Revisions to the Voluntary Tanker Agreement, 41099-41103 [E7-14534]
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Federal Register / Vol. 72, No. 143 / Thursday, July 26, 2007 / Notices
received into any of our dockets by the
name of the individual submitting the
comment (or signing the comment, if
submitted on behalf of an association,
business, labor union, etc.). You may
review DOT’s complete Privacy Act
Statement in the Federal Register
published on April 11, 2000 (Volume
65, Number 70; Pages 19477–78), or you
may visit https://dms.dot.gov.
Dated: July 19, 2007.
By order of the Maritime Administrator.
Daron T. Threet,
Secretary, Maritime Administration.
[FR Doc. E7–14434 Filed 7–25–07; 8:45 am]
BILLING CODE 4910–81–P
DEPARTMENT OF TRANSPORTATION
Maritime Administration
[Docket No. MARAD–2007–28791]
Requested Administrative Waiver of
the Coastwise Trade Laws
Submit comments on or before
August 27, 2007.
DATES:
Comments should refer to
docket number MARAD–2007–28791.
Written comments may be submitted by
hand or by mail to the Docket Clerk,
U.S. Department of Transportation,
Docket Operations, M–30, West
Building Ground Floor, Room W12–140,
1200 New Jersey Avenue, SE.,
Washington, DC 20590. You may also
send comments electronically via the
Internet at https://dmses.dot.gov/
submit/. All comments will become part
of this docket and will be available for
inspection and copying at the above
address between 10 a.m. and 5 p.m.,
E.T., Monday through Friday, except
federal holidays. An electronic version
of this document and all documents
entered into this docket is available on
the World Wide Web at https://
dms.dot.gov.
ADDRESSES:
FOR FURTHER INFORMATION CONTACT:
AGENCY:
Maritime Administration,
Department of Transportation.
ACTION: Invitation for public comments
on a requested administrative waiver of
the Coastwise Trade Laws for the vessel
Sancerre.
Joann Spittle, U.S. Department of
Transportation, Maritime
Administration, 1200 New Jersey
Avenue, SE., Room W21–203,
Washington, DC 20590. Telephone 202–
366–5979.
As authorized by Public Law
105–383 and Public Law 107–295, the
Secretary of Transportation, as
represented by the Maritime
Administration (MARAD), is authorized
to grant waivers of the U.S.-build
requirement of the coastwise laws under
certain circumstances. A request for
such a waiver has been received by
MARAD. The vessel, and a brief
description of the proposed service, is
listed below. The complete application
is given in DOT docket MARAD–2007–
28791 at https://dms.dot.gov. Interested
parties may comment on the effect this
action may have on U.S. vessel builders
or businesses in the U.S. that use U.S.flag vessels. If MARAD determines, in
accordance with Public Law 105–383
and MARAD’s regulations at 46 CFR
Part 388 (68 FR 23084; April 30, 2003),
that the issuance of the waiver will have
an unduly adverse effect on a U.S.vessel builder or a business that uses
U.S.-flag vessels in that business, a
waiver will not be granted. Comments
should refer to the docket number of
this notice and the vessel name in order
for MARAD to properly consider the
comments.
Comments should also state the
commenter’s interest in the waiver
application, and address the waiver
criteria given in § 388.4 of MARAD’s
regulations at 46 CFR Part 388.
As
described by the applicant the intended
service of the vessel SANCERRE is:
Intended Use: ‘‘Sailing instruction
and coastal tours in a six-pack charter
operation.’’
Geographic Region: ‘‘California coast
and coastal islands.’’
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SUMMARY:
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SUPPLEMENTARY INFORMATION:
Privacy Act
Anyone is able to search the
electronic form of all comments
received into any of our dockets by the
name of the individual submitting the
comment (or signing the comment, if
submitted on behalf of an association,
business, labor union, etc.). You may
review DOT’s complete Privacy Act
Statement in the Federal Register
published on April 11, 2000 (Volume
65, Number 70; Pages 19477–78) or you
may visit https://dms.dot.gov.
Dated: July 19, 2007.
By order of the Maritime Administrator.
Daron T. Threet,
Secretary, Maritime Administration.
[FR Doc. E7–14436 Filed 7–25–07; 8:45 am]
BILLING CODE 4910–81–P
PO 00000
DEPARTMENT OF TRANSPORTATION
Maritime Administration
Revisions to the Voluntary Tanker
Agreement
Maritime Administration,
Department of Transportation
ACTION: Notice of revised Voluntary
Tanker Agreement (VTA); notice of
meeting.
AGENCY:
SUMMARY: The Maritime Administration
announces the text of a revised
Voluntary Tanker Agreement, pursuant
to Section 708 of the Defense
Production Act of 1950, as amended (50
App. U.S.C. 2158). This text revises and
replaces the Agreement as it was last
published in Volume 48 of the Federal
Register at page 38715 (August 25,
1983) and is issued in accordance with
the provisions of 44 CFR Part 332.
Because this revised Agreement
contains extensive changes, both former
and new participants should submit
new applications which are available
from the Maritime Administration. The
complete, draft text of the VTA is
published below. Copies of the
Agreement and Application are being
sent to U.S. companies that own,
operate, or charter tankers and oceangoing tugs and tank barges. Copies are
also available to the public upon
request. The Maritime Administration
will also hold a public meeting to
receive input for developing the final
text of the VTA.
FOR FURTHER INFORMATION CONTACT: Mr.
Thomas Christensen, Director, Office of
Emergency Preparedness, Room W23–
304, Maritime Administration, 1200
New Jersey Avenue, SE., Washington,
DC 20590, (202) 366–5909,
tom.christensen@dot.gov.
An open meeting for the purpose
of developing the final text of the VTA
will convene at 10 a.m., Wednesday,
August 29, 2007, in Conference Rooms
8–10, U.S. Department of
Transportation, 1200 New Jersey
Avenue, SE., Washington, DC 20590.
Notice of intent to attend given to the
point of contact above will assure
adequate seating and more efficient
access at security-controlled entrances.
SUPPLEMENTARY INFORMATION:
DATES:
Text of the Voluntary Tanker
Agreement
Table of Contents
Preface
I. Purpose
II. Authorities
A. Maritime Administration
B. U.S. Transportation Command
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III. General
A. Participation
B. Effective Date and Duration of
Participation
C. Withdrawal from the Agreement
D. Rules and Regulations
E. Amendment of the Agreement
F. Administrative Expenses
G. Record Keeping
H. Requisition of Ships of Non-Participants
I. Jones Act Waivers
J. Temporary Replacement Vessel
IV. Antitrust Defense
V. Terms and Conditions
A. Agreement by Participants
B. Proportionate Contribution of Capacity
C. Reports of Controlled Tonnage
D. Freight Rates under the Agreement
E. War Risk Insurance
VI. Activation of Agreement
A. Determination of Necessity
B. Tanker Requirements Committee
C. Tanker Charters
D. Termination of Charters under the
Agreement
VII. Application and Agreement
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Preface
Pursuant to the authority contained in
Section 708, Defense Production Act of
1950 as amended (50 App. U.S.C. 2158)
the Maritime Administrator, (‘‘the
Administrator’’), after consultation with
the Department of Defense (DoD) and
representatives of the tanker industry,
has developed this Voluntary Tanker
Agreement. The Agreement establishes
the terms, conditions and procedures
under which Participants agree
voluntarily to make tankers available to
DoD. The Agreement further affords
Participants defenses to civil and
criminal actions for violations of
antitrust laws when carrying out the
Agreement. The Agreement is designed
to create a close working relationship
among the Administrator, the
Commander of U.S. Transportation
Command (the DoD-designated
representative for purposes of this
Agreement) and the Participants
through which DoD requirements and
the needs of the civil economy can be
met through cooperative action. The
Agreement affords Participants
flexibility to respond to defense
requirements and adjust their
commercial operations to minimize
disruption whenever possible.
The Secretary of Defense (SecDef) has
approved this Agreement as an
Emergency Preparedness Program (EPP)
pursuant to 46 U.S.C. 53107.
This is a replacement for the
Agreement as it first appeared in
Volume 48 of the Federal Register at
page 38715 (August 25, 1983). Because
this replacement contains new
substantive provisions, those wishing to
participate in the Agreement should
submit new applications.
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Voluntary Tanker Agreement
III. General
I. Purpose
A. Participation
1. Tanker operators of vessels greater
than 20,000 deadweight tons may
become Participants in this Agreement
by submitting an executed copy of the
form specified in Section VII of this
Agreement.
2. Owners and operators of Integrated
Tug-Barges (ITBs) and Articulated TugBarges (ATBs) greater than 20,000
deadweight tons (DWT) may become
Participants in this Agreement.
3. For the purposes of this Agreement,
‘‘Participant’’ includes the corporate
entity entering into this Agreement and
all United States subsidiaries and
affiliates of that entity which own or
operate ships in the course of their
regular business and in which that
entity has more than fifty (50) percent
control either by stock ownership or
otherwise.
4. Vessels of a Participant subject to
the provisions of this Agreement shall
not be subject to the provisions of any
other DoD Sealift Readiness Program
(SRP).
5. A list of Participants will be
published annually in the Federal
Register.
The Administrator has determined, in
accordance with Section 708(c)(1) of the
Defense Production Act of 1950 (DPA),
that conditions exist which may pose a
direct threat to the national defense of
the United States or its preparedness
programs and, under the provisions of
Section 708, has certified to the
Attorney General that a standby
agreement for the utilization of tanker
capacity is necessary for the national
defense. The Attorney General, in
consultation with the Chairman of the
Federal Trade Commission, has issued a
finding that tanker capacity to meet
national defense requirements cannot be
provided by the industry through a
voluntary agreement having less
anticompetitive effects or without a
voluntary agreement.
The purpose of the Agreement is to
provide a responsive transition from
peace to contingency operations through
procedures agreed in advance to provide
tanker capacity to support DoD
contingency requirements. The
Agreement establishes procedures for
the commitment of tanker capacity to
satisfy such requirements. The
Agreement is intended to promote and
facilitate DoD’s use of existing
commercial tanker resources in a
manner which minimizes disruption to
commercial operations whenever
possible.
The Agreement will change from
standby to active status upon activation
by appropriate authority as described in
Section VI.
II. Authorities
A. Maritime Administration (MARAD)
1. Sections 101 and 708, DPA (50
App. U.S.C. 2158); E.O. 12919, 59 FR
29525 (June 7, 1994); E.O. 12148, 3 CFR
1979 Comp., p. 412, as amended; 46
CFR Part 340; DOT Order 1900.9.
2. Section 501 of E.O.12919, as
amended, delegated the authority of the
President under Section 708 of the DPA
to the Secretary of Transportation
(SecTrans), among others. SecTrans
delegated to the Administrator the
authority under which the Voluntary
Tanker Agreement is sponsored in DOT
Order 1900.9.
B. U.S. Transportation Command
(USTRANSCOM)
1. Section 113 and Chapter 6 of Title
10 of the United States Code.
2. DoD Directive 5158.4 designating
Commander USTRANSCOM to provide
air, land, and sea transportation for the
DoD.
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B. Effective Date and Duration of
Participation
Participation in this Agreement is
effective upon execution of the
application form by the Participant and
the Administrator or their authorized
designees and remains in effect until
terminated in accordance with 44 CFR
332.4.
C. Withdrawal From the Agreement
Participants may withdraw from this
Agreement subject to the fulfillment of
obligations incurred under the
Agreement prior to the date such
withdrawal becomes effective, by giving
written notice to the Administrator.
Withdrawal from this Agreement will
not deprive a Participant of an antitrust
defense otherwise available to it in
accordance with DPA Section 708 for
the fulfillment of obligations incurred
prior to withdrawal. A Participant
otherwise subject to the DoD SRP that
voluntarily withdraws from this
Agreement will become subject again to
the DoD SRP.
D. Rules and Regulations
Participants acknowledge and agree to
abide by all provisions of Section 708,
DPA, as amended (50 App. U.S.C. 2158),
and regulations related thereto which
are promulgated by the SecTrans, the
Attorney General, and the Chairman of
the Federal Trade Commission.
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Standards and procedures pertaining to
voluntary agreements have been
promulgated in 44 CFR Part 332. The
Administrator shall inform Participants
of new rules and regulations as they are
issued.
copying, unless exempted on the
grounds specified in 5 U.S.C. 552(b)(1)
and (3) or identified as privileged and
confidential information in accordance
with Section 705(e) of the DPA, as
amended, and 94 CFR Part 332.
E. Amendment of the Agreement
1. The Attorney General may modify
this Agreement, in writing, after
consultation with the Chairman of the
Federal Trade Commission, SecTrans,
through her representative MARAD, and
SecDef, through his representative,
Commander USTRANSCOM. The
Administrator, Commander
USTRANSCOM and Participants may
modify this Agreement at any time by
mutual agreement, but only in writing
with the approval of the Attorney
General and the Chairman of the Federal
Trade Commission.
2. A Participant may propose
amendments to the Agreement at any
time.
H. Requisition of Ships of NonParticipants
The Administrator upon presidential
authorization may requisition ships of
non-Participants to supplement capacity
made available for defense operations
under this Agreement and to balance the
economic burden of defense support
among companies operating in U.S.
trade. Non-Participant owners of
requisitioned tankers will not
participate in the Tanker Requirements
Committee and will not enjoy the
immunities provided by this Agreement.
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F. Administrative Expenses
Administrative and out-of-pocket
expenses incurred by Participants shall
be borne solely by participants.
G. Record Keeping
1. MARAD and the DoD have primary
responsibility for maintaining records in
accordance with 44 CFR Part 332.
2. The Director, Office of Emergency
Preparedness, MARAD, shall be the
official custodian of records related to
the carrying out of this Agreement,
except records of direct dealings
between the DoD and Participants.
3. For direct dealings between the
DoD and Participants, the designee of
the SecDef shall be the official
custodian of the record but the Director
of the Office of Emergency
Preparedness, MARAD shall have
complete access thereto.
4. In accordance with 44 CFR
332.3(d), each Participant shall maintain
for five years all minutes of meetings,
transcripts, records, documents, and
other data, including any
communications with other Participants
or with any other member of the
industry, related to the carrying out of
this Agreement. Each Participant agrees
to make available to the Administrator,
the Commander USTRANSCOM, the
Attorney General, the Director of the
Federal Emergency Management
Agency, and the Chairman of the
Federal Trade Commission for
inspection and copying at reasonable
times and upon reasonable notice any
item that this section requires the
Participant to maintain. Any record
maintained under this subsection shall
be available for public inspection and
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I. Jones Act Waivers
In situations where the activation of
the Agreement deprives a Participant of
all or a portion of its Jones Act tonnage
and, at the same time, creates a general
shortage of Jones Act tonnage on the
market, the Administrator may request
that the Assistant Commissioner, Office
of Regulations and rulings, U. S.
Customs and Border Protection,
Department of Homeland Security grant
a temporary waiver of the provisions of
the Jones Act to permit a Participant to
charter or otherwise utilize non-Jones
Act tonnage. The tonnage for which
such waivers are requested will be
approximately equal to the Jones Act
tonnage chartered to the DoD and any
waiver that may be granted will be
effective for the period that the Jones
Act tonnage is on charter to the DoD
plus a reasonable time for termination of
the replacement tonnage charters as
determined by the Administrator.
J. Temporary Replacement Vessel
Notwithstanding 10 U.S.C. 2631, 46
U.S.C. 55304 (formerly Public
Resolution 17), 46 U.S.C. 55302, 55305,
55312 or 55314 (formerly Sections
901(a), 901(b), and 901b of the Merchant
Marine Act, 1936), or any other cargo
preference law of the United States—
1. A Participant may operate or
employ in foreign commerce a foreignflag vessel or foreign-flag vessel capacity
as a temporary replacement for a United
States-documented vessel or United
States-documented vessel capacity that
is activated by the SecDef under an
Emergency Preparedness Agreement or
under a primary DoD-approved SRP;
and
2. Such replacement vessel or vessel
capacity shall be eligible during the
replacement period to transport
preference cargoes subject to 10 U.S.C.
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41101
2631, 46 U.S.C. 55304 (formerly Public
Resolution 17), and 46 U.S.C. 55302,
55305, 55312 or 55314 (formerly
Sections 901(a), 901(b), and 901b of the
Merchant Marine Act, 1936) to the same
extent as the eligibility of the vessel or
vessel capacity replaced.
IV. Antitrust Defense
Under the provisions of Subsection
708(j), DPA, as amended (50 App.
U.S.C. 2158(j)), each Participant in this
Agreement shall have available as a
defense to any civil or criminal action
brought for violation of the antitrust
laws, with respect to any act or
omission to act to develop or carry out
this Agreement, that such act or
omission to act was taken in good faith
by the Participant in the course of
developing or carrying out this
Agreement and that the Participant fully
complied with the provisions of the Act,
and the rules promulgated thereunder,
and acted in accordance with the terms
of this Agreement. This defense shall
not be available to the Participant for
any act or omission occurring after the
termination of this Agreement, nor shall
it be available, upon the modification of
this Agreement, with respect to any
subsequent act or omission that is
beyond the scope of the modified
Agreement, except that no such
termination or modification will be
accomplished in a way that will deprive
Participants of antitrust defense for the
fulfillment of obligations incurred. This
defense shall be available only if and to
the extent that the Participants asserting
it demonstrate that the action, which
includes a discussion or agreement, was
within the scope of the Agreement. The
person asserting the defense bears the
burden of proof. The defense shall not
be available if the person against whom
it is asserted shows that the action was
taken for the purpose of violating the
antitrust laws.
V. Terms and Conditions
A. Agreement by Participants
1. Each Participant agrees to
contribute tanker capacity as requested
by the Administrator in accordance with
Section V. B. below, at such times and
in such amounts as the Administrator,
as requested by DoD, shall determine to
be necessary to meet the essential needs
of the DoD for the transportation of DoD
MILSPEC petroleum and petroleum
products in bulk by sea.
2. Each Participant further agrees to
make tankers and tanker capacity
available to other Participants when
requested by the Administrator, on the
advice of the Tanker Requirements
Committee, in order to ensure that
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contributions to meet DoD requirements
are made on a proportionate basis
whenever possible or to ensure that no
participating tanker operator is
disproportionately hampered in meeting
the needs of the civil economy in
accordance with priorities established
by authority of the President.
B. Proportionate Contribution of
Capacity
1. Any entity receiving payments
under the Maritime Security Program
(MSP) pursuant to the Maritime
Security Act of 2003 (MSA 2003) (Pub.
L. 108–136) shall become a Participant
with respect to all tankers enrolled in
the MSP at all times until the date the
MSP operating agreement would have
terminated according to its original
terms. Such participation will satisfy
the requirement for an MSP participant
to be enrolled in an emergency
preparedness program approved by
SecDef as provided in 46 U.S.C. § 53107.
2. Participants hereto not receiving
MSP payments pursuant to MSA 2003
agree to contribute tanker capacity
under the Agreement in the proportion
that its ‘‘controlled tonnage’’ bears to
the total ‘‘controlled tonnage’’ of all
Participants. Because exact proportions
may not be feasible, each Participant
agrees that variances are permissible at
the discretion of the Administrator.
3. Clean tankers and clean tonnage
shall mean tankers inspected and
approved by DESC Quality
Representatives, capable of meeting DoD
quality standards, and able to carry
refined MILSPEC petroleum products.
a. Chemical tankers and tankers in
dirty trade may contribute clean tanker
capacity only after being certified as
being able to meet DoD quality
standards to carry refined MILSPEC
petroleum products.
4. ‘‘Controlled tonnage’’ shall mean
tankers, including ITBs and ATBs of
over 20,000 DWT capacity and present
military usefulness in the transportation
of refined DoD cargoes pursuant to the
requirements of associated warplans:
a. In which, as of the effective date of
the activation of this Agreement, the
Participant or any of its U.S.
subsidiaries or affiliates has a
controlling interest and which are
registered in any of the following
countries: The United States, Liberia,
Panama, Honduras, the Bahamas, or the
Marshall Islands; PLUS
b. Ships which are on charter or
under contract to such Participant for a
period of six (6) months or more from
the effective date of activation of the
Agreement, regardless of flag of registry,
exclusive of tonnage available to the
Participant under contracts of
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affreightment and consecutive voyage
charter; provided that, in the event an
owner of a vessel terminates a time
charter in accordance with a war clause,
the affected tonnage will be excluded
from the chartering Participant’s
controlled tonnage; PLUS
c. Any other non-U.S.-flag tonnage
which a Participant may offer to
designate as ‘‘controlled tonnage’’ and
which the Tanker Requirements
Committee accepts; MINUS
d. Tankers described in
subparagraphs, a. and b. which are
chartered out or under contract to others
for a remaining period of six (6) months
or more from the effective date of
activation of this Agreement: MINUS
e. Certain vessels which are fitted
with special gear and are on permanent
station for the storage of crude oil from
a production platform and vessels
which may have a dual role of
production storage and transportation
use to a limited location.
5. This Agreement shall not be
deemed to commit any vessel with
respect to which the law of the country
of registration requires the approval of
the government before entering into this
Agreement of furnishing such vessel
under the terms of this Agreement until
such time as the required approval has
been obtained.
6. The obligations of Participants to
contribute clean capacity under the
Agreement shall be calculated on a
proportionate basis wherever possible
among the Participants by the Tanker
Requirements Committee.
7. A vessel on charter to a Participant
shall not be subject to a relet to the DoD
in the case where the period of the relet
would be longer than the term of the
Participant’s incharter or in the case
where the relet would otherwise breach
the terms of the incharter, but such
tonnage shall be included in the
calculation of the Participant’s
‘‘controlled tonnage’’.
8. The Administrator retains the right
under law to requisition ships of
Participants. A Participant’s ships
which are directly requisitioned by the
U.S. Government or which are called up
pursuant to other U.S. Government
voluntary arrangements shall be
credited against the Participant’s
proportionate contribution under this
Agreement. Ships on charter to the DoD
when this Agreement is activated shall
not be so credited.
C. Reports of Controlled Tonnage
Twice annually, or upon request of
the Administrator and in such form as
may be requested, each Participant shall
submit information as to ‘‘controlled
tonnage’’ necessary for the carrying out
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of this Agreement. Information which a
Participant identifies as privileged and
confidential shall be withheld from
public disclosure in accordance with
Sections 708(h)(3) and 705(e) of the
DPA, as amended, and 44 CFR Part 332.
D. Freight Rates Under the Agreement
1. The rate of charter hire applicable
to each charter under this Agreement
shall be the ‘‘prevailing market rate’’
effective at the time of the proposed
loading of the vessel. The ‘‘prevailing
market rate’’ shall be determined by the
Military Sealift Command (MSC)
Contracting Officer utilizing the price
analysis techniques set forth in FAR
Part 15.4 to determine that the
negotiated rates are fair and reasonable,
utilizing market or previous contract
prices. Time charter hire rates, for either
U.S. or foreign-flag tankers, shall be
expressed in terms of a per diem rate(s).
2. The rate of charter hire fixed with
respect to each charter shall apply for
the entire period of the charter, except
that:
a. For a consecutive voyage charter,
the rate of charter shall be increased or
decreased to reflect increases or
decreases in the price of bunker fuel
applicable in the area of the vessel’s
trade;
b. Reimbursement for increased war
risk insurance premiums will be made
in accordance with section V.E.;
E. War Risk Insurance
1. Increased War risk insurance
premiums for time chartered vessels
will be paid by DoD or MARAD war risk
insurance policies will be implemented.
2. For voyage and consecutive voyage
charters, the Participant will be
reimbursed for increases in war risk
insurance premiums that are applicable
to the actual voyage but are announced
after the charter rate is established by
the broker panel.
3. For any ship chartered under this
Agreement, the SecDef may procure
from the SecTrans war risk insurance on
hull and machinery, war risk protection
and indemnity insurance, and Second
Seaman’s War Risk Insurance, subject to
46 U.S.C. § 53905 (formerly Section
1203 of the Merchant Marine Act, 1936).
VI. Activation of the Agreement
A. Determination of Necessity
This Agreement may be activated at
the request of The Commander
USTRANSCOM, with the approval of
SecDef, to support Contingency
operations when there is a tanker
capacity emergency. A tanker capacity
emergency will be deemed to exist
when tanker capacity required to
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support operations of U.S. forces
outside the continental United States
cannot be supplied through the
commercial tanker charter market in
accordance with applicable laws and
regulations or other voluntary
arrangements. The Administrator shall
notify the Attorney General and the
Chairman of the Federal Trade
Commission, when such a finding is
made.
B. Tanker Requirements Committee
1. There is established a Tanker
Requirements Committee (the
‘‘Committee’’) to provide
USTRANSCOM, MARAD and
Participants a forum to:
a. Analyze DoD Contingency tanker
requirements.
b. Identify commercial tanker capacity
that may be used to meet DoD
requirements related to Contingencies
and, as requested by USTRANSCOM,
exercises, and special movements.
c. Develop and recommend Concepts
of Operations (CONOPS) to meet DoDapproved Contingency requirements
and, as requested by USTRANSCOM,
exercises and special movements.
d. Advise the Administrator on the
tanker capacity that each Participant
controls and is capable of meeting
Contingency requirements.
2. The Committee will be co-chaired
by MARAD and USTRANSCOM and
will convene as jointly determined by
the co-chairs.
3. The Committee will not be used for
contract negotiations and/or contract
discussions between carriers and DoD;
such negotiations and/or discussions
will be in accordance with applicable
DoD contracting policies and
procedures.
4. The Committee will consist of
designated representatives from
MARAD, USTRANSCOM, to include
Military Sealift Command, Defense
Energy Support Center, each
Participant, and maritime labor. Other
attendees may be invited at the
discretion of the co-chairs.
Representatives will provide technical
advice and support to ensure maximum
coordination, efficiency and
effectiveness in the use of Participants
resources. All Participants will be
invited to open Committee meetings.
For selected Committee meetings,
attendance may be limited to designated
Participants to meet specific operational
requirements.
5. The Committee co-chairs shall:
a. Notify the Attorney General, the
Chairman of the Federal Trade
Commission, and all Participants of the
time, place and nature of each meeting
and of the proposed agenda of each
VerDate Aug<31>2005
16:36 Jul 25, 2007
Jkt 211001
meeting to be held to carry out this
Agreement:
b. Provide for publication in the
Federal Register of a notice of the time,
place and nature of each meeting. If a
meeting is open, a Federal Register
notice will be published reasonably in
advance of the meeting. If a meeting is
closed, a Federal Register notice will be
published within ten (10) days of the
meeting and will include the reasons
why the meeting is closed;
c. Establish the agenda for each
meeting and be responsible for
adherence to the agenda;
d. Provide for a written summary or
other record of each meeting and
provide copies of transcripts or other
records to the Attorney General, the
Chairman of the Federal Trade
Commission, and all Participants; and
e. Take necessary actions to protect
confidentiality of data discussed with or
obtained from Participants.
C. Tanker Charters
MSC, as designated by
USTRANSCOM, will deal directly with
tanker operators in the making of
charter parties and other arrangements
to meet the defense requirement,
keeping the Administrator informed. To
reduce risk to owners and to control
cost to the government, all government
charters will be time charters, unless
specifically designated as voyage charter
by the Contracting Officer. If vessels are
chartered between Participants,
Participants will keep the Administrator
informed. The Administrator will keep
the Attorney General and the Chairman
of the Federal Trade Commission
informed of the actions taken under this
Agreement.
D. Termination of Charters Under the
Agreement
MSC, as the contracting officer, will
notify the Administrator as far as
possible in advance of the prospective
termination of the need for tanker
capacity under this Agreement
VII. Application and Agreement
The Administrator has adopted and
makes available a form on which tanker
operators may apply for and become
Participants in this Agreement
(‘‘Application and Agreement to
Participate in the Voluntary Tanker
Agreement’’). The form will incorporate
by reference the terms of this
Agreement.
Application and Agreement To Participate
in the Voluntary Tanker Agreement
The applicant identified below hereby
applies to participate in the Maritime
Administration’s agreement entitled
‘‘Voluntary Tanker Agreement.’’ The text of
PO 00000
Frm 00055
Fmt 4703
Sfmt 4703
41103
said Agreement is published in __Federal
Register ___, __, 2007. This Agreement is
authorized under Section 708 of the Defense
Production Act of 1950, as amended (50 App.
U.S.C. 2158). Regulations governing is
Agreement appear at 44 CFR Part 332 and are
reflected at 49 CFR Subtitle A.
The applicant, if selected, hereby
acknowledges and agrees to the incorporation
by reference into this Application and
Agreement of the entire text of the Voluntary
Tanker Agreement published in _ Federal
Register ___, __, 2007, as though said text
were physically recited herein.
The applicant, as Participant, agrees to
comply with the provisions of Section 708 of
the Defense Production Act of 1950, as
amended, the regulations of 44 CFR Part 332
and as reflected at 49 CFR Subtitle A, and the
terms of the Voluntary Tanker Agreement.
Further, the applicant, if selected as a
Participant, hereby agrees to contractually
commit to make vessels or capacity available
for use by the Department of Defense and to
other Participants for the purpose of meeting
national defense requirements.
Attest:
lllllllllllllllllllll
(Applicant—Corporate Name)
lllllllllllllllllllll
(Signature)
lllllllllllllllllllll
(Position Title)
United States of America, Department of
Transportation, Maritime Administration
By: lllllllllllllllllll
Maritime Administrator
By Order of the Maritime Administrator.
Dated: July 19, 2007.
Daron T. Threet,
Secretary, Maritime Administration.
[FR Doc. E7–14534 Filed 7–25–07; 8:45 am]
BILLING CODE 4910–81–P
DEPARTMENT OF THE TREASURY
Submission for OMB Review;
Comment Request
July 20, 2007.
The Department of the Treasury has
submitted the following public
information collection requirement(s) to
OMB for review and clearance under the
Paperwork Reduction Act of 1995,
Public Law 104–13. Copies of the
submission(s) may be obtained by
calling the Treasury Bureau Clearance
Officer listed. Comments regarding this
information collection should be
addressed to the OMB reviewer listed
and to the Treasury Department
Clearance Officer, Department of the
Treasury, Room 11000, 1750
Pennsylvania Avenue, NW.,
Washington, DC 20220.
DATES: Written comments should be
received on or before August 27, 2007
to be assured of consideration.
E:\FR\FM\26JYN1.SGM
26JYN1
Agencies
[Federal Register Volume 72, Number 143 (Thursday, July 26, 2007)]
[Notices]
[Pages 41099-41103]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-14534]
-----------------------------------------------------------------------
DEPARTMENT OF TRANSPORTATION
Maritime Administration
Revisions to the Voluntary Tanker Agreement
AGENCY: Maritime Administration, Department of Transportation
ACTION: Notice of revised Voluntary Tanker Agreement (VTA); notice of
meeting.
-----------------------------------------------------------------------
SUMMARY: The Maritime Administration announces the text of a revised
Voluntary Tanker Agreement, pursuant to Section 708 of the Defense
Production Act of 1950, as amended (50 App. U.S.C. 2158). This text
revises and replaces the Agreement as it was last published in Volume
48 of the Federal Register at page 38715 (August 25, 1983) and is
issued in accordance with the provisions of 44 CFR Part 332. Because
this revised Agreement contains extensive changes, both former and new
participants should submit new applications which are available from
the Maritime Administration. The complete, draft text of the VTA is
published below. Copies of the Agreement and Application are being sent
to U.S. companies that own, operate, or charter tankers and ocean-going
tugs and tank barges. Copies are also available to the public upon
request. The Maritime Administration will also hold a public meeting to
receive input for developing the final text of the VTA.
FOR FURTHER INFORMATION CONTACT: Mr. Thomas Christensen, Director,
Office of Emergency Preparedness, Room W23-304, Maritime
Administration, 1200 New Jersey Avenue, SE., Washington, DC 20590,
(202) 366-5909, tom.christensen@dot.gov.
DATES: An open meeting for the purpose of developing the final text of
the VTA will convene at 10 a.m., Wednesday, August 29, 2007, in
Conference Rooms 8-10, U.S. Department of Transportation, 1200 New
Jersey Avenue, SE., Washington, DC 20590. Notice of intent to attend
given to the point of contact above will assure adequate seating and
more efficient access at security-controlled entrances.
SUPPLEMENTARY INFORMATION:
Text of the Voluntary Tanker Agreement
Table of Contents
Preface
I. Purpose
II. Authorities
A. Maritime Administration
B. U.S. Transportation Command
[[Page 41100]]
III. General
A. Participation
B. Effective Date and Duration of Participation
C. Withdrawal from the Agreement
D. Rules and Regulations
E. Amendment of the Agreement
F. Administrative Expenses
G. Record Keeping
H. Requisition of Ships of Non-Participants
I. Jones Act Waivers
J. Temporary Replacement Vessel
IV. Antitrust Defense
V. Terms and Conditions
A. Agreement by Participants
B. Proportionate Contribution of Capacity
C. Reports of Controlled Tonnage
D. Freight Rates under the Agreement
E. War Risk Insurance
VI. Activation of Agreement
A. Determination of Necessity
B. Tanker Requirements Committee
C. Tanker Charters
D. Termination of Charters under the Agreement
VII. Application and Agreement
Preface
Pursuant to the authority contained in Section 708, Defense
Production Act of 1950 as amended (50 App. U.S.C. 2158) the Maritime
Administrator, (``the Administrator''), after consultation with the
Department of Defense (DoD) and representatives of the tanker industry,
has developed this Voluntary Tanker Agreement. The Agreement
establishes the terms, conditions and procedures under which
Participants agree voluntarily to make tankers available to DoD. The
Agreement further affords Participants defenses to civil and criminal
actions for violations of antitrust laws when carrying out the
Agreement. The Agreement is designed to create a close working
relationship among the Administrator, the Commander of U.S.
Transportation Command (the DoD-designated representative for purposes
of this Agreement) and the Participants through which DoD requirements
and the needs of the civil economy can be met through cooperative
action. The Agreement affords Participants flexibility to respond to
defense requirements and adjust their commercial operations to minimize
disruption whenever possible.
The Secretary of Defense (SecDef) has approved this Agreement as an
Emergency Preparedness Program (EPP) pursuant to 46 U.S.C. 53107.
This is a replacement for the Agreement as it first appeared in
Volume 48 of the Federal Register at page 38715 (August 25, 1983).
Because this replacement contains new substantive provisions, those
wishing to participate in the Agreement should submit new applications.
Voluntary Tanker Agreement
I. Purpose
The Administrator has determined, in accordance with Section
708(c)(1) of the Defense Production Act of 1950 (DPA), that conditions
exist which may pose a direct threat to the national defense of the
United States or its preparedness programs and, under the provisions of
Section 708, has certified to the Attorney General that a standby
agreement for the utilization of tanker capacity is necessary for the
national defense. The Attorney General, in consultation with the
Chairman of the Federal Trade Commission, has issued a finding that
tanker capacity to meet national defense requirements cannot be
provided by the industry through a voluntary agreement having less
anticompetitive effects or without a voluntary agreement.
The purpose of the Agreement is to provide a responsive transition
from peace to contingency operations through procedures agreed in
advance to provide tanker capacity to support DoD contingency
requirements. The Agreement establishes procedures for the commitment
of tanker capacity to satisfy such requirements. The Agreement is
intended to promote and facilitate DoD's use of existing commercial
tanker resources in a manner which minimizes disruption to commercial
operations whenever possible.
The Agreement will change from standby to active status upon
activation by appropriate authority as described in Section VI.
II. Authorities
A. Maritime Administration (MARAD)
1. Sections 101 and 708, DPA (50 App. U.S.C. 2158); E.O. 12919, 59
FR 29525 (June 7, 1994); E.O. 12148, 3 CFR 1979 Comp., p. 412, as
amended; 46 CFR Part 340; DOT Order 1900.9.
2. Section 501 of E.O.12919, as amended, delegated the authority of
the President under Section 708 of the DPA to the Secretary of
Transportation (SecTrans), among others. SecTrans delegated to the
Administrator the authority under which the Voluntary Tanker Agreement
is sponsored in DOT Order 1900.9.
B. U.S. Transportation Command (USTRANSCOM)
1. Section 113 and Chapter 6 of Title 10 of the United States Code.
2. DoD Directive 5158.4 designating Commander USTRANSCOM to provide
air, land, and sea transportation for the DoD.
III. General
A. Participation
1. Tanker operators of vessels greater than 20,000 deadweight tons
may become Participants in this Agreement by submitting an executed
copy of the form specified in Section VII of this Agreement.
2. Owners and operators of Integrated Tug-Barges (ITBs) and
Articulated Tug-Barges (ATBs) greater than 20,000 deadweight tons (DWT)
may become Participants in this Agreement.
3. For the purposes of this Agreement, ``Participant'' includes the
corporate entity entering into this Agreement and all United States
subsidiaries and affiliates of that entity which own or operate ships
in the course of their regular business and in which that entity has
more than fifty (50) percent control either by stock ownership or
otherwise.
4. Vessels of a Participant subject to the provisions of this
Agreement shall not be subject to the provisions of any other DoD
Sealift Readiness Program (SRP).
5. A list of Participants will be published annually in the Federal
Register.
B. Effective Date and Duration of Participation
Participation in this Agreement is effective upon execution of the
application form by the Participant and the Administrator or their
authorized designees and remains in effect until terminated in
accordance with 44 CFR 332.4.
C. Withdrawal From the Agreement
Participants may withdraw from this Agreement subject to the
fulfillment of obligations incurred under the Agreement prior to the
date such withdrawal becomes effective, by giving written notice to the
Administrator. Withdrawal from this Agreement will not deprive a
Participant of an antitrust defense otherwise available to it in
accordance with DPA Section 708 for the fulfillment of obligations
incurred prior to withdrawal. A Participant otherwise subject to the
DoD SRP that voluntarily withdraws from this Agreement will become
subject again to the DoD SRP.
D. Rules and Regulations
Participants acknowledge and agree to abide by all provisions of
Section 708, DPA, as amended (50 App. U.S.C. 2158), and regulations
related thereto which are promulgated by the SecTrans, the Attorney
General, and the Chairman of the Federal Trade Commission.
[[Page 41101]]
Standards and procedures pertaining to voluntary agreements have been
promulgated in 44 CFR Part 332. The Administrator shall inform
Participants of new rules and regulations as they are issued.
E. Amendment of the Agreement
1. The Attorney General may modify this Agreement, in writing,
after consultation with the Chairman of the Federal Trade Commission,
SecTrans, through her representative MARAD, and SecDef, through his
representative, Commander USTRANSCOM. The Administrator, Commander
USTRANSCOM and Participants may modify this Agreement at any time by
mutual agreement, but only in writing with the approval of the Attorney
General and the Chairman of the Federal Trade Commission.
2. A Participant may propose amendments to the Agreement at any
time.
F. Administrative Expenses
Administrative and out-of-pocket expenses incurred by Participants
shall be borne solely by participants.
G. Record Keeping
1. MARAD and the DoD have primary responsibility for maintaining
records in accordance with 44 CFR Part 332.
2. The Director, Office of Emergency Preparedness, MARAD, shall be
the official custodian of records related to the carrying out of this
Agreement, except records of direct dealings between the DoD and
Participants.
3. For direct dealings between the DoD and Participants, the
designee of the SecDef shall be the official custodian of the record
but the Director of the Office of Emergency Preparedness, MARAD shall
have complete access thereto.
4. In accordance with 44 CFR 332.3(d), each Participant shall
maintain for five years all minutes of meetings, transcripts, records,
documents, and other data, including any communications with other
Participants or with any other member of the industry, related to the
carrying out of this Agreement. Each Participant agrees to make
available to the Administrator, the Commander USTRANSCOM, the Attorney
General, the Director of the Federal Emergency Management Agency, and
the Chairman of the Federal Trade Commission for inspection and copying
at reasonable times and upon reasonable notice any item that this
section requires the Participant to maintain. Any record maintained
under this subsection shall be available for public inspection and
copying, unless exempted on the grounds specified in 5 U.S.C. 552(b)(1)
and (3) or identified as privileged and confidential information in
accordance with Section 705(e) of the DPA, as amended, and 94 CFR Part
332.
H. Requisition of Ships of Non-Participants
The Administrator upon presidential authorization may requisition
ships of non-Participants to supplement capacity made available for
defense operations under this Agreement and to balance the economic
burden of defense support among companies operating in U.S. trade. Non-
Participant owners of requisitioned tankers will not participate in the
Tanker Requirements Committee and will not enjoy the immunities
provided by this Agreement.
I. Jones Act Waivers
In situations where the activation of the Agreement deprives a
Participant of all or a portion of its Jones Act tonnage and, at the
same time, creates a general shortage of Jones Act tonnage on the
market, the Administrator may request that the Assistant Commissioner,
Office of Regulations and rulings, U. S. Customs and Border Protection,
Department of Homeland Security grant a temporary waiver of the
provisions of the Jones Act to permit a Participant to charter or
otherwise utilize non-Jones Act tonnage. The tonnage for which such
waivers are requested will be approximately equal to the Jones Act
tonnage chartered to the DoD and any waiver that may be granted will be
effective for the period that the Jones Act tonnage is on charter to
the DoD plus a reasonable time for termination of the replacement
tonnage charters as determined by the Administrator.
J. Temporary Replacement Vessel
Notwithstanding 10 U.S.C. 2631, 46 U.S.C. 55304 (formerly Public
Resolution 17), 46 U.S.C. 55302, 55305, 55312 or 55314 (formerly
Sections 901(a), 901(b), and 901b of the Merchant Marine Act, 1936), or
any other cargo preference law of the United States--
1. A Participant may operate or employ in foreign commerce a
foreign-flag vessel or foreign-flag vessel capacity as a temporary
replacement for a United States-documented vessel or United States-
documented vessel capacity that is activated by the SecDef under an
Emergency Preparedness Agreement or under a primary DoD-approved SRP;
and
2. Such replacement vessel or vessel capacity shall be eligible
during the replacement period to transport preference cargoes subject
to 10 U.S.C. 2631, 46 U.S.C. 55304 (formerly Public Resolution 17), and
46 U.S.C. 55302, 55305, 55312 or 55314 (formerly Sections 901(a),
901(b), and 901b of the Merchant Marine Act, 1936) to the same extent
as the eligibility of the vessel or vessel capacity replaced.
IV. Antitrust Defense
Under the provisions of Subsection 708(j), DPA, as amended (50 App.
U.S.C. 2158(j)), each Participant in this Agreement shall have
available as a defense to any civil or criminal action brought for
violation of the antitrust laws, with respect to any act or omission to
act to develop or carry out this Agreement, that such act or omission
to act was taken in good faith by the Participant in the course of
developing or carrying out this Agreement and that the Participant
fully complied with the provisions of the Act, and the rules
promulgated thereunder, and acted in accordance with the terms of this
Agreement. This defense shall not be available to the Participant for
any act or omission occurring after the termination of this Agreement,
nor shall it be available, upon the modification of this Agreement,
with respect to any subsequent act or omission that is beyond the scope
of the modified Agreement, except that no such termination or
modification will be accomplished in a way that will deprive
Participants of antitrust defense for the fulfillment of obligations
incurred. This defense shall be available only if and to the extent
that the Participants asserting it demonstrate that the action, which
includes a discussion or agreement, was within the scope of the
Agreement. The person asserting the defense bears the burden of proof.
The defense shall not be available if the person against whom it is
asserted shows that the action was taken for the purpose of violating
the antitrust laws.
V. Terms and Conditions
A. Agreement by Participants
1. Each Participant agrees to contribute tanker capacity as
requested by the Administrator in accordance with Section V. B. below,
at such times and in such amounts as the Administrator, as requested by
DoD, shall determine to be necessary to meet the essential needs of the
DoD for the transportation of DoD MILSPEC petroleum and petroleum
products in bulk by sea.
2. Each Participant further agrees to make tankers and tanker
capacity available to other Participants when requested by the
Administrator, on the advice of the Tanker Requirements Committee, in
order to ensure that
[[Page 41102]]
contributions to meet DoD requirements are made on a proportionate
basis whenever possible or to ensure that no participating tanker
operator is disproportionately hampered in meeting the needs of the
civil economy in accordance with priorities established by authority of
the President.
B. Proportionate Contribution of Capacity
1. Any entity receiving payments under the Maritime Security
Program (MSP) pursuant to the Maritime Security Act of 2003 (MSA 2003)
(Pub. L. 108-136) shall become a Participant with respect to all
tankers enrolled in the MSP at all times until the date the MSP
operating agreement would have terminated according to its original
terms. Such participation will satisfy the requirement for an MSP
participant to be enrolled in an emergency preparedness program
approved by SecDef as provided in 46 U.S.C. Sec. 53107.
2. Participants hereto not receiving MSP payments pursuant to MSA
2003 agree to contribute tanker capacity under the Agreement in the
proportion that its ``controlled tonnage'' bears to the total
``controlled tonnage'' of all Participants. Because exact proportions
may not be feasible, each Participant agrees that variances are
permissible at the discretion of the Administrator.
3. Clean tankers and clean tonnage shall mean tankers inspected and
approved by DESC Quality Representatives, capable of meeting DoD
quality standards, and able to carry refined MILSPEC petroleum
products.
a. Chemical tankers and tankers in dirty trade may contribute clean
tanker capacity only after being certified as being able to meet DoD
quality standards to carry refined MILSPEC petroleum products.
4. ``Controlled tonnage'' shall mean tankers, including ITBs and
ATBs of over 20,000 DWT capacity and present military usefulness in the
transportation of refined DoD cargoes pursuant to the requirements of
associated warplans:
a. In which, as of the effective date of the activation of this
Agreement, the Participant or any of its U.S. subsidiaries or
affiliates has a controlling interest and which are registered in any
of the following countries: The United States, Liberia, Panama,
Honduras, the Bahamas, or the Marshall Islands; PLUS
b. Ships which are on charter or under contract to such Participant
for a period of six (6) months or more from the effective date of
activation of the Agreement, regardless of flag of registry, exclusive
of tonnage available to the Participant under contracts of
affreightment and consecutive voyage charter; provided that, in the
event an owner of a vessel terminates a time charter in accordance with
a war clause, the affected tonnage will be excluded from the chartering
Participant's controlled tonnage; PLUS
c. Any other non-U.S.-flag tonnage which a Participant may offer to
designate as ``controlled tonnage'' and which the Tanker Requirements
Committee accepts; MINUS
d. Tankers described in subparagraphs, a. and b. which are
chartered out or under contract to others for a remaining period of six
(6) months or more from the effective date of activation of this
Agreement: MINUS
e. Certain vessels which are fitted with special gear and are on
permanent station for the storage of crude oil from a production
platform and vessels which may have a dual role of production storage
and transportation use to a limited location.
5. This Agreement shall not be deemed to commit any vessel with
respect to which the law of the country of registration requires the
approval of the government before entering into this Agreement of
furnishing such vessel under the terms of this Agreement until such
time as the required approval has been obtained.
6. The obligations of Participants to contribute clean capacity
under the Agreement shall be calculated on a proportionate basis
wherever possible among the Participants by the Tanker Requirements
Committee.
7. A vessel on charter to a Participant shall not be subject to a
relet to the DoD in the case where the period of the relet would be
longer than the term of the Participant's incharter or in the case
where the relet would otherwise breach the terms of the incharter, but
such tonnage shall be included in the calculation of the Participant's
``controlled tonnage''.
8. The Administrator retains the right under law to requisition
ships of Participants. A Participant's ships which are directly
requisitioned by the U.S. Government or which are called up pursuant to
other U.S. Government voluntary arrangements shall be credited against
the Participant's proportionate contribution under this Agreement.
Ships on charter to the DoD when this Agreement is activated shall not
be so credited.
C. Reports of Controlled Tonnage
Twice annually, or upon request of the Administrator and in such
form as may be requested, each Participant shall submit information as
to ``controlled tonnage'' necessary for the carrying out of this
Agreement. Information which a Participant identifies as privileged and
confidential shall be withheld from public disclosure in accordance
with Sections 708(h)(3) and 705(e) of the DPA, as amended, and 44 CFR
Part 332.
D. Freight Rates Under the Agreement
1. The rate of charter hire applicable to each charter under this
Agreement shall be the ``prevailing market rate'' effective at the time
of the proposed loading of the vessel. The ``prevailing market rate''
shall be determined by the Military Sealift Command (MSC) Contracting
Officer utilizing the price analysis techniques set forth in FAR Part
15.4 to determine that the negotiated rates are fair and reasonable,
utilizing market or previous contract prices. Time charter hire rates,
for either U.S. or foreign-flag tankers, shall be expressed in terms of
a per diem rate(s).
2. The rate of charter hire fixed with respect to each charter
shall apply for the entire period of the charter, except that:
a. For a consecutive voyage charter, the rate of charter shall be
increased or decreased to reflect increases or decreases in the price
of bunker fuel applicable in the area of the vessel's trade;
b. Reimbursement for increased war risk insurance premiums will be
made in accordance with section V.E.;
E. War Risk Insurance
1. Increased War risk insurance premiums for time chartered vessels
will be paid by DoD or MARAD war risk insurance policies will be
implemented.
2. For voyage and consecutive voyage charters, the Participant will
be reimbursed for increases in war risk insurance premiums that are
applicable to the actual voyage but are announced after the charter
rate is established by the broker panel.
3. For any ship chartered under this Agreement, the SecDef may
procure from the SecTrans war risk insurance on hull and machinery, war
risk protection and indemnity insurance, and Second Seaman's War Risk
Insurance, subject to 46 U.S.C. Sec. 53905 (formerly Section 1203 of
the Merchant Marine Act, 1936).
VI. Activation of the Agreement
A. Determination of Necessity
This Agreement may be activated at the request of The Commander
USTRANSCOM, with the approval of SecDef, to support Contingency
operations when there is a tanker capacity emergency. A tanker capacity
emergency will be deemed to exist when tanker capacity required to
[[Page 41103]]
support operations of U.S. forces outside the continental United States
cannot be supplied through the commercial tanker charter market in
accordance with applicable laws and regulations or other voluntary
arrangements. The Administrator shall notify the Attorney General and
the Chairman of the Federal Trade Commission, when such a finding is
made.
B. Tanker Requirements Committee
1. There is established a Tanker Requirements Committee (the
``Committee'') to provide USTRANSCOM, MARAD and Participants a forum
to:
a. Analyze DoD Contingency tanker requirements.
b. Identify commercial tanker capacity that may be used to meet DoD
requirements related to Contingencies and, as requested by USTRANSCOM,
exercises, and special movements.
c. Develop and recommend Concepts of Operations (CONOPS) to meet
DoD-approved Contingency requirements and, as requested by USTRANSCOM,
exercises and special movements.
d. Advise the Administrator on the tanker capacity that each
Participant controls and is capable of meeting Contingency
requirements.
2. The Committee will be co-chaired by MARAD and USTRANSCOM and
will convene as jointly determined by the co-chairs.
3. The Committee will not be used for contract negotiations and/or
contract discussions between carriers and DoD; such negotiations and/or
discussions will be in accordance with applicable DoD contracting
policies and procedures.
4. The Committee will consist of designated representatives from
MARAD, USTRANSCOM, to include Military Sealift Command, Defense Energy
Support Center, each Participant, and maritime labor. Other attendees
may be invited at the discretion of the co-chairs. Representatives will
provide technical advice and support to ensure maximum coordination,
efficiency and effectiveness in the use of Participants resources. All
Participants will be invited to open Committee meetings. For selected
Committee meetings, attendance may be limited to designated
Participants to meet specific operational requirements.
5. The Committee co-chairs shall:
a. Notify the Attorney General, the Chairman of the Federal Trade
Commission, and all Participants of the time, place and nature of each
meeting and of the proposed agenda of each meeting to be held to carry
out this Agreement:
b. Provide for publication in the Federal Register of a notice of
the time, place and nature of each meeting. If a meeting is open, a
Federal Register notice will be published reasonably in advance of the
meeting. If a meeting is closed, a Federal Register notice will be
published within ten (10) days of the meeting and will include the
reasons why the meeting is closed;
c. Establish the agenda for each meeting and be responsible for
adherence to the agenda;
d. Provide for a written summary or other record of each meeting
and provide copies of transcripts or other records to the Attorney
General, the Chairman of the Federal Trade Commission, and all
Participants; and
e. Take necessary actions to protect confidentiality of data
discussed with or obtained from Participants.
C. Tanker Charters
MSC, as designated by USTRANSCOM, will deal directly with tanker
operators in the making of charter parties and other arrangements to
meet the defense requirement, keeping the Administrator informed. To
reduce risk to owners and to control cost to the government, all
government charters will be time charters, unless specifically
designated as voyage charter by the Contracting Officer. If vessels are
chartered between Participants, Participants will keep the
Administrator informed. The Administrator will keep the Attorney
General and the Chairman of the Federal Trade Commission informed of
the actions taken under this Agreement.
D. Termination of Charters Under the Agreement
MSC, as the contracting officer, will notify the Administrator as
far as possible in advance of the prospective termination of the need
for tanker capacity under this Agreement
VII. Application and Agreement
The Administrator has adopted and makes available a form on which
tanker operators may apply for and become Participants in this
Agreement (``Application and Agreement to Participate in the Voluntary
Tanker Agreement''). The form will incorporate by reference the terms
of this Agreement.
Application and Agreement To Participate in the Voluntary Tanker
Agreement
The applicant identified below hereby applies to participate in
the Maritime Administration's agreement entitled ``Voluntary Tanker
Agreement.'' The text of said Agreement is published in ----Federal
Register ------, ----, 2007. This Agreement is authorized under
Section 708 of the Defense Production Act of 1950, as amended (50
App. U.S.C. 2158). Regulations governing is Agreement appear at 44
CFR Part 332 and are reflected at 49 CFR Subtitle A.
The applicant, if selected, hereby acknowledges and agrees to
the incorporation by reference into this Application and Agreement
of the entire text of the Voluntary Tanker Agreement published in --
Federal Register ------, ----, 2007, as though said text were
physically recited herein.
The applicant, as Participant, agrees to comply with the
provisions of Section 708 of the Defense Production Act of 1950, as
amended, the regulations of 44 CFR Part 332 and as reflected at 49
CFR Subtitle A, and the terms of the Voluntary Tanker Agreement.
Further, the applicant, if selected as a Participant, hereby agrees
to contractually commit to make vessels or capacity available for
use by the Department of Defense and to other Participants for the
purpose of meeting national defense requirements.
Attest:
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(Applicant--Corporate Name)
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(Signature)
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(Position Title)
United States of America, Department of Transportation, Maritime
Administration
By:--------------------------------------------------------------------
Maritime Administrator
By Order of the Maritime Administrator.
Dated: July 19, 2007.
Daron T. Threet,
Secretary, Maritime Administration.
[FR Doc. E7-14534 Filed 7-25-07; 8:45 am]
BILLING CODE 4910-81-P