[Federal Register Volume 63, Number 72 (Wednesday, April 15, 1998)]
[Notices]
[Pages 18487-18488]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-10024]


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DEPARTMENT OF TRANSPORTATION

Maritime Administration
[Docket MSP-009]


Lykes Bros. Steamship Company, Inc.; Notice of Application for 
approvals to proposed transfer of Maritime Security Program Operating 
Agreements (MA/MSP-21 through MA/MSP-23)

    Sea Crews II, Inc. (Sea Crews II), as successor in interest to 
Lykes Bros. Steamship Co., Inc. (Lykes Bros.), by letter dated April 9, 
1998, confirmed notification given to the Maritime Administration 
(MARAD) on July 14, 1997, that it has transferred Maritime Security 
Program (MSP) Operating Agreements MA/MSP-21, MA/MSP-22, and MA/MSP-23 
(MSP Operating Agreements) to First American Bulk Carrier Corporation 
(FABC), subject to MARAD approval. By letter dated April 9, 1998, FABC 
has provided notice to MARAD that, assuming approval by MARAD of the 
transfer of the MSP Operating Agreements from Lykes Bros. to FABC, it 
intends to assign those agreements to three wholly owned subsidiaries 
of FABC: First Ocean Bulk Carrier I LLC, First Ocean Bulk Carrier II 
LLC, and First Ocean Bulk Carrier III LLC (FABC Subsidiaries). One MSP 
Operating Agreement is to be assigned to each of the FABC Subsidiaries. 
The MSP Operating Agreements were awarded to Lykes Bros. On December 
20, 1996 with regard to applications filed for the LYKES NAVIGATOR (ex 
ALMERIA LYKES), LYKES DISCOVERER (ex MARGARET LYKES), and LYKES 
LIBERATOR (ex STELLA

[[Page 18488]]

LYKES) (collectively, the Vessels). The Vessels are currently bareboat 
chartered from Sea Crews II to Lykes Lines Limited, LLC (Lykes Lines). 
Sea Crews II intends to form a trust to own the Vessels (Owner 
Trustee). FABC asserts that it, the FABC Subsidiaries, Sea Crews II, 
and the Owner Trustee are citizens of the United States under section 2 
of the Shipping Act, 1916, as amended. Further, FABC reports that Lykes 
Lines is a U.S. citizen for purposes of obtaining a registry 
endorsement.
    More particularly, the approvals, findings, and determinations 
requested include those that may be deemed necessary under statute, 
regulation, or contract in order:
    1. For the FABC Subsidiaries to assume the existing bareboat 
charters of the Vessels from Sea Crews II to Lykes Lines for the term 
of the MSP Operating Agreements;
    2. For Lykes Bros., acting through Sea Crews II, its successor in 
interest, to transfer the MSP Operating Agreements to FABC, which in 
turn would assign them to the FABC Subsidiaries;
    3. For the FABC Subsidiaries to time charter the Vessels to Lykes 
Lines for the term of the MSP Operating Agreements.
    FABC, by letter dated April 9, 1998, filed an application with 
MARAD for participation in the MSP with the MSP Operating Agreements. 
FABC asserts that its application for participation in the MSP provides 
MARAD the information regarding FABC, the FABC Subsidiaries, and the 
Vessels required for MARAD to act on the application to transfer the 
MSP Operating Agreements to FABC, and in turn, to the FABC 
Subsidiaries.
    FABC requests that MARAD:
    1. Allow the requested transfers to become effective in accordance 
with the applications, and pursuant to law; and
    2. Take any and all actions that MARAD may deem necessary or 
appropriate in order to confirm and effectuate FABC's participation 
(through the FABC Subsidiaries) in the MSP as transferee of the MSP 
Operating Agreements.
    This notice invites comments on maritime policy issues that may be 
raised by the Lykes Bros./Sea Crews II/FABC proposal relating to the 
transfer of the MSP Operating Agreements to FABC, and in turn to the 
FABC Subsidiaries. This application may be inspected in the Office of 
the Secretary, Maritime Administration. Any person, firm, or 
corporation having an interest in this proposal 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, S.W., Washington, D.C. 20590. 
Comments must be received no later than the close of business on April 
27, 1998. This notice is published as a matter of discretion, and the 
fact of its publication should in no way be considered a favorable, or 
unfavorable, decision on the application, as filed, or as may be 
amended. MARAD will consider any comments timely submitted and take 
such action with respect thereto as may be deemed appropriate.

    Dated: April 10, 1998.

    By Order of the Maritime Administration.
Edmund T. Sommer, Jr.,
Acting Secretary, Maritime Administration.
[FR Doc. 98-10024 Filed 4-14-98; 8:45 am]
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