[Federal Register Volume 70, Number 190 (Monday, October 3, 2005)]
[Notices]
[Pages 57611-57612]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-19820]


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DEPARTMENT OF HOMELAND SECURITY

Office of the Secretary


Waiver of Compliance With Navigation and Inspection Laws; Gulf 
Coast States

AGENCY: Office of the Secretary, DHS.

ACTION: Notice.

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    The combined effect of Hurricanes Rita and Katrina is one of the 
largest natural disasters to ever strike the United States. The 
hurricanes have significantly disrupted production of oil and gas in 
the Gulf of Mexico, have caused many Gulf Coast oil refineries to go 
out of service because of flooding, lack of electric power or other 
reasons, and have significantly disrupted the pipeline transportation 
of oil and refined products from the Gulf Coast States. These 
production losses, outages, and disruptions have caused increases in 
the price of oil, gasoline and other refined products. The Department 
of Homeland Security has received reports of threatened or actual 
shortages of gasoline, jet fuel, and/or other refined products as a 
result of the hurricanes.
    Companies that produce and/or ship petroleum and/or refined 
petroleum products have submitted to the Department requests for 
waivers of the Merchant Marine Act of 1920 (the ``Jones Act''). See, 46 
U.S.C. App. section 1; 46 U.S.C. App. section 883. This and related 
laws are generally referred to as the ``coastwise laws.'' These laws 
provide, among other things, that only vessels built and owned by 
citizens of the United States and flagged in the United States can 
carry merchandise between U.S. ports.
    The Secretary of Homeland Security is vested with the authority and 
discretion to waive the coastwise laws ``to such extent and in such 
manner and upon such terms as he may prescribe, either upon his own 
initiative or upon the written recommendation of the head of any other 
Government agency, whenever he deems that such action is necessary in 
the interest of national defense.'' In consultation with and upon the 
recommendation of the Secretary of Energy, I have determined that such 
a waiver, in accordance with the terms set forth below, is in the 
interest of the national defense.

[[Page 57612]]

    The catastrophic destruction brought about by Hurricanes Rita and 
Katrina has dramatically impeded, and in some places in the affected 
region stopped altogether, production and transportation or 
transmission of oil, refined petroleum products, natural gas, and 
electricity. Much of the lost oil production is from producing areas in 
the Gulf of Mexico which have been leased pursuant to programs of the 
Department of the Interior. This lost production, refining, and 
transportation capacity has resulted in the actual or threatened 
unavailability of gasoline, jet fuel and other refined products, and 
threatens the Nation's economic and national security. I believe that 
waiver of the coastwise laws would facilitate the transportation of oil 
and refined petroleum products in and from portions of the United 
States affected by the hurricanes, and to other regions affected by the 
disruptions that have occurred in the Gulf Coast area.
    Therefore, I am exercising my discretion and authority to waive the 
coastwise laws generally for the transportation of petroleum and 
refined petroleum products for the period until 12:01 a.m., October 24, 
2005. On September 1, 2005, I exercised my discretion and authority to 
waive the coastwise laws generally for the transportation of petroleum 
released from the Strategic Petroleum Reserve, whether pursuant to an 
exchange, sale or otherwise, undertaken in response to the 
circumstances arising from Hurricane Katrina. I am today exercising my 
discretion and authority to extend that waiver of the coastwise laws 
generally for the transportation of petroleum released from the 
Strategic Petroleum Reserve, whether pursuant to an exchange, sale, or 
otherwise, undertaken in response to the circumstances arising from 
Hurricane Rita. I find, for the reasons set forth above, that such 
waivers are necessary in the interest of national defense.

    Executed this 26th day of September, 2005.
Michael Chertoff,
Secretary.
[FR Doc. 05-19820 Filed 9-29-05; 1:23 pm]
BILLING CODE 4410-10-P