[Federal Register Volume 65, Number 64 (Monday, April 3, 2000)]
[Notices]
[Page 17491]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-8090]


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DEPARTMENT OF DEFENSE

Department of the Army


Revision of MTMC Freight Traffic Rules Publication No. 4A, Item 
255 and MTMC Guaranteed Traffic Rules Publication No. 50, Item 715, 
Both Entitled ``Computation of Freight Charges''

AGENCY: Military Traffic Management Command, DOD.

ACTION: Notice.

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SUMMARY: The Military Traffic Management Command (MTMC), as the 
Department of Defense (DOD) Traffic Manager for surface and surface 
intermodal traffic management services (DTR vol. 1, pg. 101-113), 
hereby modifies the text of the existing rule, entitled ``Computation 
of Freight Charges,'' in MFTRP No. 4A, Item 255 and MGTRP No. 50, Item 
715. The purpose of this modification is to change the basis of freight 
charge computation for bulk petroleum tank truck shipments from gross 
volume to a different methodology (sometimes referred to as ``net'' 
volume) in order to better conform to what has become an accepted 
industry practice as well as to comply with procedures and automated 
systems used by or being implemented by the Defense Energy Support 
Center.

DATES: This change is effective May 1, 2000.

ADDRESSES: Point of Contact: Headquarters, Military Traffic Management 
Command, ATTN: MTOP-JF, Room 608, 5611 Columbia Pike, Falls Church, VA 
22041-5050, fax: 703-681-9871 attn: Jerome Colton, e-mail: 
[email protected].

FOR FURTHER INFORMATION CONTACT: For additional information contact Mr. 
Jerome Colton, MTMC at (703) 681-1417 or Mr. Keith Pladson, DESC at 
(703) 767-8381.

SUPPLEMENTARY INFORMATION: A notice proposing this change was published 
in the Federal Register, vol. 64, no. 204, page 57075, Tuesday, October 
22, 1999. In response to this notice, a total of one (1) comment was 
received. The synopsis of the comment and response are as follows:
    Comment: The phrase ``to conform to standard industry practice'' is 
not understood. Standard industry practice is to charge the gross 
gallons amount. Why should we change this to net gallons just for 
government locations? For at least 27 years gross gallon charges have 
been in effect. Changing is a waste of time and money.
    Response: 1. DOD has researched the loading points served by the 
commenter. All locations use temperature compensating meters so all 
can--and do--provide net volumes.
    2. While gross gallons was indeed the industry standard in the 
past, this standard has been changing in favor of net gallons. As 
temperature-compensating meters are now in common use, using net 
gallons is (a) easily determined; (b) the measurement of choice as 
volume fluctuations due to temperature are eliminated; and (c) used by 
the majority of transportation modes. DOD has therefore chosen net 
gallons to be the standard for its new automated system, which covers 
the transportation of bulk fuel by all modes. In those few instances or 
locations where temperature-compensating meters are unavailable, 
conversion tables can be used.
    3. All discussions held with carriers both prior to and after the 
previous Federal Register notice proposing this change contradict the 
commenter's assertions. These discussions indicated, without exception, 
that carriers either welcome or have no difficulty with this change. 
The fact that there was only one negative comment reinforces this 
conclusion.
    4. Carriers are free to file rate changes if they believe the 
change will adversely affect their revenue.
(End of Response)
    It is therefore determined that this proposed change should be 
implemented, effective May 1, 2000. As this change may affect the 
revenue that bulk petroleum tank truck carriers receive for movements 
of DOD bulk petroleum shipments, carriers providing such services to 
DOD may wish to review their existing tenders to see if any further 
action on their part is in their interests. Effective May 1, 2000, 
paragraph 1 of the relevant item in the two rules publications (MFTRP 
No. 4A, Item 255 and MGTRP No. 50, Item 715) will read as follows: 
``Except as provided in paragraph 2, freight charges in DOD tenders 
governed by this publication will be the greater of:
    a. The amount computed by multiplying the carrier's rate by the 
minimum gallonage stated in the carrier's applicable tender, or
    b. The amount computed by multiplying the carrier's rate by the 
temperature-corrected gallonage placed in the vehicle at the time of 
loading. Temperature-corrected gallonage is defined as the volume 
correction to gallons at 60 degrees Fahrenheit (sometimes referred to 
as ``net volume'') and will be determined by the loading facility 
through either the use of temperature-compensating meters or by manual 
conversion in accordance with the appropriate tables in the most recent 
edition of the API Manual of Petroleum Measurement Standards (MPMS).''
(end of change)
    In general, changes to a rules publication (including this change) 
will no longer be accompanied by a mass mailing to carriers and other 
interested parties of the page containing the change. Instead, the 
rules publication will be updated on the MTMC website 
(www.mtmc.army.mil) to incorporate changes. From the MTMC website, 
click in succession on: Transportation Services, Freight Logistics, 
Freight Traffic Rules Publications, and then select the Rules 
Publication of your choice.
    Regulatory Flexibility Act: This change is not considered rule 
making within the meaning of the Regulatory Flexibility Act, 5 U.S.C 
601-612.
    Paperwork Reduction Act: The Paperwork Reduction Act, 44 U.S.C 3051 
et seq., does not apply because no information collection requirement 
or recordskeeping responsibilities are imposed on offerors, 
contractors, or members of the public.

Walter Scullion,
Chief, Freight Services Division (Acting), Joint Traffic Management 
Office.
[FR Doc. 00-8090 Filed 3-31-00; 8:45 am]
BILLING CODE 3710-08-M