[Federal Register Volume 85, Number 121 (Tuesday, June 23, 2020)]
[Notices]
[Pages 37634-37636]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-13420]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF DEFENSE

Department of the Army, Corps of Engineers


Sabine Neches Navigation District User Fee Notice

AGENCY: U.S. Army Corps of Engineers, DoD.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The Water Resources Reform and Development Act (WRRDA) of 2014 
authorizes a non-federal interest to levy port or harbor dues in the 
form of tonnage duties or fees in conjunction with a harbor navigation 
project whose usable increment of the project is complete to finance 
the cost, construction or maintenance of the project. The Sabine-Neches 
Navigation District (SNND) is a political subdivision of the State of 
Texas and the non-federal sponsor of the Sabine-Neches Waterway Channel 
Improvement Project (SNWW CIP). The SNND anticipates completion of the 
first usable increment of the SNWW CIP in the next 180 days. Upon 
completion of the first usable increment, SNND intends to levy port or 
harbor dues pursuant to 33 U.S.C. 2236. Notification in the Federal 
Register prior to an initial levy of port or harbor dues is required by 
the statute.

DATES: A public hearing on the proposed user fee ordinance will be held 
at 3:30 p.m. on August 11, 2020, in the manner and location specified 
in the ADDRESSES section of this Notice.
    The public comment period will end upon the close of business at 5 
p.m. (CST), August 28, 2020. Written comments must be received by the 
District on or before that date to be considered before the user fee 
ordinance becomes effective.

ADDRESSES: The public hearing will be held at 8180 Anchor Drive, Port 
Arthur, TX 77642. Pursuant to orders issued by the Governor of Texas 
related to combatting the spread of Covid-19, arrangements will be made 
for attendance at the public meeting by electronic means. Details 
regarding participation by electronic means will be posted on SNND's 
website: www.navigationdistrict.org.
    Public comments concerning the proposed users' fee ordinance should 
be directed in writing to Mr. Randall Reese, Executive Director and CEO 
Sabine-Neches Navigation District, 8180 Anchor Drive, Port Arthur, TX 
77642, with a copy to Ms. Franchelle Nealy, Galveston District, U.S. 
Army Corps of Engineers, 2000 Fort Point Road, Galveston, TX 77550.

FOR FURTHER INFORMATION CONTACT: All comments and requests for further 
information on the proposal must be directed in writing to the 
Executive Director and CEO of SNND. His contact information follows: 
Mr. Randall Reese, Executive Director and CEO Sabine-Neches Navigation 
District, 8180 Anchor Drive, Port Arthur, TX 77642; Telephone: 409-729-
4588; email: [email protected]. Alternatively, contact Ms. 
Franchelle Nealy, in writing at the Galveston District, U.S. Army Corps 
of Engineers, ATTN: Ms. Franchelle Nealy, 2000 Fort Point Road, 
Galveston, TX 77550; Telephone: 409-766-3817; and by email at 
[email protected].

SUPPLEMENTARY INFORMATION: The U.S. Army Corps of Engineers (USACE) 
Galveston District published the Final Feasibility Report/Final 
Environmental Impact Statement for SNWW CIP (USACE, 2011) in March 
2011, the Chief of Engineers Report (Chief's Report) was signed in July 
2011, and the Record of Decision was signed in February 2012. The 
Congressional approval of the construction of the SNWW CIP 
(authorization for construction) was provided in Section 7002(1)1 of 
the Water Resources Reform and Development Act (WRRDA) of 2014, Public 
Law 113-121. The SNWW CIP's new start construction was funded in Fiscal 
Year (FY) 2019 by the Army Civil Works Program FY 2019 Work Plan. The 
SNND and the USACE signed the Project Partnership Agreement for SNWW 
CIP on or about July 27, 2019. Additional funding for construction of 
the SNWW CIP was provided in the FY 2020 Work Plan.
    Construction of the first usable increment of SNWW CIP, an 
anchorage basin, has begun. Upon completion of this anchorage basin, 
SNND intends to begin to levy port or harbor dues pursuant to 33 U.S.C. 
2236. 33 U.S.C. 2236(a)(5)(A) requires that SNND, as the non-federal 
sponsor, transmit to the Secretary of the Army for public notice the 
proposed ordinance before the initial levy of port or harbor dues.
    Proposed Ordinance:

Sabine Neches Navigtion District User Fee Ordinance. An Ordinance 
Setting Out the Need for and Levying of a User Service Fee on Cargo, 
Placing Responsibility for Reporting and Collection of the Fee on 
Receiving and Shipping Terminals and Providing a Misdemeanor Penalty 
for Failure To File the Required Reports or Pay the User Fee in the 
Sabine Neches Navigation District

    Whereas the Sabine Neches Navigation District (``Navigation 
District'') is the designated non-federal sponsor (``sponsor'') for the 
Sabine Neches Waterway Channel Improvement Project for the Sabine 
Neches Waterway authorized in the Water Resources Reform and 
Development Act of 2014 (``Project''); and
    Whereas the Texas Legislature implemented Senate Bill 1137 
authorizing the Navigation District to serve as the sponsor for the 
Project and perform all necessary duties as the sponsor to satisfy its 
obligations as the local sponsor; and
    Whereas the Project is projected to generate an additional $57 
billion in gross product and 465,000 U.S. jobs; and
    Whereas the Navigation District will be responsible for funding its 
required cost share of the total Project cost including payment of 30 
percent of the total cost; and
    Whereas 33 U.S.C. 2236 authorizes a non-federal interest to levy 
port or harbor dues in the form of tonnage duties or fees in 
conjunction with a port or harbor navigation project whose usable 
increment of the project is complete to finance the cost, construction 
or maintenance of the Project; and
    Whereas the Navigation District intends to complete an increment of 
the Project to create a new anchorage basin to be located on the Neches 
River and referenced in section VI page 16 of the March 11, 2011, Final 
Feasibility Report to benefit all vessels whose design draft exceed 20 
feet; and
    Whereas the levy of port or harbor dues authorized by 33 U.S.C. 
2236 may be applied to all vessels comparable in size to those vessels 
used to justify the completed construction of a usable increment of the 
Project;
    Whereas the Board has considered matters such as elapsed time of 
passage,

[[Page 37635]]

safety of passengers and cargo, vessel economy of scale, under keel 
clearance, vessel draft, vessel squat, speed, sinkage and the cost of 
construction, operations, the value of the services of the vessel and 
cargo; and
    Whereas all vessels comparable in size to those vessels used to 
justify the completed construction of an anchorage basin benefit from 
the anchorage basin as a usable increment of the Project, a User Fee of 
0.35 per ton reflects the benefits provided by the Project to vessels 
whose design draft exceeds 20 feet.
    Now be it ordained by the navigation and Canal Commissioners of the 
Sabine Neches Navigation District:

Authority and Jurisdiction

    The geographical boundaries of the Navigation District include an 
area that is co-extensive with Jefferson County, Texas, and the 
Navigation District exercises jurisdiction over the adjacent waterways, 
the nonpublic terminals and all vessels using the Sabine Neches 
Waterway Channel (``Waterway'').
    The Navigation District has the power and authority to regulate and 
fix charges for the use of the Waterway. The Navigation District is 
authorized to make and enforce rules and regulations to facilitate 
navigation and commerce, to every User. All vessels whose design draft 
exceeds 20 feet using the Waterway shall conform to this User Fee 
Ordinance (``Ordinance''), which establishes a user fee for the 
financing of the improvement Project (``User Fee''). All Users of the 
Waterway, by their use, consent to be bound by this Ordinance including 
these rules and regulations as they exist or may be amended from time 
to time.
    The Board of Commissioners of the Sabine Neches Navigation District 
is authorized by Article 16, Section 59, of the Constitution of the 
State of Texas, Chapter 60 of the Texas Water Code, and the Acts of the 
83rd Legislature Regular Session HB 1137 to act as the local sponsor 
for the Project.
    Refusal or failure to comply with these rules and regulations may 
result in any action deemed appropriate or advisable by the Sabine-
Neches Navigation District in consultation with the United States Coast 
Guard Captain of the Port of Port Arthur and other relevant 
authorities. The Navigation District may employ all legal means within 
its power to collect fees including the use of liens, penalties and 
fines. Misdemeanor criminal penalties may be assessed for failure to 
file the required reports or pay the required User Fee.

General Application

    The use of the Sabine Neches Waterway constitutes an acceptance by 
the User of all charges, rules, and regulations published in this 
Ordinance. The charges, rules, and regulations published in this 
Ordinance apply on all cargo moving to and from terminals on the 
Waterway and shall apply equally to all facilities and terminals on the 
Waterway.

Waterway User Fee

    A User Fee will be assessed against and collected on cargos of all 
transiting vessels whose design draft exceeds 20 feet loading or 
discharging at terminals or facilities on the Sabine Neches Waterway, 
beginning on a date after the completion of the first new anchorage as 
a usable increment of the Project in order to finance costs associated 
with the Project.
    The User Fee authorized by this resolution does not apply to (i) 
vessels owned, chartered, or operated by the United States Government, 
a foreign country, a state, or a political subdivision of a country or 
State, unless engaged in commercial services; (ii) vessels engaged in 
towing, dredging or channel maintenance activities, (iii) vessels 
carrying solely non-hydrocarbon cargo, (iv) vessels engaged in intra-
port movements; or (v) vessels with design drafts of 20 feet or less. 
For purposes of this Ordinance, ``hydrocarbon'' means oil, gas, 
ethanol, methanol, a commodity or thing made or manufactured-in whole 
or part-from oil or gas, and derivatives or by-products or fractions of 
oil or gas all regardless of their physical form and including mixtures 
of any or all of the above.
    The User Fee authorized by this ordinance will expire on January 1, 
2049, or upon final payment of all financing associated with the 
Project, whichever occurs first.
    The User Fee is assessed for services including, but not limited 
to, meeting the financial responsibility of acting as the local sponsor 
for the Project.
    The User Fee will be assessed as a tonnage fee on cargo loaded or 
discharged through a terminal. The User Fee will be assessed as 
follows:

Cargo

    Break-bulk: $0.35 short ton
    Bulk: $0.35 short ton
    Liquid Bulk: $0.35 short ton

Responsibility for Payment of User Fee

    The owner, shipper, and consignee of the cargo are jointly 
responsible for payment of this User Fee. The Navigation District, 
however, cannot recognize the numerous shippers or consignees who may 
be responsible for the User Fee; therefore, the User Fee must be 
collected for and remitted to the Navigation District by the terminal 
where the cargo was received, loaded to, or unloaded from. The delivery 
or acceptance of the Cargo renders its owner's, shippers and consignee, 
jointly and severally liable, as guarantors, for payment of the User 
Fee along with the terminal.

Payment Procedure

    On the 15th of the month following transfer of the cargo either to 
or from the terminals on the Waterway, the terminal involved will 
forward to the Navigation District funds for the total amount of the 
User Fees upon cargo that crossed the terminal's dock for the preceding 
month, along with a verified statement of the amount owed for the 
incurred User Fees for the preceding month. The terminal that receives 
or ships the cargo is a guarantor of the User Fee and the Navigation 
District may collect from the terminal without first proceeding against 
the cargo or its carrier. This verified statement will be submitted to 
the Navigation District on a form promulgated by the Navigation 
District and the accuracy of the information provided on the form shall 
be certified under penalties of perjury.
    Terminals shall keep records of the amounts owed for the User Fee 
for a period of three years and make them available for audit by the 
Navigation District. The data and fees paid are subject to audit by the 
Navigation District and the terminal will cooperate with the Navigation 
District's audit.
    All Users and owners of private facilities and terminals shall be 
required to permit Navigation District representatives reasonable 
access to manifests of cargo, receiving reports and all other documents 
necessary to audit and ascertain the correctness of User Fees remitted.

Finance Charge

    All fees are due and payable upon the 15th of the month following 
the use of the Waterway. Any User Fee incurred, which is unpaid thirty 
(30) days from that date, shall be deemed to be delinquent.
    Any amount that is unpaid on or after thirty (30) days from the 
date due will be assessed an interest charge of twelve percent (12%) 
per annum of the amount of the fee due, and shall be due and owing from 
the date of delinquency until paid. Such interest charges shall be 
calculated on a per annum basis of three hundred sixty-five (365) days.

[[Page 37636]]

Venue and Attorney Fees

    Additionally, should it become necessary for the Navigation 
District to file suit to collect any delinquent User Fees or to enforce 
any provision of this Ordinance, the party obligated herein to pay such 
User Fees under this section or the party against whom enforcement of 
the User Fee is sought consents to such suit being filed in the 
appropriate Federal District Court in Jefferson County, Texas. The 
Navigation District shall be entitled to recover reasonable attorney 
fees from the person sued under this provision.

Criminal Penalties (Texas Water Code Sec.  60.078)

    The failure to file accurate reporting forms or to remit User Fees 
required by this Ordinance shall be a misdemeanor. Punishment of the 
misdemeanor will be by a fine of not more than $200.00 for each offense 
or violation. Each failure to file the required accurate report form or 
pay any User Fee is a separate violation.

Severability

    If any provision of this Ordinance or its application to any person 
or circumstance is held invalid, the invalidity does not affect other 
provisions or applications of this Ordinance that can be given effect 
without the invalid provision or application, and to this end the 
provisions of this Ordinance are severable.

Notice

    Pursuant to Sec.  60.075(c) of the Texas Water Code, a descriptive 
caption stating the purpose of this Ordinance and penalty for its 
violation will be published for a ten (10) day period following the 
passage in every issue of the Beaumont Enterprise, a newspaper of 
general circulation in the Navigation District.
    This User Fee Ordinance was passed at a Regular Meeting of the 
Commissioners of the Sabine Neches Navigation District held on the

    Approved by:
R.D. James,
Assistant Secretary of the Army (Civil Works).
[FR Doc. 2020-13420 Filed 6-22-20; 8:45 am]
BILLING CODE 3720-58-P