2032 Federal Register / Vol. 83, No. 10 / Tuesday, January 16, 2018 / Rules and Regulations 

U.S. Code citation CMP description New maximum amount 

(1) 12 U.S.C. 1782(a)(3) .................................... Inadvertent failure to submit a report or the inadvertent submission of a false or misleading report.$3,928. 

(2) 12 U.S.C. 1782(a)(3) .................................... Non-inadvertent failure to submit a report or 

the non-inadvertent submission of a false or 

misleading report.

$39,278. 

(3) 12 U.S.C. 1782(a)(3) .................................... Failure to submit a report or the submission of 

a false or misleading report done knowingly 

or with reckless disregard.

$1,963,870 or 1 percent of the total assets of 

the credit union, whichever is less. 

(4) 12 U.S.C. 1782(d)(2)(A) ................................ Tier 1 CMP for inadvertent failure to submit 

certified statement of insured shares and 

charges due to NCUSIF, or inadvertent 

submission of false or misleading statement.

$3,591. 

(5) 12 U.S.C. 1782(d)(2)(B) ................................ Tier 2 CMP for non-inadvertent failure to submit certified statement or submission of 

false or misleading statement.

$35,904. 

(6) 12 U.S.C. 1782(d)(2)(C) ............................... Tier 3 CMP for failure to submit a certified 

statement or the submission of a false or 

misleading statement done knowingly or 

with reckless disregard.

$1,795,216 or 1 percent of the total assets of 

the credit union, whichever is less. 

(7) 12 U.S.C. 1785(a)(3) .................................... Non-compliance with insurance logo requirements.$122. 

(8) 12 U.S.C. 1785(e) (3) ................................... Non-compliance with NCUA security requirements.$285. 

(9) 12 U.S.C. 1786(k)(2)(A) ................................ Tier 1 CMP for violations of law, regulation, 

and other orders or agreements.

$9,819. 

(10) 12 U.S.C. 1786(k)(2)(A) .............................. Tier 2 CMP for violations of law, regulation, 

and other orders or agreements and for 

recklessly engaging in unsafe or unsound 

practices or breaches of fiduciary duty.

$49,096. 

(11) 12 U.S.C. 1786(k)(2)(A) .............................. Tier 3 CMP for knowingly committing the violations under Tier 1 or 2 (natural person).$1,963,870. 

(12) 12 U.S.C. 1786(k)(2)(A) .............................. Tier 3 CMP for knowingly committing the violations under Tier 1 or 2 (insured credit 

union).

$1,963,870 or 1 percent of the total assets of 

the credit union, whichever is less. 

(13) 12 U.S.C. 1786(w)(5)(ii) .............................. Non-compliance with senior examiner postemployment restrictions.$323,027. 

(14) 15 U.S.C. 1639e(k) ..................................... Non-compliance with appraisal independence 

requirements.

First violation: $11,279. 

Subsequent violations: $22,556. 

(15) 42 U.S.C. 4012a(f)(5) ................................. Non-compliance with flood insurance requirements.$2,133. 

(b) The adjusted amounts displayed in 

paragraph (a) of this section apply to 

civil monetary penalties that are 

assessed after the date the increase takes 

effect, including those whose associated 

violation or violations pre-dated the 

increase and occurred after November 2, 

2015. 

[FR Doc. 2018–00488 Filed 1–12–18; 8:45 am] 

BILLING CODE 7535–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 25 

[Docket No. FAA–2017–1141; Special 

Conditions No. 25–710–SC] 

Special Conditions: Dassault Aviation 

Model Falcon 5X Airplanes; NonRechargeable Lithium Battery 

Installations 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final special conditions; request 

for comment. 

SUMMARY: These special conditions are 

issued for non-rechargeable lithium 

battery installations on the Dassault 

Aviation (Dassault) Model Falcon 5X 

airplane. Non-rechargeable lithium 

batteries are a novel or unusual design 

feature when compared to the state of 

technology envisioned in the 

airworthiness standards for transport 

category airplanes. The applicable 

airworthiness regulations do not contain 

adequate or appropriate safety standards 

for this design feature. These special 

conditions contain the additional safety 

standards that the Administrator 

considers necessary to establish a level 

of safety equivalent to that established 

by the existing airworthiness standards. 

DATES: This action is effective on 

Dassault Aviation on January 16, 2018. 

Send your comments by March 2, 2018. 

ADDRESSES: Send comments identified 

by docket number FAA–2017–1141 

using any of the following methods: 

• Federal eRegulations Portal: Go to 

http://www.regulations.gov/ and follow 

the online instructions for sending your 

comments electronically. 

• Mail: Send comments to Docket 

Operations, M–30, U.S. Department of 

Transportation (DOT), 1200 New Jersey 

Avenue SE, Room W12–140, West 

Building Ground Floor, Washington, DC 

20590–0001. 

• Hand Delivery or Courier: Take 

comments to Docket Operations in 

Room W12–140 of the West Building 

Ground Floor at 1200 New Jersey 

Avenue SE, Washington, DC, between 9 

a.m. and 5 p.m., Monday through 

Friday, except Federal holidays. 

• Fax: Fax comments to Docket 

Operations at 202–493–2251. 

Privacy: The FAA will post all 

comments it receives, without change, 

to http://www.regulations.gov/, 

including any personal information the 

commenter provides. Using the search 

function of the docket website, anyone 

can find and read the electronic form of 

all comments received into any FAA 


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Federal Register / Vol. 83, No. 10 / Tuesday, January 16, 2018 / Rules and Regulations 2033 

docket, including the name of the 

individual sending the comment (or 

signing the comment for an association, 

business, labor union, etc.). DOT’s 

complete Privacy Act Statement can be 

found in the Federal Register published 

on April 11, 2000 (65 FR 19477–19478). 

Docket: Background documents or 

comments received may be read at 

http://www.regulations.gov/ at any time. 

Follow the online instructions for 

accessing the docket or go to Docket 

Operations in Room W12–140 of the 

West Building Ground Floor at 1200 

New Jersey Avenue SE, Washington, 

DC, between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

FOR FURTHER INFORMATION CONTACT: 

Nazih Khaouly, Airplane and Flight 

Crew Interface Section, AIR–671, 

Transport Standards Branch, Policy and 

Innovation Division, Aircraft 

Certification Service, 1601 Lind Avenue 

SW, Renton, Washington 98057–3356; 

telephone 425–227–2432; facsimile 

425–227–1149. 

SUPPLEMENTARY INFORMATION: 

Future Requests for Installation of NonRechargeable Lithium Batteries 

The FAA anticipates that nonrechargeable lithium batteries will be 

installed in most makes and models of 

transport category airplanes. We intend 

to require special conditions for 

certification projects involving nonrechargeable lithium battery 

installations to address certain safety 

issues until we can revise the 

airworthiness requirements. Applying 

special conditions to these installations 

across the range of transport category 

airplanes will ensure regulatory 

consistency. 

Typically, the FAA issues special 

conditions after receiving an application 

for type certificate approval of a novel 

or unusual design feature. However, the 

FAA has found that the presence of nonrechargeable lithium batteries in 

certification projects is not always 

immediately identifiable, since the 

battery itself may not be the focus of the 

project. Meanwhile, the inclusion of 

these batteries has become virtually 

ubiquitous on in-production transport 

category airplanes, which shows that 

there will be a need for these special 

conditions. Also, delaying the issuance 

of special conditions until after each 

design application is received could 

lead to costly certification delays. 

Therefore, the FAA finds it necessary to 

issue special conditions applicable to 

these battery installations on particular 

makes and models of aircraft. 

On April 22, 2016, the FAA published 

special conditions no. 25–612–SC in the 

Federal Register (81 FR 23573) 

applicable to Gulfstream Aerospace 

Corporation for the GVI airplane. Those 

were the first special conditions the 

FAA issued for non-rechargeable 

lithium battery installations. We 

explained in that document our 

decision to make those special 

conditions effective one year after 

publication in the Federal Register, 

which is April 22, 2017. In those special 

conditions, the FAA stated its intention 

to apply non-rechargeable lithium 

battery special conditions to design 

changes on other makes and models 

applied for after this same date. 

Section 1205 of the FAA 

Reauthorization Act of 1996 requires the 

FAA to consider the extent to which 

Alaska is not served by transportation 

modes other than aviation and to 

establish appropriate regulatory 

distinctions when modifying 

airworthiness regulations that affect 

intrastate aviation in Alaska. In 

consideration of this requirement and 

the overall impact on safety, the FAA 

does not intend to require nonrechargeable lithium battery special 

conditions for design changes that only 

replace a 121.5 megahertz (MHz) 

emergency locator transmitter (ELT) 

with a 406 MHz ELT that meets 

Technical Standard Order C126b, or 

later revision, on transport airplanes 

operating only in Alaska. This will 

support our efforts of encouraging 

operators in Alaska to upgrade to a 406 

MHz ELT. These ELTs provide 

significantly improved accuracy for 

lifesaving services to locate an accident 

site in Alaskan terrain. The FAA 

considers that the safety benefits from 

upgrading to a 406 MHz ELT for 

Alaskan operations will outweigh the 

battery fire risk. 

Comments Invited 

The substance of these special 

conditions previously has been 

published in the Federal Register for 

public comment. These special 

conditions have been derived without 

substantive change from those 

previously issued. It is unlikely that 

prior public comment would result in a 

significant change from the substance 

contained herein. Therefore, the FAA 

has determined that prior public notice 

and comment are unnecessary, and 

finds that, for the same reason, good 

cause exists for adopting these special 

conditions upon publication in the 

Federal Register. 

The FAA is requesting comments to 

allow interested persons to submit 

views that may not have been submitted 

in response to the prior opportunities 

for comment described above. We invite 

interested people to take part in this 

rulemaking by sending written 

comments, data, or views. The most 

helpful comments reference a specific 

portion of the special conditions, 

explain the reason for any 

recommended change, and include 

supporting data. 

We will consider all comments we 

receive by the closing date for 

comments. We may change these special 

conditions based on the comments we 

receive. 

Background 

On July 1, 2012, Dassault applied for 

a type certificate for a new Model 

Falcon 5X airplane. The Model Falcon 

5X airplane is a twin engine, transport 

category airplane with a passenger 

seating capacity of 19 and a projected 

maximum takeoff weight of 66,635 

pounds. 

The FAA is issuing these special 

conditions for non-rechargeable lithium 

battery installations on the Dassault 

Model Falcon 5X airplane. The current 

battery requirements in title 14, Code of 

Federal Regulations (14 CFR) part 25 are 

inadequate for addressing an airplane 

with non-rechargeable lithium batteries. 

Type Certification Basis 

Under the provisions of 14 CFR 21.17, 

Dassault must show that the Model 

Falcon 5X airplane meets the applicable 

provisions of part 25, as amended by 

Amendments 25–1 through 25–139. 

If the Administrator finds that the 

applicable airworthiness regulations 

(i.e., 14 CFR part 25) do not contain 

adequate or appropriate safety standards 

for the Dassault Model Falcon 5X 

airplane because of a novel or unusual 

design feature, special conditions are 

prescribed under the provisions of 

§ 21.16. 

Special conditions are initially 

applicable to the airplane model for 

which they are issued. Should the type 

certificate for that model be amended 

later to include any other model that 

incorporates the same novel or unusual 

design feature, these special conditions 

would also apply to the other model 

under § 21.101. 

In addition to the applicable 

airworthiness regulations and special 

conditions, the Dassault Model Falcon 

5X airplane must comply with the fuelvent and exhaust-emission requirements 

of 14 CFR part 34, and the noisecertification requirements of 14 CFR 

part 36. 

The FAA issues special conditions, as 

defined in 14 CFR 11.19, in accordance 

with § 11.38, and they become part of 

the type certification basis under 

§ 21.17. 


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2034 Federal Register / Vol. 83, No. 10 / Tuesday, January 16, 2018 / Rules and Regulations 

Novel or Unusual Design Feature 

The novel or unusual design feature is 

the installation of non-rechargeable 

lithium batteries. 

For the purpose of these special 

conditions, we refer to a battery and 

battery system as a battery. A battery 

system consists of the battery and any 

protective, monitoring, and alerting 

circuitry or hardware inside or outside 

of the battery. It also includes vents 

(where necessary) and packaging. 

Discussion 

The FAA derived the current 

regulations governing installation of 

batteries in transport category airplanes 

from Civil Air Regulations (CAR) 

4b.625(d) as part of the recodification of 

CAR 4b that established 14 CFR part 25 

in February 1965. This recodification 

basically reworded the CAR 4b battery 

requirements, which are currently in 

§ 25.1353(b)(1) through (4). Nonrechargeable lithium batteries are novel 

and unusual with respect to the state of 

technology considered when these 

requirements were codified. These 

batteries introduce higher energy levels 

into airplane systems through new 

chemical compositions in various 

battery cell sizes and construction. 

Interconnection of these cells in battery 

packs introduces failure modes that 

require unique design considerations, 

such as provisions for thermal 

management. 

Recent events involving rechargeable 

and non-rechargeable lithium batteries 

prompted the FAA to initiate a broad 

evaluation of these energy storage 

technologies. In January 2013, two 

independent events involving 

rechargeable lithium-ion batteries 

revealed unanticipated failure modes. A 

National Transportation Safety Board 

(NTSB) letter to the FAA, dated May 22, 

2014, which is available at http://

www.ntsb.gov, filename A–14–032– 

036.pdf, describes these events. 

On July 12, 2013, an event involving 

a non-rechargeable lithium battery in an 

emergency locator transmitter 

installation demonstrated unanticipated 

failure modes. The United Kingdom’s 

Air Accidents Investigation Branch 

Bulletin S5/2013 describes this event. 

Some known uses of rechargeable and 

non-rechargeable lithium batteries on 

airplanes include: 

D Flight deck and avionics systems 

such as displays, global positioning 

systems, cockpit voice recorders, flight 

data recorders, underwater locator 

beacons, navigation computers, 

integrated avionics computers, satellite 

network and communication systems, 

communication management units, and 

remote-monitor electronic linereplaceable units; 

D Cabin safety, entertainment, and 

communications equipment, including 

emergency locator transmitters, life 

rafts, escape slides, seatbelt air bags, 

cabin management systems, Ethernet 

switches, routers and media servers, 

wireless systems, internet and in-flight 

entertainment systems, satellite 

televisions, remotes, and handsets; 

D Systems in cargo areas including 

door controls, sensors, video 

surveillance equipment, and security 

systems. 

Some known potential hazards and 

failure modes associated with nonrechargeable lithium batteries are: 

D Internal failures: In general, these 

batteries are significantly more 

susceptible to internal failures that can 

result in self-sustaining increases in 

temperature and pressure (i.e., thermal 

runaway) than their nickel-cadmium or 

lead-acid counterparts. The metallic 

lithium can ignite, resulting in a selfsustaining fire or explosion. 

D Fast or imbalanced discharging: 

Fast discharging or an imbalanced 

discharge of one cell of a multi-cell 

battery may create an overheating 

condition that results in an 

uncontrollable venting condition, which 

in turn leads to a thermal event or an 

explosion. 

D Flammability: Unlike nickelcadmium and lead-acid batteries, 

lithium batteries use higher energy and 

current in an electrochemical system 

that can be configured to maximize 

energy storage of lithium. They also use 

liquid electrolytes that can be extremely 

flammable. The electrolyte, as well as 

the electrodes, can serve as a source of 

fuel for an external fire if the battery 

casing is breached. 

Special condition no. 1 of these 

special conditions requires that each 

individual cell within a nonrechargeable lithium battery be designed 

to maintain safe temperatures and 

pressures. Special condition no. 2 

addresses these same issues but for the 

entire battery. Special condition no. 2 

requires the battery be designed to 

prevent propagation of a thermal event, 

such as self-sustained, uncontrollable 

increases in temperature or pressure 

from one cell to adjacent cells. 

Special conditions nos. 1 and 2 are 

intended to ensure that the nonrechargeable lithium battery and its 

cells are designed to eliminate the 

potential for uncontrollable failures. 

However, a certain number of failures 

will occur due to various factors beyond 

the control of the battery designer. 

Therefore, other special conditions are 

intended to protect the airplane and its 

occupants if failure occurs. 

Special conditions 3, 7, and 8 are selfexplanatory. 

Special condition no. 4 makes it clear 

that the flammable fluid fire protection 

requirements of § 25.863 apply to nonrechargeable lithium battery 

installations. Section 25.863 is 

applicable to areas of the airplane that 

could be exposed to flammable fluid 

leakage from airplane systems. Nonrechargeable lithium batteries contain 

an electrolyte that is a flammable fluid. 

Special condition no. 5 requires that 

each non-rechargeable lithium battery 

installation not damage surrounding 

structure or adjacent systems, 

equipment, or electrical wiring from 

corrosive fluids or gases that may escape 

in such a way as to cause a major or 

more severe failure condition. 

While special condition no. 5 

addresses corrosive fluids and gases, 

special condition no. 6 addresses heat. 

Special condition no. 6 requires that 

each non-rechargeable lithium battery 

installation have provisions to prevent 

any hazardous effect on airplane 

structure or systems caused by the 

maximum amount of heat the battery 

installation can generate due to any 

failure of it or its individual cells. The 

means of meeting special conditions 

nos. 5 and 6 may be the same, but the 

requirements are independent and 

address different hazards. 

These special conditions apply to all 

non-rechargeable lithium battery 

installations in lieu of § 25.1353(b)(1) 

through (4) at Amendment 25–123. 

Sections 25.1353(b)(1) through (4) at 

Amendment 25–123 remain in effect for 

other battery installations. 

These special conditions contain the 

additional safety standards that the 

Administrator considers necessary to 

establish a level of safety equivalent to 

that established by the existing 

airworthiness standards. 

Applicability 

These special conditions are 

applicable to the Dassault Model Falcon 

5X airplane. Should Dassault apply at a 

later date for a change to the type 

certificate to include another model 

incorporating the same novel or unusual 

design feature, these special conditions 

would apply to that model as well. 

These special conditions are only 

applicable to design changes applied for 

after the effective date. 

These special conditions are not 

applicable to changes to previously 

certified non-rechargeable lithium 

battery installations where the only 

change is either cosmetic or to relocate 

the installation to improve the safety of 


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Federal Register / Vol. 83, No. 10 / Tuesday, January 16, 2018 / Rules and Regulations 2035 

the airplane and occupants. Previously 

certified non-rechargeable lithium 

battery installations, as used in this 

paragraph, are those installations 

approved for certification projects 

applied for on or before the effective 

date of these special conditions. A 

cosmetic change is a change in 

appearance only, and does not change 

any function or safety characteristic of 

the battery installation. These special 

conditions are also not applicable to 

unchanged, previously certified nonrechargeable lithium battery 

installations that are affected by a 

change in a manner that improves the 

safety of its installation. The FAA 

determined that these exclusions are in 

the public interest because the need to 

meet all of the special conditions might 

otherwise deter these design changes 

that improve safety. 

Conclusion 

This action affects only a certain 

novel or unusual design feature on one 

model of airplane. It is not a rule of 

general applicability. 

List of Subjects in 14 CFR Part 25 

Aircraft, Aviation safety, Reporting 

and record keeping requirements. 

The authority citation for these 

special conditions is as follows: 

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

44702, 44704. 

The Special Conditions 

■ Accordingly, pursuant to the authority 

delegated to me by the Administrator, 

the following special conditions are 

issued as part of the type certification 

basis for the Dassault Model Falcon 5X 

airplane. 

Non-Rechargeable Lithium Battery 

Installations 

In lieu of § 25.1353(b)(1) through (4) 

at Amendment 25–123, each nonrechargeable lithium battery installation 

must: 

1. Be designed to maintain safe cell 

temperatures and pressures under all 

foreseeable operating conditions to 

prevent fire and explosion. 

2. Be designed to prevent the 

occurrence of self-sustaining, 

uncontrollable increases in temperature 

or pressure. 

3. Not emit explosive or toxic gases, 

either in normal operation or as a result 

of its failure, that may accumulate in 

hazardous quantities within the 

airplane. 

4. Meet the requirements of § 25.863. 

5. Not damage surrounding structure 

or adjacent systems, equipment, or 

electrical wiring from corrosive fluids or 

gases that may escape in such a way as 

to cause a major or more severe failure 

condition. 

6. Have provisions to prevent any 

hazardous effect on airplane structure or 

systems caused by the maximum 

amount of heat it can generate due to 

any failure of it or its individual cells. 

7. Have a failure sensing and warning 

system to alert the flightcrew if its 

failure affects safe operation of the 

airplane. 

8. Have a means for the flightcrew or 

maintenance personnel to determine the 

battery charge state if the battery’s 

function is required for safe operation of 

the airplane. 

Note: A battery system consists of the 

battery and any protective, monitoring, and 

alerting circuitry or hardware inside or 

outside of the battery. It also includes vents 

(where necessary) and packaging. For the 

purpose of these special conditions, a 

‘‘battery’’ and ‘‘battery system’’ are referred to 

as a battery. 

Issued in Renton, Washington, on January 

9, 2018. 

Victor Wicklund, 

Manager, Transport Standards Branch, Policy 

and Innovation Division, Aircraft 

Certification Service. 

[FR Doc. 2018–00548 Filed 1–12–18; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 25 

[Docket No. FAA–2017–0482; Special 

Conditions No. 25–709–SC] 

Special Conditions: Airbus Model 

A330–841 and A330–941 New Engine 

Option (A330neo) Airplanes; Use of 

High-Incidence Protection and AlphaFloor Systems 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final special conditions; request 

for comments. 

SUMMARY: These special conditions are 

issued for the Airbus Model A330–841 

and A330–941 New Engine Option 

(A330neo) airplanes. These airplanes 

will have a novel or unusual design 

feature when compared to the state of 

technology envisioned in the 

airworthiness standards for transportcategory airplanes. This design feature 

is a high-incidence protection system 

that limits the angle of attack (AOA) at 

which the airplane can be flown during 

normal low-speed operations, and that 

the flightcrew cannot override. The 

applicable airworthiness regulations do 

not contain adequate or appropriate 

safety standards for this design feature. 

These special conditions contain the 

additional safety standards that the 

Administrator considers necessary to 

establish a level of safety equivalent to 

that established by the existing 

airworthiness standards. 

DATES: This action is effective on Airbus 

on January 16, 2018. Send your 

comments by March 2, 2018. 

ADDRESSES: Send comments identified 

by docket number FAA–2017–0482 

using any of the following methods: 

• Federal eRegulations Portal: Go to 

http://www.regulations.gov/and follow 

the online instructions for sending your 

comments electronically. 

• Mail: Send comments to Docket 

Operations, M–30, U.S. Department of 

Transportation (DOT), 1200 New Jersey 

Avenue SE, Room W12–140, West 

Building Ground Floor, Washington, DC 

20590–0001. 

• Hand Delivery or Courier: Take 

comments to Docket Operations in 

Room W12–140 of the West Building 

Ground Floor at 1200 New Jersey 

Avenue SE, Washington, DC, between 9 

a.m. and 5 p.m., Monday through 

Friday, except Federal holidays. 

• Fax: Fax comments to Docket 

Operations at 202–493–2251. 

Privacy: The FAA will post all 

comments it receives, without change, 

to http://www.regulations.gov/, 

including any personal information the 

commenter provides. Using the search 

function of the docket website, anyone 

can find and read the electronic form of 

all comments received into any FAA 

docket, including the name of the 

individual sending the comment (or 

signing the comment for an association, 

business, labor union, etc.). DOT’s 

complete Privacy Act Statement can be 

found in the Federal Register published 

on April 11, 2000 (65 FR 19477–19478). 

Docket: Background documents or 

comments received may be read at 

http://www.regulations.gov/ at any time. 

Follow the online instructions for 

accessing the docket or go to Docket 

Operations in Room W12–140 of the 

West Building Ground Floor at 1200 

New Jersey Avenue SE, Washington, 

DC, between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

FOR FURTHER INFORMATION CONTACT: Joe 

Jacobsen, FAA, Airplane and Flight 

Crew Interface Section, AIR–671, 

Transport Standards Branch, Policy and 

Innovation Division, Aircraft 

Certification Service, 1601 Lind Avenue 

SW, Renton, Washington 98057–3356; 

telephone 425–227–2011; facsimile 

425–227–1320. 


daltland on DSKBBV9HB2PROD with RULES