue, 

dated December 17, 2009; or 

(iii) RR Alert NMSB No. RB.211–72– 

AF572, Revision 2, dated April 2, 2009, or 

Revision 1, dated October 10, 2008, or Initial 

Issue, dated October 15, 2007; or 

(iv) RR Repeater Technical Variance No. 

75295, Issue 1, dated April 20, 2007. 

(g) Definition 

For the purpose of this AD, a shop visit is 

the induction of an engine into the shop for 

maintenance or overhaul. The separation of 

engine flanges solely for the purposes of 

transporting the engine without subsequent 

engine maintenance does not constitute an 

engine shop visit. 

(h) 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. 

(i) Related Information 

For more information about this AD, 

contact Robert Green, Aerospace Engineer, 

Engine Certification Office, FAA, Engine & 

Propeller Directorate, 12 New England 

Executive Park, Burlington, MA 01803; 

phone: 781–238–7754; fax: 781–238 7199; 

email: robert.green@faa.gov. 

Refer to European Aviation Safety Agency 

AD 2012–0215R1, dated January 4, 2013, for 

more information. You may examine the AD 

on the Internet at http://

www.regulations.gov/

#!documentDetail;D=FAA–2013–0143–0009. 

(j) Material Incorporated by Reference 

(1) The Director of the Federal Register 

approved the incorporation by reference 

(IBR) of the service information listed in this 

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 (RR) Alert NonModification Service Bulletin (NMSB) No. 

RB.211–72–AF572, Revision 2, dated April 2, 

2009. 

(ii) RR Alert NMSB No. RB.211–72–AF572, 

Revision 1, dated October 10, 2008. 

(iii) RR Alert NMSB No. RB.211–72– 

AG183, Revision 3, dated December 6, 2012. 

(iv) RR Alert NMSB No. RB.211–72– 

AG046, Revision 3, dated December 6, 2012. 

(3) For Rolls-Royce plc service information 

identified in this AD, contact Rolls-Royce 

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

Derby, England, DE248BJ; phone: 011–44– 

1332–242424; fax: 011–44–1332–249936; 

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

civil_team.jsp; Internet: https://

www.aeromanager.com. 

(4) You may view this service information 

at FAA, Engine & Propeller Directorate, 12 

New England Executive Park, Burlington, 


pmangrum on DSK3VPTVN1PROD with RULES
54156 Federal Register / Vol. 78, No. 170 / Tuesday, September 3, 2013 / Rules and Regulations 

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 

August 7, 2013. 

Colleen M. D’Alessandro, 

Assistant Manager, Engine & Propeller 

Directorate, Aircraft Certification Service. 

[FR Doc. 2013–21109 Filed 8–30–13; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Parts 1 and 602 

[TD 9633] 

RIN 1545–BE58 

Limitations on Duplication of Net Builtin Losses 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final regulations. 

SUMMARY: This document contains final 

regulations under section 362(e)(2) of 

the Internal Revenue Code of 1986 

(Code). The regulations apply to certain 

nonrecognition transfers of loss property 

to corporations. The regulations affect 

all parties to the transaction. 

DATES: Effective Date: These final 

regulations are effective on September 3, 

2013. 

Applicability Date: For dates of 

applicability see § 1.358–2(d), § 1.362– 

4(j). 

FOR FURTHER INFORMATION CONTACT: 

Theresa A. Abell (202) 622–7700 (not a 

toll-free number). 

SUPPLEMENTARY INFORMATION: 

Paperwork Reduction Act 

The collection of information 

contained in these final regulations has 

been reviewed and approved by the 

Office of Management and Budget in 

accordance with the Paperwork 

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

3507(d)) under OMB control number 

1545–2247. The collection of 

information in these final regulations is 

in § 1.362–4(d). This information is 

required by the IRS to verify basis of 

property transferred in certain tax-free 

transactions when taxpayers make the 

election provided for under section 

362(e)(2)(C). 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

unless the collection of information 

displays a valid control number. 

Books or records relating to a 

collection of information must be 

retained as long as their contents may 

become material in the administration 

of any internal revenue law. Generally, 

tax returns and tax return information 

are confidential, as required by section 

6103. 

Background 

Section 362(e)(2) was enacted in the 

American Jobs Creation Act of 2004 

(Pub. L. 108–357, 188 Stat. 1418 (2004)) 

in order to prevent the duplication of 

loss in certain corporate nonrecognition 

transfers. Section 362(e)(2) applies to 

corporate acquisitions of property with 

a net built-in loss in transactions 

described in section 362(a) (transactions 

to which section 351 applies and 

acquisitions of property as paid-in 

surplus or contributions to capital), but 

only if the transaction is not described 

in section 362(e)(1) (transactions in 

which there is an importation of builtin loss). When a transaction is subject to 

section 362(e)(2), the acquiring 

corporation’s basis in loss property is 

reduced by the property’s allocable 

portion of the transferor’s net built-in 

loss. See section 362(e)(2)(B). However, 

under section 362(e)(2)(C), the parties to 

the transaction can make an irrevocable 

election to apply the reduction to the 

transferor’s basis in the stock received 

in the exchange instead of to the 

transferee’s basis in the property 

received in the exchange. 

Notice 2005–70, 2005–2 CB 694, was 

published on October 11, 2005, to 

provide interim guidance for making an 

election to apply section 362(e)(2)(C). 

See § 601.601(d)(2) of this chapter. 

Under Notice 2005–70, an election 

would be considered effective once a 

certification was included by the 

transferor or, if the transferor is a 

controlled foreign corporation (CFC), by 

all of its controlling U.S. shareholders as 

defined in § 1.964–1(c)(5), on a timely 

filed original Federal income tax return 

(designated a ‘‘U.S. return’’ under the 

final regulations) for the year of the 

transaction. Notice 2005–70 expressly 

permitted taxpayers to make a 

protective election that would have no 

effect on a transaction that is ultimately 

not subject to section 362(e)(2). The 

Notice also allowed other statements to 

be treated as effective elections if 

sufficient information was provided to 

the IRS with respect to the transfer and 

parties. 

Proposed regulations under section 

362(e)(2) were published in the Federal 

Register (71 FR 62067) on October 23, 

2006. Following the publication of the 

proposed regulations, the IRS received 

questions concerning the application of 

section 362(e)(2) to transactions 

involving S corporations and 

partnerships and concerning the filing 

of the section 362(e)(2)(C) election, 

particularly with respect to transactions 

between persons outside the United 

States. The IRS also has become aware 

of certain ambiguities (described later in 

this preamble) relating to the proper 

operation of the statute. Two written 

comments were submitted; no public 

hearing was requested or held. 

Summary of Proposed Regulations 

1. General Application of Section, 

Interaction With Other Law 

The proposed regulations included a 

number of specific provisions regarding 

the general operation of the statutory 

framework, such as provisions stating 

that section 362(e)(2) is to be applied on 

a transferor-by-transferor basis; that a 

transaction is treated as subject to 

section 362(e)(2) to the extent it is not 

a transfer of net built-in loss property 

under section 362(e)(1); that gain 

recognized by the transferor is taken 

into account in determining the 

transferee’s basis immediately after the 

transfer; and that section 362(e)(2) 

applies to any transaction described in 

section 362(a) without regard to whether 

the transaction is also described in 

section 362(b) or any other section. 

These provisions responded to inquiries 

from practitioners concerning section 

362(e)(2) and its interaction with 

generally applicable provisions of the 

Code. 

2. Exceptions From the Application of 

Section 362(e)(2) 

The proposed regulations included 

two exceptions under which a 

transaction would be treated as not 

subject to section 362(e)(2) 

notwithstanding that the transaction is 

generally described in that section. 

Under the first exception, if a transfer 

is not relevant for Federal income tax 

purposes at the time it occurs and it 

does not become relevant for Federal 

income tax purposes at any time within 

two years of the transfer, then, solely for 

purposes of determining whether 

section 362(e)(2) applies to the 

transaction, the property exchanged 

would be deemed to have a basis equal 

to its fair market value (designated value 

under the final regulations) immediately 

after the transaction. As a result, the 

transfer would not be subject to section 

362(e)(2). This exception reflected a 

concern that transferors not anticipating 

that a transfer would be relevant for 


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