11020 Federal Register / Vol. 60, No. 40 / Wednesday, March 1, 1995 / Rules and Regulations

control number 0575–0015. Public

reporting burden for this collection of

information is estimated to vary from

five minutes to 15 hours per response,

with an average of 2.7 hours per

response, including time for reviewing

instructions, searching existing data

sources, gathering and maintaining the

data needed, and completing and

reviewing the collection of information.

Send comments regarding this burden

estimate or any other aspect of this

collection of information, including

suggestions for reducing this burden to

the Department of Agriculture,

Clearance Officer, OIRM, Ag Box 7630,

Washington, D.C. 20250; and to the

Office of Management and Budget,

Paperwork Reduction Project (OMB

#0575–0015), Washington, D.C. 20503.

Dated: January 26, 1995.

Bob J. Nash,

Under Secretary, Rural Economic and

Community Development.

[FR Doc. 95–4954 Filed 2–28–95; 8:45 am]

BILLING CODE 3410–32–U

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 93–NM–207–AD; Amendment

39–9143; AD 95–03–06]

Airworthiness Directives; Canadair

Model CL–600–1A11, -2A12, and -2B16

Series Airplanes

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Final rule.

SUMMARY: This amendment adopts a

new airworthiness directive (AD),

applicable to certain Canadair Model

CL–600–1A11, –2A12, and –2B16 series

airplanes, that requires a functional

check and a test of the idle stop function

of the engine throttle quadrant; repair or

replacement, if necessary; and eventual

replacement of the engine throttle

quadrant with a new model. This

amendment is prompted by reports of

unintentional engine shutdown on

certain of these airplanes due to

problems associated with operation of

the engine throttle quadrant. The

actions specified by this AD are

intended to ensure the proper operation

of the throttle quadrant so as to prevent

inadvertent shutdown of an engine

while the airplane is taxiing or in flight.

DATES: Effective March 31, 1995.

The incorporation by reference of

certain publications listed in the

regulations is approved by the Director

of the Federal Register as of March 31,

1995.

ADDRESSES: The service information

referenced in this AD may be obtained

from Bombardier, Inc., Canadair,

Aerospace Group, P.O. Box 6087,

Station A, Montreal, Quebec H3C 3G9,

Canada. This information may be

examined at the Federal Aviation

Administration (FAA), Transport

Airplane Directorate, Rules Docket,

1601 Lind Avenue, SW., Renton,

Washington; or at the FAA, Engine and

Propeller Directorate, New York Aircraft

Certification Office, 10 Fifth Street,

Third Floor, Valley Stream, New York;

or at the Office of the Federal Register,

800 North Capitol Street, NW., suite

700, Washington, DC.

FOR FURTHER INFORMATION CONTACT:

Raymond J. O’Neill, Aerospace

Engineer, Propulsion Branch, ANE–174,

FAA, Engine and Propeller Directorate,

New York Aircraft Certification Office,

10 Fifth Street, Third Floor, Valley

Stream, New York 11581; telephone

(516) 256–7421; fax (516) 568–2716.

SUPPLEMENTARY INFORMATION: A

proposal to amend part 39 of the Federal

Aviation Regulations (14 CFR part 39) to

include an airworthiness directive (AD)

that is applicable to certain Canadair

Model CL–600–1A11, –2A12, and

–2B16 series airplanes was published as

a supplemental notice of proposed

rulemaking (NPRM) in the Federal

Register on October 19, 1994 (59 FR

52720). That action proposed to require

a functional check and a test of the idle

stop function of the engine throttle

quadrant; repair or replacement, if

necessary; and eventual replacement of

the engine throttle quadrant.

Interested persons have been afforded

an opportunity to participate in the

making of this amendment. No

comments were submitted in response

to the proposal or the FAA’s

determination of the cost to the public.

As a result of recent communications

with the Air Transport Association

(ATA) of America, the FAA has learned

that, in general, some operators may

misunderstand the legal effect of AD’s

on airplanes that are identified in the

applicability provision of the AD, but

that have been altered or repaired in the

area addressed by the AD. The FAA

points out that all airplanes identified in

the applicability provision of an AD are

legally subject to the AD. If an airplane

has been altered or repaired in the

affected area in such a way as to affect

compliance with the AD, the owner or

operator is required to obtain FAA

approval for an alternative method of

compliance with the AD, in accordance

with the paragraph of each AD that

provides for such approvals. A note has

been added to this final rule to clarify

this requirement.

Additionally, the FAA has recently

reviewed the figures it has used over the

past several years in calculating the

economic impact of AD activity. In

order to account for various inflationary

costs in the airline industry, the FAA

has determined that it is necessary to

increase the labor rate used in these

calculations from $55 per work hour to

$60 per work hour. The economic

impact information, below, has been

revised to reflect this increase in the

specified hourly labor rate.

After careful review of the available

data, the FAA has determined that air

safety and the public interest require the

adoption of the rule with the changes

previously described. The FAA has

determined that these changes will

neither increase the economic burden

on any operator nor increase the scope

of the AD.

The FAA estimates that 150 airplanes

of U.S. registry will be affected by this

AD.

The side-loads test of the engine

throttle quadrant will take

approximately 17 work hours per

airplane to accomplish, at an average

labor rate of $60 per work hour. Based

on these figures, the total cost impact of

the side-loads test requirements of this

AD on U.S. operators is estimated to be

$153,000, or $1,020 per airplane.

The abrupt-movement check of the

idle stop function of the throttle

quadrant will take approximately 1

work hour per airplane to accomplish,

at an average labor rate of $60 per work

hour. Based on these figures, the total

cost impact of the functional check

requirements of this AD on U.S.

operators is estimated to be $9,000, or

$60 per airplane.

The installation of a modified throttle

quadrant will take approximately 10

work hours per airplane to accomplish,

at an average labor rate of $60 per work

hour. Required parts will be provided

by the manufacturer at no cost to

operators. Based on these figures, the

total cost impact of the installation

requirement of this AD on U.S.

operators is estimated to be $90,000, or

$600 per airplane.

Based on the figures discussed above,

the total cost impact of this AD on U.S.

operators is estimated to be $252,000, or

$1,680 per airplane. This cost impact

figure is based on assumptions that no

operator has yet accomplished any of

the requirements of this AD action, and

that no operator would accomplish

those actions in the future if this AD

were not adopted.
Federal Register / Vol. 60, No. 40 / Wednesday, March 1, 1995 / Rules and Regulations 11021

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 final evaluation has

been prepared for this action and it is

contained in the Rules Docket. A copy

of it may be obtained from 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. App. 1354(a), 1421

and 1423; 49 U.S.C. 106(g); and 14 CFR

11.89.

§ 39.13 [Amended]

2. Section 39.13 is amended by

adding the following new airworthiness

directive:

95–03–06 Canadair: Amendment 39–9143.

Docket 93–NM–207–AD.

Applicability: Model CL–600–1A11 series

airplanes, serial numbers 1004 through 1085,

inclusive, equipped with throttle quadrant

part numbers 600–90601–69, –71, –73, –75,

–77, and –79; Model CL–600–2A12 series

airplanes, serial numbers 3001 through 3066,

inclusive, equipped with throttle quadrant

part numbers 600–90601–983, –987, –989,

–1013, –1015, –1017, –1019, –1021, –1023,

1025, and –1027; and Model CL–600–2B16

series airplanes, serial numbers 5001 through

5139, inclusive, equipped with throttle

quadrant part numbers 600–90601–983,

–987, –989, –1013, –1015, –1017, –1019,

–1021, –1023, –1025, and 1027; certificated

in any category.

Note 1: 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 use the authority

provided in paragraph (f) to request approval

from the FAA. This approval may address

either no action, if the current configuration

eliminates the unsafe condition; or different

actions necessary to address the unsafe

condition described in this AD. Such a

request should include an assessment of the

effect of the changed configuration on the

unsafe condition addressed by this AD. In no

case does the presence of any modification,

alteration, or repair remove any airplane from

the applicability of this AD.

Compliance: Required as indicated, unless

accomplished previously.

To prevent inadvertent shutdown of an

engine while the airplane is taxiing or in

flight, accomplish the following:

(a) Within 50 hours time-in-service after

the effective date of this AD, perform a test

of the engine throttle quadrant to determine

if the throttle levers bypass the idle stop into

the shut-off position, in accordance with

Canadair Alert Service Bulletin A600–0615,

dated June 10, 1992 (for Model CL–600–1A11

series airplanes); or Canadair Alert Service

Bulletin A601–0374, Revision 1, dated

September 30, 1992 (for Models CL–600–

2A12 and CL–600–2B16 series airplanes), as

applicable.

Note 2: Canadair Alert Service Bulletins

A600–0615 and A601–0374 reference Sargent

Aerospace Service Bulletins 43058–76–03

(for Model CL–600–1A11 series airplanes)

and 43068–76–05 (for Model CL–600–2A12

and –2B16 series airplanes), both dated April

13, 1992, for additional service information.

(b) If the test required by paragraph (a) of

this AD indicates that either throttle lever

bypasses the idle stop into the shut-off

position, prior to further flight, replace the

throttle quadrant in accordance with Part B

of the Accomplishment Instructions of

Canadair Challenger Service Bulletin 600–

0629, dated November 1, 1993 (for Model

CL–600–1A11 series airplanes); or Canadair

Challenger Service Bulletin 601–0410, dated

November 1, 1993 (for Models CL–600–2A12

and –2B16 series airplanes); as applicable.

(c) Within 150 hours time-in-service after

the effective date of this AD, perform a

functional check of the idle stop function of

the throttle quadrant in accordance with Part

A of the Accomplishment Instructions of

Canadair Challenger Service Bulletin 600–

0629, dated November 1, 1993 (for Model

CL–600–1A11 series airplanes); or Canadair

Challenger Service Bulletin 601–0410, dated

November 1, 1993 (for Models CL–600–2A12

and –2B16 series airplanes); as applicable.

Note 3: Canadair Challenger Service

Bulletins A600–0629 and A601–0410

reference Sargent Aerospace Service

Bulletins 43058–76–04 (for Model CL–600–

1A11 series airplanes) and 43068–76–06 (for

Model CL–600–2A12 and –2B16 series

airplanes), both dated March 24, 1993, for

additional service information.

(d) If the functional check required by

paragraph (c) of this AD indicates that the

idle stop function of the throttle quadrant

fails, prior to further flight, replace the

throttle quadrant in accordance with Part B

of the Accomplishment Instructions of

Canadair Challenger Service Bulletin 600–

0629 or 601–0410, both dated November 1,

1993, as applicable.

(e) Within 4,500 hours time-in-service after

the effective date of this AD, replace the

throttle quadrant in accordance with Part B

of the Accomplishment Instructions of

Canadair Challenger Service Bulletin 600–

0629, dated November 1, 1993 (for Model

CL–600–1A11 series airplanes); or Canadair

Challenger Service Bulletin 601–0410, dated

November 1, 1993 (for Models CL–600–2A12

and CL–600–2B16 series airplanes); as

applicable. Such replacement constitutes

terminating action for the requirements of

this AD.

(f) 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, New York

Aircraft Certification Office (ACO), FAA,

Engine and Propeller Directorate. Operators

shall submit their requests through an

appropriate FAA Principal Maintenance

Inspector, who may add comments and then

send it to the Manager, New York ACO.

Note 4: Information concerning the

existence of approved alternative methods of

compliance with this AD, if any, may be

obtained from the New York ACO.

(g) Special flight permits may be issued in

accordance with §§ 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.

(h) The replacements and check shall be

done in accordance with Canadair Challenger

Service Bulletin 600–0629, dated November

1, 1993; or Canadair Challenger Service

Bulletin 601–0410, dated November 1, 1993;

as applicable. This incorporation by

reference was approved by the Director of the

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

552(a) and 1 CFR part 51. Copies may be

obtained from Bombardier, Inc., Canadair,

Aerospace Group, P.O. Box 6087, Station A,

Montreal, Quebec H3C 3G9, Canada. Copies

may be inspected at the FAA, Transport

Airplane Directorate, 1601 Lind Avenue,

SW., Renton, Washington; or at the FAA,

Engine and Propeller Directorate, New York

Aircraft Certification Office, 10 Fifth Street,

Third Floor, Valley Stream, New York; or at

the Office of the Federal Register, 800 North

Capitol Street, NW., suite 700, Washington,

DC.

(i) This amendment becomes effective on

March 31, 1995.
11022 Federal Register / Vol. 60, No. 40 / Wednesday, March 1, 1995 / Rules and Regulations

1Securities Exchange Act Release No. 28927

(February 20, 1991), 56 FR 9124 (March 5, 1991).

2Securities Exchange Act Release No. 31511

(November 24, 1992), 57 FR 56973 (December 2,

1992).

3Securities Exchange Act Release No. 31512

(November 24, 1992), 57 FR 57027 (December 2,

1992).

4 17 CFR 240.15c3–1.

5The Treasury would have acted sooner on these

amendments but its rulemaking authority under the

GSA expired on October 1, 1991, and was not

reauthorized until December 17, 1993. (107 Stat.

2344, Pub. L. 103–202).

6 59 FR 32155 (June 22, 1994).

7 17 CFR 402.2.

8 17 CFR 402.2(c).

9 17 CFR 402.2(b).

Issued in Renton, Washington, on February

3, 1995.

S.R. Miller,

Acting Manager, Transport Airplane

Directorate, Aircraft Certification Service.

[FR Doc. 95–3246 Filed 2–28–95; 8:45 am]

BILLING CODE 4910–13–U

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

14 CFR Part 1241

Contract Appeals

AGENCY: National Aeronautics and

Space Administration, (NASA).

ACTION: Final rule.

SUMMARY: NASA is amending Title 14 of

the Code of Federal Regulations (CFR)

by removing Part 1241, ‘‘Contract

Appeals.’’ The NASA Board of Contract

Appeals no longer exists as a separate

entity at NASA and its functions were

assumed by the Armed Services Board

of Contract Appeals. Section 18–33.211

of the NASA Federal Acquisition

Regulation (FAR) Supplement

adequately advises contracting officers

and contractors that the Armed Services

Board of Contract Appeals (ASBCA) is

now NASA’s authorized contract

dispute forum.

EFFECTIVE DATE: February 9, 1995.

FOR FURTHER INFORMATION CONTACT:

David P. Forbes, 202 358–2440.

SUPPLEMENTARY INFORMATION:

List of Subjects in 14 CFR Part 1241

Board of Contract Appeals,

Administrative practice and procedure,

Government contracts.

Under the authority, 42 U.S.C. 2473,

14 CFR Part 1241 is amended as follows:

PART 1241—[REMOVED AND

RESERVED]

14 CFR Part 1241, consisting of

§§ 1241.10 through 1241.234, is

removed and reserved.

Edward A. Frankle,

General Counsel.

[FR Doc. 95–5044 Filed 2–28–95; 8:45 am]

BILLING CODE 7510–01–M

DEPARTMENT OF THE TREASURY

Office of the Under Secretary for

Domestic Finance

17 CFR Parts 400, 401, 402, 403, 404,

405, and 450

RIN 1505–AA44

Amendments to Regulations for the

Government Securities Act of 1986

AGENCY: Office of the Under Secretary

for Domestic Finance, Treasury.

ACTION: Final rule.

SUMMARY: The Department of the

Treasury (‘‘Department’’) is publishing,

as a final rule, amendments to the

financial responsibility rules in part 402

and a conforming amendment to a

recordkeeping requirement in part 404

of the regulations issued under the

Government Securities Act of 1986

(‘‘GSA’’). The amendments raise the

minimum capital requirements for all

government securities brokers and

dealers subject to the requirements of

§ 402.2 and establish a written

notification requirement for certain

withdrawals of capital. The

amendments parallel the Securities and

Exchange Commission’s (‘‘SEC’’) final

and proposed amendments to the

minimum net capital requirements for

brokers and dealers subject to the

requirements of 17 CFR 240.15c3–1

(Rule 15c3–1) and final rules regarding

the withdrawal of capital. The

Department is adopting the amendments

unchanged from their proposed form.

DATES: Effective date: March 31, 1995.

Further dates: see § 402.2e (Appendix E

to § 402.2) for the phase-in schedule for

the increased minimum capital levels.

FOR FURTHER INFORMATION CONTACT: Don

Hammond (Assistant Director) or Kerry

Lanham (Government Securities

Specialist) at 202–219–3632. (TDD for

the hearing impaired: 202–219–3988.)

SUPPLEMENTARY INFORMATION:

I. Background

The amendments to the Department’s

financial responsibility rules in part 402

raise the minimum capital requirements

and establish written notification

requirements for certain capital

withdrawals for those government

securities brokers and dealers subject to

the provisions of § 402.2. Additionally,

the Department is making a conforming

change to the recordkeeping

requirements of part 404 which is

necessitated by the revisions to the

minimum capital levels. The

amendments parallel rule amendments

adopted or proposed by the SEC. The

Department’s amendments will increase

investor confidence in the financial

responsibility of government securities

brokers and dealers without

overburdening the government

securities market.

The SEC published its final capital

withdrawal regulations on March 5,

1991,1 finalized its first change in

minimum capital levels on November

24, 1992,2 but has not yet finalized its

second proposal 3 on minimum capital

levels for certain introducing firms. It is

Treasury’s objective, where practical, to

have consistency with the SEC capital

standard 4 and, ultimately, develop a

uniform capital rule for all government

securities brokers and dealers registered

with the SEC.5

The Department first published these

amendments in proposed form on June

22, 1994,6 and the comment period

closed on August 22, 1994. In addition,

the National Association of Securities

Dealers distributed the proposed

changes to its potentially affected

members. Treasury received no

comments in response to the proposal.

II. Analysis

A. Minimum Capital Requirements

The SEC has either increased or

proposed increasing the minimum net

capital requirements for most brokers

and dealers subject to Rule 15c3–1 to an

amount ranging up to $250,000,

depending on the type of business

conducted by the broker or dealer. The

Treasury minimum dollar capital levels

are based on liquid capital after

deducting haircuts, which is

comparable to the SEC’s calculation of

net capital. The Treasury capital rule 7

currently has a $5,000 minimum liquid

capital requirement for introducing

brokers 8 and a $25,000 minimum liquid

capital requirement for all other

government securities brokers and

dealers 9 subject to the rule. The

Department believes that increasing the

minimum levels is appropriate in order

to provide better protection to investors