Federal Register / Vol. 81, No. 131 / Friday, July 8, 2016 / Rules and Regulations 44503 

(j) Credit for Previous Actions 

This paragraph provides credit for the 

corresponding actions specified in 

paragraphs (g) and (h) of this AD, if those 

actions were performed before the effective 

date of this AD using the applicable service 

information specified in paragraphs (j)(1), 

(j)(2), and (j)(3) of this AD. This service 

information is not incorporated by reference 

in this AD. 

(1) Boeing Alert Service Bulletin B787– 

81205–SB380009–00, Issue 001, dated March 

26, 2015. 

(2) Boeing Alert Service Bulletin B787– 

81205–SB530029–00, Issue 001, dated March 

26, 2015. 

(3) Boeing Alert Service Bulletin B787– 

81205–SB530031–00, Issue 001, dated March 

26, 2015. 

(k) Alternative Methods of Compliance 

(AMOCs) 

(1) The Manager, Seattle Aircraft 

Certification Office (ACO), FAA, has the 

authority to approve AMOCs for this AD, if 

requested using the procedures found in 14 

CFR 39.19. In accordance with 14 CFR 39.19, 

send your request to your principal inspector 

or local Flight Standards District Office, as 

appropriate. If sending information directly 

to the manager of the ACO, send it to the 

attention of the person identified in 

paragraph (l)(1) of this AD. Information may 

be emailed to: 9-ANM-Seattle-ACO-AMOCRequests@faa.gov. 

(2) Before using any approved AMOC, 

notify your appropriate principal inspector, 

or lacking a principal inspector, the manager 

of the local flight standards district office/

certificate holding district office. 

(3) An AMOC that provides an acceptable 

level of safety may be used for any repair, 

alteration, or modification required by this 

AD if it is approved by the Boeing 

Commercial Airplanes Organization 

Designation Authorization (ODA) that has 

been authorized by the Manager, Seattle ACO 

to make those findings. For a repair method 

to be approved, the repair method, 

modification deviation, or alteration 

deviation must meet the certification basis of 

the airplane, and the approval must 

specifically refer to this AD. 

(4) For service information that contains 

steps that are labeled as Required for 

Compliance (RC), the provisions of 

paragraphs (k)(4)(i) and (k)(4)(ii) apply. 

(i) The steps labeled as RC, including 

substeps under an RC step and any figures 

identified in an RC step, must be done to 

comply with the AD. An AMOC is required 

for any deviations to RC steps, including 

substeps and identified figures. 

(ii) Steps not labeled as RC may be 

deviated from using accepted methods in 

accordance with the operator’s maintenance 

or inspection program without obtaining 

approval of an AMOC, provided the RC steps, 

including substeps and identified figures, can 

still be done as specified, and the airplane 

can be put back in an airworthy condition. 

(l) Related Information 

(1) For more information about this AD, 

contact Susan L. Monroe, Aerospace 

Engineer, Cabin Safety and Environmental 

Systems Branch, ANM–150S, FAA, Seattle 

Aircraft Certification Office (ACO), 1601 Lind 

Avenue SW., Renton, WA 98057–3356; 

phone: 425–917–6457; fax: 425–917–6590; 

email: susan.l.monroe@faa.gov. 

(2) Service information identified in this 

AD that is not incorporated by reference is 

available at the addresses specified in 

paragraphs (m)(3) and (m)(4) of this AD. 

(m) 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) Boeing Alert Service Bulletin B787– 

81205–SB380009–00, Issue 002, dated 

December 9, 2015. 

(ii) Boeing Alert Service Bulletin B787– 

81205–SB530029–00, Issue 002, dated 

January 26, 2016. 

(iii) Boeing Alert Service Bulletin B787– 

81205–SB530031–00, Issue 002, dated March 

16, 2016. 

(3) For Boeing service information 

identified in this AD, contact Boeing 

Commercial Airplanes, Attention: Data & 

Services Management, P.O. Box 3707, MC 

2H–65, Seattle, WA 98124–2207; telephone 

206–544–5000, extension 1; fax 206–766– 

5680; Internet https://

www.myboeingfleet.com. 

(4) You may view this service information 

at the FAA, Transport Airplane Directorate, 

1601 Lind Avenue SW., Renton, WA. For 

information on the availability of this 

material at the FAA, call 425–227–1221. 

(5) You may view this service information 

that is incorporated by reference 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 Renton, Washington, on June 23, 

2016. 

Dorr M. Anderson, 

Acting Manager, Transport Airplane 

Directorate, Aircraft Certification Service. 

[FR Doc. 2016–15911 Filed 7–7–16; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2015–6541; Directorate 

Identifier 2015–NM–135–AD; Amendment 

39–18581; AD 2016–13–16] 

RIN 2120–AA64 

Airworthiness Directives; The Boeing 

Company Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: We are adopting a new 

airworthiness directive (AD) for all The 

Boeing Company Model 737–600, –700, 

–700C, –800, –900, and –900ER series 

airplanes. This AD was prompted by 

reports of a manufacturing oversight, in 

which a supplier omitted the required 

protective finish on certain bushings 

installed in the rear spar upper chord on 

horizontal stabilizers, which could lead 

to galvanic corrosion and consequent 

cracking of the rear spar upper chord. 

This AD requires an inspection or 

records check to determine if affected 

horizontal stabilizers are installed, 

related investigative actions, and for 

affected horizontal stabilizers, repetitive 

inspections for any crack of the 

horizontal stabilizer rear spar upper 

chord, and corrective action if 

necessary. We are issuing this AD to 

detect and correct cracking of the rear 

spar upper chord, which can result in 

the failure of the upper chord and 

consequent departure of the horizontal 

stabilizer from the airplane, which can 

lead to loss of control of the airplane. 

DATES: This AD is effective August 12, 

2016. 

The Director of the Federal Register 

approved the incorporation by reference 

of a certain publication listed in this AD 

as of August 12, 2016. 

ADDRESSES: For service information 

identified in this final rule, contact 

Boeing Commercial Airplanes, 

Attention: Data & Services Management, 

P.O. Box 3707, MC 2H–65, Seattle, WA 

98124–2207; telephone 206–544–5000, 

extension 1; fax 206–766–5680; Internet 

https://www.myboeingfleet.com. You 

may view this referenced service 

information at the FAA, Transport 

Airplane Directorate, 1601 Lind Avenue 

SW., Renton, WA. For information on 

the availability of this material at the 

FAA, call 425–227–1221. It is also 

available on the Internet at http://

www.regulations.gov by searching for 

and locating Docket No. FAA–2015– 

6541. 

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–2015– 

6541; or in person at the Docket 

Management Facility between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. The AD docket 

contains this AD, the regulatory 

evaluation, any comments received, and 

other information. The address for the 

Docket Office (phone: 800–647–5527) is 

Docket Management Facility, U.S. 

Department of Transportation, Docket 


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44504 Federal Register / Vol. 81, No. 131 / Friday, July 8, 2016 / Rules and Regulations 

Operations, M–30, West Building 

Ground Floor, Room W12–140, 1200 

New Jersey Avenue SE., Washington, 

DC 20590. 

FOR FURTHER INFORMATION CONTACT: 

Gaetano Settineri, Aerospace Engineer, 

Airframe Branch, ANM–120S, FAA, 

Seattle Aircraft Certification Office 

(ACO), 1601 Lind Avenue SW., Renton, 

WA 98057–3356; phone: 425–917–6577; 

fax: 425–917–6590; email: 

gaetano.settineri@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Discussion 

We issued a notice of proposed 

rulemaking (NPRM) to amend 14 CFR 

part 39 by adding an AD that would 

apply to all The Boeing Company Model 

737–600, –700, –700C, –800, –900, and 

–900ER series airplanes. The NPRM 

published in the Federal Register on 

November 30, 2015 (80 FR 74726) (‘‘the 

NPRM’’). The NPRM was prompted by 

reports of a manufacturing oversight, in 

which a supplier omitted the required 

protective finish on certain bushings 

installed in the rear spar upper chord on 

horizontal stabilizers, which could lead 

to galvanic corrosion and consequent 

cracking of the rear spar upper chord. 

The NPRM proposed to require an 

inspection or records check to 

determine if affected horizontal 

stabilizers are installed, related 

investigative actions, and for affected 

horizontal stabilizers, repetitive 

inspections for any crack of the 

horizontal stabilizer rear spar upper 

chord, and corrective action if 

necessary. We are issuing this AD to 

detect and correct cracking of the rear 

spar upper chord, which can result in 

the failure of the upper chord and 

consequent departure of the horizontal 

stabilizer from the airplane, which can 

lead to loss of control of the airplane. 

Comments 

We gave the public the opportunity to 

participate in developing this AD. The 

following presents the comments 

received on the NPRM and the FAA’s 

response to each comment. 

Support for the NPRM 

Air Line Pilots Association 

International (ALPA) stated that it 

supports the NPRM. Boeing stated that 

is concurs with the NPRM. 

Effect of Winglets on Accomplishment 

of the Proposed Actions 

Aviation Partners Boeing stated that 

installation of winglets per 

Supplemental Type Certificate (STC) 

ST00830SE (http://rgl.faa.gov/

Regulatory_and_Guidance_Library/

rgstc.nsf/0/

184de9a71ec3fa5586257eae00707da6/

$FILE/ST00830SE.pdf) does not affect 

the ability to accomplish the actions 

specified in the NPRM. 

We concur with the commenter. We 

have redesignated paragraph (c) of the 

proposed AD as paragraph (c)(1) and 

added new paragraph (c)(2) to this AD 

to state that installation of STC 

ST00830SE (http://rgl.faa.gov/

Regulatory_and_Guidance_Library/

rgstc.nsf/0/

184de9a71ec3fa5586257eae00707da6/

$FILE/ST00830SE.pdf) does not affect 

the ability to accomplish the actions 

required by this final rule. Therefore, for 

airplanes on which STC ST00830SE is 

installed, a ‘‘change in product’’ 

alternative method of compliance 

(AMOC) approval request is not 

necessary to comply with the 

requirements of 14 CFR 39.17. 

Request To Revise the Proposed 

Applicability 

Airlines for America (A4A) requested 

that we revise the applicability of the 

proposed AD to state ‘‘This AD applies 

to all horizontal stabilizers with serial 

numbers identified in Boeing SB 737– 

55A1097.’’ A4A explained that the 

proposed AD is applicable to all Boeing 

Model 737–600, –700, –700C, –800, 

–900, and –900ER series airplanes; 

however, Boeing Alert Service Bulletin 

737–55A1097, dated July 1, 2015, 

provides a list of affected horizontal 

stabilizers by serial number. A4A 

expressed that the physical plate 

inspections required by paragraph 

(g)(1)(ii) of the proposed AD are 

excessive and unneeded, as operators 

normally track serialized components 

without the need to physically inspect 

the airframe. A4A further reasoned that 

when paragraph (c) of the proposed AD 

is written against all Model 737 Next 

Generation airframes, the complexity of 

compliance reporting becomes more 

burdensome. The net result, stated A4A, 

is indefinite record keeping of AD 

compliance for airplanes that are not 

equipped with horizontal stabilizers 

affected by the manufacturing oversight. 

We do not agree to revise the 

applicability of this AD as requested by 

the commenter. Paragraph (g)(1) of this 

AD gives operators the option of 

performing either a records check or an 

inspection. If the operator’s records are 

sufficient to determine the serial 

number of the horizontal stabilizers on 

the affected airplane, then a physical 

inspection is not required. Furthermore, 

the affected horizontal stabilizers are 

rotable parts, so it is possible that an 

affected horizontal stabilizer could be 

installed on numerous airplanes during 

its service life, even on a new 

production airplane once it enters 

service. As specified in paragraph 

2.B.(2) of Chapter 6 of the AD Manual, 

FAA–IR–M–8040.1C (http://rgl.faa.gov/

Regulatory_and_Guidance_Library/

rgOrders.nsf/0/

66ddd8e1d2e95db3862577270062aabd/

$FILE/FAA-IR-M-8040_1C.pdf), when 

the unsafe condition results from the 

installation of the appliance or part on 

an aircraft, the AD action is issued 

against the aircraft, not the appliance or 

part. Therefore, we have determined 

that it is appropriate for this AD to 

apply to all airplanes of the specified 

model types. We have made no changes 

to the applicability of this AD. 

Request To Allow Removal and 

Replacement of Affected Horizontal 

Stabilizers 

A4A requested that we revise 

paragraph (h)(2) of the proposed AD to 

allow removal of an affected horizontal 

stabilizer, and replacement with an 

unaffected or an affected horizontal 

stabilizer that is within the parameters 

of paragraph 1.E. ‘‘Compliance,’’ of 

Boeing Alert Service Bulletin 737– 

55A1097, dated July 1, 2015. A4A 

explained that paragraph (g)(2) of the 

proposed AD requires that the 

inspection specified in Boeing Alert 

Service Bulletin 737–55A1097, dated 

July 1, 2015, be accomplished on any 

horizontal stabilizer found to be within 

the effectivity of Boeing Alert Service 

Bulletin 737–55A1097, dated July 1, 

2015, and the compliance times found 

in paragraph 1.E., ‘‘Compliance.’’ A4A 

expressed that if cracking is found, 

operators must repair in accordance 

with paragraph (h)(2) of the proposed 

AD; paragraph (h)(2) of the proposed AD 

requires repair in accordance with 

paragraph (j) of the proposed AD before 

further flight. 

We agree. We have determined that 

removing a damaged horizontal 

stabilizer and replacing it with a 

serviceable horizontal stabilizer, as 

provided in paragraph (i) of this AD, 

addresses the identified unsafe 

condition. We have revised paragraph 

(h)(2) of this AD accordingly. 

Request for Review of Other Inspection 

Methods 

A4A requested that the FAA and 

Boeing review other non-destructive test 

(NDT) inspection options such as an 

ultrasound process to satisfy the 

proposed inspection requirements. A4A 

pointed out that paragraph (g)(2) of the 

proposed AD specifies a high frequency 

eddy current (HFEC) method for 

inspection of the rear spar upper chord. 

A4A explained that the FAA should be 

aware that other methods, specifically 


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Federal Register / Vol. 81, No. 131 / Friday, July 8, 2016 / Rules and Regulations 44505 

ultrasound inspection, may be better 

NDT diagnostic techniques, and that an 

ultrasound inspection, compared to the 

proposed HFEC process, may detect 

early crack development from the fitting 

holes versus cracking that has 

propagated up to and near the surface of 

the rear spar upper chord. 

We partially agree. We agree with the 

commenter that other inspection 

methods may be better NDT diagnostic 

techniques and note that alternative 

methods of compliance (AMOCs) have 

been granted to ADs when updated 

service information containing 

improved procedures to address an 

unsafe condition becomes available. 

We disagree to include other 

inspection options in this final rule, 

because the inspection technique 

required in this AD adequately 

addresses the unsafe condition and is 

accompanied by service information, 

which includes detectable crack lengths 

and inspection intervals. If additional 

service information that provides 

alternative NDT inspection methods 

becomes available, under the provisions 

of paragraph (j) of this AD, we will 

consider requests for approval of an 

AMOC if sufficient data are submitted to 

substantiate that the inspection method 

would provide an acceptable level of 

safety. We have made no changes to this 

AD in this regard. 

Requests for Clarification of Parts 

Installation Requirements 

A4A requested that we reword 

paragraphs (g) and (i) of the proposed 

AD to allow operators to maintain or 

install any affected horizontal stabilizer 

on any airplane, provided that the 

horizontal stabilizer is, or will be, 

inspected as specified in paragraph 1.E., 

‘‘Compliance,’’ of Boeing Alert Service 

Bulletin 737–55A1097, dated July 1, 

2015. A4A explained that paragraphs 

(i)(1) and (i)(2) of the proposed AD 

preclude installation of an affected 

horizontal stabilizer without 

accomplishing the required inspection. 

A4A explained further that other 

maintenance activity could cause a 

horizontal stabilizer to be removed and 

reinstalled prior to reaching the 

compliance times specified in Boeing 

Alert Service Bulletin 737–55A1097, 

dated July 1, 2015. With the potential 

interpretation of paragraph (g)(2) of the 

proposed AD being to inspect 

immediately, the initial inspection 

would be significantly accelerated, and 

the inspection schedule would be 

altered for the remaining life of the 

component. 

All Nippon Airways (ANA) requested 

that we clarify the parts installation 

restrictions specified in paragraph (i) of 

the proposed AD to reduce the burden 

for operators. ANA explained that parts 

installation is restricted based on its 

serial number, and that paragraph 

(i)(2)(i) of the proposed AD requires 

initial inspection specified in paragraph 

(g)(2) of the proposed AD before further 

flight. ANA expressed that this 

requirement is applicable if the flight 

cycles and/or the date of issuance the 

original certificate of airworthiness, or 

the original export certificate of 

airworthiness for the horizontal 

stabilizer are unknown or have already 

exceeded the proposed compliance time 

specified in paragraph (g)(2) of the 

proposed AD. ANA reasoned that, if the 

flight cycles and the date of issuance of 

the original certificate of airworthiness 

or the original export certificate of 

airworthiness of the horizontal stabilizer 

are known, and the flight cycles and 

years on the horizontal stabilizer are 

less than the compliance times specified 

in paragraph 1.E., ‘‘Compliance,’’ of 

Boeing Alert Service Bulletin 737– 

55A1097, dated July 1, 2015, operators 

may conduct the inspection specified in 

paragraph (g)(2) of this AD at the time 

specified in paragraph (g)(2) of this AD. 

We agree to clarify. An affected 

horizontal stabilizer that has not 

reached the inspection threshold or the 

next repeat interval is still in 

compliance with this AD at the time it 

is installed on the airplane. We have 

revised paragraph (i)(2)(i) of this AD to 

read ‘‘Initial and repetitive HFEC 

inspections specified in paragraph (g)(2) 

of this AD are completed within the 

compliance times specified in paragraph 

(g)(2) of this AD.’’ We also agree to 

clarify that the 10-year compliance time 

specified in paragraph 1.E. 

‘‘Compliance,’’ of Boeing Alert Service 

Bulletin 737–55A1097, dated July 1, 

2015, is measured using the airplane the 

affected horizontal stabilizer was 

delivered on. 

Request for Specific Repair Instructions 

and Terminating Action 

A4A requested that repair instructions 

be provided either in a revision to the 

service information, or via the structural 

repair manual (SRM). A4A also 

requested that the proposed AD be 

revised to include a preventive, 

terminating action including the option 

to remove and replace the subject 

bushings in the upper chord fitting 

during a heavy check schedule. A4A 

expressed that the NPRM and Boeing 

Alert Service Bulletin 737–55A1097, 

dated July 1, 2015, provide neither 

specific repair methods nor a means to 

terminate the inspections. A4A 

reasoned that the NPRM requires 

corrective action for any crack that is 

discovered, and that such action is to be 

performed in accordance with 

paragraph (j) of the proposed AD, which 

is the AMOC section. A4A said that, 

although no known inspections have 

revealed cracking, we (the FAA) must 

believe that findings will occur, and that 

operators would benefit by having 

guidance from Boeing without the need 

for an AMOC request. Similarly, A4A 

expressed, without a repair plan, there 

should also be a means of terminating 

the inspections entirely. A4A pointed to 

a recent experience concerning seat 

track cracking that exposed the 

difficulties of embarking upon a 

required inspection plan without a 

defined recovery path. A4A referred to 

AD 2013–23–04, Amendment 39–17659 

(78 FR 68693, November 15, 2013) (‘‘AD 

2013–23–04’’), and stated that AD also 

directed operators to the AMOC process. 

We do not agree. An AD is issued to 

address an identified unsafe condition, 

as required by 14 CFR part 39. The 

determination of the unsafe condition, 

mitigating action, and compliance times 

in this AD has all been coordinated with 

Boeing. This AD is being issued to 

address the lack of corrosion protection 

on a critical structural element. As a 

result, dissimilar metal corrosion may 

cause cracking of the horizontal 

stabilizer rear spar upper chord. With 

no service history of cracking yet 

reported, it is expected that any 

cracking will be limited and not result 

in a significant disruption to affected 

operators. The inspections required by 

this AD provide an acceptable level of 

safety for the affected airplanes. We 

have reviewed with Boeing the 

implementation issues associated with 

AD 2013–23–04 and expect that Boeing 

will provide us with approvable data for 

repair and terminating actions in a 

timely manner to address any cracking 

found. 

For these reasons, we do not consider 

that delaying this action until after the 

possible release of revised service 

information is warranted, since 

sufficient technology and service 

information currently exist to 

accomplish the required actions within 

the compliance time. However, under 

the provisions of paragraph (j) of this 

AD, we will consider requests for 

approval of AMOCs for revised service 

information, repairs, or terminating 

actions if sufficient data are submitted 

to substantiate they would provide an 

acceptable level of safety. For these 

reasons, we have made no changes to 

this AD in this regard. 


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44506 Federal Register / Vol. 81, No. 131 / Friday, July 8, 2016 / Rules and Regulations 

Request To Clarify Specific Parts of the 

Service Information 

ANA stated that paragraph (g)(1)(i) of 

the proposed AD should refer to Part 1, 

and paragraph (g)(1)(ii) of the proposed 

AD should refer to Part 2 of the 

Accomplishment Instructions of Boeing 

Alert Service Bulletin 737–55A1097, 

dated July 1, 2015. ANA did not provide 

a reason for this request. 

From these statements, we infer that 

ANA is requesting that we revise 

paragraphs (g)(1)(i) and (g)(1)(ii) of the 

proposed AD. We agree that the changes 

requested by ANA provide additional 

clarity. We have added ‘‘Part 1 of’’ to 

paragraph (g)(1)(i) and ‘‘Part 2 of’’ to 

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

Request for Assurance of Parts 

Availability 

A4A also requested that, prior to 

release of the AD, we assure that Boeing 

has sections of the rear spar available for 

the horizontal stabilizer including a 

typical splice repair plan for each 

affected 737–NG fleet. A4A also 

requested that Boeing also provide or 

have available, horizontal stabilizers 

that are service ready prior to the release 

of the AD. 

We do not agree. We do not consider 

that delaying this action until Boeing 

has assured that replacement parts will 

be available is warranted. This AD is 

issued to address an identified unsafe 

condition, as required by 14 CFR part 

39. The determination of the unsafe 

condition, mitigating action, and 

compliance times in this AD has all 

been coordinated with Boeing. This AD 

is being issued to address the lack of 

corrosion protection on a critical 

structural element. As a result, 

dissimilar metal corrosion may cause 

cracking of the horizontal stabilizer rear 

spar upper chord. With no service 

history of cracking yet reported, it is 

expected that any cracking will be 

limited and not be a significant 

disruption to affected operators. We 

understand that Boeing will make 

horizontal stabilizer parts and 

assemblies available as necessary for 

operators to address possible oncondition actions. However, since it is 

unknown how many repairs or 

replacements may be necessary and 

what parts would be necessary for each 

repair, we cannot estimate the type and 

number of parts needed. If parts 

availability becomes an issue, under the 

provisions of paragraph (j) of this AD, 

we may approve requests for 

adjustments to the compliance time for 

doing a repair or replacement if data are 

submitted to substantiate that such an 

adjustment would provide an acceptable 

level of safety. We have made no 

changes to this AD in this regard. 

Conclusion 

We reviewed the relevant data, 

considered the comments received, and 

determined that air safety and the 

public interest require adopting this AD 

with the changes described previously 

and minor editorial changes. We have 

determined that these minor changes: 

• Are consistent with the intent that 

was proposed in the NPRM for 

correcting the unsafe condition; and 

• Do not add any additional burden 

upon the public than was already 

proposed in the NPRM. 

We also determined that these 

changes will not increase the economic 

burden on any operator or increase the 

scope of this AD. 

Related Service Information Under 1 

CFR Part 51 

We reviewed Boeing Alert Service 

Bulletin 737–55A1097, dated July 1, 

2015. The service information describes 

procedures for an inspection or records 

check to determine if affected horizontal 

stabilizers are installed, related 

investigative actions, HFEC inspections 

for any crack of the horizontal stabilizer 

rear spar upper chord, and corrective 

action if necessary. 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 1,397 

airplanes of U.S. registry. 

We estimate the following costs to 

comply with this AD: 

ESTIMATED COSTS

Action Labor cost Parts cost Cost per 

product 

Cost on U.S. 

operators 

Inspection or records check ............. 1 work-hour × $85 per hour = $85 ............................... $0 $85 $118,745 

We estimate the following costs to do 

any necessary inspections that would be 

required based on the results of the 

inspection or records check. We have no 

way of determining the number of 

aircraft that might need these 

inspections: 

ON-CONDITION COSTS

Action Labor cost Parts cost Cost per 

product 

Inspections ................ 4 work-hours × $85 per hour = $340 .............................................................................. $0 $340 

According to the manufacturer, some 

of the costs of this AD may be covered 

under warranty, thereby reducing the 

cost impact on affected individuals. We 

do not control warranty coverage for 

affected individuals. As a result, we 

have included all costs in our cost 

estimate. 

We have received no definitive data 

that would enable us to provide cost 

estimates for the on-condition repairs 

specified in this AD. 

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 


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Federal Register / Vol. 81, No. 131 / Friday, July 8, 2016 / Rules and Regulations 44507 

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, and 

(4) Will not have a significant 

economic impact, positive or negative, 

on a substantial number of small entities 

under the criteria of the Regulatory 

Flexibility Act. 

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Incorporation by reference, 

Safety. 

Adoption of the Amendment 

Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA amends 14 CFR part 39 as 

follows: 

PART 39—AIRWORTHINESS 

DIRECTIVES 

■ 1. The authority citation for part 39 

continues to read as follows: 

Authority: 49 U.S.C. 106(g), 40113, 44701. 

§ 39.13 [Amended] 

■ 2. The FAA amends § 39.13 by adding 

the following new airworthiness 

directive (AD): 

2016–13–16 The Boeing Company: 

Amendment 39–18581; Docket No. 

FAA–2015–6541; Directorate Identifier 

2015–NM–135–AD. 

(a) Effective Date 

This AD is effective August 12, 2016. 

(b) Affected ADs 

None. 

(c) Applicability 

(1) This AD applies to all The Boeing 

Company Model 737–600, –700, –700C, 

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

certificated in any category. 

(2) Installation of Supplemental Type 

Certificate (STC) ST00830SE (http://

rgl.faa.gov/Regulatory_and_Guidance_

Library/rgstc.nsf/0/

184de9a71ec3fa5586257eae00707da6/$FILE/

ST00830SE.pdf) does not affect the ability to 

accomplish the actions required by this AD. 

Therefore, for airplanes on which STC 

ST00830SE is installed, a ’’change in 

product’’ alternative method of compliance 

(AMOC) approval request is not necessary to 

comply with the requirements of 14 CFR 

39.17. 

(d) Subject 

Air Transport Association (ATA) of 

America Code 55, Stabilizers. 

(e) Unsafe Condition 

This AD was prompted by reports of a 

manufacturing oversight, in which a supplier 

omitted the required protective finish on 

certain bushings installed in the rear spar 

upper chord on horizontal stabilizers, which 

could lead to galvanic corrosion and 

consequent cracking of the rear spar upper 

chord. We are issuing this AD to detect and 

correct cracking of the rear spar upper chord, 

which can result in the failure of the upper 

chord and consequent departure of the 

horizontal stabilizer from the airplane, which 

can lead to loss of control of the airplane. 

(f) Compliance 

Comply with this AD within the 

compliance times specified, unless already 

done. 

(g) Serial Number Check or Inspection To 

Determine if Certain Horizontal Stabilizers 

Are Installed, Related Investigative Actions, 

Repetitive Inspections for Cracks, and 

Corrective Action 

(1) Except as specified in paragraph (h)(1) 

of this AD, within the compliance time 

identified in paragraph 1.E., ‘‘Compliance,’’ 

of Boeing Alert Service Bulletin 737– 

55A1097, dated July 1, 2015, do the actions 

specified in paragraph (g)(1)(i) or (g)(1)(ii) of 

this AD. 

(i) Do a records check to determine if an 

affected horizontal stabilizer is installed and 

if any horizontal stabilizer has been 

exchanged, and do all applicable related 

investigative actions, in accordance with Part 

1 of the Accomplishment Instructions of 

Boeing Alert Service Bulletin 737–55A1097, 

dated July 1, 2015. Affected horizontal 

stabilizers are identified in the 

Accomplishment Instructions of Boeing Alert 

Service Bulletin 737–55A1097, dated July 1, 

2015. 

(ii) Do an inspection of the horizontal 

stabilizer identification plate to determine if 

any affected horizontal stabilizer is installed, 

in accordance with Part 2 of the 

Accomplishment Instructions of Boeing Alert 

Service Bulletin 737–55A1097, dated July 1, 

2015. Affected horizontal stabilizers are 

identified in the Accomplishment 

Instructions of Boeing Alert Service Bulletin 

737–55A1097, dated July 1, 2015. 

(2) If, during any action required by 

paragraph (g)(1)(i) or (g)(1)(ii) of this AD, any 

affected horizontal stabilizer is found: Except 

as specified in paragraph (h)(1) of this AD, 

within the compliance time identified in 

paragraph 1.E., ‘‘Compliance,’’ of Boeing 

Alert Service Bulletin 737–55A1097, dated 

July 1, 2015, do a high frequency eddy 

current (HFEC) inspection for any crack of 

the horizontal stabilizer rear spar upper 

chord and do all applicable corrective 

actions, in accordance with the 

Accomplishment Instructions of Boeing Alert 

Service Bulletin 737–55A1097, dated July 1, 

2015, except as required by paragraph (h)(2) 

of this AD. Repeat the inspection thereafter 

at intervals identified in paragraph 1.E., 

‘‘Compliance,’’ of Boeing Alert Service 

Bulletin 737–55A1097, dated July 1, 2015. 

(h) Exceptions to the Service Information 

Specifications 

(1) Where Boeing Alert Service Bulletin 

737–55A1097, dated July 1, 2015, specifies a 

compliance time ‘‘after the original issue date 

of this service bulletin,’’ this AD requires 

compliance within the specified compliance 

time after the effective date of this AD. 

(2) If any cracking is found during any 

inspection required by this AD, and Boeing 

Alert Service Bulletin 737–55A1097, dated 

July 1, 2015, specifies to contact Boeing for 

appropriate action: Before further flight, 

repair using a method approved in 

accordance with the procedures specified in 

paragraph (j) of this AD, or replace with a 

serviceable horizontal stabilizer as specified 

in paragraph (i) of this AD. 

(i) Parts Installation Restrictions 

As of the effective date of this AD, no 

person may install a horizontal stabilizer on 

any airplane, except as specified in 

paragraphs (i)(1) and (i)(2) of this AD. 

(1) A horizontal stabilizer may be installed 

if the part is inspected in accordance with 

‘‘Part 2: Horizontal Stabilizer Identification 

Plate Inspection’’ of the Accomplishments 

Instructions of Boeing Alert Service Bulletin 

737–55A1097, dated July 1, 2015, and no 

affected serial number is found. 

(2) A horizontal stabilizer may be installed 

if the part is inspected in accordance with 

‘‘Part 2: Horizontal Stabilizer Identification 

Plate Inspection’’ of the Accomplishments 

Instructions of Boeing Alert Service Bulletin 

737–55A1097, dated July 1, 2015, and an 

affected serial number is found, provided 

that the actions specified in paragraphs 

(i)(2)(i) and (i)(2)(ii) of this AD are done, as 

applicable. 

(i) Initial and repetitive HFEC inspections 

specified in paragraph (g)(2) of this AD are 

completed within the compliance times 

specified in paragraph (g)(2) of this AD. 

(ii) All applicable corrective actions are 

done before further flight as required by 

paragraph (h)(2) of this AD. 

(j) Alternative Methods of Compliance 

(AMOCs) 

(1) The Manager, Seattle Aircraft 

Certification Office (ACO), FAA, has the 

authority to approve AMOCs for this AD, if 

requested using the procedures found in 14 

CFR 39.19. In accordance with 14 CFR 39.19, 

send your request to your principal inspector 

or local Flight Standards District Office, as 

appropriate. If sending information directly 

to the manager of the ACO, send it to the 

attention of the person identified in 

paragraph (k) of this AD. Information may be 


jstallworth on DSK7TPTVN1PROD with RULES
44508 Federal Register / Vol. 81, No. 131 / Friday, July 8, 2016 / Rules and Regulations 

1Note that the term ‘‘NAV’’ is used throughout 

this document to indicate the per-share amount that 

may be described elsewhere as ‘‘NAV per share.’’ 

emailed to: 9-ANM-Seattle-ACO-AMOCRequests@faa.gov. 

(2) Before using any approved AMOC, 

notify your appropriate principal inspector, 

or lacking a principal inspector, the manager 

of the local flight standards district office/

certificate holding district office. 

(3) An AMOC that provides an acceptable 

level of safety may be used for any repair 

required by this AD if it is approved by the 

Boeing Commercial Airplanes Organization 

Designation Authorization (ODA) that has 

been authorized by the Manager, Seattle 

ACO, to make those findings. For a repair 

method to be approved, the repair must meet 

the certification basis of the airplane, and the 

approval must specifically refer to this AD. 

(4) For service information that contains 

steps that are labeled as Required for 

Compliance (RC), the provisions of 

paragraphs (j)(4)(i) and (j)(4)(ii) of this AD 

apply. 

(i) The steps labeled as RC, including 

substeps under an RC step and any figures 

identified in an RC step, must be done to 

comply with the AD. An AMOC is required 

for any deviations to RC steps, including 

substeps and identified figures. 

(ii) Steps not labeled as RC may be 

deviated from using accepted methods in 

accordance with the operator’s maintenance 

or inspection program without obtaining 

approval of an AMOC, provided the RC steps, 

including substeps and identified figures, can 

still be done as specified, and the airplane 

can be put back in an airworthy condition. 

(k) Related Information 

For more information about this AD, 

contact Gaetano Settineri, Aerospace 

Engineer, Airframe Branch, ANM 120S, FAA, 

Seattle Aircraft Certification Office (ACO), 

1601 Lind Avenue SW., Renton, WA 98057– 

3356; phone: 425–917–6577; fax: 425–917– 

6590; email: gaetano.settineri@faa.gov. 

(l) 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) Boeing Alert Service Bulletin 737– 

55A1097, dated July 1, 2015. 

(ii) Reserved. 

(3) For Boeing service information 

identified in this AD, contact Boeing 

Commercial Airplanes, Attention: Data & 

Services Management, P.O. Box 3707, MC 

2H–65, Seattle, WA 98124–2207; telephone 

206–544–5000, extension 1; fax 206–766– 

5680; Internet https://

www.myboeingfleet.com. 

(4) You may view this service information 

at the FAA, 1601 Lind Avenue SW., Renton, 

WA. For information on the availability of 

this material at the FAA, call 425–227–1221. 

(5) You may view this service information 

that is incorporated by reference 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 Renton, Washington, on June 23, 

2016. 

Dorr M. Anderson, 

Acting Manager, Transport Airplane 

Directorate, Aircraft Certification Service. 

[FR Doc. 2016–15904 Filed 7–7–16; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9774] 

RIN 1545–BM04 

Method of Accounting for Gains and 

Losses on Shares in Money Market 

Funds; Broker Returns With Respect 

to Sales of Shares in Money Market 

Funds 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final regulations. 

SUMMARY: This document contains final 

regulations that provide a simplified 

method of accounting for gains and 

losses on shares in money market funds 

(MMFs). The final regulations also 

provide guidance regarding information 

reporting requirements for shares in 

MMFs. The final regulations respond to 

Securities and Exchange Commission 

(SEC) rules that change the amount for 

which certain MMF shares are 

distributed, redeemed, and repurchased. 

The final regulations affect MMFs and 

their shareholders. 

DATES: Effective date: These regulations 

are effective on July 8, 2016. 

Applicability dates: For the dates of 

applicability, see §§ 1.446–7(e) and 

1.6045–1(c)(3)(vi)(B). 

FOR FURTHER INFORMATION CONTACT: 

Grace Cho at (202) 317–6895 (not a tollfree number). 

SUPPLEMENTARY INFORMATION: 

Background 

This document contains amendments 

to 26 CFR part 1 (Income Tax 

Regulations) under sections 446 and 

6045 of the Internal Revenue Code 

(Code). The regulations provide a 

method of accounting for gain or loss on 

shares in MMFs and are intended to 

simplify tax compliance for holders of 

shares in MMFs affected by SEC 

regulations that impose liquidity fees or 

change how certain MMF shares are 

priced. See Money Market Fund Reform; 

Amendments to Form PF, Securities Act 

Release No. 33–9616, Investment 

Advisers Act Release No. IA–3879, 

Investment Company Act Release No. 

IC–31166, Financial Reporting 

Codification No. FR–84 (August 14, 

2014) (SEC MMF Reform Rules). The 

regulations also provide guidance 

regarding information reporting 

requirements for shares in MMFs. 

An MMF is a type of investment 

company registered under the 

Investment Company Act of 1940 (1940 

Act) and regulated as an MMF under 

Rule 2a–7 under the 1940 Act (17 CFR 

270.2a–7). MMFs have historically 

sought to keep stable the prices at which 

their shares are distributed, redeemed, 

and repurchased. The securities that 

Rule 2a–7 permits an MMF to hold 

generally result in no more than 

minimal fluctuations in the MMF’s net 

asset value per share (NAV).1

MMFs meeting the requirements of 

Rule 2a–7 have been permitted to value 

their assets based on the assets’ cost, 

with certain adjustments (amortized 

cost method), and to price their shares 

by rounding the resulting NAV to the 

nearest 1 percent (penny rounding). 

These methods have enabled MMFs to 

maintain constant share prices in almost 

all circumstances. Because most MMFs 

target a $1.00 share price, an MMF that 

fails to maintain a constant share price 

is said to ‘‘break the buck.’’ 

The SEC MMF Reform Rules generally 

bar the use of the amortized cost method 

and penny rounding for certain MMFs 

(floating-NAV MMFs) and require a 

floating-NAV MMF to value its assets 

using market factors and to round its 

price per share to the nearest basis point 

(the fourth decimal place, in the case of 

a fund with a $1.0000 share price). 

Certain government-security-focused 

MMFs (government MMFs) and certain 

MMFs the beneficial owners of which 

are limited to natural persons (retail 

MMFs) may continue to use the 

amortized cost method and penny 

rounding. (A government MMF or retail 

MMF that continues to use the 

amortized cost method and penny 

rounding is called a stable-NAV MMF.) 

The SEC MMF Reform Rules also 

establish circumstances under which an 

MMF is permitted or required to impose 

a liquidity fee or is permitted to impose 

a redemption gate. When an MMF has 

a liquidity fee in effect, the liquidity fee 

reduces the proceeds received by all 

redeeming shareholders. A redemption 

gate is the temporary suspension of 

redemptions of shares in the MMF. 

Liquidity fees and redemption gates 


jstallworth on DSK7TPTVN1PROD with RULES