Presidential Documents. Final rule

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--- schema: federal-register doc_type: fedreg source_file: FR-2007-06-05.xml --- 72 107 Tuesday, June 5, 2007 Contents Agriculture Agriculture Department See Animal and Plant Health Inspection Service Animal Animal and Plant Health Inspection Service PROPOSED RULES Plant-related quarantine, foreign: Blueberries from South Africa, Uruguay, and Argentina; importation with cold treatment, 30979-30984 E7-10818 Children Children and Families Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 31071-31072 07-2768 Organization, functions, and authority delegations:

Assistant Secretary for Children and Families Office et al., 31072-31073 E7-10777 Commerce Commerce Department See Foreign-Trade Zones Board See Industry and Security Bureau See International Trade Administration See National Oceanic and Atmospheric Administration NOTICES Reports and guidance documents; availability, etc.: Alternative fuel vehicle reports; FY 2005 and FY 2006, 31050 07-2775 Corporation Corporation for National and Community Service NOTICES Meetings; Sunshine Act, 31057-31058 07-2808 Defense Defense Department NOTICES Arms sales notification; transmittal letter, etc., 31058-31068 07-2776 07-2777 EPA Environmental Protection Agency PROPOSED RULES Toxic substances:

Lead; renovation, repair, and painting program; hazard exposure reduction, 31022-31048 E7-10797 NOTICES Air programs: Air quality implementation plans; adequacy status for transportation conformity purposes— Various States, 31069 E7-10770 Meetings: Scientific Counselors Board, 31069-31070 E7-10769 Executive Executive Office of the President See Presidential Documents FAA Federal Aviation Administration RULES Airworthiness directives: Airbus, 30961-30966 E7-10671 Bombardier, 30959-30961, E7-10670 30968-30970 E7-10678 General Electric Co., 30955-30959 E7-10588 E7-10746 McDonnell Douglas, 30967-30968 E7-10669 PROPOSED RULES Airworthiness directives:

Boeing, 30996-31003 E7-10755 E7-10757 E7-10760 McDonnell Douglas, 31003-31005 E7-10756 Federal Highway Federal Highway Administration PROPOSED RULES Engineering and traffic operations: Indian Reservation Road Bridge Program, 31013-31021 E7-9869 Federal Motor Federal Motor Carrier Safety Administration PROPOSED RULES Motor carrier safety standards: Unified carrier registration plan and agreement fees, 31048 07-2787 Federal Reserve Federal Reserve System NOTICES Banks and bank holding companies:

Change in bank control, 31070 E7-10751 Formations, acquisitions, and mergers, 31070-31071 E7-10750 Federal Transit Federal Transit Administration NOTICES Environmental statements; notice of intent: Fort Worth, TX; Southwest-to-Northeast Rail Corridor Project, 31126-31127 E7-10762 Financial Financial Management Service See Fiscal Service Fiscal Fiscal Service RULES TreasuryDirect; customer-based authentication mechanisms for customer account access, 30977-30978 07-2744 NOTICES Surety companies acceptable on Federal bonds:

American International Insurance Co. of Puerto Rico; termination, 31127-31128 07-2780 Buckeye Union Insurance Co. et al.; terminations, 31128 07-2779 Continental Insurance Co., 31128 07-2778 Fish Fish and Wildlife Service RULES Importation, exportation, and transportation of wildlife: Eagle permits— Bald and golden eagles protection; definition of “disturb”, 31132-31140 07-2694 PROPOSED RULES Endangered and threatened species: Findings on petitions, etc.— Wolverine, 31048-31049 E7-10570 Importation, exportation, and transportation of wildlife:

Eagle permits— Bald and Golden Eagle Protection Act; eagle take authorizations, 31141-31155 07-2697 NOTICES Endangered and threatened species and marine mammal permit applications, determinations, etc., E7-10761 31090-31091 E7-10763 Environmental statements; availability, etc.: Bald eagles protection; definition of “disturb”, 31156 07-2696 Reports and guidance documents; availability, etc.: National Bald Eagle Management Guidelines, 31156-31157 07-2695 Food Food and Drug Administration RULES Animal drugs, feeds, and related products:

Sponsor name and address changes— Watson Laboratories, Inc., 30970-30971 E7-10771 NOTICES Agency information collection activities; proposals, submissions, and approvals, 31074 E7-10785 Committees; establishment, renewal, termination, etc.: Public advisory committees— Voting members, 31074-31075 E7-10737 Risk Communication Advisory Committee, 31075 E7-10740 Human drugs: Patent extension; regulatory review period determinations— NAMENDA, 31075-31076 E7-10730 Reports and guidance documents; availability, etc.:

Advisory Committee Telephone Information Hotline; revision, 31076-31078 E7-10738 Refrigerated carrot juice and other refrigerated low-acid juices; safety guidance, 31078-31079 E7-10792 Regulatory submissions in electronic format; receipt date, 31079-31080 E7-10780 MISSING FOR: Foreign-Trade Zones Board Foreign-Trade Zones Board NOTICES *Applications, hearings, determinations, etc.:* Georgia, 31050 E7-10783 New Mexico, 31050-31051 E7-10784 North Carolina Volvo Construction Equipment North America, Inc.; construction equipment manufacturing plant, 31051 E7-10782 GSA General Services Administration NOTICES Environmental statements; availability, etc.:

Los Angeles, CA; Federal Bureau of Investigation Field Office Headquarters facility; termination, 31071 E7-10748 Health Health and Human Services Department See Children and Families Administration See Food and Drug Administration See Health Resources and Services Administration NOTICES Meetings: Public Health Emergency Medical Countermeasures Enterprise Stakeholders Workshop, 31071 E7-10742 Health Health Resources and Services Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 31080 E7-10749 Homeland Homeland Security Department NOTICES Privacy Act; systems of records, 31080-31090 07-2781 07-2782 07-2783 Industry Industry and Security Bureau PROPOSED RULES Export administration regulations:

Entity list— Entities acting contrary to national security and foreign policy interests of U.S.; export and reexport license requirements, 31005-31008 E7-10788 NOTICES Meetings: Deemed Export Advisory Committee, 31051-31052 07-2786 Interior Interior Department See Fish and Wildlife Service See Land Management Bureau See National Park Service IRS Internal Revenue Service RULES Income taxes: Designated Roth accounts; correction, 30974 E7-10802 Procedure and administration: Written contracts or agreements for acquisition of property and services for tax administration purposes; returns and return information disclosure, 30974-30977 E7-10798 PROPOSED RULES Income taxes:

Active trade or business requirement section 355 guidance; correction, 31021-31022 E7-10799 NOTICES Agency information collection activities; proposals, submissions, and approvals, 31128-31129 E7-10800 International International Trade Administration NOTICES Antidumping: Automotive replacement glass windshields from— China, 31052-31053 E7-10779 Petroleum wax candles from— China, 31053-31055 E7-10781 International International Trade Commission NOTICES Import investigations: Laser bar code scanners and scan engines, components thereof, and products containing same, 31094-31095 E7-10739 Meetings;

Sunshine Act, 31095 E7-10793 Labor Labor Department NOTICES Organization, functions, and authority delegations: Assistant Secretary for Occupational Safety and Health, 31160-31161 E7-10747 Land Land Management Bureau NOTICES Environmental statements; availability, etc.: Rawlins Resource Area, WY; resource management plan, 31091-31093 E7-10735 Meetings: Wild horses and burros; helicopter and motorized vehicles use during capture, 31093 E7-10743 Oil and gas leases: Wyoming, 31093 E7-10759 National Credit National Credit Union Administration PROPOSED RULES Credit unions:

Organization and operations— Chartering and field of membership manual; community chartering policies update, 30988-30996 E7-10398 Federal credit union bylaws, 30984-30988 E7-10389 NOAA National Oceanic and Atmospheric Administration NOTICES Environmental statements; availability, etc.: Jefferson County, TX; Palmer Barge Superfund Site, 31055-31056 E7-10733 Meetings: New England Fishery Management Council, 31056-31057 E7-10775 North Pacific Fishery Management Council, E7-10774 31057 E7-10776 National Park National Park Service NOTICES National Register of Historic Places; pending nominations, 31093-31094 E7-10728 National Transportation National Transportation Safety Board NOTICES Meetings;

Sunshine Act, 31095-31096 07-2820 Nuclear Nuclear Regulatory Commission NOTICES Meetings; Sunshine Act, 31096-31097 07-2802 Operating licenses, amendments; no significant hazards considerations; biweekly notices, 31097-31108 E7-10590 Reports and guidance documents; availability, etc.: Nucleate boiling parameters; change to Core Operating Limits Report references for combustion engineering pressurized water reactors; consolidated line item, 31108-31112 E7-10786 *Applications, hearings, determinations, etc.:* STP Nuclear Operating Co., 31096 E7-10787 Presidential Presidential Documents PROCLAMATIONS *Special observances:* Caribbean-American Heritage Month (Proc. 8153), 31167-31168 07-2826 National Child's Day (Proc. 8152), 31163-31166 07-2825 National Homeownership Month (Proc. 8154), 31169-31170 07-2827 Public Public Debt Bureau See Fiscal Service NOTICES Agency information collection activities; proposals, submissions, and approvals, 31129 E7-10741 SEC Securities and Exchange Commission NOTICES Investment Company Act of 1940:

Ameristock ETF Trust et al., 31113-31117 E7-10753 John Hancock Trust et al., 31117-31121 E7-10752 Self-regulatory organizations; proposed rule changes: Depository Trust Co., 31121-31122 E7-10768 Municipal Securities Rulemaking Board, 31122-31126 E7-10767 State State Department RULES Security information regulations, 30971-30974 E7-10778 PROPOSED RULES Exchange Visitor Program: College and university students; student interns subcategory, 31008-31013 E7-10606 Transportation Transportation Department See Federal Aviation Administration See Federal Highway Administration See Federal Motor Carrier Safety Administration See Federal Transit Administration Treasury Treasury Department See Fiscal Service See Internal Revenue Service See Public Debt Bureau Separate Parts In This Issue Part II Interior Department, Fish and Wildlife Service, 31132-31157 07-2694 07-2695 07-2696 07-2697 Part III Labor Department, 31160-31161 E7-10747 Part IV Executive Office of the President, Presidential Documents, 31163-31170 07-2825 07-2826 07-2827 Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, reminders, and notice of recently enacted public laws.

To subscribe to the Federal Register Table of Contents LISTSERV electronic mailing list, go to http://listserv.access.gpo.gov and select Online mailing list archives, FEDREGTOC-L, Join or leave the list (or change settings); then follow the instructions. 72 107 Tuesday, June 5, 2007 Rules and Regulations DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA-2006-26585; Directorate Identifier 2006-NE-44-AD; Amendment 39-15087; AD 2007-12-09] RIN 2120-AA64 Airworthiness Directives;

General Electric Company CF34-10E Series Turbofan Engines AGENCY: Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Final rule. SUMMARY: The FAA is adopting a new airworthiness directive

(AD)for General Electric Company

(GE)CF34-10E series turbofan engines. This AD requires revising the combustor case published life limit and removing combustor cases from service before reaching a reduced life limit. This AD results from GE's evaluation of the effects to the combustor case due to installing version 5.10 software in the full-authority digital electronic control (FADEC), and revising the combustor case published life limit. We are issuing this AD to prevent uncontained combustor case failure resulting in an in-flight engine shutdown and possible damage to the airplane. DATES: This AD becomes effective July 10, 2007. ADDRESSES: You may examine the AD docket on the Internet at *http://dms.dot.gov* or in Room PL-401 on the plaza level of the Nassif Building, 400 Seventh Street, SW., Washington, DC. FOR FURTHER INFORMATION CONTACT: Tara Chaidez, Aerospace Engineer, Engine Certification Office, FAA, Engine & Propeller Directorate, 12 New England Executive Park, Burlington, MA 01803; e-mail: *tara.chaidez@faa.gov* ; telephone

(781)238-7773; fax

(781)238-7199. SUPPLEMENTARY INFORMATION: The FAA proposed to amend 14 CFR part 39 with a proposed AD. The proposed AD applies to GE CF34-10E series turbofan engines. We published the proposed AD in the **Federal Register** on January 17, 2007 (72 FR 1946). That action proposed to require revising the combustor case published life limit and removing combustor cases from service before reaching a reduced life limit. Examining the AD Docket You may examine the docket that contains the AD, any comments received, and any final disposition in person at the Docket Management Facility between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The Docket Office (telephone

(g)After we issued the proposed AD, our review indicated that we should simplify the compliance by eliminating paragraph (g). That paragraph is redundant to paragraph (f), and would only add an additional requirement for the operators to show compliance after removal of every affected part. We eliminated the proposed AD paragraph (g), and re-codified the paragraphs, in this AD. Conclusion We have carefully reviewed the available data and determined that air safety and the public interest require adopting the AD as proposed. Costs of Compliance We estimate that this AD will affect 42 CF34-10E series turbofan engines installed on airplanes of U.S. registry. This combustor case removal does not impose any additional labor costs if performed at the time of scheduled engine overhaul. The financial burden to the operators (prorate) is about $140,080 per engine due to the reduction in the life limit. Based on these figures, and on the prorating for the usage of the combustor cases, we estimate the cost of the AD on U.S. operators to be $5,886,720. Authority for This Rulemaking Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, Section 106, describes the authority of the FAA Administrator. Subtitle VII, Aviation Programs, describes in more detail the scope of the Agency's authority. We are issuing this rulemaking under the authority described in Subtitle VII, Part A, Subpart III, Section 44701, “General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action. Regulatory Findings We have determined that this AD will not have federalism implications under Executive Order 13132. This AD will not have a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. For the reasons discussed above, I certify 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); 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. We prepared a summary of the costs to comply with this AD and placed it in the AD Docket. You may get a copy of this summary at the address listed under ADDRESSES . List of Subjects in 14 CFR Part 39 Air transportation, Aircraft, Aviation safety, Safety. Adoption of the Amendment Accordingly, under the authority delegated to me by the Administrator, the Federal Aviation Administration 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: **2007-12-09 General Electric Company** : Amendment 39-15087. Docket No. FAA-2006-26585; Directorate Identifier 2006-NE-44-AD. Effective Date

(a)This airworthiness directive

(AD)becomes effective July 10, 2007. Affected ADs

(b)None. Applicability

(c)This AD applies to General Electric Company

(GE)CF34-10E2A1, CF34-10E5, CF34-10E5A1, CF34-10E6, CF34-10E6A1, and CF34-10E7 turbofan engines. These engines are installed on, but not limited to, Embraer ERJ-190 and -195 airplanes. Unsafe Condition

(d)This AD results from GE's evaluation of the effects to the combustor case due to installing version 5.10 software in the full-authority digital electronic control (FADEC), and revising the combustor case published life limit. We are issuing this AD to prevent uncontained combustor case failure resulting in an in-flight engine shutdown and possible damage to the airplane. Compliance

(e)You are responsible for having the actions required by this AD performed within 30 days after the effective date of this AD, unless the actions have already been done.

(f)Revise the published life limit in the Airworthiness Limitations Section of the CF34-10E Engine Manual, for combustor cases, part number (P/N) 2070M47G02 and P/N 2070M47G03, from 39,600 cycles-since-new

(CSN)to 24,600 CSN.

(g)The requirements of this AD have been met when the engine manual changes are made and operators have modified their continuous airworthiness maintenance plans to reflect the Engine Maintenance Program requirements specified in the GE CF34-10E Engine Manual. Alternative Methods of Compliance

(h)The Manager, Engine Certification Office, has the authority to approve alternative methods of compliance for this AD if requested using the procedures found in 14 CFR 39.19. Related Information

(i)Contact Tara Chaidez, Aerospace Engineer, Engine Certification Office, FAA, Engine and Propeller Directorate, 12 New England Executive Park, Burlington, MA 01803; e-mail: *tara.chaidez@faa.gov;* telephone

(781)238-7773, fax

(781)238-7199, for more information about this AD. Issued in Burlington, Massachusetts, on May 30, 2007. Robert Ganley, Acting Manager, Engine and Propeller Directorate, Aircraft Certification Service. [FR Doc. E7-10746 Filed 6-4-07; 8:45 am] BILLING CODE 4910-13-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA-2006-26488; Directorate Identifier 2006-NE-43-AD; Amendment 39-15077; AD 2007-11-20] RIN 2120-AA64 Airworthiness Directives; General Electric Company

(GE)CF6-80 Series Turbofan Engines AGENCY: Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Final rule. SUMMARY: The FAA is adopting a new airworthiness directive

(AD)for GE CF6-80 series turbofan engines with fuel shroud retaining rings, part number (P/N) J204P0084, installed. This AD requires replacing those retaining rings with a more robust design fuel shroud retaining snap ring. This AD results from two events of external engine fuel leakage and a subsequent under-cowl engine fire. We are issuing this AD to prevent an under-cowl engine fire and damage to the airplane during an engine high vibration event. DATES: This AD becomes effective July 10, 2007. The Director of the Federal Register approved the incorporation by reference of certain publications listed in the regulations as of July 10, 2007. ADDRESSES: You can get the service information identified in this AD from General Electric Company via Lockheed Martin Technology Services, 10525 Chester Road, Suite C, Cincinnati, Ohio 45215, telephone

(513)672-8400, fax

(513)672-8422. You may examine the AD docket on the Internet at *http://dms.dot.gov* or in Room PL-401 on the plaza level of the Nassif Building, 400 Seventh Street, SW., Washington, DC. FOR FURTHER INFORMATION CONTACT: James Lawrence, Aerospace Engineer, Engine Certification Office, FAA, Engine and Propeller Directorate, 12 New England Executive Park, Burlington, MA 01803; e-mail: *james.lawrence@faa.gov; telephone:*

(781)238-7176, fax:

(781)238-7199. SUPPLEMENTARY INFORMATION: The FAA proposed to amend 14 CFR part 39 with a proposed AD. The proposed AD applies to GE CF6-80 series turbofan engines with fuel shroud retaining rings, part number (P/N) J204P0084, installed. We published the proposed AD in the **Federal Register** on February 15, 2007 (72 FR 7355). That action proposed to require replacing those retaining rings with a more robust design fuel shroud retaining snap ring. Examining the AD Docket You may examine the docket that contains the AD, any comments received, and any final disposition in person at the Docket Management Facility between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The Docket Office (telephone

(800)647-5227) is located on the plaza level of the Department of Transportation Nassif Building at the street address stated in ADDRESSES . Comments will be available in the AD docket shortly after the DMS receives them. Comments We provided the public the opportunity to participate in the development of this AD. We have considered the comments received. Comment That Table 1 Compliance Schedule Is Somewhat Difficult To Follow One commenter, GE, states that the Table 1 compliance schedule in the proposed AD is somewhat difficult to follow. The commenter states that the table needs lines or spaces added, to separate some of the items in it, for clarity. We agree that the Table 1 compliance schedule in the proposed AD is difficult to follow. We have deleted the Table 1 compliance schedule from this AD, based on comments received on the proposed AD, and which are discussed in the paragraphs that follow. Request To Reduce the AD Applicability GE requests that we reduce the AD applicability to only engines with the drainless manifold configuration, since the drained manifold configuration is not subjected to high internal pressure. If a fuel supply tube leaks internally, the shroud contains the fuel, preventing an external leak. We agree and reduced the AD applicability in the AD to only engines with the drainless manifold configuration. Request To Clarify Applicability GE requests that we clarify the applicability to state that engines built at the factory during production assembly with the drainless manifold configuration, are also subject to the requirements of the AD. We agree and made that clarification in the AD. SB Compliance Credit for CF6-80C2 Series Engines GE suggests that we add a note or statement to the compliance section verifying that CF6-80C2 series engine operators that have complied with a previous revision of SB No. CF6-80C2 S/B 73-0337, are in compliance with the AD. We agree. We added the “SB Compliance Credit for CF6-80C2 Series Engines” paragraph to the AD. Request To Revise the Compliance Section KLM Royal Dutch Airlines requests that we revise the section of the compliance that states “Comply with this AD as soon as one or more fuel shroud retaining rings are removed from the engine” to, “Comply with this AD during next engine shop visit for any reason.” The commenter states that the AD action should be only at engine-level and not on-wing. We agree that the AD action should be only at engine-level and not on-wing. That part of the proposed compliance section was for engines that had not incorporated GE SB No. CF6-80C2 S/B 73-0253 (which eliminates the fuel drain system manifold and introduces a new drainless fuel manifold). The result is that this AD now applies to only the drainless manifold configuration. In addition, we deleted the Table 1 compliance schedule because it is no longer needed, clarified compliance paragraph (g), and clarified applicability paragraphs

(c)and

(d)in this AD. Request To Change Nomenclature All Nippon Airways requests that we change the proposed AD nomenclature for the rings being removed, from “retaining snap ring” to “retaining ring”. We agree. We confirmed that GE's SBs refer to the removed rings as “retaining rings” and to the rings being installed as “snap rings.” We changed the nomenclature in the AD to reflect that which the SBs use. Reference Table of Fuel Manifold Part Numbers Added For reference, we added a Table under paragraph

(f)which lists fuel manifold production part numbers. Conclusion We have carefully reviewed the available data, including the comments received, and determined that air safety and the public interest require adopting the AD with the changes described previously. We have determined that these changes will neither increase the economic burden on any operator nor increase the scope of the AD. Costs of Compliance We estimate that this AD will affect 853 CF6-80 series turbofan engines installed on airplanes of U.S. registry. We also estimate that it will take about 12.5 work-hours per engine to perform the actions, and that the average labor rate is $80 per work-hour. Required parts will cost about $72 per engine. Based on these figures, we estimate the total cost of the AD to U.S. operators to be $914,416. Authority for This Rulemaking Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, Section 106, describes the authority of the FAA Administrator. Subtitle VII, Aviation Programs, describes in more detail the scope of the Agency's authority. We are issuing this rulemaking under the authority described in Subtitle VII, Part A, Subpart III, Section 44701, “General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action. Regulatory Findings We have determined that this AD will not have federalism implications under Executive Order 13132. This AD will not have a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. *For the reasons discussed above, I certify 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); 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. We prepared a summary of the costs to comply with this AD and placed it in the AD Docket. You may get a copy of this summary at the address listed under ADDRESSES . 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 Federal Aviation Administration 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: **2007-11-20 General Electric Company:** Amendment 39-15077. Docket No. FAA-2006-26488; Directorate Identifier 2006-NE-43-AD. Effective Date

(a)This airworthiness directive

(AD)becomes effective July 10, 2007. Affected ADs

(b)None. Applicability

(c)This AD applies to the following General Electric Company

(GE)CF6-80C2 series turbofan engines that have incorporated GE Service Bulletin

(SB)No. CF6-80C2 S/B 73-0253, or were built with the drainless manifold configuration at the factory during production assembly, and, have one or more fuel shroud retaining rings, part number (P/N) J204P0084, installed: CF6-80C2A1, CF6-80C2A2, CF6-80C2A3, CF6-80C2A5, CF6-80C2A8, CF6-80C2A5F, CF6-80C2B1, CF6-80C2B2, CF6-80C2B4, CF6-80C2B6, CF6-80C2B1F, CF6-80C2B2F, CF6-80C2B4F, CF6-80C2B5F, CF6-80C2B6F, CF6-80C2B6FA, CF6-80C2B7F, CF6-80C2B8F, CF6-80C2D1F, CF6-80C2L1F.

(d)This AD also applies to GE CF6-80E1A1, CF6-80E1A2, CF6-80E1A3, CF6-80E1A4, and CF6-80E1A4B turbofan engines that have incorporated GE SB No. CF6-80E1 S/B 73-0026, or were built with the drainless manifold configuration at the factory during production assembly, and, have one or more fuel shroud retaining rings, P/N J204P0084, installed.

(e)These engines are installed on, but not limited to, Airbus A300, A310, A330, Boeing 747, 767, and McDonnell Douglas MD11 airplanes.

(f)For reference, the following Table 1 lists fuel manifold production P/Ns. Table 1.—Reference of Fuel Manifold Production P/Ns CF6-80C2 Series Engines Drained Fuel Manifold P/N (left side) Drainless Fuel Manifold P/N (left side) 1303M31G04 1303M31G06 1303M31G07 1303M31G08 1303M31G10 1303M31G12. Drained Fuel Manifold (right side) Drainless Fuel Manifold P/N (right side) 1303M32G04 1303M32G06 1303M32G07 1303M32G08 1303M32G10 1303M32G12. CF6-80 E1 Series Engines Drained Fuel Manifold P/N (left side) Drainless Fuel Manifold P/N (left side) 1700M34G01 1303M31G12. Drained Fuel Manifold P/N (right side) Drainless Fuel Manifold P/N (right side) 1700M35G02 1303M32G12. Unsafe Condition

(g)This AD results from two events of external engine fuel leakage and a subsequent under-cowl engine fire. We are issuing this AD to prevent an under-cowl engine fire and damage to the airplane during an engine high vibration event. Compliance

(h)You are responsible for having the actions required by this AD performed at the next engine shop visit for any reason after the effective date of this AD, unless the actions have already been done. Replacement of Fuel Shroud Retaining Snap Rings

(i)Replace any fuel shroud retaining rings, P/N J204P0084, with a fuel shroud retaining snap ring, P/N 2186M12P01. Each engine has a total of 30 rings installed.

(j)For CF6-80C2 series engines, use paragraphs 3.A. through 3.C.(1)(b)2, of GE SB No. CF6-80C2 S/B 73-0337, Revision 3, dated February 5, 2007, to do the replacements.

(k)For CF6-80E1 series engines, use paragraphs 3.A. through 3.C.(1)(b)2, of GE SB No. CF6-80E1 S/B 73-0075, Revision 1, dated November 27, 2006, to do the replacements. SB Compliance Credit for CF6-80C2 Series Engines

(l)This AD requires no further action if the fuel shroud retaining snap rings were installed in the CF6-80C2 series engines before the effective date of this AD using GE SB No. CF6-80C2 S/B 73-0337, Revision 2, dated January 11, 2007, Revision 1, dated April 19, 2005, or the Original, dated November 30, 2004. Alternative Methods of Compliance

(m)The Manager, Engine Certification Office, has the authority to approve alternative methods of compliance for this AD if requested using the procedures found in 14 CFR 39.19. Related Information

(n)Contact James Lawrence, Aerospace Engineer, Engine Certification Office, FAA, Engine and Propeller Directorate, 12 New England Executive Park, Burlington, MA 01803; e-mail: *james.lawrence@faa.gov* ; telephone

(781)238-7176; fax

(781)238-7199, for more information about this AD. Material Incorporated by Reference

(o)You must use the General Electric Company service information specified in Table 2 of this AD to perform the replacements required by this AD. The Director of the Federal Register approved the incorporation by reference of the documents listed in Table 2 of this AD in accordance with 5 U.S.C. 552(a) and 1 CFR part 51. Contact General Electric Company via Lockheed Martin Technology Services, 10525 Chester Road, Suite C, Cincinnati, Ohio 45215, telephone

(513)672-8400, fax

(513)672-8422, for a copy of this service information. You may review copies at the FAA, New England Region, Office of the Regional Counsel, 12 New England Executive Park, Burlington, MA; or 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/ibr-locations.html* . Table 2.—Incorporation by Reference Service Bulletin No. Page Revision Date CF6-80C2 S/B 73-0337 All 3 February 5, 2007. Total Pages: 13 CF6-80E1 S/B 73-0075 All 1 November 27, 2006. Total Pages: 13 Issued in Burlington, Massachusetts, on May 24, 2007. Francis A. Favara, Manager, Engine and Propeller Directorate, Aircraft Certification Service. [FR Doc. E7-10588 Filed 6-4-07; 8:45 am] BILLING CODE 4910-13-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA-2007-27713; Directorate Identifier 2006-NM-240-AD; Amendment 39-15079; AD 2007-12-01] RIN 2120-AA64 Airworthiness Directives; Bombardier Model DHC-8-100, DHC-8-200, and DHC-8-300 Series Airplanes AGENCY: Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Final rule. SUMMARY: The FAA is adopting a new airworthiness directive

(AD)for certain Bombardier Model DHC-8-100, DHC-8-200, and DHC-8-300 series airplanes. This AD requires, for certain airplanes, modification of the upper bearing of the main landing gear

(MLG)shock strut. This AD also requires, for certain airplanes, revising the de Havilland DHC-8 Maintenance Program Manual to include the MLG shock strut servicing task. This AD results from reports of over-extension of the MLG shock strut piston, which allows the torque links to go over-center and rest on the piston. We are issuing this AD to prevent loss in shock absorption during touchdown and failure of the shock strut housing, which could result in a subsequent loss of directional control. DATES: This AD becomes effective July 10, 2007. The Director of the Federal Register approved the incorporation by reference of certain publications listed in the AD as of July 10, 2007. ADDRESSES: You may examine the AD docket on the Internet at *http://dms.dot.gov* or in person at the Docket Management Facility, U.S. Department of Transportation, 400 Seventh Street, SW., Nassif Building, Room PL-401, Washington, DC. Contact Bombardier, Inc., Bombardier Regional Aircraft Division, 123 Garratt Boulevard, Downsview, Ontario M3K 1Y5, Canada, for service information identified in this AD. FOR FURTHER INFORMATION CONTACT: Mazdak Hobbi, Aerospace Engineer, Airframe and Propulsion Branch, ANE-171, FAA, New York Aircraft Certification Office, 1600 Stewart Avenue, Suite 410, Westbury, New York 11590; telephone

(516)228-7330; fax

(516)794-5531. SUPPLEMENTARY INFORMATION: Examining the Docket You may examine the airworthiness directive

(AD)docket on the Internet at *http://dms.dot.gov* or in person at the Docket Management Facility office between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The Docket Management Facility office (telephone

(800)647-5227) is located on the plaza level of the Nassif Building at the street address stated in the ADDRESSES section. Discussion The FAA issued a notice of proposed rulemaking

(NPRM)to amend 14 CFR part 39 to include an AD that would apply to certain Bombardier Model DHC-8-100, DHC-8-200, and DHC-8-300 series airplanes. That NPRM was published in the **Federal Register** on March 29, 2007 (72 FR 14721). That NPRM proposed to require, for certain airplanes, modification of the upper bearing of the main landing gear

(MLG)shock strut. That NPRM proposed to also require, for certain airplanes, revising the de Havilland DHC-8 Maintenance Program Manual to include the MLG shock strut servicing task. Comments We provided the public the opportunity to participate in the development of this AD. We received no comments on the NPRM or on the determination of the cost to the public. Clarification of Part Number We have revised paragraph (i)(2) of this final rule to correct a typographical error, which resulted in an incorrect part number. Paragraph (i)(2) should have read “* * * 10129-5 or 10129-553.” Clarification of Alternative Method of Compliance

(AMOC)Paragraph We have revised this action to clarify the appropriate procedure for notifying the principal inspector before using any approved AMOC on any airplane to which the AMOC applies. Conclusion We have carefully reviewed the available data and determined that air safety and the public interest require adopting the AD with the changes described previously. We have determined that these changes will neither increase the economic burden on any operator nor increase the scope of the AD. Costs of Compliance The following table provides the estimated costs for U.S. operators to comply with this AD. Estimated Costs Action Work hours Average labor rate per hour Parts Cost per airplane Number of U.S.-registered airplanes Fleet cost Modification 4 $80 $274 $594 Up to 135 Up to $80,190. Manual Revision 1 80 0 80 135 $10,800. Authority for This Rulemaking Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, Section 106, describes the authority of the FAA Administrator. Subtitle VII, Aviation Programs, describes in more detail the scope of the Agency's authority. We are issuing this rulemaking under the authority described in Subtitle VII, Part A, Subpart III, Section 44701, “General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action. Regulatory Findings We have determined that this AD will not have federalism implications under Executive Order 13132. This AD will not have a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. For the reasons discussed above, I certify 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); 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. We prepared a regulatory evaluation of the estimated costs to comply with this AD and placed it in the AD docket. See the ADDRESSES section for a location to examine the regulatory evaluation. 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 Federal Aviation Administration

(FAA)amends § 39.13 by adding the following new airworthiness directive (AD): **2007-12-01 Bombardier, Inc. (Formerly de Havilland, Inc.):** Amendment 39-15079. Docket No. FAA-2007-27713; Directorate Identifier 2006-NM-240-AD. Effective Date

(a)This AD becomes effective July 10, 2007. Affected ADs

(b)None. Applicability

(c)This AD applies to Bombardier Model DHC-8-101, -102, -103, -106, -201, -202, -301, -311, -314, and -315 airplanes, certificated in any category; serial numbers 003 through 618 inclusive. Unsafe Condition

(d)This AD results from reports of over-extension of the main landing gear

(MLG)shock strut piston, which allows the torque links to go over-center and rest on the piston. We are issuing this AD to prevent loss in shock absorption during touchdown and failure of the shock strut housing, which could result in a subsequent loss of directional control. Compliance

(e)You are responsible for having the actions required by this AD performed within the compliance times specified, unless the actions have already been done. Modification of the Upper Bearing

(f)For Model DHC-8-311, -314, and -315 airplanes, serial numbers 202 through 516 inclusive, with MLG shock struts having any serial number DCL3501/90 through DCL3768/97 inclusive installed: Within 3,000 flight hours after the effective date of this AD, modify the upper bearing in each MLG (including doing inspections of the upper bearing and cylinder bore for wear and damage, and doing all applicable corrective actions) in accordance with the Accomplishment Instructions of Bombardier Service Bulletin 8-32-144, Revision ‘A,' dated April 29, 2002, which includes Messier-Dowty Service Bulletin M-DT SBDHC8-32-82, Revision 1, dated July 5, 2001, except if wear exceeds the maximum diameter specified in the service bulletin for the cylinder bore or if damage is found on the cylinder bore, before further flight, repair using a method approved by either the Manager, International Branch, ANM-116, Transport Airplane Directorate, FAA; or Transport Canada Civil Aviation

(TCCA)(or its delegated agent). Do all applicable corrective actions before further flight. Revision of the Maintenance Program Manual

(g)For Model DHC-8-101, -102, -103, -106, -201, -202, -301, -311, -314, and -315 airplanes, serial numbers 003 through 614 inclusive: Within 30 days after the effective date of this AD, revise Part 1 of the applicable de Havilland DHC-8 Maintenance Program Manual by incorporating the applicable MLG shock strut servicing Task 3210/15 specified in Table 1 of this AD. Note 1: This may be done by inserting copies of the applicable task into the applicable maintenance program manual. When these tasks have been included in the general revisions of the applicable maintenance program manual, the general revisions may be inserted in the applicable maintenance program manual and the copy of the task may be removed from the maintenance program manual. Table 1.—Tasks Task— Dated— To the de Havilland Program Support Manual (PSM)— For model— de Havilland Dash 8 Series 100 Maintenance Task Card 3210/15 June 22, 2005 1-8-7 DHC-8-100 series airplanes. de Havilland Dash 8 Series 200 Maintenance Task Card 3210/15 June 22, 2005 1-82-7 DHC-8-200 series airplanes. de Havilland Dash 8 Series 300 Maintenance Task Card 3210/15 November 29, 2005 1-83-7 DHC-8-300 series airplanes. Parts Installation

(h)After the effective date of this AD, no person may install a part identified in paragraphs (h)(1) and (h)(2) of this AD, as a replacement during the repair or overhaul of any shock strut assembly, on any airplane.

(1)Upper bearing, part number 10130-3 or 10130-551.

(2)Damper ring, part number 10129-3 or 10129-551.

(i)After the effective date of this AD, only the parts identified in paragraphs (i)(1) and (i)(2) of this AD may be installed on any airplane as replacement upper bearings and damper rings during the repair or overhaul of any shock strut assembly, except as provided by paragraph

(j)of this AD.

(1)Upper bearing, part number 10130-5.

(2)Damper ring, part number 10129-5 or 10129-553.

(j)After the effective date of this AD, only MLGs with a reworked, oversize cylinder bore (part number identified in the applicable component maintenance manual (CMM)) that have parts identified in paragraphs (j)(1), (j)(2), and (j)(3) of this AD used in accordance with the applicable CMM may be installed on any airplane.

(1)Upper bearing, part number CRS85-167-11.

(2)Damper ring, part number CRS85-167-31 or CRS85-167-33.

(3)Seal carrier, part number CRS85-167-21. Credit for Actions Done Using Previous Service Information

(k)Modifications accomplished before the effective date of this AD in accordance with Bombardier Service Bulletin 8-32-144, dated August 10, 1998, which includes Messier-Dowty Service Bulletin M-DT SBDHC8-32-82, dated March 9, 1998, are considered acceptable for compliance with the corresponding actions specified in this AD. Alternative Methods of Compliance (AMOCs) (l)(1) The Manager, New York Aircraft Certification Office, FAA, has the authority to approve AMOCs for this AD, if requested in accordance with the procedures found in 14 CFR 39.19.

(2)To request a different method of compliance or a different compliance time for this AD, follow the procedures in 14 CFR 39.19. Before using any approved AMOC on any airplane to which the AMOC applies, notify your appropriate principal inspector

(PI)in the FAA Flight Standards District Office (FSDO), or lacking a PI, your local FSDO. Related Information

(m)Canadian airworthiness directive CF-2006-14, dated June 14, 2006, also addresses the subject of this AD. Material Incorporated by Reference

(n)You must use Bombardier Service Bulletin 8-32-144, Revision ‘A,’ dated April 29, 2002, which includes Messier-Dowty Service Bulletin M-DT SBDHC8-32-82, Revision 1, dated July 5, 2001; and the task cards identified in Table 2 of this AD; to perform the actions that are required by this AD, unless the AD specifies otherwise. The Director of the Federal Register approved the incorporation by reference of these documents in accordance with 5 U.S.C. 552(a) and 1 CFR part 51. Contact Bombardier, Inc., Bombardier Regional Aircraft Division, 123 Garratt Boulevard, Downsview, Ontario M3K 1Y5, Canada, for a copy of this service information. You may review copies at the FAA, Transport Airplane Directorate, 1601 Lind Avenue, SW., Renton, Washington; or 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/ibr-locations.html.* Table 2.—Task Cards Incorporated by Reference Task card— Dated— To the de Havilland program support manual— de Havilland Dash 8 Series 100 Maintenance Task Card 3210/15 June 22, 2005 1-8-7. de Havilland Dash 8 Series 200 Maintenance Task Card 3210/15 June 22, 2005 1-82-7. de Havilland Dash 8 Series 300 Maintenance Task Card 3210/15 November 29, 2005 1-83-7. Issued in Renton, Washington, on May 25, 2007. Ali Bahrami, Manager, Transport Airplane Directorate, Aircraft Certification Service. [FR Doc. E7-10670 Filed 6-4-07; 8:45 am] BILLING CODE 4910-13-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA-2007-26856; Directorate Identifier 2006-NM-125-AD; Amendment 39-15082; AD 2007-12-04] RIN 2120-AA64 Airworthiness Directives; Airbus Model A300 B4-600, B4-600R, and F4-600R Series Airplanes, and Model C4-605R Variant F Airplanes (Collectively Called A300-600 Series Airplanes) AGENCY: Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Final rule. SUMMARY: The FAA is superseding an existing airworthiness directive

(AD)that applies to all Airbus Model A300-600 series airplanes. That AD currently requires inspections of the lower door surrounding structure to detect cracks and corrosion; inspections to detect cracking of the holes of the corner doublers, the fail-safe ring, and the door frames of the door structures; and repair if necessary. That AD also provides for optional terminating action for certain inspections. This new AD retains all requirements of the existing AD, mandates the previously optional terminating action, reduces the applicability of the existing AD, and adds repetitive inspections behind scuff plates for certain affected airplanes. This AD results from a determination that further rulemaking is necessary to improve the fatigue behavior of the cabin door surroundings. We are issuing this AD to prevent corrosion between the scuff plates at exit and cargo doors and fatigue cracks originating from certain fastener holes located in adjacent structure, which could result in reduced structural integrity of the door surroundings. DATES: This AD becomes effective July 10, 2007. The Director of the Federal Register approved the incorporation by reference of certain publications listed in the AD as of July 10, 2007. On September 4, 1998 (63 FR 40812, July 31, 1998), the Director of the Federal Register approved the incorporation by reference of certain other publications listed in the AD. ADDRESSES: You may examine the AD docket on the Internet at *http://dms.dot.gov* or in person at the Docket Management Facility, U.S. Department of Transportation, 400 Seventh Street, SW., Nassif Building, Room PL-401, Washington, DC. Contact Airbus, 1 Rond Point Maurice Bellonte, 31707 Blagnac Cedex, France, for service information identified in this AD. FOR FURTHER INFORMATION CONTACT: Tom Stafford, Aerospace Engineer, International Branch, ANM-116, FAA, Transport Airplane Directorate, 1601 Lind Avenue, SW., Renton, Washington 98057-3356; telephone

(425)227-1622; fax

(425)227-1149. SUPPLEMENTARY INFORMATION: Examining the Docket You may examine the airworthiness directive

(800)647-5227) is located on the plaza level of the Nassif Building at the street address stated in the ADDRESSES section. Discussion The FAA issued a notice of proposed rulemaking

(NPRM)to amend 14 CFR part 39 to include an AD that supersedes AD 98-16-05, amendment 39-10680 (63 FR 40812, July 31, 1998). The existing AD applies to all Airbus Model A300-600 series airplanes. That NPRM was published in the **Federal Register** on January 19, 2007 (72 FR 2469). That NPRM proposed to continue the requirements of AD 98-16-05. These requirements are inspections of the lower door surrounding structure to detect cracks and corrosion; inspections to detect cracking of the holes of the corner doublers, the fail-safe ring, and the door frames of the door structures; and repair if necessary. That NPRM also proposed to mandate the previously optional terminating action, reduce the applicability of the existing AD, and add repetitive inspections behind scuff plates for certain affected airplanes. Comments We provided the public the opportunity to participate in the development of this AD. We have considered the comments that have been received on the NPRM. Request To Give Credit for Previous Inspections FedEx concurs with the NPRM, but requests that we give credit for previous inspections accomplished in accordance with AD 98-16-05. FedEx points out that this credit should be given for actions in paragraphs (f), (g), (j), (k), (n), and

(r)of the NPRM. We partially agree with the request. We agree that it is necessary for the AD to give credit for inspections accomplished previously in accordance with AD 98-16-05. We disagree that it is necessary to change the AD in this regard. Paragraph

(e)of the AD states “You are responsible for having the actions required by this AD performed within the compliance times specified, unless the actions have already been done.” Therefore, the AD already gives credit for required actions that were accomplished according to AD 98-16-05. Request To Allow Previously Granted Alternate Methods of Compliance (AMOCs) FedEx also suggests that AMOCs issued per AD 98-16-05 be granted as applicable to the NPRM. We agree that we should approve AMOCs for this AD that were approved previously in accordance with AD 98-16-05. We disagree with changing the AD in this regard. Paragraph (t)(2) of both the NPRM and the AD already approves previous AMOCs. Request To Address Repairs Outside Limits FedEx requests that we add wording to paragraphs (l)(2) and

(t)of the NPRM to address repairs outside the applicable service bulletins or that exceed the service bulletin limits. (Airbus Service Bulletin A300-53-6018, Revision 1, dated April 29, 1992; or Revision 02, dated November 27, 2000; are the applicable service bulletins for paragraph (l)(2); and paragraph

(t)is the AMOC paragraph.) FedEx suggests the following wording: “If any crack or corrosion is detected during any inspection required by this AD and the applicable service bulletin specifies to contact the manufacturer for disposition of corrective actions: Prior to further flight, repair in accordance with a method approved by either the Manager, International Branch, ANM-116, or DGAC/EASA, or its delegated agent.” We disagree with the request to add the suggested words. There are no limits specified in the service bulletins. We cannot approve repairs that exceed the limits of the service bulletin unless the excess limits are defined. However, affected operators may request approval of AMOCs, under the provisions of paragraph

(t)of the AD. Conclusion We have carefully reviewed the available data, including the comments that have been submitted, and determined that air safety and the public interest require adopting the AD as proposed. Costs of Compliance The following table provides the estimated costs for U.S. operators to comply with this AD. The average labor rate per work hour is $80. Estimated Costs Action Work hours Parts Cost per airplane Number of U.S.-registered airplanes Fleet cost Repetitive inspections behind scuff plates 37 None $2,960 129 $381,840. Repetitive inspections of corner doublers, fail-safe ring, and door frames Between 1 and 51 None Between $80 and $4,080 129 Between $10,320 and $526,320. Terminating modification for repetitive inspection of corner doublers, fail-safe ring, and door frames Between 8 and 67, depending on kit purchased Between $580 and $11,273, depending on kit purchased Between $1,220 and $16,633 129 Between $157,380 and $2,145,657. Authority for This Rulemaking Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, Section 106, describes the authority of the FAA Administrator. Subtitle VII, Aviation Programs, describes in more detail the scope of the Agency's authority. We are issuing this rulemaking under the authority described in Subtitle VII, Part A, Subpart III, Section 44701, “General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action. Regulatory Findings We have determined that this AD will not have federalism implications under Executive Order 13132. This AD will not have a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. For the reasons discussed above, I certify 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); 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. We prepared a regulatory evaluation of the estimated costs to comply with this AD and placed it in the AD docket. See the ADDRESSES section for a location to examine the regulatory evaluation. 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 Federal Aviation Administration

(FAA)amends § 39.13 by removing amendment 39-10680 (63 FR 40812, July 31, 1998) and by adding the following new airworthiness directive (AD): **2007-12-04 Airbus:** Amendment 39-15082. Docket No. FAA-2007-26856; Directorate Identifier 2006-NM-125-AD. Effective Date

(a)This AD becomes effective July 10, 2007. Affected ADs

(b)This AD supersedes AD 98-16-05. Applicability

(c)This AD applies to Airbus Model A300 B4-601, B4-603, B4-620, and B4-622 airplanes; Model A300 B4-605R and B4-622R airplanes; Model A300 F4-605R and F4-622R airplanes; and Model A300 C4-605R Variant F airplanes; certificated in any category; excluding those airplanes on which Airbus Modification 5068, 6514, 7201, and 7298 have been incorporated in production. Unsafe Condition

(d)This AD results from a determination that further rulemaking is necessary to improve the fatigue behavior of the cabin door surroundings. We are issuing this AD to prevent corrosion between the scuff plates at exit and cargo doors and fatigue cracks originating from certain fastener holes located in adjacent structure, which could result in reduced structural integrity of the door surroundings. Compliance

(e)You are responsible for having the actions required by this AD performed within the compliance times specified, unless the actions have already been done. Requirements of AD 98-16-05 Initial Inspection Behind Scuff Plates and Repair if Necessary

(f)Perform an initial inspection of the areas behind the scuff plates below the passenger/crew doors and bulk cargo door to detect cracks and corrosion, in accordance with Airbus Service Bulletin A300-53-6011, Revision 3, dated February 4, 1991, at the time specified in paragraph (f)(1), (f)(2), or (f)(3) of this AD. If any crack or corrosion is found during this inspection, prior to further flight, repair in accordance with the service bulletin. Accomplishment of this inspection is not required for the mid and aft passenger/crew doors if a steel doubler that covers the entire inspection area is installed.

(1)For airplanes on which Modification 5382S6526 (for forward doors) and Modification 5382D4741 (for all other doors) have been accomplished prior to delivery of the airplane: Perform the initial inspection within 9 years since date of manufacture, or within 1 year after September 4, 1998 (the effective date of AD 98-16-05), whichever occurs later.

(2)For airplanes on which Modification 5382S6526 (for forward doors) and Modification 5382D4741 (for all other doors) have not been accomplished; and on which the procedures described in Airbus Service Information Letter

(SIL)A300-53-033, Revision 2 (for all doors), dated November 23, 1984, have been accomplished: Perform the initial inspection within 5 years after accomplishment of the procedures described in the SIL, or within 1 year after September 4, 1998, whichever occurs later.

(3)For airplanes on which Modification 5382S6526 (for forward doors), and Modification 5382D4741 (for all other doors), and the procedures described in Airbus SIL A300-53-033, Revision 2, dated November 23, 1984, have not been accomplished: Perform the initial inspection within 4 years since date of manufacture, or within 1 year after September 4, 1998, whichever occurs later. Repetitive Inspections Behind Scuff Plates

(g)Perform repetitive inspections of the areas behind the scuff plates below the passenger/crew doors and bulk cargo door to detect cracks and corrosion, in accordance with Airbus Service Bulletin A300-53-6022, dated February 4, 1991, at the applicable times specified in paragraphs (g)(1) and (g)(2) of this AD. Accomplishment of these inspections is not required for the mid and aft passenger/crew doors if a steel doubler that covers the entire inspection area is installed.

(1)For the forward and mid passenger/crew doors, the bulk cargo door, and the aft passenger/crew doors, except the upper and lower edges of the fail-safe ring and the upper edges of the corner doubler: Perform the first inspection within 5 years after accomplishing the inspection required by paragraph

(f)of this AD; and repeat the inspection thereafter at intervals not to exceed 5 years.

(2)For the upper and lower edges of the fail-safe ring and the upper edges of the corner doubler of the aft passenger/crew doors: Perform the first inspection within 5 years or 6,000 landings after accomplishing the inspection required by paragraph

(f)of this AD, whichever occurs first; and repeat the inspection thereafter at intervals not to exceed 5 years or 6,000 landings, whichever occurs first. Repair of Scuff Plates if Necessary

(h)If any crack is found during any inspection required by paragraph

(g)of this AD, prior to further flight, repair in accordance with Airbus Service Bulletin A300-53-6022, dated February 4, 1991. Thereafter, perform the repetitive inspections required by paragraph

(g)of this AD at the applicable times specified in paragraphs (g)(1) and (g)(2) of this AD.

(i)If corrosion is found during any inspection required by paragraph

(g)of this AD, prior to further flight, repair in accordance with Airbus Service Bulletin A300-53-6022, dated February 4, 1991. Thereafter, perform the repetitive inspections required by paragraph

(g)of this AD at the applicable times specified in paragraph (i)(1) or (i)(2) of this AD.

(1)For the upper and lower edges of the fail-safe ring and the upper edges of the corner doubler of the aft passenger/crew doors, and for the mid passenger/crew door: Inspect at intervals not to exceed 5 years or 5,000 landings, whichever occurs first.

(2)For the forward passenger/crew doors and bulk cargo doors: Inspect at intervals not to exceed 5 years. Initial Inspection of Corner Doublers, Fail-Safe Ring, and Door Frames

(j)Perform an inspection to detect cracking of the holes of the corner doublers, the fail-safe ring, and the door frames of the left- and right-hand forward, mid, and aft passenger/crew door structures, in accordance with Airbus Service Bulletin A300-53-6018, Revision 1, dated April 29, 1992, and at the applicable time specified in paragraph (j)(1), (j)(2), (j)(3), or (j)(4) of this AD.

(1)For the upper corners of the forward doors: Inspect prior to the accumulation of 20,000 total landings, or within 2,000 landings after September 4, 1998, whichever occurs later.

(2)For the lower corners of the forward doors: Inspect prior to the accumulation of 20,000 total landings, or within 4,000 landings after September 4, 1998, whichever occurs later.

(3)For the upper and lower corners of the mid doors: Inspect prior to the accumulation of 20,000 total landings, or within 2,000 landings after September 4, 1998, whichever occurs later.

(4)For the upper and lower corners of the aft doors, and for the parts underneath the corners of the upper door frames: Inspect prior to the accumulation of 20,000 total landings, or within 4,000 landings after September 4, 1998, whichever occurs later. Repetitive Inspections of Corner Doublers, Fail-Safe Ring, and Door Frames

(k)Repeat the inspections required by paragraph

(j)of this AD at the applicable times specified in paragraphs (k)(1), (k)(2), (k)(3), (k)(4), and (k)(5) of this AD.

(1)For the upper corners of the forward doors: Inspect at intervals not to exceed 6,000 landings.

(2)For the lower corners of the forward doors: Inspect at intervals not to exceed 10,000 landings.

(3)For the upper and lower corners of the mid and aft doors on which an inspection required by paragraph

(j)of this AD was accomplished using a ROTO test technique: Inspect at intervals not to exceed 8,000 landings.

(4)For the upper and lower corners of the mid and aft doors on which an inspection required by paragraph

(j)of this AD was accomplished using an X-ray technique: Inspect at intervals not to exceed 3,500 landings.

(5)For the areas around the fasteners in the vicinity of stringer 12 on the upper door frames of the aft doors on which an inspection required by paragraph

(j)of this AD was accomplished using a visual technique: Inspect at intervals not to exceed 6,900 landings. Repair of Corner Doublers, Fail-Safe Ring, and/or Door Frames if Necessary

(l)If any crack is found during any inspection required by paragraph

(j)or

(k)of this AD: Prior to further flight, accomplish the requirement of paragraph (l)(1) or (l)(2) of this AD, as applicable.

(1)If any crack is found, and the crack can be eliminated using the method specified in Airbus Service Bulletin A300-53-6018, Revision 1, dated April 29, 1992; or Revision 02, excluding Appendix 01, dated November 27, 2000: Prior to further flight, repair the crack in accordance with that service bulletin.

(2)If any crack is found, and the crack cannot be eliminated using the method specified in Airbus Service Bulletin A300-53-6018, Revision 1, dated April 29, 1992; or Revision 02, excluding Appendix 01, dated November 27, 2000: Prior to further flight, repair the crack in accordance with a method approved by the Manager, International Branch, ANM-116, FAA, Transport Airplane Directorate. New Requirements of This AD New Revisions of Service Bulletins

(m)As of the effective date of this AD, use only the applicable service bulletins specified in Table 1 of this AD; except where the service bulletins recommend contacting Airbus for appropriate action, before further flight, repair the cracked part using a method approved by the Manager, International Branch, ANM-116, Transport Airplane Directorate, FAA; or the European Aviation Safety Agency

(EASA)(or its delegated agent). Table 1.—New Revisions of Service Bulletins Do the action(s) required by— In accordance with the accomplishment instructions of Airbus Service Bulletin—

(1)Paragraph

(f)of this AD A300-53-6011, Revision 07, dated January 24, 2005.

(2)Paragraphs

(g)through

(i)of this AD A300-53-6022, Revision 04, dated January 24, 2005.

(3)Paragraphs (j), (k), and (l)(1) of this AD A300-53-6018, Revision 03, excluding Appendix 01, dated July 26, 2006. Initial Inspection Behind Scuff Plates and Repair if Necessary for Additional Airplanes

(n)Perform an initial inspection of the areas behind the scuff plates below the passenger/crew doors and bulk cargo door to detect cracks and corrosion, in accordance with the Accomplishment Instructions of Airbus Service Bulletin A300-53-6011, Revision 07, dated January 24, 2005; at the applicable time specified in Table 2 of this AD. If any crack or corrosion is found during this inspection, before further flight, repair in accordance with the service bulletin. Accomplishment of this inspection is not required for the mid and aft passenger/crew doors if a steel doubler that covers the entire inspection area is installed. Table 2.—Compliance Time Initial Inspection Behind Scuff Plate for Additional Airplanes For airplanes on which— And on which— Compliance time (whichever occurs later) Threshold Grace period

(1)Modification 5382S6526 (for forward doors) and Modification 5382D4485 (for all other doors) have been done before the date of issuance of the original French standard airworthiness certificate or the date of issuance of the original French export certificate of airworthiness None Within 108 months after first flight Within 12 months after the effective date of this AD.

(2)Modification 5382S6180 (for forward doors) and Modification 5382D4741 or 5382D4485 (for all other doors) have been done before the date of issuance of the original French standard airworthiness certificate or the date of issuance of the original French export certificate of airworthiness None Within 108 months after first flight Within 12 months after the effective date of this AD.

(3)Modification 5382S6526 (for forward doors) and Modification 5382D4485 (for all other doors) have not been done before the effective date of this AD The actions specified in Airbus Service Information Letter

(SIL)A300-53-033, Revision 2 (for all doors), dated November 23, 1984, have been done Within 60 months after accomplishing the actions specified in the SIL Within 12 months after the effective date of this AD.

(4)Modification 5382S6180 (for forward doors) and Modification 5382D4741 or 5382D4485 (for all other doors) have not been done before the effective date of this AD The actions specified in Airbus SIL A300-53-033, Revision 2 (for all doors), dated November 23, 1984, have been done Within 60 months after accomplishing the actions specified in the SIL Within 12 months after the effective date of this AD.

(5)Modification 5382S6526 (for forward doors) and Modification 5382D4485 (for all other doors) have not been done before the effective date of this AD The actions specified in Airbus SIL A300-53-033, Revision 2, dated November 23, 1984, have not been done Within 48 months since the date of issuance of the original French standard airworthiness certificate or the date of issuance of the original French export certificate of airworthiness Within 12 months after the effective date of this AD.

(6)Modification 5382S6180 (for forward doors) and Modification 5382D4741 or 5382D4485 (for all other doors) have not been done before the effective date of this AD The actions specified in Airbus SIL A300-53-033, Revision 2, dated November 23, 1984, have not been done Within 48 months since the date of issuance of the original French standard airworthiness certificate or the date of issuance of the original French export certificate of airworthiness Within 12 months after the effective date of this AD. Repetitive Inspections Behind Scuff Plates for Additional Airplanes

(o)For airplanes identified in Table 2 of this AD: Perform repetitive inspections of the areas behind the scuff plates below the passenger/crew doors and bulk cargo door to detect cracks and corrosion, in accordance with Airbus Service Bulletin A300-53-6022, Revision 04, dated January 24, 2005, at the applicable times specified in paragraphs (o)(1) and (o)(2) of this AD. Accomplishment of these inspections is not required for the mid and aft passenger/crew doors if a steel doubler that covers the entire inspection area is installed.

(1)For the forward and mid passenger/crew doors, the bulk cargo door, and the aft passenger/crew doors, except the upper and lower edges of the fail-safe ring and the upper edges of the corner doubler: Perform the first inspection within 60 months after accomplishing the inspection required by paragraph

(n)of this AD; and repeat the inspection thereafter at intervals not to exceed 60 months.

(2)For the upper and lower edges of the fail-safe ring and the upper edges of the corner doubler of the aft passenger/crew doors: Perform the first inspection within 60 months or 6,000 landings after accomplishing the inspection required by paragraph

(n)of this AD, whichever occurs first; and repeat the inspection thereafter at intervals not to exceed 60 months or 6,000 landings, whichever occurs first. Repair of Scuff Plates if Necessary

(p)If any crack is found during any inspection required by paragraph

(o)of this AD, prior to further flight, repair in accordance with Airbus Service Bulletin A300-53-6022, Revision 04, dated January 24, 2005. Thereafter, perform the repetitive inspections required by paragraph

(o)of this AD at the applicable times specified in paragraphs (o)(1) and (o)(2) of this AD.

(q)If corrosion is found during any inspection required by paragraph

(g)of this AD at the applicable times specified in paragraph (q)(1) or (q)(2) of this AD.

(2)For the forward passenger/crew doors and bulk cargo doors: Inspect at intervals not to exceed 60 months. Terminating Modification for Repetitive Inspection of Corner Doublers, Fail-Safe Ring, and Door Frames

(r)Before the accumulation of 30,000 total flight cycles since the date of issuance of the original French standard airworthiness certificate or the date of issuance of the original French export certificate of airworthiness, or during the next inspection required by paragraph

(k)of this AD, whichever occurs later: Modify the passenger/crew door structures in accordance with the Accomplishment Instructions of Airbus Service Bulletin A300-53-6002, Revision 06, dated May 17, 2004. Accomplishment of this modification constitutes terminating action for the inspections required by paragraphs

(j)and

(k)of this AD. The inspections required by paragraphs

(f)and

(n)of this AD, as applicable, must be done before accomplishing this modification. Earlier Revisions of Service Bulletins

(s)Actions done before the effective date of this AD in accordance with the service bulletins identified in Table 3 of this AD, are acceptable for compliance with the corresponding requirements of this AD. Table 3.—Earlier Revisions of Service Bulletins Airbus Service Bulletin Revision level Date

(1)A300-53-6002 3 February 22, 1992.

(2)A300-53-6002 4 July 13, 1992.

(3)A300-53-6002 05 September 7, 2000.

(4)A300-53-6011 04 July 2, 1996.

(5)A300-53-6011 05 September 7, 2000.

(6)A300-53-6011 06 November 12, 2002.

(7)A300-53-6018, excluding Appendix 01 02 November 27, 2000.

(8)A300-53-6022 01 July 2, 1996.

(9)A300-53-6022 02 September 7, 2000.

(10)A300-53-6022 03 November 12, 2002. Alternative Methods of Compliance (AMOCs) (t)(1) The Manager, International Branch, ANM-116, has the authority to approve AMOCs for this AD, if requested in accordance with the procedures found in 14 CFR 39.19.

(2)AMOCs approved previously in accordance with AD 98-16-05 are approved as AMOCs for the corresponding provisions of paragraphs

(f)through

(l)of this AD.

(3)Before using any AMOC approved in accordance with § 39.19 on any airplane to which the AMOC applies, notify the appropriate principal inspector in the FAA Flight Standards Certificate Holding District Office. Related Information

(u)French airworthiness directives 1991-132-124(B) R1, dated November 29, 2000, and F-2004-103, dated July 7, 2004, also address the subject of this AD. Material Incorporated by Reference

(v)You must use the service information listed in Table 4 of this AD to perform the actions that are required by this AD, unless the AD specifies otherwise. Table 4.—All Material Incorporated by Reference Airbus Service Bulletin Revision level Date A300-53-6002 06 May 17, 2004. A300-53-6011 3 February 4, 1991. A300-53-6011 07 January 24, 2005. A300-53-6018 1 April 29, 1992. A300-53-6018, excluding Appendix 01 02 November 27, 2000. A300-53-6018, excluding Appendix 01 03 July 26, 2006. A300-53-6022 Original February 4, 1991. A300-53-6022 04 January 24, 2005.

(1)The Director of the Federal Register approved the incorporation by reference of the service information listed in Table 5 of this AD in accordance with 5 U.S.C. 552(a) and 1 CFR part 51. Table 5.—New Material Incorporated by Reference Airbus Service Bulletin Revision level Date A300-53-6002 06 May 17, 2004. A300-53-6011 07 January 24, 2005. A300-53-6018, excluding Appendix 01 02 November 27, 2000. A300-53-6018, excluding Appendix 01 03 July 26, 2006. A300-53-6022 04 January 24, 2005.

(2)On September 4, 1998 (63 FR 40812, July 31, 1998), the Director of the Federal Register approved the incorporation by reference of the service information listed in Table 6 of this AD. Table 6.—Material Previously Incorporated by Reference Airbus Service Bulletin Revision level Date A300-53-6011 3 February 4, 1991. A300-53-6018 1 April 29, 1992. A300-53-6022 Original February 4, 1991.

(3)Contact Airbus, 1 Rond Point Maurice Bellonte, 31707 Blagnac Cedex, France, for a copy of this service information. You may review copies at the FAA, Transport Airplane Directorate, 1601 Lind Avenue, SW., Renton, Washington; or 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/ibr-locations.html.* Issued in Renton, Washington, on May 25, 2007. Ali Bahrami, Manager, Transport Airplane Directorate, Aircraft Certification Service. [FR Doc. E7-10671 Filed 6-4-07; 8:45 am] BILLING CODE 4910-13-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA-2007-27334; Directorate Identifier 2006-NM-279-AD; Amendment 39-15080; AD 2007-12-02] RIN 2120-AA64 Airworthiness Directives; McDonnell Douglas Model DC-8-33, -42, and -43 Airplanes; Model DC-8-50 Series Airplanes; Model DC-8F-54 and -55 Airplanes; Model DC-8-60 Series Airplanes; Model DC-8-60F Series Airplanes; Model DC-8-72 Airplanes; and Model DC-8-70F Series Airplanes AGENCY: Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Final rule. SUMMARY: The FAA is adopting a new airworthiness directive

(AD)for certain McDonnell Douglas airplanes described previously. This AD requires installing bonding jumpers to the airplane wing structure from the fuel system in-line electrical solenoid valves along the left and right wing front spar. This AD results from fuel system reviews conducted by the manufacturer. We are issuing this AD to prevent point-of-contact arcing or filament heating damage in the fuel lines that could create a potential ignition source, which, in combination with flammable fuel vapors, could cause a fuel tank explosion and consequent loss of the airplane. DATES: This AD becomes effective July 10, 2007. The Director of the Federal Register approved the incorporation by reference of a certain publication listed in the AD as of July 10, 2007. ADDRESSES: You may examine the AD docket on the Internet at *http://dms.dot.gov* or in person at the Docket Management Facility, U.S. Department of Transportation, 400 Seventh Street, SW., Nassif Building, Room PL-401, Washington, DC. Contact Boeing Commercial Airplanes, Long Beach Division, 3855 Lakewood Boulevard, Long Beach, California 90846, Attention: Data and Service Management, Dept. C1-L5A (D800-0024), for service information identified in this AD. FOR FURTHER INFORMATION CONTACT: Samuel Lee, Aerospace Engineer, Propulsion Branch, ANM-140L, FAA, Los Angeles Aircraft Certification Office, 3960 Paramount Boulevard, Lakewood, California 90712-4137; telephone

(562)627-5262; fax

(562)627-5210. SUPPLEMENTARY INFORMATION: Examining the Docket You may examine the airworthiness directive

(800)647-5227) is located on the plaza level of the Nassif Building at the street address stated in the ADDRESSES section. Discussion The FAA issued a notice of proposed rulemaking

(NPRM)to amend 14 CFR part 39 to include an AD that would apply to certain McDonnell Douglas Model DC-8-33, -42, and -43 airplanes; Model DC-8-50 series airplanes; Model DC-8F-54 and -55 airplanes; Model DC-8-60 series airplanes; Model DC-8-60F series airplanes; Model DC-8-72 airplanes; and Model DC-8-70F series airplanes. That NPRM was published in the **Federal Register** on February 26, 2007 (72 FR 8309). That NPRM proposed to require installing bonding jumpers to the airplane wing structure from the fuel system in-line electrical solenoid valves along the left and right wing front spar. Comments We provided the public the opportunity to participate in the development of this AD. We received no comments on the NPRM or on the determination of the cost to the public. Clarification of Alternative Method of Compliance

(AMOC)Paragraph We have revised this action to clarify the appropriate procedure for notifying the principal inspector before using any approved AMOC on any airplane to which the AMOC applies. Conclusion We have carefully reviewed the available data and determined that air safety and the public interest require adopting the AD with the change described previously. We have determined that this change will neither increase the economic burden on any operator nor increase the scope of the AD. Costs of Compliance There are about 216 airplanes of the affected design in the worldwide fleet. This AD affects about 145 airplanes of U.S. registry. The following table provides the estimated costs for U.S. operators to comply with this AD, at an average labor rate of $80 per work hour. The total fleet cost is estimated to be between $456,460 and $1,018,770. Estimated Costs Airplane group Work hours Parts Cost per airplane 1 8 $2,508 $3,148 2 9 4,237 4,957 3 10 6,226 7,026 4 8 4,473 5,113 5 6 3,674 4,154 Authority for This Rulemaking Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, section 106, describes the authority of the FAA Administrator. Subtitle VII, Aviation Programs, describes in more detail the scope of the Agency's authority. We are issuing this rulemaking under the authority described in subtitle VII, part A, subpart III, section 44701, “General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action. Regulatory Findings We have determined that this AD will not have federalism implications under Executive Order 13132. This AD will not have a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. For the reasons discussed above, I certify 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); 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. We prepared a regulatory evaluation of the estimated costs to comply with this AD and placed it in the AD docket. See the ADDRESSES section for a location to examine the regulatory evaluation. 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 Federal Aviation Administration

(FAA)amends § 39.13 by adding the following new airworthiness directive (AD): **2007-12-02 McDonnell Douglas:** Amendment 39-15080. Docket No. FAA-2007-27334; Directorate Identifier 2006-NM-279-AD. Effective Date

(a)This AD becomes effective July 10, 2007. Affected ADs

(b)None. Applicability

(c)This AD applies to McDonnell Douglas Model DC-8-33, -42, and -43 airplanes; Model DC-8-51, -52, -53, and -55 airplanes; Model DC-8F-54 and -55 airplanes; Model DC-8-61, -62, and -63 airplanes; Model DC-8-61F, -62F, and -63F airplanes; Model DC-8-72 airplanes; and Model DC-8-71F, -72F, and -73F airplanes; certificated in any category; as identified in Boeing Service Bulletin DC8-28-091, dated November 7, 2006. Unsafe Condition

(d)This AD results from fuel system reviews conducted by the manufacturer. We are issuing this AD to prevent point-of-contact arcing or filament heating damage in the fuel lines that could create a potential ignition source, which, in combination with flammable fuel vapors, could cause a fuel tank explosion and consequent loss of the airplane. Compliance

(e)You are responsible for having the actions required by this AD performed within the compliance times specified, unless the actions have already been done. Installation of Bonding Jumpers

(f)Within 60 months after the effective date of this AD, install bonding jumpers to the airplane wing structure from the fuel system in-line electrical solenoid valves along the left and right wing front spar, in accordance with the Accomplishment Instructions of Boeing Service Bulletin DC8-28-091, dated November 7, 2006. Alternative Methods of Compliance (AMOCs) (g)(1) The Manager, Los Angeles Aircraft Certification Office (ACO), FAA, has the authority to approve AMOCs for this AD, if requested in accordance with the procedures found in 14 CFR 39.19.

(PI)in the FAA Flight Standards District Office (FSDO), or lacking a PI, your local FSDO. Material Incorporated by Reference

(h)You must use Boeing Service Bulletin DC8-28-091, dated November 7, 2006, to perform the actions that are required by this AD, unless the AD specifies otherwise. The Director of the Federal Register approved the incorporation by reference of this document in accordance with 5 U.S.C. 552(a) and 1 CFR part 51. Contact Boeing Commercial Airplanes, Long Beach Division, 3855 Lakewood Boulevard, Long Beach, California 90846, Attention: Data and Service Management, Dept. C1-L5A (D800-0024), for a copy of this service information. You may review copies at the FAA, Transport Airplane Directorate, 1601 Lind Avenue, SW., Renton, Washington; or 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/ibr-locations.html* . Issued in Renton, Washington, on May 25, 2007. Ali Bahrami, Manager, Transport Airplane Directorate, Aircraft Certification Service. [FR Doc. E7-10669 Filed 6-4-07; 8:45 am] BILLING CODE 4910-13-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA-2007-27755; Directorate Identifier 2006-NM-289-AD; Amendment 39-15081; AD 2007-12-03] RIN 2120-AA64 Airworthiness Directives; Bombardier Model DHC-8-400 Series Airplanes AGENCY: Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Final rule. SUMMARY: The FAA is adopting a new airworthiness directive

(AD)for certain Bombardier Model DHC-8-400 series airplanes. This AD requires revising the Limitations section of the airplane flight manual to include procedures for pulling the “HYD PWR XFER” circuit breaker in the event of the loss of all hydraulic fluid in the No. 1 or No. 2 hydraulic system. This AD results from reports of fluid loss in the No. 2 hydraulic system, causing the power transfer unit to overspeed, increasing the fluid flow within the No. 1 hydraulic system. We are issuing this AD to prevent possible loss of both the No. 1 and No. 2 hydraulic systems, resulting in the potential loss of several functions essential for safe flight and landing of the airplane. DATES: This AD becomes effective July 10, 2007. The Director of the Federal Register approved the incorporation by reference of certain publications listed in the AD as of July 10, 2007. ADDRESSES: You may examine the AD docket on the Internet at *http://dms.dot.gov* or in person at the Docket Management Facility, U.S. Department of Transportation, 400 Seventh Street, SW., Nassif Building, Room PL-401, Washington, DC. Contact Bombardier, Inc., Bombardier Regional Aircraft Division, 123 Garratt Boulevard, Downsview, Ontario M3K 1Y5, Canada, for service information identified in this AD. FOR FURTHER INFORMATION CONTACT: Ezra Sasson, Aerospace Engineer, Systems and Flight Test Branch, ANE-172, FAA, New York Aircraft Certification Office, 1600 Stewart Avenue, Suite 410, Westbury, New York 11590; telephone

(516)228-7320; fax

(516)794-5531. SUPPLEMENTARY INFORMATION: Examining the Docket You may examine the airworthiness directive

(800)647-5227) is located on the plaza level of the Nassif Building at the street address stated in the ADDRESSES section. Discussion The FAA issued a notice of proposed rulemaking

(NPRM)to amend 14 CFR part 39 to include an AD that would apply to certain Bombardier Model DHC-8-400 series airplanes. That NPRM was published in the **Federal Register** on April 4, 2007 (72 FR 16289). That NPRM proposed to require revising the Limitations section of the airplane flight manual

(AFM)to include procedures for pulling the “HYD PWR XFER” circuit breaker in the event of the loss of all hydraulic fluid in the No. 1 or No. 2 hydraulic system. Comments We provided the public the opportunity to participate in the development of this AD. We received no comments on the NPRM or on the determination of the cost to the public. Clarification of Alternative Method of Compliance

(AMOC)Paragraph We have revised this action to clarify the appropriate procedure for notifying the principal inspector before using any approved AMOC on any airplane to which the AMOC applies. Conclusion We have carefully reviewed the available data and determined that air safety and the public interest require adopting the AD with the change described previously. We have determined that this change will neither increase the economic burden on any operator nor increase the scope of the AD. Interim Action We consider this AD interim action. The manufacturer is currently developing a modification that will address the unsafe condition identified in this AD. Once this modification is developed, approved, and available, we might consider additional rulemaking. Costs of Compliance The following table provides the estimated costs for U.S. operators to comply with this AD. Estimated Costs Action Work hours Average labor rate per hour Parts Cost per airplane Number of U.S.- registered airplanes Fleet cost AFM revision 1 $80 $0 $80 21 $1,680 Authority for This Rulemaking Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, section 106, describes the authority of the FAA Administrator. Subtitle VII, Aviation Programs, describes in more detail the scope of the Agency's authority. We are issuing this rulemaking under the authority described in subtitle VII, part A, subpart III, section 44701, “General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action. Regulatory Findings We have determined that this AD will not have federalism implications under Executive Order 13132. This AD will not have a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. For the reasons discussed above, I certify 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); 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. We prepared a regulatory evaluation of the estimated costs to comply with this AD and placed it in the AD docket. See the ADDRESSES section for a location to examine the regulatory evaluation. 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 Federal Aviation Administration

(FAA)amends § 39.13 by adding the following new airworthiness directive (AD): **2007-12-03 Bombardier, Inc. (Formerly de Havilland, Inc.):** Amendment 39-15081. Docket No. FAA-2007-27755; Directorate Identifier 2006-NM-289-AD. Effective Date

(a)This AD becomes effective July 10, 2007. Affected ADs

(b)None. Applicability

(c)This AD applies to Bombardier Model DHC-8-400, DHC-8-401, and DHC-8-402 airplanes, certificated in any category; serial numbers 4001 and 4003 and subsequent. Unsafe Condition

(d)This AD results from reports of fluid loss in the No. 2 hydraulic system, causing the power transfer unit to overspeed, increasing the fluid flow within the No. 1 hydraulic system. We are issuing this AD to prevent possible loss of both the No. 1 and No. 2 hydraulic systems, resulting in the potential loss of several functions essential for safe flight and landing of the airplane. Compliance

(e)You are responsible for having the actions required by this AD performed within the compliance times specified, unless the actions have already been done. Airplane Flight Manual

(AFM)Revision

(f)Within 14 days after the effective date of this AD, revise the Limitations section of the applicable AFM to include the information in the applicable Bombardier temporary amendment specified in Table 1 of this AD, as specified in the temporary amendment. These temporary amendments introduce procedures for pulling the “HYD PWR XFER” circuit breaker in the event of the loss of all hydraulic fluid in the No. 1 or No. 2 hydraulic system. Operate the airplane according to the limitations and procedures in the applicable temporary amendment. Table 1.—AFM Temporary Amendments For model— Use Bombardier temporary amendment— Issue— Dated— To Bombardier Dash 8 Q400 Airplane Flight Manual— DHC-8-400 airplanes 13 1 July 14, 2005 PSM 1-84-1A. DHC-8-401 airplanes 13 1 July 14, 2005 PSM 1-84-1A. DHC-8-402 airplanes 13 1 July 14, 2005 PSM 1-84-1A. Note 1: This may be done by inserting a copy of the applicable temporary amendment into the applicable AFM. When the applicable temporary amendment has been included in general revisions of the AFM, the general revisions may be inserted into the AFM, provided the relevant information in the general revisions is identical to that in the temporary amendment. Alternative Methods of Compliance (AMOCs) (g)(1) The Manager, New York Aircraft Certification Office, FAA, has the authority to approve AMOCs for this AD, if requested in accordance with the procedures found in 14 CFR 39.19.

(PI)in the FAA Flight Standards District Office (FSDO), or lacking a PI, your local FSDO. Related Information

(h)Canadian airworthiness directive CF-2006-08, dated April 26, 2006, also addresses the subject of this AD. Material Incorporated by Reference

(i)You must use the temporary amendments specified in Table 2 of this AD, as applicable, to perform the actions that are required by this AD, unless the AD specifies otherwise. The Director of the Federal Register approved the incorporation by reference of these documents in accordance with 5 U.S.C. 552(a) and 1 CFR part 51. Contact Bombardier, Inc., Bombardier Regional Aircraft Division, 123 Garratt Boulevard, Downsview, Ontario M3K 1Y5, Canada, for a copy of this service information. You may review copies at the FAA, Transport Airplane Directorate, 1601 Lind Avenue, SW., Renton, Washington; or 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/ibr-locations.html.* Table 2.—Material Incorporated by Reference Bombardier temporary amendment— Issue— Dated— To Bombardier Dash 8 Q400 Airplane Flight Manual— 13 1 July 14, 2005 Model 400 PSM 1-84-1A. 13 1 July 14, 2005 Model 401 PSM 1-84-1A. 13 1 July 14, 2005 Model 402 PSM 1-84-1A. Issued in Renton, Washington, on May 25, 2007. Ali Bahrami, Manager, Transport Airplane Directorate, Aircraft Certification Service. [FR Doc. E7-10678 Filed 6-4-07; 8:45 am] BILLING CODE 4910-13-P DEPARTMENT OF HEALTH AND HUMAN SERVICES Food and Drug Administration 21 CFR Part 510 New Animal Drugs; Change of Sponsor's Address AGENCY: Food and Drug Administration, HHS. ACTION: Final rule. SUMMARY: The Food and Drug Administration

(FDA)is amending the animal drug regulations to reflect a change of sponsor address for Watson Laboratories, Inc. DATES: This rule is effective June 5, 2007. FOR FURTHER INFORMATION CONTACT: David R. Newkirk, Center for Veterinary Medicine (HFV-100), Food and Drug Administration, 7500 Standish Pl., Rockville, MD 20855, 301-827-6967, e-mail: *david.newkirk@fda.hhs.gov* . SUPPLEMENTARY INFORMATION: Watson Laboratories, Inc., 620 North 51st Ave., Phoenix, AZ 85043-4705 has informed FDA of a change of address to 311 Bonnie Circle, Corona, CA 92880. Accordingly, the agency is amending the regulations in 21 CFR 510.600(c) to reflect the change. This rule does not meet the definition of “rule” in 5 U.S.C. 804(3)(A) because it is a rule of “particular applicability.” Therefore, it is not subject to the congressional review requirements in 5 U.S.C. 801-808. List of Subjects in 21 CFR Part 510 Administrative practice and procedure, Animal drugs, Labeling, Reporting and recordkeeping requirements. Therefore, under the Federal Food, Drug, and Cosmetic Act and under authority delegated to the Commissioner of Food and Drugs and redelegated to the Center for Veterinary Medicine, 21 CFR part 510 is amended as follows: PART 510—NEW ANIMAL DRUGS 1. The authority citation for 21 CFR part 510 continues to read as follows: Authority: 21 U.S.C. 321, 331, 351, 352, 353, 360b, 371, 379e. 2. In § 510.600, in the table in paragraph (c)(1) revise the entry for “Watson Laboratories, Inc.”; and in the table in paragraph (c)(2) revise the entry for “000402” to read as follows: § 510.600 Names, addresses, and drug labeler codes of sponsors of approved applications.

(c)* * *

(1)* * * Firm name and address Drug labeler code * * * * * Watson Laboratories, Inc., 311 Bonnie Circle, Corona, CA 92880. 000402 * * * * *

(2)* * * Drug labeler code Firm name and address * * * * * 000402 Watson Laboratories, Inc., 311 Bonnie Circle, Corona, CA 92880. * * * * * Dated: May 24, 2007. Bernadette Dunham, Deputy Director, Center for Veterinary Medicine. [FR Doc. E7-10771 Filed 6-4-07; 8:45 am] BILLING CODE 4160-01-S DEPARTMENT OF STATE 22 CFR Part 9 [Public Notice 5822] RIN 1400-AB91 National Security Information Regulations AGENCY: State Department. ACTION: Final rule. SUMMARY: This rule makes final the Department's proposed rule published on January 3, 2007. The rule revises the Department's regulations governing the classification and declassification of national security information that is under the control of the Department in order to reflect changes in the provisions of a new executive order on national security information and consequent changes in the Department's procedures since the last revision of the Department's regulations on this subject. The Department received one non-substantive comment and proposes no changes to the proposed rule. The proposed rule is therefore adopted as final. DATES: *Effective Date:* This rule is effective June 5, 2007. ADDRESSES: Persons having questions with respect to these regulations should address such questions to: Margaret P. Grafeld, Director, Office of Information Programs and Services, U.S. Department of State, SA-2, 515 22nd St., NW., Washington, DC 20522-6001. *Tel:* 202-261-8300; *FAX:* 202-261-8590. Persons with access to the Internet may also view this notice by going to the *regulations.gov* Web site at *http://www.regulations. gov/index.cfm.* FOR FURTHER INFORMATION CONTACT: Margaret P. Grafeld, Director, Office of Information Programs and Services, U.S. Department of State, SA-2, 515 22nd St., NW., Washington, DC 20522-6001. *Tel:* 202-261-8300; *FAX:* 202-261-8590. SUPPLEMENTARY INFORMATION: The Department's proposed rule was published as Public Notice 5658 at 72 FR 59-62 on January 3, 2007, with a 90-day public comment period. The Department received one non-substantive comment discussed under Analysis of Comments. Since the last comprehensive revision of the Department's national security information regulations, a new governing executive order, E.O. 12958, has been issued and modified several times, most substantially by E.O. 13292 of March 25, 2003. In addition, the Information Security Oversight Office has issued a new classified national security information directive containing interpretive guidance. Both the order and the directive effected significant changes in the procedures for classifying and declassifying national security information. The final regulations of the Department take account of these changes and reflect changes in the Department's procedures designed to implement them. *Analysis of Comments:* The proposed rule was published for comments on January 3, 2007. The comment period closed April 3, 2007. The one public comment received by the Department related to the language in Sec. 9.2 pertaining to the objective of the classification program. The comment suggested the inclusion in Sec. 9.2 of additional language from the preamble of E.O. 12958. The Department concluded that such additional elaboration of program objective was duplicative of the order and unnecessary. Regulatory Findings *Administrative Procedure Act.* The Department is publishing this regulation as a final rule, after it was published as a proposed rule on January 3, 2007. *Regulatory Flexibility Act.* The Department, in accordance with the Regulatory Flexibility Act (5 U.S.C. 605(b)), has reviewed this rule and, by approving it, certifies that this rule will not have significant economic impact on a substantial number of small entities. *Unfunded Mandates Act of 1995.* This rule will not result in the expenditure by State, local, and tribal governments, in the aggregate, or by the private sector, of $100 million or more in any year, and it will not significantly or uniquely affect small governments. Therefore, no actions are deemed necessary under the provisions of the Unfounded Mandates Reform Act of 1995. *Small Business Regulatory Enforcement Fairness Act of 1996.* This rule is not a major rule as defined by section 804 of the Small Business Regulatory Enforcement Act of 1996. This rule will not result in an annual effect on the economy of $100 million or more; a major increase in costs or prices; or significant adverse effects on competition, employment, investment, productivity, innovation, or on the ability of United States-based companies to compete with foreign based companies in domestic and import markets. *Executive Order 12866.* The Department does not consider this rule to be a “significant regulatory action” under Executive Order (E.O.) 12866, section 3(f), Regulatory Planning and Review. In addition, the Department is exempt from Executive Order 12866 except to the extent that it is promulgating regulations in conjunction with a domestic agency that are significant regulatory actions. The Department has nevertheless reviewed the regulation to ensure its consistency with the regulatory philosophy and principles set forth in that Executive Order. *Executive Order 12988—Civil Justice Reform.* The Department has reviewed this regulation in light of sections 3(a) and 3(b)

(2)of Executive Order 12988 to eliminate ambiguity, minimize litigation, establish clear legal standards, and reduce burden. *Executive Orders 12372 and 13132.* This regulation 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 section 6 of Executive Order 13132, it is determined that this rule does not have sufficient federalism implications to require consultations or warrant the preparation of a federalism summary impact statement. The regulations implementing Executive Order 12372 regarding intergovernmental consultation on Federal programs and activities do not apply to this regulation. *National Environmental Policy Act.* The Department has analyzed this regulation for the purpose of the National Environmental Policy Act of 1969 (42 U.S.C. 4321-4347) and has determined that it will not have any effect on the quality of the environment. *Paperwork Reduction Act.* This rule does not impose any new reporting or record-keeping requirements subject to the Paperwork Reduction Act, 44 U.S.C. Chapter 35. List of Subjects in 22 CFR Part 9 Original classification, Original classification authorities, Derivative classification, Classification challenges, Declassification and downgrading, Mandatory declassification review, Systematic declassification review, Safeguarding. For the reasons set forth in the preamble, Title 22, Part 9 of the Code of Federal Regulations is revised to read as follows: PART 9—SECURITY INFORMATION REGULATIONS Sec. 9.1 Basis. 9.2 Objective. 9.3 Senior agency official. 9.4 Original classification. 9.5 Original classification authority. 9.6 Derivative classification. 9.7 Identification and marking. 9.8 Classification challenges. 9.9 Declassification and downgrading. 9.10 Mandatory declassification review. 9.11 Systematic declassification review. 9.12 Access to classified information by historical researchers and certain former government personnel. 9.13 Safeguarding. Authority: E.O. 12958 (60 FR 19825, April 20, 1995) as amended; Information Security Oversight Office Directive No. 1, 32 CFR 2001 (68 FR 55168, Sept. 22, 2003). § 9.1 Basis. These regulations, taken together with the Information Security Oversight Office Directive No. 1 dated September 22, 2003, and Volume 5 of the Department's Foreign Affairs Manual, provide the basis for the security classification program of the U.S. Department of State (“the Department”) implementing Executive Order 12958, “Classified National Security Information”, as amended (“the Executive Order”). § 9.2 Objective. The objective of the Department's classification program is to ensure that national security information is protected from unauthorized disclosure, but only to the extent and for such a period as is necessary. § 9.3 Senior agency official. The Executive Order requires that each agency that originates or handles classified information designate a senior agency official to direct and administer its information security program. The Department's senior agency official is the Under Secretary of State for Management. The senior agency official is assisted in carrying out the provisions of the Executive Order and the Department's information security program by the Assistant Secretary for Diplomatic Security, the Assistant Secretary for Administration, and the Deputy Assistant Secretary for Information Sharing Services. § 9.4 Original classification.

(a)*Definition.* Original classification is the initial determination that certain information requires protection against unauthorized disclosure in the interest of national security ( *i.e.* , national defense or foreign relations of the United States), together with a designation of the level of classification.

(b)*Classification levels.*

(1)*Top Secret* shall be applied to information the unauthorized disclosure of which reasonably could be expected to cause exceptionally grave damage to the national security that the original classification authority is able to identify or describe.

(2)*Secret* shall be applied to information the unauthorized disclosure of which reasonably could be expected to cause serious damage to the national security that the original classification authority is able to identify or describe.

(3)*Confidential* shall be applied to information the unauthorized disclosure of which reasonably could be expected to cause damage to the national security that the original classification authority is able to identify or describe.

(c)*Classification requirements and limitations.*

(1)Information may not be considered for classification unless it concerns:

(i)Military plans, weapons systems, or operations;

(ii)Foreign government information;

(iii)Intelligence activities (including special activities), intelligence sources or methods, or cryptology;

(iv)Foreign relations or foreign activities of the United States, including confidential sources;

(v)Scientific, technological, or economic matters relating to the national security; which includes defense against transnational terrorism;

(vi)United States Government programs for safeguarding nuclear materials or facilities;

(vii)Vulnerabilities or capabilities of systems, installations, infrastructures, projects, plans, or protection services relating to the national security, which includes defense against transnational terrorism; or

(viii)Weapons of mass destruction.

(2)In classifying information, the public's interest in access to government information must be balanced against the need to protect national security information.

(3)In no case shall information be classified in order to conceal violations of law, inefficiency, or administrative error, or to prevent embarrassment to a person, organization, or agency, to restrain competition, or to prevent or delay the release of information that does not require protection in the interest of the national security.

(4)A reference to classified documents that does not directly or indirectly disclose classified information may not be classified or used as a basis for classification.

(5)Only information owned by, produced by or for, or under the control of the U.S. Government may be classified.

(6)The unauthorized disclosure of foreign government information is presumed to cause damage to national security.

(d)*Duration of classification.*

(1)Information shall be classified for as long as is required by national security considerations, subject to the limitations set forth in section 1.5 of the Executive Order. When it can be determined, a specific date or event for declassification in less than 10 years shall be set by the original classification authority at the time the information is originally classified. If a specific date or event for declassification cannot be determined, information shall be marked for declassification 10 years from the date of the original decision, unless the original classification authority determines that the sensitivity of the information requires that it shall be marked for declassification for up to 25 years.

(2)An original classification authority may extend the duration of classification, change the level of classification, or reclassify specific information only when the standards and procedures for classifying information under the Executive Order are met.

(3)Information marked for an indefinite duration of classification under predecessor orders, such as “Originating Agency's Determination Required”

(OADR)or containing no declassification instructions shall be subject to the declassification provisions of Part 3 of the Order, including the provisions of section 3.3 regarding automatic declassification of records older than 25 years. § 9.5 Original classification authority.

(a)Authority for original classification of information as *Top Secret* may be exercised by the Secretary and those officials delegated this authority in writing by the Secretary. Such authority has been delegated to the Deputy Secretary, the Under Secretaries, Assistant Secretaries and other Executive Level IV officials and their deputies; Chiefs of Mission, Charge d'Affaires, and Principal Officers at autonomous posts abroad; and to other officers within the Department as set forth in Department Notice dated May 26, 2000.

(b)Authority for original classification of information as *Secret or Confidential* may be exercised only by the Secretary, the Senior Agency Official, and those officials delegated this authority in writing by the Secretary or the Senior Agency Official. Such authority has been delegated to Office Directors and Division Chiefs in the Department, Section Heads in Embassies and Consulates abroad, and other officers within the Department as set forth in Department Notice dated May 26, 2000. In the absence of the Secret or Confidential classification authority, the person designated to act for that official may exercise that authority. § 9.6 Derivative classification.

(a)*Definition.* Derivative classification is the incorporating, paraphrasing, restating or generating in new form information that is already classified and the marking of the new material consistent with the classification of the source material. Duplication or reproduction of existing classified information is not derivative classification.

(b)*Responsibility.* Information classified derivatively from other classified information shall be classified and marked in accordance with instructions from an authorized classifier or in accordance with an authorized classification guide and shall comply with the standards set forth in sections 2.1-2.2 of the Executive Order and the ISOO implementing directives in 32 CFR 2001.22.

(c)*Department of State Classification Guide.* The Department of State Classification Guide

(DSCG)is the primary authority for the classification of information in documents created by Department of State personnel. The Guide is classified “Confidential” and is found on the Department of State's classified Web site. § 9.7 Identification and marking.

(a)Classified information shall be marked pursuant to the standards set forth in section 1.6 of the Executive Order; ISOO implementing directives in 32 CFR 2001, Subpart B; and internal Department guidance in 12 Foreign Affairs Manual (FAM).

(b)Foreign government information shall retain its original classification markings or be marked and classified at a U.S. classification level that provides a degree of protection at least equivalent to that required by the entity that furnished the information. Foreign government information retaining its original classification markings need not be assigned a U.S. classification marking provided the responsible agency determines that the foreign government markings are adequate to meet the purposes served by U.S. classification markings.

(c)Information assigned a level of classification under predecessor executive orders shall be considered as classified at that level of classification. § 9.8 Classification challenges.

(a)*Challenges.* Holders of information pertaining to the Department of State who believe that its classification status is improper are expected and encouraged to challenge the classification status of the information. Holders of information making challenges to the classification status of information shall not be subject to retribution for such action. Informal, usually oral, challenges are encouraged. Formal challenges to classification actions shall be in writing to an original classification authority

(OCA)with jurisdiction over the information and a copy of the challenge shall be sent to the Office of Information Programs and Services

(IPS)of the Department of State, SA-2, 515 22nd St. NW., Washington, DC 20522-6001. The Department (either the OCA or IPS) shall provide an initial response in writing within 60 days.

(b)*Appeal procedures and time limits.* A negative response may be appealed to the Department's Appeals Review Panel

(ARP)and should be sent to: Chairman, Appeals Review Panel, c/o Information and Privacy Coordinator/Appeals Officer, at the IPS address given above. The appeal shall include a copy of the original challenge, the response, and any additional information the appellant believes would assist the ARP in reaching its decision. The ARP shall respond within 90 days of receipt of the appeal. A negative decision by the ARP may be appealed to the Interagency Security Classification Appeals Panel (ISCAP) referenced in section 5.3 of Executive Order 12958. If the Department fails to respond to a formal challenge within 120 days or if the ARP fails to respond to an appeal within 90 days, the challenge may be sent to the ISCAP. § 9.9 Declassification and downgrading.

(a)*Declassification processes.* Declassification of classified information may occur:

(1)After review of material in response to a Freedom of Information Act

(FOIA)request, mandatory declassification review request, discovery request, subpoena, classification challenge, or other information access or declassification request;

(2)After review as part of the Department's systematic declassification review program;

(3)As a result of the elapse of the time or the occurrence of the event specified at the time of classification;

(4)By operation of the automatic declassification provisions of section 3.3 of the Executive Order with respect to material more than 25 years old.

(b)*Downgrading.* When material classified at the Top Secret level is reviewed for declassification and it is determined that classification continues to be warranted, a determination shall be made whether downgrading to a lower level of classification is appropriate. If downgrading is determined to be warranted, the classification level of the material shall be changed to the appropriate lower level.

(c)*Authority to downgrade and declassify.*

(1)Classified information may be downgraded or declassified by the official who originally classified the information if that official is still serving in the same position, by a successor in that capacity, by a supervisory official of either, or by any other official specifically designated by the Secretary or the senior agency official.

(2)The Department shall maintain a record of Department officials specifically designated as declassification and downgrading authorities.

(d)*Declassification in the public interest.* Although information that continues to meet the classification criteria of the Executive Order or a predecessor order normally requires continued protection, in some exceptional cases the need to protect information may be outweighed by the public interest in disclosure of the information. When such a question arises, it shall be referred to the Secretary or the Senior Agency Official for decision on whether, as an exercise of discretion, the information should be declassified and disclosed. This provision does not amplify or modify the substantive criteria or procedures for classification or create any substantive or procedural right subject to judicial review.

(e)*Public dissemination of declassified information.* Declassification of information is not authorization for its public disclosure. Previously classified information that is declassified may be subject to withholding from public disclosure under the FOIA, the Privacy Act, and various statutory confidentiality provisions. § 9.10 Mandatory declassification review. All requests to the Department by a member of the public, a government employee, or an agency to declassify and release information shall result in a prompt declassification review of the information in accordance with procedures set forth in 22 CFR 171.20-25. Mandatory declassification review requests should be directed to the Information and Privacy Coordinator, U.S. Department of State, SA-2, 515 22nd St., NW., Washington, DC 20522-6001. § 9.11 Systematic declassification review. The Information and Privacy Coordinator shall be responsible for conducting a program for systematic declassification review of historically valuable records that were exempted from the automatic declassification provisions of section 3.3 of the Executive Order. The Information and Privacy Coordinator shall prioritize such review on the basis of researcher interest and the likelihood of declassification upon review. § 9.12 Access to classified information by historical researchers and certain former government personnel. For Department procedures regarding the access to classified information by historical researchers and certain former government personnel, see Sec. 171.24 of this Title. § 9.13 Safeguarding. Specific controls on the use, processing, storage, reproduction, and transmittal of classified information within the Department to provide protection for such information and to prevent access by unauthorized persons are contained in Volume 12 of the Department's Foreign Affairs Manual. Dated: May 25, 2007. Lee Lohman, Deputy Assistant Secretary, Department of State. [FR Doc. E7-10778 Filed 6-4-07; 8:45 am] BILLING CODE 4710-24-P DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 1 [TD 9324] RIN 1545-BF04 Designated Roth Accounts Under Section 402A; Correction AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Correcting amendments. SUMMARY: This document contains corrections to final regulations (TD 9324) that were published in the **Federal Register** on Monday, April 30, 2007 (72 FR 21103) providing guidance concerning the taxation of distributions from designated Roth accounts under qualified cash or deferred arrangments under section 401(k). DATES: The correction is effective June 5, 2007. FOR FURTHER INFORMATION CONTACT: R. Lisa Mojiri-Azad or William D. Gibbs at 202-622-6060, or Cathy A. Vohs, 202-622-6090 (not toll-free numbers). SUPPLEMENTARY INFORMATION: Background The final regulations that are the subject of this correction are under sections 401(k), 402(g), 402A, and 408A of the Internal Revenue Code. Need for Correction As published, final regulations (TD 9324) contain errors that may prove to be misleading and are in need of clarification. List of Subjects in 26 CFR Part 1 Income taxes, Reporting and recordkeeping requirements. Correction of Publication Accordingly, 26 CFR part 1 is corrected by making the following correcting amendments: PART 1—INCOME TAXES **Paragraph 1.** The authority citation for part 1 continues to read in part as follows: Authority: 26 U.S.C. 7805 * * * **Par. 2.** Section 1.402A-1 is amended by revising the first sentence of *Example.* of A-8.(b) to read as follows: § 1.402A-1 Designated Roth Accounts. A-8. * * *

(b)* * * Example. The facts are the same as in the *Example* in A-7 of this section, except that instead of being disabled, Employee C is receiving a hardship distribution. * * * **Par. 3.** Section 1.402A-2 is amended by revising paragraph

(2)of A-2.(a) to read as follows: § 1.402A-2 Reporting and recordkeeping requirements with respect to designated Roth accounts. A-2. * * *

(a)* * *

(2)If the distribution is not a direct rollover to a designated Roth account under another plan, the plan administrator or responsible party must provide to the employee, upon request, the same information described in paragraph (a)(1) of this A-2, except the statement need not indicate the first year of the 5-taxable-year period described in A-1 of this section. LaNita Van Dyke, Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel (Procedure and Administration). [FR Doc. E7-10802 Filed 6-4-07; 8:45 am] BILLING CODE 4830-01-P DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 301 [TD 9327] RIN 1545-BC92 Disclosure of Returns and Return Information in Connection With Written Contracts or Agreements for the Acquisition of Property or Services for Tax Administration Purposes AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Final regulations. SUMMARY: This document contains final regulations relating to the disclosure of returns and return information pursuant to section 6103(n) of the Internal Revenue Code (Code). The final regulations describe the circumstances under which officers or employees of the Treasury Department, a State tax agency, the Social Security Administration, or the Department of Justice, may disclose returns and return information to obtain property or services for tax administration purposes, pursuant to a written contract or agreement. The final regulations also set forth safeguard requirements that are designed to protect the confidentiality of returns and return information in the hands of contractors, agents, and subcontractors, and their officers and employees, and notification requirements that must be provided, in writing, to officers and employees of the contractors, agents, and subcontractors to inform them that any returns or return information they receive pursuant to these regulations may only be used for the purpose for which it is disclosed to them and that they are subject to the civil and criminal provisions of sections 7431, 7213, and 7213A for the unauthorized inspection or disclosure of the returns or return information. The final regulations will affect officers and employees of the Treasury Department, a State tax agency, the Social Security Administration, or the Department of Justice, who disclose returns or return information in connection with a written contract or agreement for the acquisition of property or services for tax administration purposes. The final regulations also will affect any person, or officer, employee, agent, or subcontractor of the person, or officer or employee of the agent or subcontractor, who receives returns or return information in connection with a written contract or agreement for the acquisition of property or services. DATES: *Effective Date:* These regulations are applicable June 5, 2007. *Applicability Date:* For dates of applicability, see § 301.6103(n)-1(g). FOR FURTHER INFORMATION CONTACT: Helene R. Newsome, 202-622-4570 (not a toll-free number). SUPPLEMENTARY INFORMATION: Paperwork Reduction Act The collection of information contained in these final regulations has been reviewed and approved by the Office of Management and Budget in accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) under control number 1545-1821. The collection of information in these final regulations is in §§ 301.6103(n)-1(d) and 301.6103(n)-1(e)(3). This information is required and will be used to ensure compliance with the internal revenue laws and regulations, and to protect the privacy of taxpayers. *Estimated total annual reporting burden:* 250 hours. Estimated average annual burden per respondent: 6 minutes. *Estimated number of respondents:* 2500. *Estimated annual frequency of responses:* Annually. Comments concerning the accuracy of this burden estimate and suggestions for reducing this burden should be sent to the Internal Revenue Service, Attn: IRS Reports Clearance Officer, SE:W:CAR:MP:T:T:SP, Washington, DC 20224 and to the Office of Management and Budget, Attn: Desk Officer for the Department of the Treasury, Office of Information and Regulatory Affairs, Washington, DC 20503. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid control number assigned by the Office of Management and Budget. Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and return information are confidential, as required by 26 U.S.C. 6103. Background Under section 6103(a), returns and return information are confidential unless the Code authorizes disclosure. Section 6103(n) authorizes, pursuant to regulations prescribed by the Secretary, returns and return information to be disclosed to any person, including any person described in section 7513(a), for purposes of tax administration, to the extent necessary in connection with:

(1)The processing, storage, transmission, and reproduction of returns and return information;

(2)the programming, maintenance, repair, testing, and procurement of equipment; and

(3)the providing of other services. On January 12, 2005, a notice of proposed rulemaking (REG-148867-03) was published in the **Federal Register** (70 FR 2076). The proposed regulations clarified that redisclosures of returns or return information by contractors to their agents or subcontractors are permissible provided that the IRS, in writing, authorizes the redisclosures. The proposed regulations also clarified that agents and subcontractors are persons described in section 6103(n) and, accordingly, are subject to the civil and criminal penalty provisions of sections 7431, 7213, and 7213A for the unauthorized inspection or disclosure of returns or return information. The proposed regulations further clarified that agents and subcontractors are required to comply with any written notification requirements and safeguard restrictions that may be imposed by the IRS. Finally, the proposed regulations clarified that section 6103(n) applies to written contracts or agreements that are entered into to obtain property or services for tax administration purposes, including contracts that are not awarded under the Federal Acquisition Regulations, 48 CFR parts 1 through 53. One written comment responding to the notice of proposed rulemaking was received. No public hearing was requested or held. After consideration of the comment, the regulations are adopted as proposed. Summary of Comment The commentator recommended that the final regulations provide that any contractor and its agent or subcontractor, who has access to returns or return information under section 6103(n), be required to designate a natural person in the employ of each contractor, agent, or subcontractor who shall have:

(1)Cognizance and control over all disclosures by such contractor, agent, or subcontractor;

(2)the authority to flow down the sanctions set forth in § 301.6103(n)-1(e)(4) to lower-tiered agents or subcontractors in the event of their breach of or noncompliance with § 301.6103(n)-1; and

(3)the authority to apprise promptly the IRS and/or higher-tiered contractors, agents, or subcontractors of such breaches or noncompliance. The commentator explained that imposition of the above requirement would be helpful in discouraging and preventing unauthorized disclosures of returns and return information in the context of contracting and subcontracting. Because the comment was more in the nature of a contractual (case-by-case) rather than a regulatory recommendation, the final regulations do not adopt this recommendation. Special Analyses It has been determined that this Treasury decision is not a significant regulatory action as defined in Executive Order 12866. Therefore, a regulatory assessment is not required. It also has been determined that section 553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) does not apply to these regulations. It is hereby certified that the collection of information in these regulations will not have a significant economic impact on a substantial number of small entities. This certification is based on the fact that any burden on taxpayers is minimal in that the estimated average burden per respondent for complying with the collection of information imposed by these regulations is 6 minutes. Therefore, a Regulatory Flexibility Analysis under the Regulatory Flexibility Act (5 U.S.C. chapter 6) is not required. Pursuant to section 7805(f) of the Code, the proposed regulations preceding these regulations were submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on their impact on small businesses. Drafting Information The principal author of these regulations is Helene R. Newsome, Office of the Associate Chief Counsel (Procedure & Administration), Disclosure & Privacy Law Division. List of Subjects in 26 CFR Part 301 Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income taxes, Penalties, Reporting and recordkeeping requirements. Adoption of Amendments to the Regulations Accordingly, 26 CFR part 301 is amended as follows: PART 301—PROCEDURE AND ADMINSTRATION **Paragraph 1.** The authority citation for part 301 continues to read, in part, as follows: Authority: 26 U.S.C. 7805 * * * **Par. 2.** Section 301.6103(n)-1 is revised to read as follows: § 301.6103(n)-1 Disclosure of returns and return information in connection with written contracts or agreements for the acquisition of property or services for tax administration purposes.

(a)*General rule* .

(1)Pursuant to the provisions of section 6103(n) of the Internal Revenue Code and subject to the conditions of this section, officers and employees of the Treasury Department, a State tax agency, the Social Security Administration, or the Department of Justice, are authorized to disclose returns and return information (as defined in section 6103(b)) to any person (including, in the case of the Treasury Department, any person described in section 7513(a)), or to an officer or employee of the person, for purposes of tax administration (as defined in section 6103(b)(4)), to the extent necessary in connection with a written contract or agreement for the acquisition of—

(i)Equipment or other property; or

(ii)Services relating to the processing, storage, transmission, or reproduction of returns or return information, the programming, maintenance, repair, or testing of equipment or other property, or the providing of other services.

(2)Any person, or officer or employee of the person, who receives returns or return information under paragraph (a)(1) of this section, may—

(i)Further disclose the returns or return information to another officer or employee of the person whose duties or responsibilities require the returns or return information for a purpose described in this paragraph (a); or

(ii)Further disclose the returns or return information, when authorized in writing by the Internal Revenue Service (IRS), to the extent necessary to carry out the purposes described in this paragraph (a). Disclosures may include disclosures to an agent or subcontractor of the person, or officer or employee of the agent or subcontractor.

(3)An agent or subcontractor, or officer or employee of the agent or subcontractor, who receives returns or return information under paragraph (a)(2)(ii) of this section, may further disclose the returns or return information to another officer or employee of the agent or subcontractor whose duties or responsibilities require the returns or return information for a purpose described in this paragraph (a).

(4)Any person, or officer, employee, agent or subcontractor of the person, or officer or employee of the agent or subcontractor, who receives returns or return information under this paragraph (a), may, subject to the provisions of § 301.6103(p)(2)(B)-1 (concerning disclosures by a Federal, State, or local agency, or its agents or contractors), further disclose the returns or return information for a purpose authorized, and subject to all applicable conditions imposed, by section 6103.

(b)*Limitations* .

(1)Disclosure of returns or return information in connection with a written contract or agreement for the acquisition of property or services described in paragraph

(a)of this section will be treated as necessary only if the performance of the contract or agreement cannot otherwise be reasonably, properly, or economically carried out without the disclosure.

(2)Disclosure of returns or return information in connection with a written contract or agreement for the acquisition of property or services described in paragraph

(a)of this section shall be made only to the extent necessary to reasonably, properly, or economically perform the contract. For example, disclosure of returns or return information to employees of a contractor for purposes of programming, maintaining, repairing, or testing computer equipment used by the IRS or a State tax agency shall be made only if the services cannot be reasonably, properly, or economically performed without the disclosure. If it is determined that disclosure of returns or return information is necessary, and if the services can be reasonably, properly, or economically performed by disclosure of only parts or portions of a return or if deletion of taxpayer identity information (as defined in section 6103(b)(6)) reflected on a return would not seriously impair the ability of the employees to perform the services, then only the parts or portions of the return, or only the return with taxpayer identity information deleted, may be disclosed.

(c)*Penalties* . Any person, or officer, employee, agent or subcontractor of the person, or officer or employee of the agent or subcontractor, who receives returns or return information under paragraph

(a)of this section, is subject to the civil and criminal penalty provisions of sections 7431, 7213, and 7213A for the unauthorized inspection or disclosure of the returns or return information.

(d)*Notification requirements* . Any person, or agent or subcontractor of the person, who receives returns or return information under paragraph

(a)of this section shall provide written notice to his, her, or its officers and employees receiving the returns or return information that—

(1)Returns or return information disclosed to the officer or employee may be used only for a purpose and to the extent authorized by paragraph

(a)of this section and that the officer or employee is subject to the civil and criminal penalty provisions of sections 7431, 7213, and 7213A for the unauthorized inspection or disclosure of the returns or return information;

(2)Further inspection of any returns or return information for a purpose or to an extent not authorized by paragraph

(a)of this section constitutes a misdemeanor, punishable upon conviction by a fine of as much as $1,000, or imprisonment for as long as 1 year, or both, together with costs of prosecution;

(3)Further disclosure of any returns or return information for a purpose or to an extent not authorized by paragraph

(a)of this section constitutes a felony, punishable upon conviction by a fine of as much as $5,000, or imprisonment for as long as 5 years, or both, together with the costs of prosecution;

(4)Further inspection or disclosure of returns or return information by any person who is not an officer or employee of the United States for a purpose or to an extent not authorized by paragraph

(a)of this section may result also in an award of civil damages against that person in an amount not less than $1,000 for each act of unauthorized inspection or disclosure; or the sum of actual damages sustained by the plaintiff as a result of the unauthorized inspection or disclosure plus, in the case of a willful inspection or disclosure or an inspection or disclosure that is the result of gross negligence, punitive damages. In addition, costs and reasonable attorneys fees may be awarded; and

(5)A conviction for an offense referenced in paragraph (d)(2) or

(3)of this section shall, in addition to any other punishment, result in dismissal from office or discharge from employment if the person convicted is an officer or employee of the United States.

(e)*Safeguards* .

(1)Any person, or agent or subcontractor of the person, who may receive returns or return information under paragraph

(a)of this section, shall agree, before disclosure of any returns or return information to the person, agent, or subcontractor, to permit an inspection by the IRS of his, her, or its site or facilities.

(2)Any person, or officer, employee, agent or subcontractor of the person, or officer or employee of the agent or subcontractor, who receives returns or return information under paragraph

(a)of this section, shall comply with all applicable conditions and requirements as the IRS may prescribe from time to time (prescribed requirements) for the purposes of protecting the confidentiality of returns and return information and preventing any disclosure or inspection of returns or return information in a manner not authorized by this section.

(3)The terms of any written contract or agreement for the acquisition of property or services as described in paragraph

(a)of this section shall provide, or shall be amended to provide, that any person, or officer, employee, agent or subcontractor of the person, or officer or employee of the agent or subcontractor, who receives returns or return information under paragraph

(a)of this section, shall comply with the prescribed requirements. Any contract or agreement shall be made available to the IRS before execution of the contract or agreement. For purposes of this paragraph (e)(3), a written contract or agreement shall include any contract or agreement between a person and an agent or subcontractor of the person to provide the property or services described in paragraph

(a)of this section.

(4)If the IRS determines that any person, or officer, employee, agent or subcontractor of the person, or officer or employee of the agent or subcontractor, who receives returns or return information under paragraph

(a)of this section, has failed to, or does not, satisfy the prescribed requirements, the IRS, consistent with the regulations under section 6103(p)(7), may take any actions it deems necessary to ensure that the prescribed requirements are or will be satisfied, including—

(i)Suspension of further disclosures of returns or return information by the IRS to the State tax agency, the Social Security Administration, or the Department of Justice, until the IRS determines that the conditions and requirements have been or will be satisfied;

(ii)Suspension of further disclosures by the Treasury Department otherwise authorized by paragraph

(a)of this section; and

(iii)Suspension or termination of any duty or obligation arising under a contract or agreement with the Treasury Department.

(f)*Definitions.* For purposes of this section—

(1)The term *Treasury Department* includes the IRS, the Office of the Chief Counsel for the IRS, and the Office of the Treasury Inspector General for Tax Administration;

(2)The term *State tax agency* means an agency, body, or commission described in section 6103(d); and

(3)The term *Department of Justice* includes offices of the United States Attorneys.

(g)*Effective date.* This section is applicable on June 5, 2007. Kevin M. Brown, Deputy Commissioner for Services and Enforcement. Approved: May 19, 2007. Eric Solomon, Assistant Secretary for Tax Policy. [FR Doc. E7-10798 Filed 6-4-07; 8:45 am] BILLING CODE 4830-01-P DEPARTMENT OF THE TREASURY Fiscal Service 31 CFR Part 363 Regulations Governing Securities Held in TreasuryDirect AGENCY: Bureau of the Public Debt, Fiscal Service, Treasury. ACTION: Final rule. SUMMARY: TreasuryDirect is an account-based, book-entry, online system for purchasing, holding, and conducting transactions in Treasury securities. An account owner currently accesses his or her account using a password to authenticate the account owner's identity. Treasury is now introducing additional customer-based authentication mechanisms for accessing accounts. This final rule provides Treasury the flexibility to require additional methods of authentication for the protection of customer accounts. Treasury is also strengthening its ability to respond to attempted fraud and abuse of TreasuryDirect. Currently, Treasury has the authority to close any account. This rule explicitly permits Treasury to liquidate the securities held in the account to be closed and pay the proceeds to the person entitled. DATES: Effective: June 5, 2007. ADDRESSES: You can download this final rule at the following Internet addresses: *http://www.publicdebt.treas.gov* or *http://www.gpoaccess.gov/ecfr.* FOR FURTHER INFORMATION CONTACT: Elisha Whipkey, Director, Division of Program Administration, Office of Securities Operations, Bureau of the Public Debt, at

(304)480-6319 or *elisha.whipkey@bpd.treas.gov.* Susan Sharp, Attorney-Adviser, Dean Adams, Assistant Chief Counsel, Edward Gronseth, Deputy Chief Counsel, Office of the Chief Counsel, Bureau of the Public Debt, at

(304)480-8692 or *susan.sharp@bpd.treas.gov.* SUPPLEMENTARY INFORMATION: Treasury is committed to protecting its TreasuryDirect investors from potential losses through authentication of the investor at account access. Authentication is the process of ensuring that the person accessing his or her account is the same as the person whose identity was initially verified at account establishment. Authentication methods involve something that the user knows (such as a password), something that the user has (such as a gridcard), or something that the user is (such as a fingerprint). Multifactor authentication consists of requiring two or more methods of authentication to access an account. To date, Treasury has used single factor authentication, requiring passwords and other information that an account holder knows to conduct transactions in TreasuryDirect. Treasury now intends to introduce technology that uses multifactor authentication, which is more reliable and difficult to compromise than single factor authentication. Through this final rule, Treasury will have the flexibility to introduce additional methods of authentication for TreasuryDirect users to ensure that their accounts remain secure. In addition, Treasury is strengthening its ability to respond to attempted fraud and abuse of TreasuryDirect. Treasury has the authority to refuse to open an account, to close any existing account, to suspend transactions in an account or any security held in an account, and to take any other action with regard to an account that we deem necessary, if it is not inconsistent with existing law and rights. This rule clarifies Treasury's authority to close an account, by specifically including the authority to liquidate securities held in an account to be closed and pay the proceeds to the person entitled. This final rule also clarifies certain terms that we have used in the past. We have used the term “authentication service” to refer to the verification of the identity of the account owner at account establishment through a verification service; we have used the term “authentication” to refer to the confirmation of the identity of an account owner when accessing his or her account. We will now use the term “verification” to refer to confirmation of the identity of the account owner at account establishment; we will use the term “authentication” to refer to confirmation of the identity of the account owner when accessing his or her account after account establishment. Because it provides multifactor authentication for transactions in TreasuryDirect accounts, this authentication enhancement has significant benefits for both investors and the government. Increasing from single to multifactor authentication will help protect investors from losses in their TreasuryDirect accounts due to identity theft and fraud. This rule will benefit the government by increasing investor confidence in the security of online transactions in the TreasuryDirect system. Procedural Requirements This final rule does not meet the criteria for a “significant regulatory action” as defined in Executive Order 12866. Therefore, a regulatory assessment is not required. Because this final rule relates to matters of public contract and procedures for United States securities, notice and public procedure and delayed effective date requirements are inapplicable, pursuant to 5 U.S.C. 553(a)(2). As no notice of proposed rulemaking is required, the Regulatory Flexibility Act (5 U.S.C. 601 *et seq.* ) does not apply. We ask for no new collections of information in this final rule. Therefore, the Paperwork Reduction Act (44 U.S.C. 3507) does not apply. List of Subjects in 31 CFR Part 363 Bonds, Electronic funds transfer, Federal Reserve system, Government securities, Securities. Accordingly, for the reasons set out in the preamble, 31 CFR Chapter II, Subchapter B, is amended as follows: PART 363—REGULATIONS GOVERNING SECURITIES HELD IN TREASURYDIRECT 1. The authority citation for part 363 continues to read as follows: Authority: 5 U.S.C. 301; 12 U.S.C. 391; 31 U.S.C. 3102, *et seq.* ; 31 U.S.C. 3121, *et seq.* 2. Amend § 363.6 by: a. Removing the definition of “Authentication service”; b. adding the definitions of “Authentication,” “Verification,” and “Verification service” to read in alphabetical order as follows: § 363.6 What special terms do I need to know to understand this part? *Authentication* means confirming that the person accessing a TreasuryDirect account is the same person whose identity was initially verified at account establishment. *Verification* means confirming the identity of an online applicant for a TreasuryDirect account at account establishment using a verification service. *Verification service* means a public or private service that confirms the identity of an online applicant for a TreasuryDirect account at account establishment using information provided by the applicant. 3. Amend § 363.13 by revising the final sentence and adding a sentence at the end of the section, to read as follows: § 363.13 How can I open a TreasuryDirect ® account? * * * We will verify your identity and send your account number to you by e-mail when your account application is approved. In addition to your password, we may require you to use any other form(s) of authentication that we consider necessary for the protection of your account. 4. Revise § 363.14 to read as follows: § 363.14 How will you verify my identity? We may use a verification service to verify your identity using information you provide about yourself on the online application. At our option, we may require offline verification. 5. Amend § 363.15 by revising the heading and the first sentence to read as follows: § 363.15 What is the procedure for offline verification? In the event we require offline verification, we will provide a printable verification form. * * * 6. Revise § 363.16 to read as follows: § 363.16 How do I access my account? You may access your account online using your account number, password, and any other form(s) of authentication that we may require. 7. Revise § 363.17 to read as follows: § 363.17 Who is liable if someone else accesses my TreasuryDirect ® account using my password? You are solely responsible for the confidentiality and use of your account number, password, and any other form(s) of authentication we may require. We will treat any transactions conducted using your password as having been authorized by you. We are not liable for any loss, liability, cost, or expense that you may incur as a result of transactions made using your password. 8. Revise § 363.19 to read as follows: § 363.19 What should I do if I become aware that my password or other form of authentication has become compromised? If you become aware that your password has become compromised, that any other form of authentication has been compromised, lost, stolen, or misused, or that there have been any unauthorized transactions in your account, you may place a hold on your account so that it cannot be accessed by anyone, and you should notify us immediately by e-mail or telephone. Contact information is available on the TreasuryDirect Web site. 9. Amend § 363.29 by revising paragraph

(b)to read as follows: § 363.29 May Treasury close an account, suspend transactions in an account, or refuse to open an account?

(b)Close any existing account, redeem, sell, or liquidate the securities held in the account, and pay the proceeds to the person entitled; Kenneth E. Carfine, Fiscal Assistant Secretary. [FR Doc. 07-2744 Filed 6-4-07; 8:45 am]

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