[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