[Federal Register Volume 60, Number 229 (Wednesday, November 29, 1995)]
[Notices]
[Pages 61287-61288]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-29133]



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DEPARTMENT OF TRANSPORTATION

Maritime Administration
[Docket S-928]


Margate Shipping Company, and Chestnut Shipping Company; Notice 
of Application for Payment of Unused Operating-Differential Subsidy

    Notice is hereby given that Margate Shipping Company (Margate) and 
Chestnut Shipping Company (Chestnut) request the extensions of their 
operating-differential subsidy agreements (ODSA) for five years or, in 
the alternative, a new five year ODSA, for the purpose of using 
available but unused days of operating-differential subsidy (ODS), 
which have accrued under their respective ODSAs, commencing as of 
January 1, 1974. Additionally, pursuant to section 605(b) of the 
Merchant Marine Act, 1936, as amended, Margate and Chestnut 
(applicants) request that the subsidizable lives of the following 
vessels be extended to the indicated dates:

------------------------------------------------------------------------
               Vessel                           Extended date           
------------------------------------------------------------------------
CHESTNUT HILL......................  December 1, 2001.                  
KITTANNING.........................  March 1, 2002.                     
CHELSEA............................  February 28, 2000.                 
CORONADO...........................  December 28, 1998.                 
CHERRY VALLEY......................  July 10, 1999*.                    
------------------------------------------------------------------------
*The Maritime Administration has previously extended the subsidizable   
  lives of the CHERRY VALLEY, CHELSEA, and CORONADO to February 28,     
  1997.                                                                 

    On January 3, 1972, Margate entered into Contract MA/MSB-134 for 
the CORONADO, CHERRY VALLEY, and CHELSEA. Chestnut entered into 
Contract MA/MSB-299 for the CHESTNUT HILL and KITTANNING on December 
17, 1973.
    On November 9, 1989, the Maritime Administration (MARAD) approved a 
vessel sharing/substitution system in which Contract MA/MSB-299 and MA/
MSB-134 were amended to include the CHILBAR, GOLDEN GATE, EDGAR M. 
QUEENY, ENERGY INDEPENDENCE, and FREDERICKSBURG, provided that the 
annual amount of ODS accrued for all vessels operating under the two 
ODSAs would not exceed five ship years of subsidized operation in any 
given year.
    On December 22, 1993, MARAD agreed to separate Contract MA/MSB-134 
and MA/MSB-299 into distinct ODSA contracts to correct the inequitable 
result of terminating these agreements 20 years from the date of entry 
into subsidized service of the first vessel delivered. The separate 
agreements provided that each subsidized vessel would have a full 20-
year operating period from date of entry into service until termination 
of its ODSA.
    Margate's ODSAs on the CORONADO, CHERRY VALLEY, and CHELSEA 
(Contracts MA/MSB-134(a), (b), and (c) expired on December 27, 1993, 
July 9, 1994, and February 27, 1995, respectively, when each vessel 
reached 20 years of age. At present Chestnut may operate the following 
vessels under Contracts MA/MSB-299(a) and (b), which expire on November 
30, 1996 and on February 28, 1997, when the CHESTNUT HILL and 
KITTANNING reach 20 years of age:

CHESTNUT HILL
KITTANNING
CHELSEA
CORONADO
CHERRY VALLEY
CHILBAR
FREDERICKSBURG

    The applicants advise that the unused subsidy days for the Margate 
and Chestnut ODSAs commencing January 1, 1974, are as follows:

------------------------------------------------------------------------
                                                                Unused  
                            ODSAs                                days   
------------------------------------------------------------------------
Contracts MA/MSB-134, 134(a), (b), and (c)..................     729.00 
Contracts MA/MSB-299, 299(a) and (b) (to September 1995)....   3,153.90 
Less subsidy sharing days (to September 1995)...............    (857.00)
                                                             -----------
                                                               2,296.90 
------------------------------------------------------------------------

    According to the applicants, Chestnut and Margate have a total of 
3,025.90 unused subsidy days (729.00 days plus 2,296.90 days). Margate 
and Chestnut request that if Brookville Shipping, Inc.'s application is 
granted (see 60 Fed. Reg. 54099, Oct. 19, 1995), that Margate and 
Chestnut also be enabled to obtain the full unused benefits of their 
ODSAs by extending Contracts MA/MSB-134 (a), (b), and (c) and Contract 
MA/MSB-299 (a) and (b) for an additional five years beyond their 
expiration dates, or in the alternative, Margate and Chestnut request 
that the Maritime Subsidy Board (Board) enter into five year ODSAs with 
Margate and Chestnut for the payment of ODS for the number of unused 
subsidy days of their respective ODSAs.
    In connection with this request, Margate and Chestnut further ask 
the Board to permit them to share the unused subsidy days among the 
CHESTNUT HILL, KITTANNING, CHELSEA, CORONADO, CHERRY VALLEY, CHILBAR, 
and FREDERICKSBURG without limitation 

[[Page 61288]]
as to the number of days that may be used in any one year.
    As indicated earlier, Margate and Chestnut are requesting an 
extension of the subsidizable lives of their vessels so that these 
vessels would remain eligible to operate with ODS under the extended 
contracts or new contracts as the case may be. According to the 
applicants, the effect of extending the lives of these vessels will 
enable Chestnut and Margate to utilize the unused subsidy days. The 
applicants advise that such an extension of the lives of the vessels 
will not give advantage or be prejudicial as between U.S. citizens 
operating in the trade, since there would be no increase in vessels or 
change in service, and the service will not be in addition to existing 
service; accordingly, section 605(c) is not a bar to the request.
    This application may be inspected in the Office of the Secretary, 
Maritime Administration. Any person, firm or corporation having any 
interest in such request 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 December 13, 1995. The Maritime Subsidy Board 
will consider any comments submitted and take such action with respect 
thereto as may be deemed appropriate.

(Catalog of Federal Domestic Assistance Program No. 2.804 Operating-
Differential Subsidies).

    By Order of the Maritime Subsidy Board.

    Dated: November 22, 1995.
Joel C. Richard,
Secretary.
[FR Doc. 95-29133 Filed 11-28-95; 8:45 am]
BILLING CODE 4910-81-P