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PROPOSED AD LINDSTRAND BALLOONS LTD.: Docket No. FAA-2008-0446; Directorate Identifier 2008-CE-021-AD.
COMMENTS DUE DATE

(a) We must receive comments by May 19, 2008.

AFFECTED ADS

(b) This AD supersedes AD 2008-06-15, Amendment 39-15427.

APPLICABILITY

(c) This AD applies  to Models 42A, 56A,  60A, 69A, 77A, 90A,  105A, 120A,
    150A, 180A, 210A, 240A, 260A, and 310A balloons that are:

(i) Certificated in any category; and

(ii) Equipped with burners with serial numbers BU502 through BU792, except
     BU507, BU511, BU512, BU614, BU643, BU655, BU656, BU719, BU723, BU746,
     BU749, BU752, BU754, BU762, BU779, BU781, BU785, BU787, and BU789.

SUBJECT

(d) Air Transport Association of America (ATA) Code 28: Fuel.

REASON

(e) The mandatory continuing airworthiness information (MCAI) states:

Defective burner hoses have been identified which  might develop a leak. A
significant  leak,  if  it  was  ignited,  could  hazard  the  balloon and
occupants.

Since the  issue of  AD G-2003-0010  there have  been occurrences  of hose
failure in batches not identified  in the earlier bulletins. LHAB  Service
Bulletin  (SB)  No.  11  supersedes  the  earlier  SBs  and  revises   the
applicability as required.

The MCAI requires you inspect the hose and to identify whether the hose is
from the affected batch of hoses and to inspect and replace any  defective
hose and end fitting from the affected batch.

ACTIONS AND COMPLIANCE

(f) Do the following unless already done:

(1) Before  further  flight  as  of April  1,  2008 (the  compliance  date
    retained from AD 2008-06-15), inspect the balloon burner to  determine
    whether  it has  a hose  from the  affected batch  of hoses  following
    Lindstrand Hot  Air Balloons  Ltd. Service  Bulletin No.  11, Issue 1,
    dated September 24, 2007.

(2) If as  a result of  the inspection required  by (f)(1) of  this AD you
    find a hose  from the affected  batch, before further  flight, inspect
    for leaks  and conduct  a pressure  test following  Lindstrand Hot Air
    Balloons Ltd. Service  Bulletin No. 11,  Issue 1, dated  September 24,
    2007, and repetitively thereafter inspect and conduct a pressure  test
    at intervals not to exceed 10 hours time-in-service.

(3) If as a result of any inspection or test required by (f)(2) of this AD
    you find a defective hose,  before further flight, replace it  and the
    end  fitting  with  a  new hose  and  new  end  fitting following  the
    maintenance manual. This action terminates the repetitive  requirement
    in (f)(2) of this AD.

(4) Unless already done, within 12 months after the effective date of this
    AD, replace any hose from the  affected batch with a new hose  and end
    fitting. After doing this  replacement, no further action  is required
    by this AD.

NOTE 1: At any  time after the effective  day of this AD,  you may replace
the  hose  and end  fitting  to terminate  the  repetitive inspection  and
testing requirements of this AD.

FAA AD DIFFERENCES

NOTE 2: This  AD differs  from the  MCAI  and/or  service  information  as
follows: No differences.

OTHER FAA AD PROVISIONS

(g) The following provisions also apply to this AD:

(1) Alternative Methods of Compliance (AMOCs): The Manager, Standards Off-
    ice, FAA, has the authority to approve AMOCs for this AD, if requested
    using the procedures found in 14 CFR 39.19. Send information to  ATTN:
    Taylor Martin,  Aerospace Engineer,  FAA, Small  Airplane Directorate,
    901 Locust, Room  301, Kansas City,  Missouri 64106; telephone:  (816)
    329-4138; fax: (816) 329-4090. 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.

(2) Airworthy Product: For any requirement in this AD to obtain corrective
    actions from a manufacturer or other source, use these actions if they
    are FAA-approved.  Corrective actions  are considered  FAA-approved if
    they are approved by the State of Design Authority (or their delegated
    agent). You are required to assure the product is airworthy before  it
    is returned to service.

(3) Reporting Requirements: For  any  reporting  requirement  in this  AD,
    under the provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et
    seq.), the  Office of  Management and  Budget (OMB)  has approved  the
    information  collection  requirements  and  has  assigned  OMB Control
    Number 2120-0056.

RELATED INFORMATION

(h) Refer  to  MCAI United  Kingdom  Civil  Aviation  Authority  Emergency
    Airworthiness Directive AD No. G-2008-0001, dated January 9, 2008; and
    Lindstrand Hot  Air Balloons  Ltd. Service  Bulletin No.  11, Issue 1,
    dated September 24, 2007, for related information.

Issued in  Kansas City,  Missouri, on  April 11,  2008. James  E. Jackson,
Acting  Manager,  Small   Airplane  Directorate,  Aircraft   Certification
Service.

DATES: We must receive comments on this proposed AD by May 19, 2008.
PREAMBLE 
DEPARTMENT OF TRANSPORTATION

FEDERAL AVIATION ADMINISTRATION

14 CFR Part 39

[Docket  No.  FAA-2008-0446;  Directorate  Identifier  2008-CE-021-AD] RIN
2120-AA64

AIRWORTHINESS DIRECTIVES; Lindstrand Balloons  Ltd. Models 42A, 56A,  60A,
69A, 77A, 90A, 105A, 120A, 150A, 180A, 210A, 240A, 260A, and 310A Balloons

AGENCY: Federal Aviation Administration (FAA), Department of  Transportat-
ion (DOT).

ACTION: Notice of proposed rulemaking (NPRM).

--------------------------------------------------------------------------

SUMMARY: We propose  to adopt a  new airworthiness directive  (AD) for the
products listed above that would  supersede an existing AD. This  proposed
AD  results  from mandatory  continuing  airworthiness information  (MCAI)
originated by  an aviation  authority of  another country  to identify and
correct an unsafe condition on an aviation product. The MCAI describes the
unsafe condition as:

Defective burner hoses have been identified which might develop a leak.  A
significant  leak,  if  it  was  ignited,  could  hazard  the  balloon and
occupants.

Since the  issue of  AD G-2003-0010  there have  been occurrences  of hose
failure in batches not identified  in the earlier bulletins. LHAB  Service
Bulletin  (SB)  No.  11  supersedes  the  earlier  SBs  and  revises   the
applicability as required.

The proposed  AD would  require actions  that are  intended to address the
unsafe condition described in the MCAI.

DATES: We must receive comments on this proposed AD by May 19, 2008.

ADDRESSES: You may send comments by any of the following methods:

Federal eRulemaking Portal:  Go to http://www.regulations.gov.  Follow the
instructions for submitting comments.

Fax: (202) 493-2251.

Mail: U.S.  Department of  Transportation, Docket  Operations, M-30,  West
Building  Ground  Floor,  Room  W12-140,  1200  New  Jersey  Avenue,  SE.,
Washington, DC 20590.

Hand Delivery: U.S. Department of Transportation, Docket Operations, M-30,
West Building  Ground Floor,  Room W12-140,  1200 New  Jersey Avenue, SE.,
Washington, DC 20590,  between 9 a.m.  and 5 p.m.,  Monday through Friday,
except Federal holidays.

EXAMINING THE AD DOCKET

You   may   examine   the   AD  docket   on   the   Internet   at  http://
www.regulations.gov;  or  in  person  at  the  Docket  Management Facility
between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays.
The AD docket  contains this proposed  AD, the regulatory  evaluation, any
comments  received,  and other  information.  The street  address  for the
Docket  Office (telephone  (800) 647-5527)  is in  the ADDRESSES  section.
Comments will be available in the AD docket shortly after receipt.

FOR FURTHER INFORMATION CONTACT: Taylor Martin,  Aerospace  Engineer, FAA,
Small Airplane Directorate,  901 Locust, Room  301, Kansas City,  Missouri
64106; telephone: (816) 329-4138; fax: (816) 329-4090.

SUPPLEMENTARY INFORMATION:

COMMENTS INVITED

We invite you to send any written relevant data, views, or arguments about
this  proposed AD.  Send your  comments to  an address  listed under   the
ADDRESSES  section.   Include  "Docket   No.  FAA-2008-0446;   Directorate
Identifier  2008-CE-021-AD"  at  the   beginning  of  your  comments.   We
specifically  invite  comments   on  the  overall   regulatory,  economic,
environmental, and energy  aspects of this  proposed AD. We  will consider
all comments received by the closing  date and may amend this proposed  AD
because of those comments.

We  will  post  all  comments  we  receive,  without  change,  to  http://
regulations.gov, including any personal  information you provide. We  will
also post a report summarizing each substantive verbal contact we  receive
about this proposed AD.

DISCUSSION

On March  12, 2008,  we issued  AD 2008-06-15,  Amendment 39-15427  (73 FR
13113). That AD required actions  intended to address an unsafe  condition
on the products listed above.

AD 2008-06-15 was issued as an interim action in order to address the need
for the immediate inspection and pressure test of applicable burner  hoses
for leaks and replacement of hoses and end fittings if found defective.

The  United  Kingdom  Civil  Aviation  Authority,  which  is  the aviation
authority  for  the  United Kingdom,  has  issued  Emergency Airworthiness
Directive AD  No. G-2008-0001,  dated January  9, 2008  (referred to after
this as  "the MCAI"),  to correct  an unsafe  condition for  the specified
products.

The MCAI allows for repetitive  inspections of applicable burner hoses  at
intervals not to exceed ten hours time in service. The MCAI also  requires
replacing applicable burner hoses and end fittings before the next  annual
inspection.

The Administrative Procedure Act does not permit the FAA to "bootstrap"  a
long-term requirement  into an  urgent safety  of flight  action where the
rule becomes effective at the same time the public has the opportunity  to
comment.  The short-term  action and  the long-term  action were  analyzed
separately for justification to bypass prior public notice.

We are issuing  this proposed AD  to address the  mandatory replacement of
the burner hose and end fitting.

RELEVANT SERVICE INFORMATION

Lindstrand  Balloons  Ltd. has  issued  Lindstrand Hot  Air  Balloons Ltd.
Service Bulletin No.  11, Issue 1,  dated September 24,  2007. The actions
described in this service information  are intended to correct the  unsafe
condition identified in the MCAI.

FAA'S DETERMINATION AND REQUIREMENTS OF THE PROPOSED AD

This  product  has been  approved  by the  aviation  authority of  another
country, and is approved for  operation in the United States.  Pursuant to
our bilateral  agreement with  this State  of Design  Authority, they have
notified us  of the  unsafe condition  described in  the MCAI  and service
information  referenced  above.  We  are  proposing  this  AD  because  we
evaluated all information and  determined the unsafe condition  exists and
is likely to exist or develop on other products of the same type design.

DIFFERENCES BETWEEN THIS PROPOSED AD AND THE MCAI OR SERVICE INFORMATION

We have reviewed the MCAI and related service information and, in general,
agree with their substance.  But we might have  found it necessary to  use
different words from those in the MCAI to ensure the AD is clear for  U.S.
operators and is enforceable. In making these changes, we do not intend to
differ substantively from the information provided in the MCAI and related
service information.

We might also have proposed different actions in this AD from those in the
MCAI in order to follow FAA policies. Any such differences are highlighted
in a NOTE within the proposed AD.

COSTS OF COMPLIANCE

We  estimate  that this  proposed  AD will  affect  422 products  of  U.S.
registry.  We also  estimate that  it would  take about  1 work-hour   per
product to  comply with  the basic  requirements of  this proposed AD. The
average labor rate is $80 per work-hour.

Based on these figures,  we estimate the cost  of the proposed AD  on U.S.
operators to be $33,760, or $80 per product.

In addition, we estimate that  any necessary follow-on actions would  take
about 1 work-hour and require parts  costing $200, for a cost of  $280 per
product. We have  no way of  determining the number  of products that  may
need these actions.

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 determined that this proposed AD would not have federalism implications
under Executive Order 13132. This proposed AD would 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 this proposed regulation:

1. Is not a "significant regulatory action" under Executive Order 12866;

2. Is  not  a "significant  rule" under  the 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 proposed AD and placed it in the AD docket.

LIST OF SUBJECTS IN 14 CFR PART 39

Air transportation, Aircraft, Aviation safety, Safety.

THE PROPOSED AMENDMENT

Accordingly, under the authority delegated to me by the Administrator, the
FAA proposes to amend 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.

SEC. 39.13 [AMENDED]

2. The  FAA  amends Sec.   39.13 by  removing  Amendment  39-15427 (73  FR
   13113), and adding the following new AD: