[Federal Register Volume 60, Number 143 (Wednesday, July 26, 1995)]
[Notices]
[Page 38392]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-18379]



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DEPARTMENT OF TRANSPORTATION
Maritime Administration
[Docket S-922]


OMI Patriot Transport, Inc., et al.; Application for Modification 
of Operating-Differential Subsidy Agreements

    By application of April 27, 1995, pursuant to Title VI of the 
Merchant Marine Act, 1936, as amended, and Article II-25 of Operating-
Differential Subsidy Agreements (ODSAs) No. MA/MSB-167 (a), (b), (c) 
and (d), OMI Patriot Transport, Inc., OMI Courier Transport, Inc., and 
OMI Rover Transport, Inc. requested approval for modification of 
Article I-3(a) of the ODSAs to incorporate the OMI COLUMBIA in the 
ODSAs and approval to include the OMI COLUMBIA in an Operating-
Differential Subsidy (ODS) sharing system among the vessels named in 
the ODSAs. The vessels currently named in the ODSAs, under an ODS 
sharing arrangement are the COURIER, PATRIOT, RANGER, ROVER, OMI 
MISSOURI, and OMI SACRAMENTO.
    The OMI COLUMBIA, which is owned by OMI Challenger Transport, Inc., 
is a 138,698 DWT U.S.-flag crude oil tanker that began operating in 
1983 on a time charter basis in the Alaska North Slope crude oil trade, 
following its reconstruction and documentation under U.S.-flag pursuant 
to the Wrecked Vessel Act (46 app. U.S.C. 14). The applicants note that 
for the last two years, however, the OMI COLUMBIA has been operating in 
the spot market and has been in laid up status for most of that time.
    The applicants believe that a subsidy sharing arrangement for the 
OMI COLUMBIA would result in critically needed operating flexibility 
for the vessel. The OMI COLUMBIA is a highly efficient, diesel powered 
vessel that could compete effectively in the foreign trade with 
subsidy. The applicants point out that the entry of the OMI COLUMBIA 
into the foreign trade would enhance the presence of the U.S.-flag 
fleet in a trade where the U.S.-flag presence is far too small. 
Furthermore, the expansion of U.S.-flag service in the foreign commerce 
is the primary goal of the ODS program and one that would be furthered 
by permitting the OMI COLUMBIA to be incorporated into the subsidy 
sharing agreement enjoyed by other OMI-owned vessels.
    At a time when the U.S. merchant marine is fighting to remain 
strong and competitive, the applicants aver that every permitted use of 
available subsidy should be allowed. In the applicant's view, no 
statutory restriction limits subsidy to tank vessels under 100,000 DWT; 
the restriction is a matter of informal policy only. The applicants 
maintain that circumstances have changed markedly, providing a 
substantial basis for modification of the deadweight limitation policy.
    The applicants' position is that the modification needed is modest. 
The deadweight tonnage of the OMI COLUMBIA is not significantly higher 
than the informal limitation. In addition, the total amount of subsidy 
to be paid is not increased by this contract modification. 
Consequently, the subsidy is simply used to maintain another U.S.-flag 
vessel in active service in the U.S. merchant marine.
    Granting the OMI COLUMBIA subsidy sharing rights, the applicants 
conclude, will enable the OMI COLUMBIA to enhance U.S.-flag service in 
the foreign trade and will help maintain a trained base of U.S. 
seafarers.
    This application may be inspected in the Office of the Secretary, 
Maritime Administration. Any person, firm, or corporation having any 
interest in such application 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 Aug. 2, 1995. This notice is published as a 
matter of discretion and publication should in no way be considered a 
favorable or unfavorable decision on the application, as filed or as 
may be amended. The Maritime Administrator will consider any comments 
submitted and take such action with respect thereto as may be deemed 
appropriate.

(Catalog of Federal Domestic Assistance Program No. 20.804 
(Operating-Differential Subsidies)).

    By Order of the Maritime Subsidy Board.
    Dated: July 21, 1995.
Joel C. Richard,
Secretary.
[FR Doc. 95-18379 Filed 7-25-95; 8:45 am]
BILLING CODE 4910-81-P