[Federal Register Volume 61, Number 106 (Friday, May 31, 1996)]
[Rules and Regulations]
[Pages 27255-27258]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-13708]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
Bureau of Export Administration
15 CFR Parts 754, 758, and 762
[Docket No.960523147-01]
RIN 0694-AB44
Exports of Alaskan North Slope Crude Oil; Establishment of
License Exception TAPS
AGENCY: Bureau of Export Administration, Commerce
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Bureau of Export Administration is amending the short
supply provisions of the Export Administration Regulations to modify
the restrictions on exports of Alaskan North Slope crude oil and
establish License Exception TAPS authorizing such exports, with certain
conditions. License Exception TAPS is based on: 1) Public Law 104-58,
which allows for the export of crude oil transported by pipeline over
right-of-way granted pursuant to section 203 of the Trans-Alaska
Pipeline Authorization Act (TAPS); 2) the President's April 28, 1996
determination that exports are in the national interest; and 3) the
President's direction to the Secretary of Commerce to issue a License
Exception with conditions for export of TAPS crude oil.
EFFECTIVE DATE: May 28, 1996.
FOR FURTHER INFORMATION CONTACT: Bernard Kritzer, Office of Chemical
and Biological Controls and Treaty Compliance, Bureau of Export
Administration, Department of Commerce, Telephone: (202) 482-0894.
SUPPLEMENTARY INFORMATION:
Background
Section 7(d) of the Export Administration Act of 1979, (50 U.S.C.
app. 2406) restricts exports of crude oil transported over right-of-way
granted pursuant to section 203 of the Trans-Alaska Pipeline
Authorization Act (43 U.S.C. 1652), with certain exceptions, unless the
President makes certain findings, recommends exports to the Congress on
the basis of those findings, and the Congress then agrees to the
recommendation by joint resolution enacted into law. Although the
Export Administration Act (EAA) expired on August 20, 1994, the
President invoked the International Emergency Economic Powers Act and
continued in effect, to the extent permitted by law, the provisions of
the EAA and the EAR in Executive Order 12924 of August 19,
[[Page 27256]]
1994, and notice of August 15, 1995 (60 FR 42767).
On November 28, 1995, the President signed into law Public Law 104-
58, which created a new section 28(s) of the Mineral Leasing Act (30
U.S.C. 185). Public Law 104-58 allows exports of oil transported over
right-of-way granted pursuant to section 203 of the Trans-Alaska
Pipeline Authorization Act (43 U.S.C. 1652), ``notwithstanding any
provision of this Act or any other provision of law (including any
regulation),'' unless the President finds that such exports are not in
the national interest.
To address the economic and environmental issues identified in
Public Law 104-58, the National Economic Council and the Council on
Environmental Quality working with the Department of Commerce's Bureau
of Export Administration, coordinated an intensive interagency review
of the effects of lifting the export ban on oil transported over right-
of-way granted pursuant to section 203 of the Trans-Alaska Pipeline
Authorization Act (TAPS oil). After extensive public hearings, the
review of public comments, and analytical evaluation, the interagency
working group found that the exports are not likely to pose a
significant impact to the economy or the environment.
On April 28, 1996, the President determined that, subject to
certain conditions described below, exports of crude oil transported
over right-of-way granted pursuant to section 203 of the Trans-Alaska
Pipeline Authorization Act (TAPS) are in the national interest. The
President found that such exports:
(1) Will not diminish the total quantity or quality of petroleum
available to the United States;
(2) Will not pose significant risks to the environment with the
imposition of a series of measures to further ensure the safety of the
environment; and
(3) Are not likely to cause sustained material oil supply shortages
or sustained oil price increases above world market levels that would
cause sustained material adverse employment effects in the United
States or that would cause substantial harm to consumers, including
those located in noncontiguous States and Pacific territories.
The President directed the Secretary of Commerce to issue a License
Exception, authorizing exports of TAPS oil, subject to certain
conditions designed to preserve the environment.
This final rule amends part 754 of the Export Administration
Regulations (EAR) by establishing a new License Exception TAPS. License
Exception TAPS authorizes exports of oil transported over right-of-way
granted pursuant to section 203 of the Trans-Alaska Pipeline
Authorization Act (42 U.S.C. 1652) provided that the transaction meets
the following conditions:
(1) The TAPS oil is transported by a vessel documented under the
laws of the United States and owned by a citizen of the United States
(in accordance with section 2 of the Shipping Act, 1916 (46 U.S.C. app.
802));
(2) All tankers involved in the TAPS oil export trade use the same
route that they do for shipments to Hawaii until they reach a point 300
miles due south of Cape Hinchinbrook Light and then turn toward Asian
destinations. After reaching that point, tankers in the TAPS oil export
trade must remain outside of the 200 nautical mile Exclusive Economic
Zone, as defined in 16 U.S.C. 1802(6). Tankers returning from foreign
ports to Valdez, Alaska must abide by the same restrictions, in
reverse, on their return route. This condition shall not be construed
to limit any statutory, treaty or Common Law rights and duties imposed
upon and enjoyed by tankers in the TAPS oil export trade, including,
but not limited to, force majeure and maritime search and rescue rules;
(3) The owner or operator of a tanker exporting TAPS oil shall:
(a) Adopt a mandatory program of deep water ballast exchange (i.e.,
at least 2,000 meters water depth). Exceptions can be made at the
discretion of the captain only in order to ensure the safety of the
vessel and crew. Specified records shall be maintained and made
available for audit by government officials.
(b) Be equipped with satellite-based communications systems that
will enable the Coast Guard independently to determine the tanker's
location;
(c) Maintain a Critical Area Inspection Plan for each tanker in the
TAPS oil export trade in accordance with the U.S. Coast Guard's
Navigation and Inspection Circular No. 15-91 as amended, which shall
include an annual internal survey of the vessel's cargo block tanks;
and
(4) The exporter files with BXA a Shipper's Export Declaration
covering the export not later than 21 days after the export has
occurred.
This final rule also makes other conforming changes in the short
supply provisions of the EAR by revising part 754 concerning TAPS oil
exports, the export clearance provisions of part 758 regarding the
requirement to submit the Shippers' Export Declaration (SED) to the
Bureau of Export Administration, and the recordkeeping requirements of
part 762.
The Export Administration Regulations (EAR) have been totally
amended by an interim rule published on March 25, 1996 (61 FR 12714),
which provides for a transition period within which exporters can take
advantage of both the old rules and the new rules until November 1,
1996. This rule permits exports of TAPS oil pursuant to a License
Exception. Exporters can make exports of TAPS oil under this exception
as of the effective date of this rule. Accordingly, the old rule is not
being revised.
Rulemaking Requirements
1. This final rule has been determined to be significant for the
purpose of Executive Order 12866.
2. Notwithstanding any other provision of the law, no person is
required to respond to, nor shall any person be subject to a penalty
for failure to comply with a collection of information, subject to the
requirements of the Paperwork Reduction Act, unless that collection of
information displays a currently valid Office of Management and Budget
Control Number. This rule contains a collection of information subject
to the Paperwork Reduction Act, which is cleared by the Office of
Management and Budget under existing OMB Control Number 0694-0027. The
public reporting burdens for the new collections of information are
estimated to range between 5 and 10 minutes for the Shipper's Export
Declaration requirement, and 30 minutes per voyage for the Ballast
Water Exchange collection. These estimates include the time for
reviewing instructions, searching existing data sources, gathering and
maintaining the data needed, and completing and reviewing the
collections of information. Send comments regarding these burden
estimates or any other aspect of these collections of information,
including suggestions for reducing the burden, to Bernard Kritzer,
Office of Chemical and Biological Controls and Treaty Compliance,
Bureau of Export Administration, Department of Commerce, Room 2705,
14th Street and Pennsylvania Avenue, N.W., Washington, D.C. 20230.
3. This rule does not contain policies with Federalism implications
sufficient to warrant preparation of a Federalism assessment under
Executive Order 12612.
4. This rule is being issued without notice of proposed rulemaking
and opportunity for comment because Public Law 104-58: (1) provides
that the administrative action under this Act is
[[Page 27257]]
not subject to sections 551 and 553-559 of the Administrative
Procedures Act (5 U.S.C. 551, 553-559); and (2) requires these
regulations to be issued within 30 days of the President's national
interest determination.
5. Under 8 U.S.C. 808(2), there is good cause that notice and
public procedure thereon are unnecessary and contrary to the public
interest. Notice and public procedure are unnecessary because Public
Law 104-58 exempts rulemaking under this Act from the notice and
comment requirements of the Administrative Procedures Act and requires
regulations to be issued within 30 days of the President's national
interest determination. Notice and public procedure are contrary to the
public interest because they would delay allowing the exports that the
President, as authorized by Public Law 104-58, has determined are in
the national interest.
List of Subjects
15 CFR Part 754
Exports, Foreign trade, Forests and forest products, Petroleum,
Reporting and recordkeeping requirements.
15 CFR Part 758
Administrative practice and procedure, Exports, Foreign trade,
Reporting and recordkeeping requirements.
15 CFR Part 762
Administrative practice and procedure, Business and industry,
Confidential business information, Exports, Foreign trade, Reporting
and recordkeeping requirements.
1. The authority citation for 15 CFR part 754 continues to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
10 U.S.C. 7420; 10 U.S.C. 7430(e); Sec. 201, Pub. L. 104-58, 109
Stat. 557 (30 U.S.C. 185(s)); 30 U.S.C. 185(u); 42 U.S.C. 6212; 43
U.S.C. 1354; 46 U.S.C. app. 466c; E.O. 12924, 59 FR 43437, 3 CFR,
1994 Comp., p. 917; Notice of August 15, 1995 (60 FR 42767, August
17, 1995).
2. The authority citation for 15 CFR part 758 continues to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 12924, 59 FR 43437, 3 CFR, 1994 Comp., p. 917; Notice of August
15, 1995 (60 FR 42767, August 17, 1995).
3. The authority citation for 15 CFR part 762 continues to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 12924, 59 FR 43437, 3 CFR, 1994 Comp., p. 917; Notice of August
15, 1995 (60 FR 42767, August 17, 1995).
PART 754--[AMENDED]
4. In Sec. 754.2 the following changes are made:
a. in paragraph (a), the phrase ``Reserves paragraph (i) of this
section for a License Exception for certain shipments of samples.'' is
revised to read ``Reserves, paragraph (i) of this section for a License
Exception for certain shipments of samples, and paragraph (j) of this
section for a License Exception for exports of oil transported by
pipeline over right-of-way granted pursuant to section 203 of the
Trans-Alaska Pipeline Authorization Act (43 U.S.C. 1652).''.
b. paragraph (c)(1)(i) is amended by adding the following sentence
at the end: ``The President made a determination on April 28, 1996.'';
and
c. a new paragraph (j) is added to read as follows:
Sec. 754.2 Crude oil.
* * * * *
(j) License Exception for exports of TAPS Crude Oil. (1) License
Exception TAPS may be used to export oil transported over right-of-way
granted pursuant to section 203 of the Trans-Alaska Pipeline
Authorization Act (TAPS), provided the following conditions are met:
(i) The TAPS oil is transported by a vessel documented under the
laws of the United States and owned by a citizen of the United States
(in accordance with section 2 of the Shipping Act, 1916 (46 U.S.C. app.
802));
(ii) All tankers involved in the TAPS export trade use the same
route that they do for shipments to Hawaii until they reach a point 300
miles due south of Cape Hinchinbrook Light and then turn toward Asian
destinations. After reaching that point, tankers in the TAPS oil export
trade must remain outside of the 200 nautical mile Exclusive Economic
Zone, as defined in 16 U.S.C. 1802(6). Tankers returning from foreign
ports to Valdez, Alaska must abide by the same restrictions, in
reverse, on their return route. This condition shall not be construed
to limit any statutory, treaty or Common Law rights and duties imposed
upon and enjoyed by tankers in the TAPS oil export trade, including,
but not limited to, force majeure and maritime search and rescue rules;
and
(iii) The owner or operator of a tanker exporting TAPS oil shall:
(A) Adopt a mandatory program of deep water ballast exchange (i.e.,
at least 2,000 meters water depth). Exceptions can be made at the
discretion of the captain only in order to ensure the safety of the
vessel and crew. Records must be maintained in accordance with
paragraph (j)(3) of this section.
(B) Be equipped with satellite-based communications systems that
will enable the Coast Guard independently to determine the tanker's
location; and
(C) Maintain a Critical Area Inspection Plan for each tanker in the
TAPS oil export trade in accordance with the U.S. Coast Guard's
Navigation and Inspection Circular No. 15-91 as amended, which shall
include an annual internal survey of the vessel's cargo block tanks.
(2) Shipper's Export Declaration. In addition to the requirements
of paragraph (j)(1) of this section, for each export under License
Exceptions TAPS, the exporter must file with BXA a Shipper's Export
Declaration (SED) covering the export not later than 21 days after the
export has occurred. The SED shall be sent to the following address:
Manager, Short Supply Program, Department of Commerce, Office of
Chemical and Biological Controls and Treaty Compliance, Bureau of
Export Administration, Room 2075, Washington, D.C. 20230.
(3) Recordkeeping requirements for deep water ballast exchange. (i)
As required by paragraph (j)(1)(iii)(A) of this section, the master of
each vessel carrying TAPS oil under the provisions of this section
shall keep records that include the following information, and provide
such information to the Captain of the Port (COTP), U.S. Coast Guard,
upon request:
(A) The vessel's name, port of registry, and official number or
call sign;
(B) The name of the vessel's owner(s);
(C) Whether ballast water is being carried;
(D) The original location and salinity, if known, of ballast water
taken on, before an exchange;
(E) The location, date, and time of any ballast water exchange; and
(F) The signature of the master attesting to the accuracy of the
information provided and certifying compliance with the requirements of
this paragraph.
(ii) The COTP or other appropriate federal agency representatives
may take samples of ballast water to assess the compliance with, and
the effectiveness of, the requirements of paragraph (j)(3)(i) of this
section.
5. Section 758.3 is amended by revising paragraph (d)(2) that was
formerly reserved to read as follows:
Sec. 758.3 Shipper's Export Declaration (SED).
(d) * * *
(2) You are required under the provisions of Sec. 754.2(j)(2) of
the EAR.
[[Page 27258]]
PART 762--[AMENDED]
6. Section 762.2 is amended by:
a. Redesignating paragraphs (b)(26) through (b)(34) as (b)(27)
through (b)(35) respectively; and
b. adding a new paragraph (b)(26).
Sec. 762.2 Records to be retained.
* * * * *
(b) * * *
(26) Section 754.2(j)(3), Recordkeeping requirements for deep water
ballast exchange.
* * * * *
Dated: May 28, 1996.
Iain S. Baird,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 96-13708 Filed 5-28-96; 2:33 pm]
BILLING CODE 3510-DT-P
