Renewal of the Voluntary Tanker Agreement Program; Agreement Development Proposal, 58824-58829 [2019-23908]
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58824
Federal Register / Vol. 84, No. 212 / Friday, November 1, 2019 / Notices
clear understanding of how the
selection of these organizations is
critical for the project and give
sufficient detail about the costs
involved.
iii. Planning
FTA encourages applicants to engage
the appropriate State Departments of
Transportation, Regional Transportation
Planning Organizations, or Metropolitan
Planning Organizations in areas to be
served by the project funds available
under these programs.
iv. Standard Assurances
By submitting an application, the
applicant assures that it will comply
with all applicable Federal statutes,
regulations, executive orders, FTA
circulars, and other Federal
administrative requirements in carrying
out any project supported by the FTA
grant. The applicant acknowledges that
it is under a continuing obligation to
comply with the terms and conditions
of the grant agreement issued for its
project with FTA. The applicant
understands that Federal laws,
regulations, policies, and administrative
practices might be modified from time
to time and may affect the
implementation of the project. The
applicant agrees that the most recent
Federal requirements will apply to the
project unless FTA issues a written
determination otherwise. The applicant
must submit the Certifications and
Assurances before receiving a grant if it
does not have current certifications on
file.
v. Reporting
Post-award reporting requirements
include submission of Federal Financial
Reports and Milestone Progress Reports
in FTA’s electronic grants management
system. An independent evaluation of
the pilot program may occur at various
points in the deployment process and at
the end of the pilot project. In addition,
FTA is responsible for producing an
Annual Report to Congress that
compiles evaluations of selected
projects, including an evaluation of the
performance measures identified by the
applicants. All applicants must develop
an evaluation plan to measure the
success or failure of their projects and
to describe any plans for broad-based
implementation of successful projects.
FTA may request data and reports to
support the independent evaluation and
annual report.
G. Federal Awarding Agency Contact
For questions about applying to the
pilot program outlined in this notice,
please contact the Program Manager,
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Kelly Tyler, at Federal Transit
Administration, phone: (202) 366–3102,
fax: (202) 366–3475, or email,
Kelly.Tyler@dot.gov. A TDD is available
at 1–800–877–8339 (TDDFIRS).
Additionally, you may visit FTA’s
website for this program at https://
www.transit.dot.gov/funding/grants/
grant-programs/mobility-all-grants.
To ensure that applicants receive
accurate information about eligibility or
the program, applicants are encouraged
to contact FTA directly with questions,
rather than through intermediaries or
third parties. FTA staff also may
conduct briefings on the FY 2020
competitive grants selection and award
process upon request.
K. Jane Williams,
Acting Administrator.
Address Name
Address Line 2
City, State, Zip
Dear Name:
Thank you for your letter supporting
the application submitted by Applicant
for funding under the U.S. Department
of Transportation’s Mobility for All pilot
program.
The Federal Transit Administration
(FTA) administers the Mobility for All
pilot program, authorized by Section
3006(b) of the Fixing America’s Surface
Transportation Act. This program
supports innovative coordinated access
and mobility projects that improve the
coordination of transportation services
and non-emergency medical
transportation services for the
transportation disadvantaged
populations.
All properly submitted applications
will receive full and careful
consideration. FTA will announce final
project selections after the review
process is complete.
Your interest in this program is
appreciated.
Sincerely,
Signatory
[FR Doc. 2019–23892 Filed 10–31–19; 8:45 am]
BILLING CODE 4910–57–P
DEPARTMENT OF TRANSPORTATION
Maritime Administration
[Docket Number MARAD–2019–0183]
Renewal of the Voluntary Tanker
Agreement Program; Agreement
Development Proposal
Maritime Administration,
Department of Transportation.
ACTION: Notice of availability; request
for comments.
AGENCY:
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The Maritime Administration
(MARAD) is developing a voluntary
agreement necessary to renew the
Voluntary Tanker Agreement Program,
pursuant to the authority contained in
Section 708 of the Defense Production
Act of 1950 (DPA), as amended. This
notice invites comments on the draft
proposed Voluntary Tanker Agreement
(VTA). The proposed text is intended to
replace the Agreement as it was last
published in Volume 73 of the Federal
Register at page 51692 (September 4,
2008). Because the proposed agreement
will contain changes, both former and
new participants must submit a new
application once the final text is
published. VTA applications are
available from MARAD. The complete,
draft text of the VTA is published
below. Copies of the draft text are also
available to the public upon request.
MARAD will hold an open meeting for
the purpose of developing the final text
of the VTA at its headquarters located
at 1200 New Jersey Avenue SE,
Washington, DC 20590. MARAD will
announce the open meeting by
publication in the Federal Register.
DATES: Comments must be received on
or before December 2, 2019. MARAD
will consider comments filed after this
date to the extent practicable.
ADDRESSES: You may submit comments
identified by DOT Docket Number
MARAD–2019- 0183 any one of the
following methods:
• Federal eRulemaking Portal: Go to
https://www.regulations.gov. Search
MARAD–2019–0183 and follow the
instructions for submitting comments.
• Mail or Hand Delivery: Docket
Management Facility is in the West
Building, Ground Floor of the U.S.
Department of Transportation. The
Docket Management Facility location
address is: U.S. Department of
Transportation, MARAD–2019–0183,
1200 New Jersey Avenue SE, West
Building, Room W12–140, Washington,
DC 20590, between 9 a.m. and 5 p.m.,
Monday through Friday, except on
Federal holidays.
Note: If you mail or hand-deliver your
comments, we recommend that you
include your name and a mailing
address, an email address, or a
telephone number in the body of your
document so that we can contact you if
we have questions regarding your
submission.
Instructions: All submissions received
must include the agency name and
specific docket number. All comments
received will be posted without change
to the docket at www.regulations.gov,
including any personal information
provided. For detailed instructions on
SUMMARY:
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submitting comments, see the section
entitled Public Participation.
FOR FURTHER INFORMATION CONTACT:
William G. McDonald, Director, Office
of Sealift Support, U.S. Department of
Transportation, Maritime
Administration, 1200 New Jersey
Avenue SE, Washington, DC 20590.
Telephone (202) 366–0688; Fax (202)
366–5904, or william.g.mcdonald@
dot.gov.
SUPPLEMENTARY INFORMATION:
DRAFT Text of the Proposed 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. 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 of the Defense Production
Act of 1950 (DPA), as amended (50
U.S.C. 4558), the Maritime
Administrator (Administrator), after
consultation with the Department of
Defense (DoD) and representatives of the
tanker industry, has developed this
Voluntary Tanker Agreement (VTA).
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, U.S.
Transportation Command (the DoDdesignated representative for purposes
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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 Agreement replaces the VTA that
was published in Volume 73 of the
Federal Register at page 51692 (Sept. 4,
2008). Because this replacement
contains new substantive provisions,
those wishing to participate in the
Agreement shall submit new
applications.
I. Purpose
The Administrator has determined, in
accordance with Section 708(c)(1) of the
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 of the United
States (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 (FTC), has
issued a finding that tanker capacity to
meet national defense requirements
cannot be provided by the industry
through a voluntary agreement having
fewer 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 upon 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. Section 708, DPA (50 U.S.C. 4558);
46 U.S.C. 53107; Executive Order (E.O.)
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13603, 77 FR 16651 (March 22, 2012);
49 CFR 1.93 (l).
2. Section 401 of E.O. 13603,
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 49 CFR 1.93(l).
B. U.S. Transportation Command
(USTRANSCOM)
1. Sections 113, 161–169 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
Voluntary Tanker Agreement
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1. Operators of tanker vessels greater
than 20,000 deadweight tons (DWT)
may become Participants in this
Agreement by submitting an executed
copy of the form specified in Section VII
of this Agreement that is approved by
MARAD.
2. Operators of Integrated Tug-Barges
(ITBs) and Articulated Tug-Barges
(ATBs) greater than 20,000 DWT may
become Participants in this Agreement
by submitting an executed copy of the
form specified in Section VII of this
Agreement that is approved by MARAD.
3. Operators of tankers or ITB and
ATB vessels of less than 20,000
deadweight tons may also submit an
application and become Participants if
such vessels are deemed to meet U.S.
national security requirements or the
needs of MARAD and the U.S.
Transportation Command, and MARAD
accepts the application.
4. 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.
5. A list of Participants will be
published annually in the Federal
Register.
6. For the purposes of this Agreement,
‘‘Operator’’ shall mean a person that
either owns and controls an eligible
vessel or that charters and operates an
eligible vessel through a demise charter
that transfers virtually all the rights and
obligations of the vessel owner to the
demise charterer, such as that of
crewing, supplying, maintaining,
insuring, and navigating the vessel.
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B. Effective Date and Duration of
Participation
This Agreement is effective upon
execution of the application form (see
Section VII below) by the Participant
and the Administrator or their
authorized designees and shall remain
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 Section 708 of the DPA
for the fulfillment of obligations
incurred prior to withdrawal.
D. Rules and Regulations
Participants acknowledge and agree to
abide by all provisions of Section 708 of
the DPA, as amended, and regulations
related thereto which are promulgated
by the SecTrans, the Attorney General,
the FTC, and the Federal Emergency
Management Agency. 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
FTC, 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 FTC.
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 Sealift
Support, MARAD, shall be the official
custodian of records related to the
carrying out of this Agreement, except
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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 records, but the Director,
Office of Sealift Support, 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, and the Chairman of
the FTC 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
section shall be available for public
inspection and copying, unless
exempted on the grounds specified in 5
U.S.C. 552(b)(1), (3) or (4) or identified
as privileged and confidential
information in accordance with Section
705(e) of the DPA, as amended, and 44
CFR part 332.5.
chartered to the DoD. Any waiver that
may be granted pursuant to this
paragraph shall be effective for the
period that the U.S. coastwise qualified
vessel capacity is on charter to the DoD
plus a reasonable time for termination of
the replacement capacity charters as
determined by the Administrator.
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 shall not
participate in the Tanker Requirements
Committee and shall not enjoy the
immunities provided by this Agreement.
IV. Antitrust Defense
Under the provisions of Subsection
708(j) of the DPA, 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 by the Participant in the
course of developing or carrying out this
Agreement, that the Participant fully
complied with the provisions of the
DPA and the rules promulgated
thereunder, and that the Participant
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 shall be
accomplished in a way that will deprive
Participants of this 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
I. Waivers
In situations where the activation of
the Agreement deprives a Participant of
all or a portion of its [U.S. coastwise
qualified vessel capacity] and, at the
same time, creates a general shortage of
U.S. coastwise qualified vessel capacity
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
pursuant to section 501 of title 46, to
permit a Participant to charter or
otherwise utilize non-U.S. coastwise
qualified vessel capacity. The capacity
for which such waivers are requested
will be approximately equal to the U.S.
coastwise qualified vessel capacity
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J. Temporary Replacement Vessel
Notwithstanding 10 U.S.C. 2631, 46
U.S.C. 55304, 55305, 55312 or any other
cargo preference law of the United
States—
1. A Participant that is also a
contractor under the Maritime Security
Program, 46 U.S.C. 53101, et seq., (MSP)
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 this
Agreement.
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, and 46 U.S.C. 55304, 55305, or
55312 to the same extent as the
eligibility of the vessel or vessel
capacity replaced.
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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 of
the United States.
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
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.
B. Proportionate Contribution of
Capacity
1. Any entity receiving payments
under the MSP 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 46
U.S.C. 53104(a). Such participation
shall 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 under the MSP, 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 that are
inspected and approved by DLA Energy
Quality Assurance Representatives
(QAR), capable of meeting DoD quality
standards, and able to carry refined
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 petroleum
products to meet DoD requirements.
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4. ‘‘Controlled Tonnage’’ shall mean
tankers, ITBs, and ATBs of over 20,000
DWT capacity, which are:
a. Militarily useful in the
transportation of refined DoD cargoes
pursuant to the requirements of
associated warplans;
b. Vessels 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; and shall include:
i. Vessels 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; and
ii. Any other non-U.S.-flag tonnage
which a Participant may offer to
designate as Controlled Tonnage and
which the Tanker Requirements
Committee accepts;
c. And shall not include:
i. Tankers described in subparagraph
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; or
ii. 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 Tanker 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 charter or in the case
where the relet would otherwise breach
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58827
the terms of the charter, 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) (50 U.S.C. 4558) and
705(e) (50 U.S.C. 4555) of the DPA, as
amended, and 44 CFR part 332.5.
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; and
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 shall be
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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.
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 shall be deemed to exist
when the Commander USTRANSCOM
finds that 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 FTC 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; and
d. Advise the Administrator on the
tanker capacity that each Participant
controls which 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.
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19:23 Oct 31, 2019
Jkt 250001
4. The Committee will consist of
designated representatives from
MARAD, USTRANSCOM, to include
Military Sealift Command, Defense
Logistics Agency-Energy, 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 FTC, 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 FTC, and all
Participants; and
e. Take necessary actions to protect
from public disclosure any data
discussed with or obtained from
Participants which a Participant has
identified as privileged and confidential
in accordance with Sections 708(h)(3)
and 705(e) of the DPA, as amended, or
which qualifies for withholding under
44 CFR part 332.5.
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 shall be time charters, unless
specifically designated as voyage
charters by the Contracting Officer. If
vessels are chartered between
Participants, Participants shall keep the
Administrator informed. The
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Fmt 4703
Sfmt 4703
Administrator shall keep the Attorney
General and the Chairman of the FTC
informed of the actions taken under this
Agreement.
D. Termination of Charters Under the
Agreement
MSC, as the contracting officer, shall
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 shall
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
ll Federal Register lll, lll,
2018. This Agreement is authorized
under Section 708 of the Defense
Production Act of 1950, as amended.
Regulations governing this Agreement
appear at 44 CFR part 332 and as
reflected at 49 CFR 1.93(l).
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 ll Federal Register ll
l, lll, 2019, 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 1.93(l), 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.
lllllllllllllllllllll
(Corporate Secretary)
lllllllllllllllllllll
(Applicant-Corporate Name)
lllllllllllllllllllll
(Name, please print)
(CORPORATE SEAL or Notary)
By: lllllllllllllllllll
E:\FR\FM\01NON1.SGM
01NON1
Federal Register / Vol. 84, No. 212 / Friday, November 1, 2019 / Notices
(Signature)
lllllllllllllllllllll
(Position Title, please print)
Effective Date: llllllllllllll
UNITED STATES OF AMERICA
DEPARTMENT OF TRANSPORTATION
MARITIME ADMINISTRATION
lllllllllllllllllllll
(MARAD Secretary)
By: lllllllllllllllllll
Maritime Administrator
(SEAL)
*
*
*
*
*
Public Participation
How do I submit comments?
Please submit your comments,
including the attachments, following the
instructions provided under the above
heading entitled ADDRESSES. Be advised
that it may take a few hours or even
days for your comment to be reflected
on the docket. In addition, your
comments must be written in English.
We encourage you to provide concise
comments and you may attach
additional documents as necessary.
There is no limit on the length of the
attachments.
Please note that even after the
comment period has closed, MARAD
will continue to file relevant
information in the Docket as it becomes
available.
Where do I go to read public comments,
and find supporting information?
Go to the docket online at https://
www.regulations.gov, keyword search
MARAD–2019–0183 or visit us in
person at the Docket Management
Facility (see ADDRESSES for hours of
operation). We recommend that you
periodically check the Docket for new
submissions and supporting material.
Will my comments be made available to
the public?
Yes. Be aware that your entire
comment, including your personal
identifying information, will be made
publicly available.
May I submit comments confidentially?
If you wish to submit comments
under a claim of confidentiality, you
should submit three copies of your
complete submission, including the
information you claim to be confidential
business information, to the Department
of Transportation, Maritime
Administration, Office of Legislation
and Regulations, MAR–225, W24–302,
1200 New Jersey Avenue SE,
Washington, DC 20590. Include a cover
letter setting forth with specificity the
basis for any such claim and, if possible,
a summary of your submission that can
be made available to the public.
VerDate Sep<11>2014
19:23 Oct 31, 2019
Jkt 250001
Privacy Act
In accordance with 5 U.S.C. 553(c),
DOT solicits comments from the public
to better inform its rulemaking process.
DOT posts these comments, without
edit, to www.regulations.gov, as
described in the system of records
notice, DOT/ALL–14 FDMS, accessible
through www.dot.gov/privacy. To
facilitate comment tracking and
response, we encourage commenters to
provide their name, or the name of their
organization; however, submission of
names is completely optional. Whether
or not commenters identify themselves,
all timely comments will be fully
considered. If you wish to provide
comments containing proprietary or
confidential information, please contact
the agency for alternate submission
instructions.
Authority: 50 U.S.C. 4558, 49 CFR 1.93(a)
and (l), 44 CFR 332.
*
*
*
*
*
Dated: October 29, 2019.
By Order of the Maritime Administrator.
T. Mitchell Hudson, Jr.,
Secretary, Maritime Administration.
[FR Doc. 2019–23908 Filed 10–31–19; 8:45 am]
BILLING CODE 4910–81–P
DEPARTMENT OF TRANSPORTATION
Pipeline and Hazardous Materials
Safety Administration
[Docket No. PHMSA–2019–0130; Notice No.
2019–07]
Hazardous Materials: Unapproved
Foreign-Made DOT Cylinders
Pipeline and Hazardous
Materials Safety Administration
(PHMSA), Department of Transportation
(DOT).
ACTION: Safety advisory notice.
AGENCY:
PHMSA is issuing this safety
advisory notice to inform the public,
industrial gas stakeholders, and relevant
government officials of the risks
associated with requalifying, filling, and
transporting cylinders bearing the DOT
specification markings ‘‘DOT 4E’’ or
‘‘DOT 4BA’’ that were produced by a
company located in Thailand by the
name of Metal Mate. Metal Mate does
not have an approval from PHMSA to
manufacture cylinders to DOT
specifications; therefore, cylinders
marked with the Metal Mate name are
not DOT specification cylinders. They
must not be used to transport hazardous
materials in commerce to, from, or
within the United States, or on a United
States-registered aircraft. These
cylinders may not perform to the
SUMMARY:
PO 00000
Frm 00154
Fmt 4703
Sfmt 4703
58829
marked DOT performance standard and
may not be safe for commercial
transportation or consumer use.
The
Hazardous Materials Information
Center, (202) 366–4488 or 1–800–467–
4922; infocntr@dot.gov.
FOR FURTHER INFORMATION CONTACT:
PHMSA
has become aware that a company
located in Thailand by the name of
Metal Mate has been producing and
selling propane cylinders that were
marked as ‘‘DOT 4E’’ without an
approval from PHMSA. PHMSA is
aware of two cylinders found in
Australia that were marked as ‘‘DOT 4E
240’’ with Metal Mate’s name marked as
the manufacturer. Third party testing
revealed that the cylinders may not
meet the DOT 4E standard.
Additionally, another cylinder
produced by Metal Mate and marked as
‘‘DOT 4E’’ has been found in Colombia.
Metal Mate cylinders can be identified
by the name ‘‘Metal Mate’’ and ‘‘MM’’
logo stamped into the cylinder collar
adjacent to other cylinder markings
(water capacity, test pressure, serial
number, original test date).
PHMSA has also received information
that Metal Mate is producing cylinders
that are being marked as ‘‘DOT 4BA
240.’’ Evidence indicates that Metal
Mate has shipped cylinders as marked
to both Bangladesh and New Zealand.
Federal hazardous materials
transportation law (49 U.S.C. 5101–
5128) authorizes the Secretary of
Transportation (Secretary) to establish
regulations to safely transport hazardous
materials in intrastate, interstate, and
foreign commerce. It also authorizes the
Secretary to apply these regulations to
persons who manufacture or maintain a
packaging or a component of a
packaging that is represented, marked,
certified, or sold as qualified for use in
the transportation of a hazardous
material in commerce (see 49 CFR
171.1). The Secretary delegated this
authority to PHMSA in 49 CFR 1.97(b).
As stated in 49 CFR 178.2(b), marking
a packaging with a DOT specification,
e.g., ‘‘DOT 4E 240,’’ means that all
requirements of the marked DOT
specification have been met and each
action performed by, or for, the person
whose name or symbol appears on the
cylinder marking meets the
requirements specified in part 178.
These requirements include multiple
tests for DOT 4BA and DOT 4E
cylinders. For DOT 4E cylinders, the
specification also requires a chemical
analysis (see 49 CFR 178.51 for the
specification requirements for DOT 4BA
cylinders, and § 178.68 for the
SUPPLEMENTARY INFORMATION:
E:\FR\FM\01NON1.SGM
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Agencies
[Federal Register Volume 84, Number 212 (Friday, November 1, 2019)]
[Notices]
[Pages 58824-58829]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-23908]
-----------------------------------------------------------------------
DEPARTMENT OF TRANSPORTATION
Maritime Administration
[Docket Number MARAD-2019-0183]
Renewal of the Voluntary Tanker Agreement Program; Agreement
Development Proposal
AGENCY: Maritime Administration, Department of Transportation.
ACTION: Notice of availability; request for comments.
-----------------------------------------------------------------------
SUMMARY: The Maritime Administration (MARAD) is developing a voluntary
agreement necessary to renew the Voluntary Tanker Agreement Program,
pursuant to the authority contained in Section 708 of the Defense
Production Act of 1950 (DPA), as amended. This notice invites comments
on the draft proposed Voluntary Tanker Agreement (VTA). The proposed
text is intended to replace the Agreement as it was last published in
Volume 73 of the Federal Register at page 51692 (September 4, 2008).
Because the proposed agreement will contain changes, both former and
new participants must submit a new application once the final text is
published. VTA applications are available from MARAD. The complete,
draft text of the VTA is published below. Copies of the draft text are
also available to the public upon request. MARAD will hold an open
meeting for the purpose of developing the final text of the VTA at its
headquarters located at 1200 New Jersey Avenue SE, Washington, DC
20590. MARAD will announce the open meeting by publication in the
Federal Register.
DATES: Comments must be received on or before December 2, 2019. MARAD
will consider comments filed after this date to the extent practicable.
ADDRESSES: You may submit comments identified by DOT Docket Number
MARAD-2019- 0183 any one of the following methods:
Federal eRulemaking Portal: Go to https://www.regulations.gov. Search MARAD-2019-0183 and follow the instructions
for submitting comments.
Mail or Hand Delivery: Docket Management Facility is in
the West Building, Ground Floor of the U.S. Department of
Transportation. The Docket Management Facility location address is:
U.S. Department of Transportation, MARAD-2019-0183, 1200 New Jersey
Avenue SE, West Building, Room W12-140, Washington, DC 20590, between 9
a.m. and 5 p.m., Monday through Friday, except on Federal holidays.
Note: If you mail or hand-deliver your comments, we recommend that
you include your name and a mailing address, an email address, or a
telephone number in the body of your document so that we can contact
you if we have questions regarding your submission.
Instructions: All submissions received must include the agency name
and specific docket number. All comments received will be posted
without change to the docket at www.regulations.gov, including any
personal information provided. For detailed instructions on
[[Page 58825]]
submitting comments, see the section entitled Public Participation.
FOR FURTHER INFORMATION CONTACT: William G. McDonald, Director, Office
of Sealift Support, U.S. Department of Transportation, Maritime
Administration, 1200 New Jersey Avenue SE, Washington, DC 20590.
Telephone (202) 366-0688; Fax (202) 366-5904, or
[email protected].
SUPPLEMENTARY INFORMATION:
DRAFT Text of the Proposed 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. 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 of the Defense
Production Act of 1950 (DPA), as amended (50 U.S.C. 4558), the Maritime
Administrator (Administrator), after consultation with the Department
of Defense (DoD) and representatives of the tanker industry, has
developed this Voluntary Tanker Agreement (VTA). 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, 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 Agreement replaces the VTA that was published in Volume 73 of
the Federal Register at page 51692 (Sept. 4, 2008). Because this
replacement contains new substantive provisions, those wishing to
participate in the Agreement shall submit new applications.
Voluntary Tanker Agreement
I. Purpose
The Administrator has determined, in accordance with Section
708(c)(1) of the 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 of the United States (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 (FTC), has issued a finding
that tanker capacity to meet national defense requirements cannot be
provided by the industry through a voluntary agreement having fewer
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 upon 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. Section 708, DPA (50 U.S.C. 4558); 46 U.S.C. 53107; Executive
Order (E.O.) 13603, 77 FR 16651 (March 22, 2012); 49 CFR 1.93 (l).
2. Section 401 of E.O. 13603, 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 49 CFR 1.93(l).
B. U.S. Transportation Command (USTRANSCOM)
1. Sections 113, 161-169 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. Operators of tanker vessels greater than 20,000 deadweight tons
(DWT) may become Participants in this Agreement by submitting an
executed copy of the form specified in Section VII of this Agreement
that is approved by MARAD.
2. Operators of Integrated Tug-Barges (ITBs) and Articulated Tug-
Barges (ATBs) greater than 20,000 DWT may become Participants in this
Agreement by submitting an executed copy of the form specified in
Section VII of this Agreement that is approved by MARAD.
3. Operators of tankers or ITB and ATB vessels of less than 20,000
deadweight tons may also submit an application and become Participants
if such vessels are deemed to meet U.S. national security requirements
or the needs of MARAD and the U.S. Transportation Command, and MARAD
accepts the application.
4. 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.
5. A list of Participants will be published annually in the Federal
Register.
6. For the purposes of this Agreement, ``Operator'' shall mean a
person that either owns and controls an eligible vessel or that
charters and operates an eligible vessel through a demise charter that
transfers virtually all the rights and obligations of the vessel owner
to the demise charterer, such as that of crewing, supplying,
maintaining, insuring, and navigating the vessel.
[[Page 58826]]
B. Effective Date and Duration of Participation
This Agreement is effective upon execution of the application form
(see Section VII below) by the Participant and the Administrator or
their authorized designees and shall remain 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 Section 708 of the DPA for the fulfillment of
obligations incurred prior to withdrawal.
D. Rules and Regulations
Participants acknowledge and agree to abide by all provisions of
Section 708 of the DPA, as amended, and regulations related thereto
which are promulgated by the SecTrans, the Attorney General, the FTC,
and the Federal Emergency Management Agency. 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 FTC, 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 FTC.
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 Sealift Support, 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 records, but
the Director, Office of Sealift Support, 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, and the Chairman of the FTC 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
section shall be available for public inspection and copying, unless
exempted on the grounds specified in 5 U.S.C. 552(b)(1), (3) or (4) or
identified as privileged and confidential information in accordance
with Section 705(e) of the DPA, as amended, and 44 CFR part 332.5.
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 shall not participate in
the Tanker Requirements Committee and shall not enjoy the immunities
provided by this Agreement.
I. Waivers
In situations where the activation of the Agreement deprives a
Participant of all or a portion of its [U.S. coastwise qualified vessel
capacity] and, at the same time, creates a general shortage of U.S.
coastwise qualified vessel capacity 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 pursuant to section 501 of title 46,
to permit a Participant to charter or otherwise utilize non-U.S.
coastwise qualified vessel capacity. The capacity for which such
waivers are requested will be approximately equal to the U.S. coastwise
qualified vessel capacity chartered to the DoD. Any waiver that may be
granted pursuant to this paragraph shall be effective for the period
that the U.S. coastwise qualified vessel capacity is on charter to the
DoD plus a reasonable time for termination of the replacement capacity
charters as determined by the Administrator.
J. Temporary Replacement Vessel
Notwithstanding 10 U.S.C. 2631, 46 U.S.C. 55304, 55305, 55312 or
any other cargo preference law of the United States--
1. A Participant that is also a contractor under the Maritime
Security Program, 46 U.S.C. 53101, et seq., (MSP) 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 this Agreement.
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, and 46 U.S.C. 55304, 55305, or 55312 to the same
extent as the eligibility of the vessel or vessel capacity replaced.
IV. Antitrust Defense
Under the provisions of Subsection 708(j) of the DPA, 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 by the
Participant in the course of developing or carrying out this Agreement,
that the Participant fully complied with the provisions of the DPA and
the rules promulgated thereunder, and that the Participant 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 shall be accomplished in a way
that will deprive Participants of this 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
[[Page 58827]]
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 of the United
States.
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 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.
B. Proportionate Contribution of Capacity
1. Any entity receiving payments under the MSP 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 46 U.S.C. 53104(a). Such participation shall 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 under the MSP,
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 that
are inspected and approved by DLA Energy Quality Assurance
Representatives (QAR), capable of meeting DoD quality standards, and
able to carry refined 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 petroleum products to meet DoD
requirements.
4. ``Controlled Tonnage'' shall mean tankers, ITBs, and ATBs of
over 20,000 DWT capacity, which are:
a. Militarily useful in the transportation of refined DoD cargoes
pursuant to the requirements of associated warplans;
b. Vessels 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; and shall include:
i. Vessels 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; and
ii. Any other non-U.S.-flag tonnage which a Participant may offer
to designate as Controlled Tonnage and which the Tanker Requirements
Committee accepts;
c. And shall not include:
i. Tankers described in subparagraph 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; or
ii. 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 Tanker
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 charter or in the case where
the relet would otherwise breach the terms of the charter, 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) (50 U.S.C. 4558) and 705(e) (50 U.S.C. 4555) of
the DPA, as amended, and 44 CFR part 332.5.
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; and
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
shall be
[[Page 58828]]
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.
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 shall be deemed to exist when the Commander USTRANSCOM finds
that 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 FTC 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; and
d. Advise the Administrator on the tanker capacity that each
Participant controls which 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
Logistics Agency-Energy, 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 FTC, 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 FTC, and all Participants; and
e. Take necessary actions to protect from public disclosure any
data discussed with or obtained from Participants which a Participant
has identified as privileged and confidential in accordance with
Sections 708(h)(3) and 705(e) of the DPA, as amended, or which
qualifies for withholding under 44 CFR part 332.5.
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 shall be time charters, unless specifically
designated as voyage charters by the Contracting Officer. If vessels
are chartered between Participants, Participants shall keep the
Administrator informed. The Administrator shall keep the Attorney
General and the Chairman of the FTC informed of the actions taken under
this Agreement.
D. Termination of Charters Under the Agreement
MSC, as the contracting officer, shall 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 shall 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 ___, ___, 2018. This Agreement is authorized under Section 708
of the Defense Production Act of 1950, as amended. Regulations
governing this Agreement appear at 44 CFR part 332 and as reflected at
49 CFR 1.93(l).
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 ___, ___, 2019, 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 1.93(l), 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.
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(Corporate Secretary)
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(Applicant-Corporate Name)
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(Name, please print)
(CORPORATE SEAL or Notary)
By:--------------------------------------------------------------------
[[Page 58829]]
(Signature)
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(Position Title, please print)
Effective Date:--------------------------------------------------------
UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION MARITIME
ADMINISTRATION
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(MARAD Secretary)
By:--------------------------------------------------------------------
Maritime Administrator
(SEAL)
* * * * *
Public Participation
How do I submit comments?
Please submit your comments, including the attachments, following
the instructions provided under the above heading entitled ADDRESSES.
Be advised that it may take a few hours or even days for your comment
to be reflected on the docket. In addition, your comments must be
written in English. We encourage you to provide concise comments and
you may attach additional documents as necessary. There is no limit on
the length of the attachments.
Please note that even after the comment period has closed, MARAD
will continue to file relevant information in the Docket as it becomes
available.
Where do I go to read public comments, and find supporting information?
Go to the docket online at https://www.regulations.gov, keyword
search MARAD-2019-0183 or visit us in person at the Docket Management
Facility (see ADDRESSES for hours of operation). We recommend that you
periodically check the Docket for new submissions and supporting
material.
Will my comments be made available to the public?
Yes. Be aware that your entire comment, including your personal
identifying information, will be made publicly available.
May I submit comments confidentially?
If you wish to submit comments under a claim of confidentiality,
you should submit three copies of your complete submission, including
the information you claim to be confidential business information, to
the Department of Transportation, Maritime Administration, Office of
Legislation and Regulations, MAR-225, W24-302, 1200 New Jersey Avenue
SE, Washington, DC 20590. Include a cover letter setting forth with
specificity the basis for any such claim and, if possible, a summary of
your submission that can be made available to the public.
Privacy Act
In accordance with 5 U.S.C. 553(c), DOT solicits comments from the
public to better inform its rulemaking process. DOT posts these
comments, without edit, to www.regulations.gov, as described in the
system of records notice, DOT/ALL-14 FDMS, accessible through
www.dot.gov/privacy. To facilitate comment tracking and response, we
encourage commenters to provide their name, or the name of their
organization; however, submission of names is completely optional.
Whether or not commenters identify themselves, all timely comments will
be fully considered. If you wish to provide comments containing
proprietary or confidential information, please contact the agency for
alternate submission instructions.
Authority: 50 U.S.C. 4558, 49 CFR 1.93(a) and (l), 44 CFR 332.
* * * * *
Dated: October 29, 2019.
By Order of the Maritime Administrator.
T. Mitchell Hudson, Jr.,
Secretary, Maritime Administration.
[FR Doc. 2019-23908 Filed 10-31-19; 8:45 am]
BILLING CODE 4910-81-P