[Federal Register Volume 73, Number 104 (Thursday, May 29, 2008)]
[Rules and Regulations]
[Pages 30783-30789]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-11704]



[[Page 30783]]

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DEPARTMENT OF TRANSPORTATION

Maritime Administration

46 CFR Part 389

[Docket No. MARAD-2008-0045]
RIN 2133-AB67


Determination of Availability of Coastwise-Qualified Launch 
Barges

AGENCY: Maritime Administration, DOT.

ACTION: Interim final rule.

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SUMMARY: The Maritime Administration supports the coastwise laws of the 
United States. We are publishing this interim final rule to establish 
regulations governing administrative determinations of availability of 
coastwise-qualified launch barges to be used in the transportation and, 
if needed, launch or installation of offshore oil drilling or 
production platform jackets in specified projects only. Based upon any 
further comments received, we may publish an amended final rule. We 
view this as a special, technical legislative requirement that does not 
indicate a change in our full support for other requirements of the 
coastwise laws.
    Specifically, this rulemaking implements provisions of the Coast 
Guard and Maritime Transportation Act of 2004, which, among other 
things, requires the Secretary of Transportation (acting through the 
Maritime Administrator) to adopt procedures to maximize the use of 
coastwise-qualified launch barge vessels but if the Secretary 
determines such coastwise-qualified vessels are not available for 
platform jacket transport and launching, then to allow the use of non-
coastwise-qualified launch barges.

DATES: This interim final rule will be effective June 30, 2008 Any 
further comments are due by July 28, 2008.

ADDRESSES: You may submit comments [identified by DOT DMS Docket Number 
MARAD-2008-0045 any of the following methods:
     Web Site: http://dms.dot.gov. Follow the instructions for 
submitting comments on the DOT electronic docket site.
     Mail: Docket Management Facility; U.S. Department of 
Transportation, 1200 New Jersey Avenue, SE., Room PL-401, Washington, 
DC 20590-0001.
     Hand Delivery: Room PL-401 of the Department of 
Transportation, 1200 New Jersey Avenue, SE., Washington, DC, between 9 
a.m. and 5 p.m., Monday through Friday, except Federal holidays.
     Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the online instructions for submitting 
comments.
    Instructions: All submissions must include the agency name and 
docket number for this rulemaking. Note that all comments received will 
be posted without change to http://dms.dot.gov including any personal 
information provided. Please see the Privacy Act heading under 
Regulatory Notices.
    Docket: For access to the docket to read background documents or 
comments received, go to http://dms.dot.gov at any time or to Room PL-
401 of the Department of Transportation, 1200 New Jersey Avenue, SE., 
Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday, 
except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Thomas W. Harrelson, Office of Cargo 
Preference and Domestic Trades, Maritime Administration, MAR-730, 1200 
New Jersey Avenue, SE., Washington, DC 20590; telephone: (202) 366-5515 
or 800-9US-FLAG; e-mail: [email protected].

SUPPLEMENTARY INFORMATION: Section 27 of the Merchant Marine Act of 
1920, commonly known as the Jones Act (46 U.S.C. 55102), requires, with 
a few exceptions, that all cargo transported in the coastwise trade be 
carried on ships that are U.S.-owned and U.S.-built. The Jones Act has 
been amended over the years, and in 1988 a special technical proviso, 
known as the thirteenth proviso, was added to allow for the use of 
foreign-built platform jacket launch barges in the coastwise trade if 
no U.S.-built vessels were found to be available.
    On August 9, 2004, the thirteenth proviso of the Jones Act was 
amended by section 417 of the Coast Guard and Maritime Transportation 
Act of 2004, Public Law 108-293 (the Act), now codified at 46 U.S.C. 
55108. Under the Act, the Secretary of Transportation is directed to 
establish procedures to issue determinations as to whether suitable 
U.S.-built barges are available for use in transportation and, if 
needed, launch or installation of offshore oil drilling or production 
structures and to maximize the use of U.S.-built coastwise-qualified 
vessels for such activities. The Act provides that if the Secretary 
determines that a suitable coastwise qualified vessel is not available 
for use in a specified platform jacket transportation and, if needed, 
launch or installation project, a foreign-built launch barge may be 
used.

Public Comments

    The Maritime Administration published a Notice of Proposed 
Rulemaking requesting public comments on our administration of these 
subject determinations on August 15, 2005 (70 FR 47771) with comments 
due on October 15, 2005. However, because of Hurricane Katrina and at 
the request of respondents, we extended the public notice period to 
December 13, 2005. At the further request of a commenting party, we 
subsequently opened a reply comment period on August 15, 2006, which 
closed on October 16, 2006. Based on our consideration of the nine 
responses received, we have adjusted our original proposal. The 
comments were received and our responses follow:

Issue 1. How will the Maritime Administration meet the 
requirement to provide timely information to the coastwise industry?

    Public comment: Seven interests representing the owners or builders 
of U.S. barges said that significant notice of upcoming offshore 
petroleum development projects (which may require foreign-built launch 
barges) should be made a requirement of the Maritime Administration 
regulation. The owners of foreign vessels opposed any pre-notification 
requirement not provided for by law. U.S.-flag interests highlighted 
that the Act requires that ``the Secretary of Transportation shall 
adopt procedures implementing this proviso that are reasonably designed 
to provide timely information so as to maximize the use of coastwise 
qualified-vessels.'' In order to build a launch barge to meet demand, 
which all agree is planned for years in advance, the U.S.-flag 
interested commenters recommended at least an 18 month notice period 
prior to the formal waiver application process. Operators of foreign-
built vessels state that the Act did not specifically set forth 
assistance requirements to the U.S. Merchant Marine, nor did the Act 
require advance notice of launch barge needs beyond the 30-day public 
notice period for waiver applications provided in the statute.
Maritime Administration Response
    After considering these comments, the Maritime Administration has 
decided there is a need to provide for ``timely information to maximize 
the use of coastwise qualified vessels.'' Therefore, our regulation 
will require the platform owner or operator to notify the Maritime 
Administration at the same time they register their Development 
Operations Coordination Document (DOCD) or Development and Production 
Plan (DPP) with the Minerals Management Service but not later than 21 
months before the proposed date of using a launch barge. This will 
provide an 18 month notice to current and potential

[[Page 30784]]

coastwise-qualified vessel owners before the three month waiver 
process, should a waiver be sought. This is consistent with the advance 
planning that is common practice in the offshore industry and it 
provides sufficient time and information to establish discussions 
between project owners and vessel owners. It also complies with the 
statutory requirement to maximize the use of coastwise-qualified 
vessels by allowing sufficient time for the construction or 
modification of a launch barge.

Issue 2. Should the petroleum production company or the vessel 
operator apply for the determination?

    Public comment: Five commenters with interests in U.S.-built 
vessels said that a request for a determination to use a foreign-built 
launch barge should come from the offshore petroleum production company 
as the company is typically the decision maker in contracting for 
transportation, launch or installation arrangements.
Maritime Administration Response
    We agree that the language and intent of the legislation means the 
owner or operator of the petroleum production company.

Issue 3. Will the Maritime Administration deny requests for 
determinations if applications are incomplete?

    Public Comment: Five operators of U.S.-built vessels asked that the 
Maritime Administration establish clearly that if application 
requirements are not met, the application will be denied.
Maritime Administration Response
    We will not process applications that are not complete but we will 
advise the applicant and seek to rectify errors and omissions to 
application information before we will begin the review process. If, 
after an opportunity to redress, the applicant has not met application 
requirements, we may take action to deny the request for determination 
based on an incomplete application.

Issue 4. Will the Maritime Administration require that 
requestors register in advance?

    Public Comment: Five operators or builders of U.S.-built vessels 
requested that the Maritime Administration require petroleum production 
companies to formally register (as much as 18 months to two years in 
advance) with the Maritime Administration if they wish to use a 
foreign-built launch barge.
Maritime Administration Response:
    As stated under Issue 1, we will require the platform 
owner/operator to notify us of a potential need for a launch barge at 
the same time they file their DOCD or DPP with the Minerals Management 
Service but not later than 21 months before they project a need for a 
launch barge. We will annually ask all coastwise-qualified launch barge 
potential owners/operators to register their contact information with 
us. This is consistent with Public Law 100-329, as amended by Public 
Law 108-293, which requires us to keep a listing of coastwise-qualified 
launch barges that are less than 12,000 tons. This exchange of contact 
information will allow the platform owner/operator to survey the market 
and hold discussions with operators of coastwise-qualified vessels. If 
the platform owner/operator is not successful in concluding business 
with a coastwise-qualified launch barge owner then they can begin the 
formal request for a determination of non-availability.

Issue 5. Can the Maritime Administration clarify the 
definitions of ``eligible vessel'' and ``launch barge?''

    Public Comment: One foreign vessel owner and one owner of U.S.-
built vessels requested clarification on the use of the term ``eligible 
vessel'' and requested that the same definition for ``launch barge'' be 
used throughout the regulation.
Maritime Administration Response
    The statute does not use the term ``eligible vessel'' and so it 
will not be used in the regulation. We have defined a ``Launch Barge'' 
as a vessel that is technically capable of loading, transporting, and 
launching or installing an offshore drilling or production platform 
jacket in a timely manner. We have defined the term ``Foreign Launch 
Barge'', for the purpose of this rule, to mean a non-coastwise-
qualified vessel that was built before December 31, 2000 and is 
technically capable of loading, transporting, and launching or 
installing an offshore drilling or production platform jacket in a 
timely manner and has a launch capacity of 12,000 long tons or more.

Issue 6. The application fee of $16,460 is considered 
excessive, can it be lowered?

    Public Comment: Two owners of foreign-built vessels considered the 
application fee inapplicable or excessive.
Maritime Administration Response
    We have reviewed the application fee issue. We have determined that 
it is the owner or operator of the production platform who is the 
responsible party and who must make application for any determination 
of non-availability and thus becomes the beneficiary of any such 
finding. We have also determined that a foreign launch barge must be 
classified as a launch barge by one of our named classification 
societies in order to be eligible for a positive determination. If the 
applicant requests that we find that an offered coastwise-qualified 
launch barge is not suitable or available, then we will review the 
technical details and charge the applicant for the number of hours of 
work required at the prevailing hourly rate plus overhead of the 
persons involved in the review and any administrative costs. We expect 
such review would entail the use of naval architects, marine engineers, 
electrical engineers, and various support staff. There will be a 
minimum non-refundable $500 deposit to cover initial Federal Register 
costs and the applicant must sign a letter of commitment to pay any 
additional costs we incur. We estimate such costs could range from $500 
to $20,000 or more.

Issue 7. Will there be a clear determination when coastwise 
qualified vessels are not available?

    Public Comment: One owner of a foreign-built vessel requested that 
the Maritime Administration clearly determine coastwise qualified 
vessel non-availability as this will then clearly allow the use of a 
foreign-built launch barge.
Maritime Administration Response
    We have revised our regulation to state clearly that if we 
determine that no coastwise-qualified vessels are found to be suitable 
or available then our determination will allow for the use of a 
foreign-built launch barge.

Issue 8. Will the approval of U.S. Customs and Border 
Protection be required?

    Public Comment: Two owners of foreign vessels and an interest group 
representing U.S.-built vessel operators said that further approval 
from U.S. Customs and Border Protection (CBP) should not be a 
regulatory requirement, if the Maritime Administration determines that 
U.S.-built vessels are not available.
Maritime Administration Response
    The statute states that non-coastwise-qualified barges may be used 
after the

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Secretary of Transportation (as administered by the Maritime 
Administration) determines that no coastwise qualified launch barges 
are available. Therefore, no formal CBP approval is being made a 
requirement of this regulation.

Issue 9. Can the Maritime Administration make the 
determinations good for the duration of a project?

    Public Comment: Two foreign vessel owners would like either no 
expiration date on the determination that no U.S. vessels are 
available, or have the Maritime Administration issue determinations for 
the ``duration of the project.''
Maritime Administration Response
    To comply with the Congressional intent to maximize the use of 
coastwise-qualified vessels, we have decided to retain the 120-day 
expiration date for determinations of non-availability of coastwise-
qualified vessels. We have the authority to extend the determination 
beyond 120 days on a case by case basis, and will do so as necessary.

Issue 10. Can the Maritime Administration be flexible 
regarding submission of platform jacket technical requirements and 
launch dates?

    Public Comment: Two owners of foreign-built vessels asked for 
flexibility in the submission of platform jacket load dates, as well 
for flexibility in the exact technical specifications of the platform 
jacket to be launched. Commenters representing U.S.-built vessel 
interests opposed any flexibility on technical specifications or load 
dates noting that platform jacket specifications are often prepared 
years in advance of launch.
Maritime Administration Response
    We believe that platform jacket specifications and launch schedules 
are developed far enough in advance of a project start date to be 
effective for review. If the launch schedule changes significantly, the 
Maritime Administration can change the expiration date of our 
determination for good cause.

Issue 11. Can the Maritime Administration clarify the 
definition of ``launching''?

    Public Comment: The owner of a foreign vessel recommended that our 
regulation should extend the definition regarding the permissible 
activity of these barges from just ``launching'' to also 
``transporting'' in conformance with the law.
Maritime Administration Response
    We agree and have made an effort to indicate that transporting, 
placement, and/or launching are all purposes provided for in the 
enabling legislation.

Issue 12. Are technical documents from foreign classification 
societies acceptable?

    Public Comment: In our proposed rule, we had proposed that the 
American Bureau of Shipping (ABS) or U.S. Coast Guard (USCG) approve 
the technical elements of a proposed foreign-built launch barge. 
Foreign-built barge owners would like us to recognize other 
classification societies as well.
Martime Administration Response
    We will accept vessel launch barge classification and technical 
documentation from vessel classification societies recognized by the 
USCG. The specific societies are: American Bureau of Shipping (ABS), 
Bureau Veritas (BV), Lloyd's Register (LR), Germanischer Lloyd (GL), 
Det Norske Veritas (DNV), or Nippon Kaiji Kyokai (NK).

Issue 13. Can the coastwise-qualified vessel availability 
window be narrowed from seven days to two?

    Public Comment: One owner of a foreign-built vessel requested that 
the definition of a launch barge be changed to require that the vessel 
be capable of transporting and launching a platform jacket within two 
days instead of the seven days listed in the notice of proposed 
rulemaking. A U.S.-built vessel owner commented that a seven day 
delivery window for a coastwise-qualified vessel may be too narrow.
Maritime Administration Response
    We believe that vessel delivery capability or availability should 
not be within some number of days specified by a regulation since the 
needs of each case will vary. Thus, we will require the delivery window 
be in ``a timely manner'' to be negotiated between the parties. This is 
similar to the way that ``lay days'' or ``delivery dates'' are 
negotiated in commercial transportation projects. If the platform owner 
and launch barge operator cannot reach agreement on the window timing, 
then we will make a determination based on the facts of the specific 
case.

Issue 14. If coastwise-qualified vessels become unavailable, 
can foreign-built vessels be used instead?

    Public Comment: A foreign-built vessel operator asked that foreign-
built vessels be allowed if for some reason a previously identified 
coastwise qualified vessel cannot conduct a platform jacket launch 
operation.
Maritime Administration Response
    If the selected coastwise-qualified vessel is not able to perform, 
and if we find there are no other coastwise-qualified vessels 
available, we can make a non-availability determination that would 
allow a foreign launch barge to provide the service.

Issue 15. Can the Maritime Administration make its 
determinations faster than 90 days?

    Public Comment: One owner of a foreign-built vessel requested that 
the Maritime Administration determination be provided within 60 days of 
the Federal Register announcement seeking coastwise qualified vessels 
instead of within the 90-day period described in the Notice of Proposed 
Rulemaking.
Maritime Administration Response
    We will issue our determination within 90 days of the Federal 
Register announcement as this is specifically required in the enabling 
legislation.

Issue 16. Is a U.S. built barge still considered suitable if 
it needs modifications?

    Public Comment: A foreign-built barge operator asked that a 
coastwise qualified launch barge NOT be considered suitable or 
available if it needs modifications in excess of $75,000.
Maritime Administration Response
    One of our roles is to determine availability and suitability of 
launch barges. Therefore, we will review applications and comments on a 
case by case basis. The intent of the legislation is to maximize the 
use of coastwise-qualified barges. The enabling legislation provided 
the Maritime Administration with the authority to make a determination 
that coastwise-qualified launch barges are or are not suitable. We will 
use this authority as required.

Program Description

    In this rulemaking, the Maritime Administration is establishing 
interim procedures to be followed to determine if coastwise-qualified 
U.S.-flag launch barges are available for a specific project and if 
they are not available, we will make a determination that will allow a 
foreign-built vessel to transport and, if needed, launch or install a 
platform jacket under certain conditions.
    We will request coastwise-qualified launch barge owners and other 
potentially interested parties to register with us on an annual basis 
with their

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full contact information. The registration process for platform owners/
operators begins with a notification to us of a proposed offshore 
platform jacket project at the same time they file with the Minerals 
Management Service for DOCD or DPP approval but not later than 21 
months before projected use of the launch barge. The notification 
information provided to us must include: the projected summary details 
of the platform jacket to be transported and, if needed, launched or 
installed; the approximate date of the operation; and contact 
information for the platform owner/operator individuals having 
decision-making responsibility with respect to the transportation and 
installation of the platform jacket. This information will be made 
public in order to ``provide timely information to ensure maximum use 
of coastwise qualified vessels'' as is required in the Act. At the same 
time, we will provide the current list of potentially interested 
registered parties to the platform owner/operator so they can begin 
canvassing the market and entering into discussions.
    Once we determine that the prior notice requirement has been met, 
and if the platform owner/operator is unable to find a potential 
coastwise-qualified launch barge that will be available for the 
project, the application process seeking a determination of non-
availability can begin. Each application must include: the complete 
engineering details for the platform jacket; the operational details 
for the loading, transport, launching or installation; the timing 
requirements; and the foreign launch barge they propose to use.
    Upon the receipt of a complete application including deposit fee, 
we will publish a notice in the Federal Register requesting that 
comments and information on the availability of coastwise-qualified 
vessels be submitted within 30 days. We may also canvas the market. If, 
after the comment period, we determine that suitable coastwise-
qualified vessels are not available for the project, upon receipt of 
final payment for all relevant costs, we will issue a determination of 
non-availability, allowing the transportation, launch or installation 
to proceed with the foreign-built launch barge vessel.
    We will not take action on applications that are not complete. For 
example, if we are not in receipt of early prior notification, or if 
fees are not paid, or if the application is incomplete, we will not 
take action on the application. However, we will seek to rectify errors 
and omissions to the application. It is important to note that we may 
take action to deny a request for a determination if the application 
remains incomplete. As previously stated, we will publish complete 
applications in the Federal Register for a period of 30 days and will 
provide a determination within 90 days thereafter.
    Because launch barges have long lead times for construction, 
applicants are encouraged to provide the Maritime Administration and 
the public with as much notice as possible in advance of these 
projects. Early notification will help ensure the maximum utilization 
of coastwise-qualified vessels, and will assist the Maritime 
Administration in its review process.

Application Fee

    Title V of the Independent Offices Appropriations Act of 1952 
(``IOAA''; 31 U.S.C. 9701) authorizes Federal agencies to establish and 
collect user fees. The statute provides that each service or thing of 
value provided by an agency should be self-sustaining to the extent 
possible, and that each charge shall be fair and based on the costs to 
the Government, the value of the service or thing to the recipient, the 
policy or interest served, and other relevant factors. 31 U.S.C. 9701.
    The primary guidance for implementation of the IOAA is Office of 
Management and Budget (OMB) Circular No. A-25 (``User Charges,'' July 
8, 1993). Circular A-25, section 6, directs agencies to assess user 
charges against identifiable recipients for special benefits derived 
from Federal activities beyond those received by the general public. 
Circular A-25 further directs agencies, with limited exceptions, to 
recover the full cost of providing a Government service from the direct 
recipients of special benefits. Section 6(d) of Circular A-25 defines 
``full cost'' as including ``all direct and indirect costs to any part 
of the Federal Government of providing a good, resource, or service.''
    Because determinations of availability under part 389 represent 
special benefits to identifiable recipients (i.e., platform owners/
operators) that are beyond the benefits and services normally received 
by the general public, the IOAA and Circular A-25 direct us to assess 
user fees for providing this service.
    Following the principles embodied in Circular A-25, we will 
estimate the costs associated with processing and issuing 
determinations under part 389 as follows. The main cost components of 
the program include direct and indirect personnel costs and Federal 
Register publication costs. We will charge the actual number of hours 
at the relevant personnel costs plus associated overhead and 
administrative costs. The other cost component of the program will be 
the cost of publishing notices of applications in the Federal Register. 
The current Federal Register publication cost is $155 per column and 
the average length of a public notice published for this program is 
estimated to be three columns. Thus, the total average publication cost 
currently is estimated to be about $465.00. The total of personnel 
costs and Federal Register publication costs is estimated to range from 
$500 to $20,000 or more, dependent upon the extent of the required 
review. Each application will require a $500 deposit and the payment of 
any additional costs prior to the final determination.

Rulemaking Analyses and Notices

Executive Order 12866 and DOT Regulatory Policies and Procedures

    This rulemaking is not significant under section 3(f) of Executive 
Order 12866, and as a consequence, OMB did not review the rule. This 
rulemaking is also not significant under the Regulatory Policies and 
Procedures of the Department of Transportation (44 FR 11034; February 
26, 1979). It is also not considered a major rule for purposes of 
Congressional review under Public Law 104-121. We believe that the 
economic impact of this rulemaking is so minimal as to not warrant the 
preparation of a full regulatory evaluation. This rulemaking merely 
establishes procedures to determine if a coastwise-qualified barge is 
available for use in a project and, if not, to allow the use of a non-
coastwise qualified barge.

Executive Order 13132

    We analyzed this rulemaking in accordance with the principles and 
criteria contained in Executive Order 13132 (``Federalism'') and have 
determined that it does not have sufficient federalism implications to 
warrant the preparation of a federalism summary impact statement. The 
regulations herein have no substantial effects on the States, the 
current Federal-State relationship, or the current distribution of 
power and responsibilities among local officials. Therefore, we did not 
consult with State and local officials because it was not necessary.

Regulatory Flexibility Act

    The Regulatory Flexibility Act requires us to assess the impact 
that regulations will have on small entities. After analysis of this 
proposed rule, the Maritime Administrator certifies that this proposed 
rule will not have a

[[Page 30787]]

significant economic impact on a substantial number of small entities. 
We anticipate that few, if any, small entities will participate in this 
process due to the nature of the shipping industry and the capital 
costs associated with vessels that fall under this program.

Environmental Assessment

    We have analyzed this proposed rule for purposes of compliance with 
the National Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321 
et. seq.) and we have concluded that, under the categorical exclusions 
provision in section 4.05 of Maritime Administrative Order (MAO) 600-1, 
``Procedures for Considering Environmental Impacts,'' 50 FR 11606 
(March 22, 1985), neither the preparation of an Environmental 
Assessment, an Environmental Impact Statement, nor a Finding of No 
Significant Impact for this rulemaking is required. This rulemaking 
will not result, either individually or cumulatively, in a significant 
impact on the environment. This rulemaking only relates to the 
determination of whether a coastwise-qualified barge is available for a 
project, and, if not, allows the use of a non-coastwise qualified 
barge.

Paperwork Reduction Act

    This rulemaking contains an information collection that will 
require review and clearance by the Office of Management and Budget 
(OMB).

Unfunded Mandates Reform Act

    This rulemaking does not impose unfunded mandates under the 
Unfunded Mandates Reform Act of 1995. It does not result in costs of 
$100 million or more to either State, local, or tribal governments, in 
the aggregate, or to the private sector, and is the least burdensome 
alternative that achieves this objective of U.S. policy.

Executive Order 13175

    We believe that these regulations will have no significant or 
unique effect on the communities of Indian tribal governments when 
analyzed under the principles and criteria contained in Executive Order 
13175 (Consultation and Coordination with Indian Tribal Governments). 
Therefore, the funding and consultation requirements of this Executive 
Order do not apply.

Regulation Identifier Number (RIN)

    A regulation identifier number (RIN) is assigned to each regulatory 
action listed in the Unified Agenda of Federal Regulations. The 
Regulatory Information Service Center publishes the Unified Agenda in 
April and October of each year. The RIN contained in the heading of 
this document can be used to cross-reference this action with the 
Unified Agenda.

Privacy Act

    Anyone is able to search the electronic form of all comments 
received into any of our dockets by the name of the individual 
submitting the comment (or signing the comment, if submitted on behalf 
of an association, business, labor union, etc.). You may review DOT's 
complete Privacy Act Statement in the Federal Register published on 
April 11, 2000 (Volume 65, Number 70; Pages 19477-78) or you may visit 
http://dms.dot.gov.

List of Subjects in 46 CFR Part 389

    Administrative practice and procedure, Maritime carriers, Reporting 
and recordkeeping requirements.

0
Accordingly, the Maritime Administration amends 46 CFR chapter II, 
subchapter J, by adding part 389 to read as follows:

PART 389--DETERMINATION OF AVAILABILITY OF COASTWISE-QUALIFIED 
LAUNCH BARGES

Sec.
389.1 Purpose.
389.2 Definitions.
389.3 Registration.
389.4 Application and fee.
389.5 Review; issuance of determinations.

    Authority: 49 U.S.C. 322(a); 46 U.S.C. 55102; 46 U.S.C. 55108; 
Public Law 108-293, 118 Stat 1028; 49 CFR 1.66.


Sec.  389.1  Purpose.

    This part prescribes regulations implementing the provisions of 
section 417 of Public Law 108-293, which grants the Secretary of 
Transportation, acting through the Maritime Administration, the 
authority to review and approve applications for determinations of 
availability of coastwise-qualified launch barges. Owners or operators 
of proposed platform jackets may submit information regarding a 
specific platform jacket transport, placement and/or launch project, 
following the procedures set forth in this regulation, in order for us 
to determine whether a suitable coastwise-qualified barge is available 
for the project. If we determine a suitable coastwise-qualified launch 
barge is not available, then a non-coastwise qualified foreign-built 
launch barge may be used.


Sec.  389.2  Definitions.

    For the purposes of this Part:
    ``Administrator'' means the Maritime Administrator.
    ``Coastwise-qualified Vessel'' means a vessel that has been issued 
a certificate of documentation with a coastwise endorsement under 46 
U.S.C. 12112.
    Coastwise Trade Laws include:
    (1) The Coastwise Endorsement Provision of the Vessel Documentation 
Laws, (46 U.S.C. 12112);
    (2) The Passenger Services Act, section 8 of the Act of June 19, 
1886 (46 U.S.C. 55103);
    (3) The Jones Act, section 27 of the Merchant Marine Act, 1920 (46 
U.S.C. 55102); and
    (4) Section 2(c) of the Shipping Act of 1916 (46 U.S.C. 50501).
    ``Launch barge'' means a vessel that is technically capable of 
transporting and, if needed, launching or installing an offshore 
drilling or production platform jacket in a timely manner.
    ``Foreign launch barge'', for the purpose of this rule, means a 
non-coastwise-qualified launch barge that was built before December 31, 
2000, and has a launch capacity of 12,000 long tons or more.
    A ``long ton'' equals 2,240 pounds.
    ``Platform Jacket'' refers to a single physical component and 
includes any type of offshore exploration, development, or production 
structure or component thereof, including platform jackets, tension leg 
or SPAR platform superstructures (including the deck, drilling rig and 
support utilities, and supporting structure), hull (including vertical 
legs and connecting pontoons or vertical cylinder), tower and base 
sections of a platform jacket, jacket structures, and deck modules 
(known as ``topsides'').
    ``Secretary'' means the Secretary of the Maritime Administration, 
who will route the correspondence to the proper office within the 
Maritime Administration for handling.
    ``Classed as a launch barge by a recognized classification 
society'' means that the vessel holds a current classification document 
to be used as a launch barge by at least one of the following 
classification societies: American Bureau of Shipping (ABS), Bureau 
Veritas (BV), Lloyd's Register (LR), Germanischer Lloyd (GL), Det 
Norske Veritas (DNV), or Nippon Kaiji Kyokai (NK).
    ``Applicant'' means the offshore development company as identified 
to the Minerals Management Service (MMS) in their Development 
Production Plan (DPP) or Development Operations Coordination Document 
(DOCD), who has applied to the Maritime Administration (MARAD) for a 
waiver.


Sec.  389.3  Registration

    In order to provide timely notification and to identify the 
potential participants

[[Page 30788]]

to each other so they may examine how they can best work together to 
maximize the use of coastwise-qualified launch barges, we will require 
early notification as outlined in this section.
    (a) In January of each calendar year, the Maritime Administration 
will publish a notice in the Federal Register requesting that owners or 
operators or potential owners or operators of coastwise-qualified 
launch barges notify us of:
    (1) Their interest in participating in the transportation and, if 
needed, the launching or installation of offshore platform jackets; 
and,
    (2) Provide us with contact information for their company; and,
    (3) Provide specifications of any currently owned or operated 
coastwise-qualified launch barges or plans to construct same.
    (b) When current or potential owners or operators of any type of 
offshore exploration, development, or production structure expect to 
need the use of a launch barge they must notify the Maritime 
Administration. Such notification must be the earlier of either:
    (1) The filing of their Development and Production Plan (DPP) or 
Development Operations Coordination Document (DOCD) with the Minerals 
Management Service as required by 30 CFR 250.201; or
    (2) Not later than twenty-one (21) months before the proposed date 
of using a launch barge.
    (c) The early notification information to be provided to the 
Maritime Administration by the platform owner or operator shall 
include:
    (1) A summary of technical details of the platform jacket that will 
need to be transported and, if needed, launched or installed; and,
    (2) The projected physical requirements for a suitable launch barge 
to be used in this project; and,
    (3) The projected time period and load and launching sites for the 
launch barge operation; and,
    (4) Full contact information for the company and the individuals 
having decision-making authority with respect to the utilization of the 
launch barge and the transportation and, if needed, the launching or 
installation of the platform jacket.
    (d) The information in paragraphs (a), (b), and (c) of this section 
must be submitted either electronically to [email protected] or 
delivered to the Secretary, Maritime Administration, 1200 New Jersey 
Avenue, SE., Washington, DC 20590. Any information that is business 
confidential must be so noted and accompanied by a justification.
    (e) We will publish a list of potential coastwise-qualified launch 
barge owners/operators on our Web site at http://marad.dot.gov. We will 
publish a summary of the early notification information in paragraph 
(c) of this section on the website and also disseminate it to the 
registered potential coastwise-qualified launch barge owners/operators.


Sec.  389.4  Application and fee.

    (a) When, after surveying the market and discussing the platform 
project with potential coastwise-qualified launch barge owners/
operators, it appears that coastwise-qualified vessels will not be 
available, the platform jacket owner/operator may apply to the Maritime 
Administration for a determination of non-availability and request to 
use a foreign launch barge.
    (1) The fully complete application must be submitted to the 
Secretary, Maritime Administration, 1200 New Jersey Avenue, SE., 
Washington, DC 20590 at least 120 days prior to the proposed launch 
barge operations date.
    (2) We reserve the right to waive or reduce or extend the time 
requirements based upon our evaluation of any national emergency or 
other situation.
    (b) Applications must contain the information set forth in 
paragraphs (c) and (d) of this section and be accompanied by a 
statement signed by an officer of the company containing the following 
language:
    ``This application is made for the purpose of inducing the United 
States of America to grant a determination of non-availability of a 
coastwise-qualified launch barge as set forth in 46 U.S.C. 55108. I 
have carefully examined the application and all documents submitted 
and, to the best of my knowledge, information and belief, the 
statements and representatives contained in said application and 
related documents are full, complete, accurate and true. Further, I 
agree to pay any fees that result from the work required by this 
application.

Signature:-------------------------------------------------------------
Name (typed):----------------------------------------------------------
Title:-----------------------------------------------------------------
Date:------------------------------------------------------------------
    (c) The applicant must submit a non-refundable check in the amount 
of $500 (Five Hundred Dollars) made payable to the Maritime 
Administration, which is a minimum fee and represents a deposit against 
any costs to the Government for processing the application. The 
applicant must also submit a signed statement (see paragraph (b) of 
this section) that they agree to pay all such additional costs that 
will be invoiced by the Government. Government costs will be billed for 
actual staff hours at applicable hourly rates plus overhead, 
administrative and other relevant costs.
    (d) Required Transport and Launch Project Information.
    (1) Applications must include a general description of the 
transport, placement and/or launch project, including:
    (i) A description of the platform jacket structure with launching 
weight, center of gravity, major dimensions, and a general arrangement 
plan,
    (ii) The projected loading date and site,
    (iii) The projected launching date and site,
    (iv) The names of the potential coastwise-qualified launch barges' 
owners/operators contacted and their response regarding suitability and 
availability, and
    (v) The technical merits and availability studies for the 
coastwise-qualified launch barges considered.
    (2) Characteristics of the applicant's desired foreign launch 
barge, including, at a minimum, the following information:
    (i) Name of the vessel,
    (ii) Registered owner of the vessel,
    (iii) Physical dimensions, deadweight capacity in long tons, 
ballasting capacities and arrangements, and launch capacity in long 
tons, and arrangements,
    (iv) Documentation showing classification as a launch barge by one 
of the following classification societies: American Bureau of Shipping 
(ABS), Bureau Veritas (BV), Lloyd's Register (LR), Germanischer Lloyd 
(GL), Det Norske Veritas (DNV), or Nippon Kaiji Kyokai (NK).
    (v) Date and place of construction of the foreign launch barge and 
(if applicable) rebuilding. If applicant is unable to document the 
origin of the vessel, foreign construction will be assumed.
    (vi) Name, address, and telephone number of the foreign launch 
barge owner.
    (3) The signed statement that the applicant represents that the 
foregoing information is true to the best of the applicant's knowledge, 
as required by paragraph (b) of this section and the $500 deposit fee.
    (e) We may require additional information from the applicant as 
part of the review process. The application will not be considered 
complete until we have received all relevant information.


Sec.  389.5  Review; issuance of determinations.

    (a) The Maritime Administration will review each application for

[[Page 30789]]

completeness including evidence of prior notification and payment of 
application fee. Applications will not be processed until deemed 
complete. We will notify the applicant if additional information is 
necessary. We encourage the submission of applications well in advance 
of project dates in order to allow sufficient time for review under 
this part.
    (b) We will review the information required by Sec.  389.4. When 
the application is deemed complete, we will publish a notice in the 
Federal Register describing the project and platform jacket involved, 
advising that all relevant information reasonably needed to assess the 
transportation and launching requirements will be made available to 
interested parties upon request. The notice will request that 
information on the availability of coastwise-qualified launch barges be 
submitted within thirty (30) days after the publication date. We will 
also notify the coastwise-qualified owners/operators who have 
registered with us as per Sec.  389.3.
    (c) The Maritime Administration will review any submittals whereby 
an owner or operator of a coastwise-qualified launch barge asserts they 
are available and we will facilitate discussions between the offeror 
and the platform jacket owner/operator. If the parties are unable to 
reach agreement, we will make a determination regarding availability.
    (d) If needed, the Maritime Administration's technical personnel 
will review the data required in Sec.  389.4. The data must be complete 
and current. Any data submitted will not be returned to the applicant 
and will be retained by us on file for a period of time. The Maritime 
Administration review will not substitute for the review and approval 
by either a major classification society (ABS, BV, LR, GL, DNV, NK) or 
the U.S. Coast Guard. The Maritime Administration review will not 
verify the accuracy or correctness of the applicant's engineering 
proposal; rather, it will only pertain to the general reasonableness 
and soundness of the technical approach.
    (e) The Maritime Administration will deny the application if:
    (1) We find the applicant did not comply with the requirements in 
Sec.  389.3 or Sec.  389.4; or,
    (2) We determine a suitable coastwise-qualified launch barge is 
reasonably available.
    (f) The Maritime Administration will issue a determination of non-
availability if we determine that no suitable coastwise-qualified 
vessel is reasonably available.
    (g) Our determination will be issued within ninety (90) days from 
the date the application notice was published in the Federal Register.
    (g) Our determination of non-availability will expire one-hundred 
and twenty (120) days after the date of issuance, unless we provide an 
extension for good cause.
    Maritime Administration determinations in this regard should NOT be 
interpreted as a change setting new federal maritime precedents. The 
Maritime Administration continues to support the Jones Act, the 
Passenger Vessel Services Act, and other federal U.S.-flag 
requirements.

    By order of the Maritime Administrator.

    Dated: May 19, 2008.
Leonard Sutter,
Secretary, Maritime Administration.
[FR Doc. E8-11704 Filed 5-28-08; 8:45 am]
BILLING CODE 4910-81-P