39018 Federal Register / Vol. 63, No. 139 /Tuesday, July 21, 1998 /Rules and Regulations

sense pipe assembly clamp marriage in

accordance with the service bulletin.

(b) An alternative method of compliance or

adjustment of the compliance time that

provides an acceptable level of safety may be

used if approved by the Manager, Los

Angeles Aircraft Certification Office (ACO),

FAA, Transport Airplane Directorate.

Operators shall submit their requests through

an appropriate FAA Principal Maintenance

Inspector, who may add comments and then

send it to the Manager, Los Angeles ACO.

Note 2: Information concerning the

existence of approved alternative methods of

compliance with this AD, if any, may be

obtained from the Los Angeles ACO.

(c) Special flight permits may be issued in

accordance with sections 21.197 and 21.199

of the Federal Aviation Regulations (14 CFR

21.197 and 21.199) to operate the airplane to

a location where the requirements of this AD

can be accomplished.

(d) The actions shall be done in accordance

with McDonnell Douglas DC–9 Service

Bulletin 26–25, dated May 25, 1994;

McDonnell Douglas DC–9 Service Bulletin

26–25, Revision 1, dated September 30, 1994;

McDonnell Douglas DC–9 Service Bulletin

26–25, Revision 2, dated April 18, 1995;

McDonnell Douglas Service Bulletin DC9–

26–025, Revision 03, dated July 25, 1996;

McDonnell Douglas Service Bulletin DC9–

26–025, Revision 04, dated April 30, 1997; or

McDonnell Douglas Service Bulletin DC9–

26–025, Revision 05, dated May 29, 1998.

(1) The incorporation by reference of

McDonnell Douglas DC–9 Service Bulletin

26–25, dated May 25, 1994; McDonnell

Douglas Service Bulletin DC9–26–025,

Revision 03, dated July 25, 1996; and

McDonnell Douglas Service Bulletin DC9–

26–025, Revision 04, dated April 30, 1997;

and McDonnell Douglas Service Bulletin

DC9–26–025, Revision 05, dated May 29,

1998; is approved by the Director of the

Federal Register in accordance with 5 U.S.C.

552(a) and 1 CFR part 51.

(2) The incorporation by reference of

McDonnell Douglas DC–9 Service Bulletin

26–25, Revision 1, dated September 30, 1994;

and McDonnell Douglas DC–9 Service

Bulletin 26–25, Revision 2, dated April 18,

1995; was approved previously by the

Director of the Federal Register as of July 24,

1995 (60 FR 32579, June 23, 1995).

(3) Copies may be obtained from The

Boeing Company, Douglas Products Division,

3855 Lakewood Boulevard, Long Beach,

California 90846, Attention: Technical

Publications Business Administration, Dept.

C1–L51 (2–60). Copies may be inspected at

the FAA, Transport Airplane Directorate,

1601 Lind Avenue, SW., Renton,

Washington; or at the FAA, Transport

Airplane Directorate, Los Angeles Aircraft

Certification Office, 3960 Paramount

Boulevard, Lakewood, California; or at the

Office of the Federal Register, 800 North

Capitol Street, NW., suite 700, Washington,

DC.

(e) This amendment becomes effective on

August 25, 1998.

Issued in Renton, Washington, on July 10,

1998.

Darrell M. Pederson,

Acting Manager, Transport Airplane

Directorate, Aircraft Certification Service.

[FR Doc. 98–19045 Filed 7–20–98; 8:45 am]

BILLING CODE 4910–13–U

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 98–CE–01–AD; Amendment 39–

10669; AD 98–15–18]

RIN 2120–AA64

Airworthiness Directives; Maule

Aerospace Technology Corp. M–4, M–

5, M–6, M–7, MX–7, and MXT–7 Series

Airplanes and Models MT–7–235 and

M–8–235 Airplanes

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Final rule.

SUMMARY: This amendment supersedes

Airworthiness Directive (AD) 95–26–18,

which currently requires inspecting

(one-time) certain wing lift struts for

internal corrosion on certain Maule

Aerospace Technology Corp. (Maule)

M–4, M–5, M–6, M–7, MX–7, and MXT–

7 series airplanes and Models MT–7–

235 and M–8–235 airplanes, and

replacing any wing lift strut where

corrosion is found. That AD was the

result of an accident where the wing

separated from one of the affected

airplanes. This AD retains the initial

inspection and possible replacement

requirements of AD 95–26–18, requires

the inspections to be repetitive, and

provides the option of using ultrasonic

procedures to accomplish the inspection

requirements. The actions specified by

this AD are intended to prevent failure

of the wing lift struts caused by

corrosion damage, which could

eventually result in the wing separating

from the airplane.

DATES: Effective September 9, 1998.

The incorporation by reference of

Maule Service Bulletin No. 11, dated

October 30, 1995, as listed in the

regulations was previously approved by

the Director of the Federal Register as of

January 26, 1996 (61 FR 623, January 9,

1996).

ADDRESSES: Service information that

applies to this AD may be obtained from

Maule Aerospace Technology Inc., 2099

GA. Hwy. 133 South, Moultrie, Georgia

31768; telephone: (912) 985–2045;

facsimile: (912) 890–2402. This

information may also be examined at

the Federal Aviation Administration

(FAA), Central Region, Office of the

Regional Counsel, Attention: Rules

Docket No. 98–CE–01–AD, Room 1558,

601 E. 12th Street, Kansas City, Missouri

64106; or at the Office of the Federal

Register, 800 North Capitol Street, NW,

suite 700, Washington, DC.

FOR FURTHER INFORMATION CONTACT:

Cindy Lorenzen, Aerospace Engineer,

FAA, Atlanta Aircraft Certification

Office, One Crown Center, 1895 Phoenix

Boulevard, suite 450, Atlanta, Georgia

30349; telephone: (770) 703–6078;

facsimile: (770) 703–6097.

SUPPLEMENTARY INFORMATION:

Events Leading to the Issuance of This

AD

A proposal to amend part 39 of the

Federal Aviation Regulations (14 CFR

part 39) to supersede AD 95–26–18,

Amendment 39–9476 (61 FR 623,

January 9, 1996), that applies to certain

Maule M–4, M–5, M–6, M–7, MX–7, and

MXT–7 series airplanes and Models

MT–7–235 and M–8–235 airplanes that

are equipped with part number (P/N)

2079E rear wing lift struts and P/N

2080E front wing lift struts, was

published in the Federal Register as a

notice of proposed rulemaking (NPRM)

on March 24, 1998 (63 FR 14051). AD

95–26–18 currently requires inspecting

(one-time) the wing lift struts for

internal corrosion, and replacing any

wing lift strut where corrosion is found.

The proposed AD would supersede AD

95–26–18 with a new AD that would:

• Retain the initial inspection and

possible replacement requirements of

AD 95–26–18;

• Require the inspections to be

repetitive; and

• Provide the option of using

ultrasonic procedures to accomplish the

inspection requirements.

Accomplishment of the actions

required by AD 95–26–18 is in

accordance with Maule Service Bulletin

(SB) No. 11, dated October 30, 1995.

The NPRM was the result of a report

of an accident where the wing separated

from one of the affected airplanes.

Interested persons have been afforded

an opportunity to participate in the

making of this amendment. No

comments were received on the

proposed rule or the FAA’s

determination of the cost to the public.

The FAA’s Determination

After careful review of all available

information related to the subject

presented above, the FAA has

determined that air safety and the

public interest require the adoption of

the rule as proposed except for minor
Federal Register / Vol. 63, No. 139 /Tuesday, July 21, 1998 /Rules and Regulations 39019

editorial corrections. The FAA has

determined that these minor corrections

will not change the meaning of the AD

and will not add any additional burden

upon the public than was already

proposed.

Compliance Time of This AD

The compliance time of this AD is

presented in calendar time instead of

hours time-in-service. The FAA has

determined that a calendar time for

compliance is the most desirable

method because the unsafe condition

described in this AD is caused by

corrosion. Corrosion can occur on

airplanes regardless of whether the

airplane is in service.

Cost Impact

The FAA estimates that 1,196

airplanes in the U.S. registry will be

affected by this AD, that it will take 11

workhours per airplane to accomplish

the initial inspection, and that the

average labor rate is approximately $60

an hour. Parts to accomplish the initial

inspection cost approximately $40 per

airplane. Based on these figures, the

total cost impact of this AD on U.S.

operators is estimated to be $837,200, or

$700 per airplane. This figure only takes

into account the cost of the initial

inspection and does not take into

account the cost of the repetitive

inspections. The FAA has no way of

determining how many repetitive

inspections each owner/operator of the

affected airplanes will incur.

In addition, these figures are based

upon the presumption that no affected

airplane operator has accomplished the

initial inspection, and does not take into

account the cost for replacement if

corrosion is found on a wing lift strut.

The FAA has no way of determining the

number of wing lift struts that may need

to be replaced based upon the results of

the inspections.

Regulatory Impact

The regulations adopted herein will

not have substantial direct effects 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. Therefore, in

accordance with Executive Order 12612,

it is determined that this final rule does

not have sufficient federalism

implications to warrant the preparation

of a Federalism Assessment.

For the reasons discussed above, I

certify that this action (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); 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. A copy of the final

evaluation prepared for this action is

contained in the Rules Docket. A copy

of it may be obtained by contacting the

Rules Docket at the location provided

under the caption ADDRESSES.

List of Subjects in 14 CFR Part 39

Air transportation, Aircraft, Aviation

safety, Incorporation by reference,

Safety.

Adoption of the Amendment

Accordingly, pursuant to 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. Section 39.13 is amended by

removing Airworthiness Directive (AD)

95–26–18, Amendment No. 39–9476 (61

FR 623, January 9, 1996), and by adding

a new AD to read as follows:

98–15–18 Maule Aerospace Technology

Corp.: Amendment 39–10669; Docket

No. 98–CE–01–AD; Supersedes AD 95–

26–18, Amendment 39–9476.

Applicability: The following airplane

models, all serial numbers, certificated in any

category, that are equipped with part number

(P/N) 2079E (or FAA-approved equivalent

part number) rear wing lift struts or P/N

2080E (or FAA-approved equivalent part

number) front wing lift struts:

Bee Dee M–4 M–4C M–4S

M–4T M–4–180C M–4–180S M–4–180T

M–4–210 M–4–210C M–4–210S M–4–210T

M–4–220 M–4–220C M–4–220S M–4–220T

M–5–180C M–5–200 M–5–210C M–5–210TC

M–5–220C M–5–235C M–6–180 M–6–235

M–7–235 MX–7–235 MX–7–180 MX–7–420

MXT–7–180 MT–7–235 M–8–235 MX–7–160

MXT–7–160 MX–7–180A MXT–7–

180A

MX–7–180B

MXT–7–420 M–7–235B M–7–235A M–7–235C

Note 1: This AD does not apply to

airplanes equipped with four Maule sealed

lift struts, P/N 2200E and P/N 2201E. These

sealed lift struts are identified by two raised

weld spots on the upper end of the strut just

below the serial number plate. Removal of

the upper cuff is needed to locate the weld

spots.

Note 2: This AD applies to each airplane

identified in the preceding applicability

provision, regardless of whether it has been

modified, altered, or repaired in the area

subject to the requirements of this AD. For

airplanes that have been modified, altered, or

repaired so that the performance of the

requirements of this AD is affected, the

owner/operator must request approval for an

alternative method of compliance in

accordance with paragraph (e) of this AD.

The request should include an assessment of

the effect of the modification, alteration, or

repair on the unsafe condition addressed by

this AD; and, if the unsafe condition has not

been eliminated, the request should include

specific proposed actions to address it.

Compliance: Required as indicated in the

body of this AD, unless already

accomplished.

To prevent failure of the wing lift struts

caused by corrosion damage, which could

eventually result in the wing separating from

the airplane, accomplish the following:

Note 3: The paragraph structure of this AD

is as follows:

Level 1: (a), (b), (c), etc.

Level 2: (1), (2), (3), etc.

Level 3: (i), (ii), (iii), etc.

Level 2 and Level 3 structures are

designations of the Level 1 paragraph they

immediately follow.

(a) Upon accumulating 2 years on a lift

strut affected by this AD; within 3 calendar

months after the effective date of this AD; or

within 2 years after the last inspection

accomplished in accordance with AD 95–26–

18 (superseded by this action), whichever

occurs later, remove the wing lift struts in

accordance with the INSTRUCTIONS section

of Maule Service Bulletin (SB) No. 11, dated

October 30, 1995, and accomplish one of the

following (the actions in either paragraph

(a)(1), (a)(2), (a)(3), or (a)(4), including all

subparagraphs, of this AD):

(1) Inspect the wing lift struts for corrosion

in accordance with the INSPECTION
39020 Federal Register / Vol. 63, No. 139 /Tuesday, July 21, 1998 /Rules and Regulations

PROCEDURE section of Maule SB No. 11,

dated October 30, 1995.

(i) If no perceptible dents (as defined in the

above SB) are found in the wing lift strut and

no corrosion is externally visible, apply

corrosion inhibitor to each strut in

accordance with Maule SB No. 11, dated

October 30, 1995. Reinspect the wing lift

struts at intervals not to exceed 24 calendar

months provided no perceptible dents or

external corrosion is found.

(ii) If a perceptible dent (as defined in the

above SB) is found in the wing lift strut or

external corrosion is found, prior to further

flight, accomplish one of the installations

(and subsequent actions presented in each

paragraph) specified in paragraphs (a)(3) and

(a)(4) of this AD.

(2) Inspect the wing lift struts for corrosion

in accordance with the Appendix to this AD.

The inspection procedures in this Appendix

must be accomplished by a Level 2 or Level

3 inspector certified using the guidelines

established by the American Society for Nondestructive Testing, or MIL–STD–410.

(i) If no external corrosion is found and all

requirements in the Appendix to this AD are

met, prior to further flight, apply corrosion

inhibitor to each strut in accordance with

Maule SB No. 11, dated October 30, 1995.

Reinspect the lift struts at intervals not to

exceed 24 calendar months provided no

external corrosion is found and all of the

requirements included in the Appendix of

this AD are met.

(ii) If external corrosion is found or if any

of the requirements in the Appendix of this

AD are not met, prior to further flight,

accomplish one of the installations (and

subsequent actions presented in each

paragraph) specified in paragraphs (a)(3) and

(a)(4) of this AD.

(3) Install original equipment manufacturer

(OEM) part number wing lift struts (or FAAapproved equivalent part numbers) that have

been inspected in accordance with the

specifications presented in either paragraph

(a)(1) or (a)(2) of this AD, and are found to

be airworthy according to the inspection

requirements included in these paragraphs.

Accomplish this installation in accordance

with the applicable maintenance manual.

Thereafter, inspect these wing lift struts at

intervals not to exceed 24 calendar months

in accordance with the specifications

presented in either paragraph (a)(1) or (a)(2)

of this AD.

(4) Install new Maule sealed wing lift

struts, P/N 2200E or P/N 2201E, as applicable

(or FAA-approved equivalent part numbers)

on each wing as specified in the

INSTRUCTIONS section in Part II of Maule

SB No. 11, dated October 30, 1995.

(b) If holes are drilled into the sealed wing

lift strut assemblies installed as specified in

paragraph (a)(4) of this AD in order to attach

cuffs, door clips, or other hardware, inspect

the wing lift struts at intervals not to exceed

24 calendar months using the procedures

specified in either paragraph (a)(1) or (a)(2),

including all subparagraphs, of this AD.

(c) The repetitive inspections required by

this AD may be terminated after installing

new wing lift strut assemblies as specified in

paragraph (a)(4) of this AD provided no holes

are drilled in these strut assemblies as

specified in paragraph (b) of this AD.

(d) Special flight permits may be issued in

accordance with sections 21.197 and 21.197

of the Federal Aviation Regulations (14 CFR

21.197 and 21.199) to operate the airplane to

a location where the requirements of this AD

can be accomplished.

(e) An alternative method of compliance or

adjustment of the initial or repetitive

compliance times that provides an equivalent

level of safety may be approved by the

Manager, Atlanta Aircraft Certification Office

(ACO), One Crown Center, 1895 Phoenix

Boulevard, suite 450, Atlanta, Georgia 30349.

(1) The request shall be forwarded through

an appropriate FAA Maintenance Inspector,

who may add comments and then send it to

the Manager, Atlanta ACO.

(2) Alternative methods of compliance

approved in accordance with AD 95–26–18

are considered approved as alternative

methods of compliance for this AD.

Note 4: Information concerning the

existence of approved alternative methods of

compliance with this AD, if any, may be

obtained from the Atlanta ACO.

(f) The removal, the lift strut inspection (in

paragraph (a)(1) of this AD), the applications,

and the installation required by this AD shall

be done in accordance with Maule Service

Bulletin No. 11, dated October 30, 1995. This

incorporation by reference was previously

approved by the Director of the Federal

Register as of January 26, 1996 (61 FR 623,

January 9, 1996). Copies may be obtained

from Maule Aerospace Technology, Inc.,

2099 GA Hwy. 133 South, Moultrie, Georgia

31768. Copies may be inspected at the FAA,

Central Region, Office of the Regional

Counsel, Room 1558, 601 E. 12th Street,

Kansas City, Missouri, or at the Office of the

Federal Register, 800 North Capitol Street,

NW, suite 700, Washington, DC.

(g) This amendment supersedes AD 95–26–

18, Amendment 39–9476.

(h) This amendment becomes effective on

September 9, 1998.

Appendix to AD 98–15–18—Procedures and

Requirements for Ultrasonic Inspection of

Maule Wing Lift Struts

Equipment Requirements

1. A portable ultrasonic thickness gauge or

flaw detector with echo-to-echo digital

thickness readout capable of reading to 0.001

inch and an A-trace waveform display will be

needed to accomplish this inspection.

2. An ultrasonic probe with the following

specifications will be needed to accomplish

this inspection: 10 MHz (or higher), 0.283

inch (or smaller) diameter dual element or

delay line transducer designed for thickness

gauging. The transducer and ultrasonic

system shall be capable of accurately

measuring the thickness of AISI 4340 steel

down to 0.020 inch. An accuracy of +/

¥0.002 inch throughout a 0.020 inch to

0.050 inch thickness range while calibrating

shall be the criteria for acceptance.

3. Either a precision machined step wedge

made of 4340 steel (or similar steel with

equivalent sound velocity) or at least three

shim samples of same material will be

needed to accomplish this inspection. One

thickness of the step wedge or shim shall be

less than or equal to 0.020 inch, one shall be

greater than or equal to 0.050 inch and at

least one other step or shim shall be between

these two values.

4. Glycerin, light oil, or similar non-water

based ultrasonic couplants are recommended

in the setup and inspection procedures.

Water-based couplants, containing

appropriate corrosion inhibitors, may be

utilized, provided they are removed from

both the reference standards and the test item

after the inspection procedure is completed

and adequate corrosion prevention steps are

then taken to protect these items.

• Note: Couplant is defined as ‘‘a

substance used between the face of the

transducer and test surface to improve

transmission of ultrasonic energy across the

transducer/strut interface.’’

• Note: If surface roughness due to paint

loss or corrosion is present, the surface

should be sanded or polished smooth before

testing to assure a consistent and smooth

surface for making contact with the

transducer. Care shall be taken to remove a

minimal amount of structural material. Paint

repairs may be necessary after the inspection

to prevent further corrosion damage from

occurring. Removal of surface irregularities

will enhance the accuracy of the inspection

technique.

Instrument Setup

1. Set up the ultrasonic equipment for

thickness measurements as specified in the

instrument’s user’s manual. Because of the

variety of equipment available to perform

ultrasonic thickness measurements, some

modification to this general setup procedure

may be necessary. However, the tolerance

requirement of step 13 and the record

keeping requirement of step 14, must be

satisfied.

2. If battery power will be employed, check

to see that the battery has been properly

charged. The testing will take approximately

two hours. Screen brightness and contrast

should be set to match environmental

conditions.

3. Verify that the instrument is set for the

type of transducer being used, i.e. single or

dual element, and that the frequency setting

is compatible with the transducer.

4. If a removable delay line is used, remove

it and place a drop of couplant between the

transducer face and the delay line to assure

good transmission of ultrasonic energy.

Reassemble the delay line transducer and

continue.

5. Program a velocity of 0.231 inch/

microsecond into the ultrasonic unit unless

an alternative instrument calibration

procedure is used to set the sound velocity.

6. Obtain a step wedge or steel shims per

item 3 of the Equipment Requirements. Place

the probe on the thickest sample using

couplant. Rotate the transducer slightly back

and forth to ‘‘ring’’ the transducer to the

sample. Adjust the delay and range settings

to arrive at an A-trace signal display with the

first backwall echo from the steel near the left

side of the screen and the second backwall

echo near the right of the screen. Note that

when a single element transducer is used, the

initial pulse and the delay line/steel interface

will be off of the screen to the left. Adjust the

gain to place the amplitude of the first
Federal Register / Vol. 63, No. 139 /Tuesday, July 21, 1998 /Rules and Regulations 39021

backwall signal at approximately 80% screen

height on the A-trace.

7. ‘‘Ring’’ the transducer on the thinnest

step or shim using couplant. Select positive

half-wave rectified, negative half-wave

rectified, or filtered signal display to obtain

the cleanest signal. Adjust the pulse voltage,

pulse width, and damping to obtain the best

signal resolution. These settings can vary

from one transducer to another and are also

user dependent.

8. Enable the thickness gate, and adjust the

gate so that it starts at the first backwall echo

and ends at the second backwall echo.

(Measuring between the first and second

backwall echoes will produce a measurement

of the steel thickness that is not affected by

the paint layer on the strut). If instability of

the gate trigger occurs, adjust the gain, gate

level, and/or damping to stabilize the

thickness reading.

9. Check the digital display reading and if

it does not agree with the known thickness

of the thinnest thickness, follow your

instrument’s calibration recommendations to

produce the correct thickness reading. When

a single element transducer is used this will

usually involve adjusting the fine delay

setting.

10. Place the transducer on the thickest

step of shim using couplant. Adjust the

thickness gate width so that the gate is

triggered by the second backwall reflection of

the thick section. If the digital display does

not agree with the thickest thickness, follow

your instruments calibration

recommendations to produce the correct

thickness reading. A slight adjustment in the

velocity may be necessary to get both the

thinnest and the thickest reading correct.

Document the changed velocity value.

11. Place couplant on an area of the lift

strut which is thought to be free of corrosion

and ‘‘ring’’ the transducer to surface. Minor

adjustments to the signal and gate settings

may be required to account for coupling

improvements resulting from the paint layer.

The thickness gate level should be set just

high enough so as not to be triggered by

irrelevant signal noise. An area on the upper

surface of the lift strut above the inspection

area would be a good location to complete

this step and should produce a thickness

reading between 0.034-inch and 0.041-inch.

12. Repeat steps 8, 9, 10, and 11 until both

thick and thin shim measurements are within

tolerance and the lift strut measurement is

reasonable and steady.

13. Verify that the thickness value shown

in the digital display is within +/¥0.002

inch of the correct value for each of the three

or more steps of the setup wedge or shims.

Make no further adjustments to the

instrument settings.

14. Record the ultrasonic versus actual

thickness of all wedge steps or steel shims

available as a record of setup.

Inspection Procedure

1. Clean the lower 18 inches of the wing

lift struts using a cleaner that will remove all

dirt and grease. Dirt and grease will adversely

affect the accuracy of the inspection

technique. Light sanding or polishing may

also be required to reduce surface roughness

as noted in the Equipment Requirements

section.

2. Using a flexible ruler, draw a 1⁄4-inch

grid on the surface of the first 11 inches from

the lower end of the strut as shown in Piper

Service Bulletin No. 528D or 910A, as

applicable. This can be done using a soft (#2)

pencil and should be done on both faces of

the strut. As an alternative to drawing a

complete grid, make two rows of marks

spaced every 1⁄4 inch across the width of the

strut. One row of marks should be about 11

inches from the lower end of the strut, and

the second row should be several inches

away where the strut starts to narrow. Lay the

flexible ruler between respective tick marks

of the two rows and use tape or a rubber band

to keep the ruler in place. See Figure 1.

3. Apply a generous amount of couplant

inside each of the square areas or along the

edge of the ruler. Re-application of couplant

may be necessary.

4. Place the transducer inside the first

square area of the drawn grid or at the first

1⁄4-inch mark on the ruler and ‘‘ring’’ the

transducer to the strut. When using a dual

element transducer, be very careful to record

the thickness value with the axis of the

transducer elements perpendicular to any

curvature in the strut. If this is not done, loss

of signal or inaccurate readings can result.

5. Take readings inside each square on the

grid or at 1⁄4-inch increments along the ruler

and record the results. When taking a

thickness reading, rotate the transducer

slightly back and forth and experiment with

the angle of contact to produce the lowest

thickness reading possible. Pay close

attention to the A-scan display to assure that

the thickness gate is triggering off of

maximized backwall echoes.

• Note: A reading shall not exceed .041

inch. If a reading exceeds .041 inch, repeat

steps 13 and 14 of the Instrument Setup

section before proceeding further.

6. If the A-trace is unsteady or the

thickness reading is clearly wrong, adjust the

signal gain and/or gate setting to obtain

reasonable and steady readings. If any

instrument setting is adjusted, repeat steps 13

and 14 of the Instrument Setup section

before proceeding further.

7. In areas where obstructions are present,

take a data point as close to the correct area

as possible.

• Note: The strut wall contains a

fabrication bead at approximately 40% of the

strut chord. The bead may interfere with

accurate measurements in that specific

location.

8. A measurement of 0.024 inch or less

shall require replacement of the strut prior to

further flight

9. If at any time during testing an area is

encountered where a valid thickness

measurement cannot be obtained due to a

loss of signal strength or quality, the area

shall be considered suspect. These areas may

have a remaining wall thickness of less than

0.020 inch, which is below the range of this

setup, or they may have small areas of

localized corrosion or pitting present. The

latter case will result in a reduction in signal

strength due to the sound being scattered

from the rough surface and may result in a

signal that includes echoes from the pits as

well as the backwall. The suspect area(s)

shall be tested with a Maule ‘‘Fabric Tester’’

as specified in Piper Service Bulletin No.

528D or 910A.

10. Record the lift strut inspection in the

aircraft log book.
39022 Federal Register / Vol. 63, No. 139 /Tuesday, July 21, 1998 /Rules and Regulations

Issued in Kansas City, Missouri, on July 14,

1998.

Marvin R. Nuss,

Acting Manager, Small Airplane Directorate,

Aircraft Certification Service.

[FR Doc. 98–19328 Filed 7–20–98; 8:45 am]

BILLING CODE 4910–13–P

SECURITIES AND EXCHANGE

COMMISSION

17 CFR Part 275

[Release No. IA–1731, File No. S7–29–97]

RIN 3235–AH25

Exemption To Allow Investment

Advisers To Charge Fees Based Upon

a Share of Capital Gains Upon or

Capital Appreciation of a Client’s

Account

AGENCY: Securities and Exchange

Commission.

ACTION: Final rule.

SUMMARY: The Commission is adopting

amendments to the rule under the

Investment Advisers Act of 1940 that

permits investment advisers to charge

certain clients performance or incentive

fees. The amendments modify the rule’s

criteria for clients eligible to enter into

a contract under which a performance

fee is charged and eliminate provisions

specifying required contract terms and

disclosures. The amendments provide

investment advisers greater flexibility in

structuring performance fee

arrangements with clients who are

financially sophisticated or have the

resources to obtain sophisticated

financial advice regarding the terms of

these arrangements.

EFFECTIVE DATE: The rule amendments

will become effective August 20, 1998.

FOR FURTHER INFORMATION CONTACT:

Kathy D. Ireland, Attorney, or Jennifer

S. Choi, Special Counsel, at (202) 942–

0716, Task Force on Investment Adviser

Regulation, Division of Investment

Management, U.S. Securities and

Exchange Commission, 450 Fifth Street,

N.W., Mail Stop 5–6, Washington, D.C.

20549.

SUPPLEMENTARY INFORMATION: The

Commission today is adopting

amendments to rule 205–3 [17 CFR

275.205–3] under the Investment

Advisers Act of 1940 [15 U.S.C. 80b]

(‘‘Advisers Act’’).

Table of Contents

Executive Summary

I. Background

A. Introduction

B. Proposed Amendments to Rule 205–3

II. Discussion

A. Elimination of Specific Contractual and

Disclosure Requirements

B. Qualified Clients

1. Numerical Thresholds

2. Qualified Purchasers

3. Knowledgeable Employees

C. Identification of the Client

D. Transition Rule

III. Cost-Benefit Analysis

IV. Summary of Regulatory Flexibility

Analysis

V. Statutory Authority

Text of Rule

Executive Summary

Rule 205–3 under the Advisers Act

permits investment advisers to charge

performance fees to clients with at least

$500,000 under the adviser’s

management or with a net worth of

more than $1,000,000. The rule requires

certain terms to be included in contracts

providing for performance fees and

specific disclosures to be made to

clients entering into these contracts. The

Commission is adopting rule

amendments to eliminate the provisions

of the rule that prescribe contractual

terms and require specific disclosures.

In addition, the amendments change the

client eligibility criteria to permit the

following clients to enter into

performance fee arrangements with their

investment advisers: (1) clients with at

least $750,000 under management with

the adviser or more than $1,500,000 of

net worth; (2) clients who are ‘‘qualified

purchasers’’ under section 2(a)(51)(A) of

the Investment Company Act of 1940