[Federal Register Volume 62, Number 103 (Thursday, May 29, 1997)]
[Notices]
[Pages 29184-29185]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-14073]
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DEPARTMENT OF TRANSPORTATION
Maritime Administration
[Docket S-945]
Notice of Application for Written Permission Under Section 608
and Section 805(a) of the Merchant Marine Act 1936, as Amended
Pursuant to section 608 and section 805(a) of the Merchant Marine
Act 1936, as amended (Act), Seabulk Transmarine Partnership, Ltd.
(Seabulk) and Seabulk Transmarine II, Inc. (Seabulk II), by letter
dated May 2, 1997, propose that Seabulk, as owner and operator of the
U.S.-flag chemical tanker SEABULK AMERICA, will operate the vessel in
an essential service of the foreign commerce of the United States
pursuant to the Operating-Differential Subsidy Agreement (ODSA) MA/MSB-
441, as amended, currently owned by its affiliate, Seabulk II, a wholly
owned subsidiary of Hvide Marine Incorporated (Hvide). Accordingly,
Seabulk and Seabulk II request (1) consent under section 608 of the Act
to the assignment of the ODSA by Seabulk II to Seabulk, and (2)
permission, pursuant to section 805(a) of the Act, with respect to the
domestic operations of Seabulk's affiliates not covered by prior
permissions. The result of the reactivation of the ODSA will be that
the SEABULK AMERICA, which has operated in the domestic trade since
1990, will be removed from the domestic trade for at least one year and
operated in the worldwide chemical trade, initially pursuant to a time
charter to Stolt Parcel Tankers, Inc.
The ODSA was entered into on October 18, 1978 by Suwanee River SPA
Finance for the operation of the tug/barge OXY PRODUCER/4102 for a term
expiring June 11, 2001. Following the loss of the tug portion, the OXY
PRODUCER, the ODSA was assigned in 1982, with the Maritime
Administration's (MARAD) approval, to Seabulk II, in connection with
Seabulk II's purchase of the barge portion, the 4102. In 1989, the 4102
was incorporated into the SEABULK AMERICA, which is the chemical tanker
resulting from the rebuilding of the FUJI, a foreign-built oil tanker
rebuilt for the domestic trade pursuant to the Wrecked Vessel Act.
Although Seabulk II ultimately transferred the barge to Seabulk in
connection with the rebuilding of the SEABULK AMERICA, it transferred
its rights under the ODSA to Crestar Bank, N.A., as trustee, on
November 22, 1989. The ODSA was placed into the trust in order to
resolve an issue whether an affiliate's purchase of domestic offshore
supply boats required permission under section 805(a). Accordingly,
under the terms of the trust, no subsidy may be paid pursuant to the
ODSA until the termination of the trust, and the trust may be
terminated only if MARAD approves a transfer of the ODSA under section
608 or grants permission under section 805(a) with respect to the 1989
supply boat purchase. No subsidy has been paid under the ODSA since its
assignment to Seabulk II in 1982.
The applicants are affiliated with Hvide, which, together with its
affiliates, operate vessels primarily in the domestic trade. Hvide's
operations fall into four principal categories: chemical
transportation, petroleum product transportation, offshore energy
support, and offshore and harbor towing.
This application seeks permission under section 805(a) for
affiliation with the Hvide affiliates conducting the following domestic
operations:
(1) Operation of the four chemical tankers SEABULK MAGNACHEM, HMI
DYNACHEM, HMI ASTRACHEM, and HMI PETROCHEM in the carriage of chemicals
and petroleum products between U.S. ports;
(2) Operation, when delivered, of up to seven new product tankers
to be owned by Hvide Van Ommeren Tankers I, II, III, IV, and V, and
Hvide Van Ommeren Tankers Options LLC in the carriage of chemicals and
petroleum products between U.S. ports;
(3) Ocean towing services and harbor towing and assistance in the
ports of Mobile, Port Canaveral, and Port Everglades as set forth in
Attachment A, including moving such vessels among those ports as
necessary to fulfill obligations to provide tug assist services and
including new tugs and/or ship docking modules replacing such vessels
in the future;
(4) Operation of 68 supply boats, crew boats, and utility boats, as
well as additional vessels of similar types to be constructed or
acquired in the future, in the service of offshore oil and gas
exploration and production activities in U.S. waters; and
(5) Operation of the Sun State fleet of 10 towboats and 13 barges,
as well as replacement towboats and barges to be required, in the
carriage of petroleum
[[Page 29185]]
products on the inland waterways within the State of Florida.
The application may be inspected in the Office of the Secretary,
Maritime Administration. Any person, firm or corporation having any
interest in the application within the meaning of section 805(a) of the
Act and desiring to submit comments concerning the application, must
file written comments in triplicate with the Secretary, Maritime
Administration, Room 7210, Nassif Building, 400 Seventh Street, SW.,
Washington, D.C., 20590. Comments must be received no later than 5:00
p.m. on June 9, 1997, including petition for leave to intervene under
section 805(a) of the Act. Any petition for leave to intervene under
section 805(a) of the Act shall state clearly and concisely the grounds
of interest, and the alleged facts relied on for relief.
If no comments are received within the specified time, including
any petition for leave to intervene under section 805(a) of the Act, or
if it is determined that such petition does not demonstrate sufficient
interest to warrant a hearing, the Maritime Administration will take
such action as may be deemed appropriate.
(Catalog of Federal Domestic Assistance Program No. 20.805
Operating-Differential Subsidies (ODS))
Dated: May 23, 1997.
By Order of the Maritime Administrator.
Joel C. Richard,
Secretary, Maritime Administrator.
[FR Doc. 97-14073 Filed 5-28-97; 8:45 am]
BILLING CODE 4910-81-P
