Final Text of the Voluntary Tanker Agreement, 51692-51697 [E8-20392]
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51692
Federal Register / Vol. 73, No. 172 / Thursday, September 4, 2008 / Notices
vehicle.’’ Mr. Quastad reported that he
has driven straight trucks for 28 years,
accumulating 560,000 miles and tractortrailer combinations for 24 years,
accumulating 600,000 miles. He holds a
Class A CDL from Iowa. His driving
record for the last 3 years shows no
crashes and no convictions for moving
violations in a CMV.
John E. Rains
Mr. Rains, 41, has had amblyopia in
his left eye since childhood. The best
corrected visual acuity in his right is eye
is 20/15 and in the left, 20/80.
Following an examination in 2008 his
ophthalmologist noted, ‘‘In my opinion,
Mr. Rains has sufficient vision to
perform driving tasks required to
operate a commercial vehicle.’’ Mr.
Rains reported that he has driven
straight trucks for 19 years,
accumulating 380,000 miles. He holds
an operator’s license from Washington.
His driving record for the last 3 years
shows no crashes and no convictions for
moving violations in a CMV.
James D. St. Peter
Mr. St. Peter, 43, has had optic nerve
atrophy in his right eye since birth. The
best corrected visual acuity in his right
eye is 20/100 and in the left, 20/20.
Following an examination in 2008, his
optometrist noted, ‘‘Yes, I certify that
James St. Peter has sufficient vision to
operate and do tasks of driving a
commercial vehicle on the highway.’’
Mr. St. Peter reported that he has driven
straight trucks for 10 years,
accumulating 300,000 miles and tractortrailer combinations for 8 years,
accumulating 307,200 miles. He holds a
Class A CDL from North Carolina. His
driving record for the last 3 years shows
no crashes and no convictions for
moving violations in a CMV.
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Michael Sutton
Mr. Sutton, 50, has loss of vision in
his right eye due to a traumatic injury
sustained in 1981. The visual acuity in
his right is eye is 20/400 and in the left,
20/25. Following an examination in
2008 his optometrist noted, ‘‘In my
medical opinion, you do have sufficient
vision to perform the driving tasks
required to operate a commercial
vehicle.’’ Mr. Sutton reported that he
has driven straight trucks for 18 years,
accumulating 225,000 miles. He holds a
Class D operator’s license from
Alabama. His driving record for the last
3 years shows one crash, for which he
was not cited, and no convictions for
moving violations in a CMV.
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Sylvester Silver
Mr. Silver, 53, has a prosthetic left eye
due to a traumatic injury sustained as a
child. The visual acuity in his right eye
is 20/20. Following an examination in
2008, his optometrist noted, ‘‘Mr.
Silver’s current ocular health and visual
fields is excellent. His present visual
status is sufficient to perform the
driving tasks required to operate a
commercial vehicle.’’ Mr. Silver
reported that he has driven buses for 18
years, accumulating 1.2 million miles.
He holds a Class B CDL from Virginia.
His driving record for the last 3 years
shows no crashes and no convictions for
moving violations in a CMV.
Wade D. Taylor
Mr. Taylor, 46, has a prosthetic left
eye. The best corrected visual acuity in
his right eye is 20/20. Following an
examination in 2008, his optometrist
noted, ‘‘At this time, I have educated
Mr. Taylor of the findings of today’s
exam and have found that his vision is
sufficient to perform the driving tasks
required to operate a commercial
vehicle.’’ Mr. Taylor reported that he
has driven straight trucks for 3 years,
accumulating 84,000 miles. He holds a
Class E operator’s license from Missouri.
His driving record for the last 3 years
shows no crashes and no convictions for
moving violations in a CMV.
William R. Thomas
Mr. Thomas, 57, has loss of vision in
his left eye due to a traumatic injury
sustained as a child. The best corrected
visual acuity in his right eye is 20/20
and in the left, 20/400. Following an
examination in 2008, his
ophthalmologist noted, ‘‘Therefore, in
my medical opinion since this patient
has been driving for so long and has had
this degree of vision at a stable fashion
since he has been a child I do feel that
he does apparently have sufficient
vision to perform driving tasks required
to operate a commercial vehicle.’’ Mr.
Thomas reported that he has driven
straight trucks for 26 years,
accumulating 1 million miles. He holds
a Class A CDL from Mississippi. His
driving record for the last 3 years shows
no crashes and no convictions for
moving violations in a CMV.
Terrence L. Trautman
Mr. Trautman, 58, has had amblyopia
in his right eye since childhood. The
visual acuity in his right eye is 20/400
and in the left, 20/20. Following an
examination in 2008, his optometrist
noted, ‘‘I certify that he has sufficient
vision to perform driving tasks required
to operate a commercial vehicle.’’ Mr.
Trautman reported that he has driven
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straight trucks for 35 years,
accumulating 350,000 miles. He holds a
Class A CDL from Washington. His
driving record for the last 3 years shows
no crashes and no convictions for
moving violations in a CMV.
David Vallier
Mr. Vallier, 46, has had alternating
exotropia in his eyes since birth. The
best corrected visual acuity in his right
eye is 20/20 and in the left, 20/20.
Following an examination in 2008, his
optometrist noted, ‘‘Has sufficient
vision to operate a commercial vehicle.’’
Mr. Vallier reported that he has driven
straight trucks for 20 years,
accumulating 3.1 million miles and
tractor-trailer combinations for 15 years,
accumulating 1.5 million miles. He
holds a Class A CDL from Louisiana. His
driving record for the last 3 years shows
no crashes and no convictions for
moving violations in a CMV.
Request for Comments
In accordance with 49 U.S.C. 31136(e)
and 31315, FMCSA requests public
comment from all interested persons on
the exemption petitions described in
this notice. The Agency will consider all
comments received before the close of
business October 6, 2008. Comments
will be available for examination in the
docket at the location listed under the
ADDRESSES section of this notice. The
Agency will file comments received
after the comment closing date in the
public docket, and will consider them to
the extent practicable. In addition to late
comments, FMCSA will also continue to
file, in the public docket, relevant
information that becomes available after
the comment closing date. Interested
persons should monitor the public
docket for new material.
Issued on: August 27, 2008.
Larry W. Minor,
Associate Administrator for Policy and
Program Development.
[FR Doc. E8–20510 Filed 9–3–08; 8:45 am]
BILLING CODE 4910–EX–P
DEPARTMENT OF TRANSPORTATION
Maritime Administration
[Docket Number: MARAD–2008–0083]
Final Text of the Voluntary Tanker
Agreement
Maritime Administration,
Department of Transportation.
ACTION: Notice of Publication of Final
Text of the Voluntary Tanker
Agreement.
AGENCY:
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Federal Register / Vol. 73, No. 172 / Thursday, September 4, 2008 / Notices
SUMMARY: The Maritime Administration
announces the publication below of the
final text of its Voluntary Tanker
Agreement (VTA). The Agreement
below replaces a prior version that 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 332. The
proposed text of the VTA was initially
published in Volume 72 of the Federal
Register at page 41099 (July 26, 2007).
Thereafter, a public hearing on the
proposed text of the VTA was held on
August 29, 2007, at the U.S. Department
of Transportation, 1200 New Jersey
Avenue, SE., Washington, DC 20590. No
comments requesting changes to the
proposed text were received.
Consequently, the final text is
unchanged from the text considered at
the public hearing.
The Department of Justice has issued
a finding that the VTA as published
below satisfies the statutory criteria of
the Defense Production Act [50 U.S.C.
App. Section 2158(f)(1)(B)] required for
its creation. See Volume 73 of the
Federal Register at page 46335 (August
8, 2008).
FOR FURTHER INFORMATION CONTACT:
Tanker owners/operators that wish to
participate in the VTA may request an
enrollment package from 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. The
enrollment package may also be found
on the Maritime Administration Web
site, https://www.marad.dot.gov, under
‘‘Ships & Shipping’’ and ‘‘Voluntary
Tanker Agreement.’’
SUPPLEMENTARY INFORMATION:
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Text of the Voluntary Tanker
Agreement
Table of Contents
Preface
I. Purpose
II. Authorities
A. Maritime Administration
B. U.S. Transportation Command
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. Recordkeeping
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
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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
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
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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
I. Purpose
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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
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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.
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.
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.
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.
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.
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,
H. Requisition of Ships of NonParticipants
The Administrator upon presidential
authorization may requisition ships of
non-Participants to supplement capacity
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.
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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.
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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 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.
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
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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
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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
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.
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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
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
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51695
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.
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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).
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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
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
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18:46 Sep 03, 2008
Jkt 214001
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
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
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Frm 00076
Fmt 4703
Sfmt 4703
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
72 FR 41099, July 26, 2007. This
Agreement is authorized under Section
708 of the Defense Production Act of
1950, as amended (50 App. U.S.C.
E:\FR\FM\04SEN1.SGM
04SEN1
Federal Register / Vol. 73, No. 172 / Thursday, September 4, 2008 / Notices
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 72 FR 41099, July 26, 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.
By order of the Maritime Administrator.
Dated: August 25, 2008.
Leonard Sutter,
Secretary, Maritime Administration.
[FR Doc. E8–20392 Filed 9–3–08; 8:45 am]
BILLING CODE 4910–81–P
DEPARTMENT OF TRANSPORTATION
Pipeline and Hazardous Materials
Safety Administration
[Docket No. PHMSA–2008–0211]
Information Collection Activities
Pipeline and Hazardous
Materials Safety Administration
(PHMSA), DOT.
ACTION: Notice and request for
comments.
sroberts on PROD1PC77 with NOTICES
AGENCY:
SUMMARY: In accordance with the
Paperwork Reduction Act of 1995, the
Pipeline and Hazardous Materials Safety
Administration (PHMSA) invites
comments on its intention to revise
forms PHMSA F 7100.2—Incident
Report For Gas Transmission and
Gathering Systems; PHMSA F 7100.1—
Incident Report for Gas Distribution
Systems; and PHMSA F 7000–1—
Accident Report for Hazardous Liquid
Pipeline Systems, and its intention to
request approval from the Office of
Management and Budget (OMB) for
revised information collection burdens.
DATES: Interested parties are invited to
submit comments on or before
November 3, 2008.
You may submit comments
identified by the docket number
ADDRESSES:
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18:46 Sep 03, 2008
Jkt 214001
PHMSA–2008–0211 by any of the
following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the online
instructions for submitting comments.
• Fax: 1–202–493–2251.
• Mail: Docket Management System,
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: Docket Operations,
M–30, West Building Ground Floor,
Room W12–140, 1200 New Jersey
Avenue, SE., Washington, DC 20590,
from 9 a.m. to 5 p.m., Monday through
Friday, except Federal holidays.
Instructions: All submissions must
include the agency name and docket
number or Regulation Identification
Number (RIN) for this notice. Internet
users may access comments received by
DOT at: https://www.regulations.gov.
Note that comments received will be
posted without change to: https://
www.regulations.gov including any
personal information provided.
Requests for a copy of an information
collection should be directed to Roger
Little by telephone at 202–366–4569, by
fax at 202–366–4566, or by mail at U.S.
Department of Transportation, Pipeline
and Hazardous Materials Safety
Administration, 1200 New Jersey
Avenue, SE., PHP–10, Washington, DC
20590–0001.
FOR FURTHER INFORMATION CONTACT:
Roger Little by telephone at 202–366–
4569, by fax at 202–366–4566, or by
mail at U.S. Department of
Transportation, Pipeline and Hazardous
Materials Safety Administration, 1200
New Jersey Avenue, SE., PHP–10,
Washington, DC 20590–0001.
SUPPLEMENTARY INFORMATION: Section
1320.8(d), Title 5, Code of Federal
Regulations requires PHMSA to provide
interested members of the public and
affected agencies an opportunity to
comment on information collection and
recordkeeping requests. This notice
identifies revised information collection
requests that PHMSA will be submitting
to OMB for renewal and extension. The
information collected pertaining to
reportable natural gas transmission
incidents provides an important tool for
identifying safety trends in the gas
pipeline industry. The National
Transportation Safety Board (NTSB),
and the Government Accountability
Office (GAO) have urged PHMSA to
revise the information collected on the
natural gas pipeline operator incident
and hazardous liquid pipeline operator
accident report forms. NTSB Safety
Recommendation P–05–04 recommends
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Frm 00077
Fmt 4703
Sfmt 4703
51697
that PHMSA take action to change the
liquid accident reporting form (PHMSA
F 7000–1) and require operators to
provide data related to controller
fatigue. Additionally, section 20 of the
Pipeline Inspection, Protection,
Enforcement, and Safety Act of 2006
(PIPES Act) requires PHMSA to ‘‘amend
accident reporting forms to require
operators of gas and hazardous liquid
pipelines to provide data related to
controller fatigue.’’ GAO recommended
in its report, GAO–06–946 titled
‘‘Integrity Management Benefits Public
Safety, but Consistency of Performance
Measures Should Be Improved’’ that
‘‘To improve the consistency and
usefulness of the integrity management
performance measures, we are
recommending that the Secretary of
Transportation direct the Administrator
for the Pipeline and Hazardous
Materials Safety Administration to take
the following two actions:
(1) Revising the definition of a
reportable incident to consider changes
in the price of natural gas; and
(2) Establish consistent categories of
causes for incidents and leaks on all gas
pipeline reports.’’ Recommendation
number (1) is to be addressed by a
future rulemaking and recommendation
number (2) is addressed through
improvements in incident forms
addressed through this information
collection request (ICR).
PHMSA consulted industry and trade
association representatives of the
Interstate Natural Gas Association of
America, the American Gas Association,
the American Petroleum Institute, and
state pipeline safety office
representatives through the National
Association of Pipeline Safety
Representatives, in considering
revisions to the natural gas pipeline
operator incident and hazardous liquid
pipeline operator accident report forms
to make the information collected more
useful to industry, government, and the
public.
PHMSA has revised burden estimates,
where appropriate, to reflect revisions to
the accident and incident reporting
forms since the information collections
were last approved. The following
information is provided for each
information collection: (1) Abstract for
affected accident and incident reporting
forms; (2) title of the information
collection; (3) OMB control number; (4)
affected accident or incident form; (5)
description of affected public; (6)
estimate of total annual reporting and
recordkeeping burden; and (7)
frequency of collection. PHMSA will
request a three-year term of approval for
each information collection activity and,
E:\FR\FM\04SEN1.SGM
04SEN1
Agencies
[Federal Register Volume 73, Number 172 (Thursday, September 4, 2008)]
[Notices]
[Pages 51692-51697]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-20392]
-----------------------------------------------------------------------
DEPARTMENT OF TRANSPORTATION
Maritime Administration
[Docket Number: MARAD-2008-0083]
Final Text of the Voluntary Tanker Agreement
AGENCY: Maritime Administration, Department of Transportation.
ACTION: Notice of Publication of Final Text of the Voluntary Tanker
Agreement.
-----------------------------------------------------------------------
[[Page 51693]]
SUMMARY: The Maritime Administration announces the publication below of
the final text of its Voluntary Tanker Agreement (VTA). The Agreement
below replaces a prior version that 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 332. The proposed text of the
VTA was initially published in Volume 72 of the Federal Register at
page 41099 (July 26, 2007). Thereafter, a public hearing on the
proposed text of the VTA was held on August 29, 2007, at the U.S.
Department of Transportation, 1200 New Jersey Avenue, SE., Washington,
DC 20590. No comments requesting changes to the proposed text were
received. Consequently, the final text is unchanged from the text
considered at the public hearing.
The Department of Justice has issued a finding that the VTA as
published below satisfies the statutory criteria of the Defense
Production Act [50 U.S.C. App. Section 2158(f)(1)(B)] required for its
creation. See Volume 73 of the Federal Register at page 46335 (August
8, 2008).
FOR FURTHER INFORMATION CONTACT: Tanker owners/operators that wish to
participate in the VTA may request an enrollment package from 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. The enrollment package
may also be found on the Maritime Administration Web site, https://
www.marad.dot.gov, under ``Ships & Shipping'' and ``Voluntary Tanker
Agreement.''
SUPPLEMENTARY INFORMATION:
Text of the Voluntary Tanker Agreement
Table of Contents
Preface
I. Purpose
II. Authorities
A. Maritime Administration
B. U.S. Transportation Command
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. Recordkeeping
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
[[Page 51694]]
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. 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
[[Page 51695]]
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 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
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.
[[Page 51696]]
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
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 72 FR 41099,
July 26, 2007. This Agreement is authorized under Section 708 of the
Defense Production Act of 1950, as amended (50 App. U.S.C.
[[Page 51697]]
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 72 FR 41099,
July 26, 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.
By order of the Maritime Administrator.
Dated: August 25, 2008.
Leonard Sutter,
Secretary,Maritime Administration.
[FR Doc. E8-20392 Filed 9-3-08; 8:45 am]
BILLING CODE 4910-81-P