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[Federal Register Volume 63, Number 2 (Monday, January 5, 1998)]
[Proposed Rules]
[Pages 186-187]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-099]

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PANAMA CANAL COMMISSION

35 CFR Parts 133 and 135

RIN 3207-AA45

Tolls for Use of Canal; Rules for Measurement of Vessels

AGENCY: Panama Canal Commission.

ACTION: Notice of proposed rulemaking; request for comments; notice of 
hearing.

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SUMMARY: The Panama Canal Commission (Commission) proposes to set a 
fixed, minimum toll rate for certain small vessels transiting the 
Panama Canal. The Commission has determined an efficient use of 
existing Canal capacity and resources requires a change in the method 
of calculating tolls used to meet the transit needs of certain small 
vessels. A minimum toll for small vessels will ensure the Commission 
can recover at least part of the resources it expends on this type of 
transits.
    The proposed increase complies with the statutory requirement tolls 
be set at rates which produce revenues sufficient to cover Canal costs 
of operation and maintenance, including capital for plant replacement, 
expansion and improvements, and working capital.
    This notice of proposed rulemaking also announces the availability 
from the Commission of an analysis showing the basis and justification 
for the proposed change, solicits written data, views or arguments from 
interested parties, and sets the time and place for a public hearing.

DATES: The agency must receive written comments and requests to present 
oral testimony on or before February 6, 1998. A public hearing will be 
held at 9 a.m., February 13, 1998, in the Republic of Panama.

ADDRESSES: Mail comments and requests to testify at the hearing to: 
John A. Mills, Secretary, Panama Canal Commission, 1825 I Street NW., 
Suite 1050, Washington, DC 20006-5402; or Department of Financial 
Management, Panama Canal Commission, Balboa, Ancon, Republic of Panama.
    The hearing location is at the Miraflores Visitors Pavilion 
Theater, Building 6-A, Miraflores Locks, Republic of Panama (accessible 
from Gaillard Highway).

FOR FURTHER INFORMATION CONTACT: John A. Mills, Telephone: (202) 634-
6441, Facsimile: (202) 634-6439, E-mail: [email protected]; or 
Department of Financial Management, Telephone: 011 (507) 272-3137, 
Facsimile: 011 (507) 272-3040, E-mail: [email protected].

SUPPLEMENTARY INFORMATION: Section 1604 of the Panama Canal Act of 
1979, as amended, 22 U.S.C. 3794, establishes procedures for proposing 
toll rate increases and changes in the rules for measurement of 
vessels. Those procedures have been supplemented by regulations in 35 
CFR part 70, which also provides interested parties with instructions 
for participating in the process governing changes in toll rates and 
measurement rules. The Commission strongly encourages all interested 
parties to present in writing, or orally at the hearing, pertinent 
data, views or arguments, along with other relevant information. Oral 
presentations should be limited to 20 minutes. Further information 
governing the content of the notice of appearance or intention to 
present supplementary data at the hearing appear at 35 CFR 70.8 and 
70.10.
    Section 1602(b) of the Panama Canal Act of 1979, as amended, 22 
U.S.C. 3792(b), requires Canal tolls be prescribed at rates calculated 
to produce revenues to cover as nearly as practicable all costs of 
maintaining and operating the Panama Canal and the facilities and 
appurtenances related thereto. In analyzing the issue of tolls for 
certain small vessels, it is recognized the primary purpose of the 
Commission is to provide a safe and efficient transit service to the 
oceangoing vessels of the world, primarily those engaged in commerce. 
The waterway, however, also attracts a considerable number of small 
vessels, such as yachts, fishing craft, and tugboats. Such small vessel 
transits are incidental to the primary mission of the Canal. They also 
consume a disproportionately large share of available Canal capacity 
and resources, creating costly inefficiencies in Canal operations. In 
addition, and perhaps more importantly, small vessels (especially 
yachts), impose administrative costs and logistical problems which 
currently are not offset by the tolls they pay. Consequently, last 
November, Congress amended section 1602(a) of the Panama Canal Act of 
1979, 22 U.S.C. 3792(a) by Pub. L. 105-85 to allow the Commission to 
set tolls for yachts and other small vessels transiting the Canal based 
on other than net vessel tons of earning capacity.
    The Commission is attempting to reduce the administrative costs and 
logistical requirements of small vessel transits. It is also trying to 
improve the scheduling options available for these vessels with the 
goal of minimizing the negative impact on the Commission's resources 
and capacity, and, wherever possible, reduce the expenses associated 
with the transit of these small vessels. All of these steps are taken 
in order to maintain the transit service offered to these vessels. Even 
with these measures, however, the Commission's analysis of small vessel 
transits indicates the cost of providing the service far exceeds the 
toll charged for the service. To address this issue, the Commission's 
Board of Directors approved a recommendation to set a fixed, minimum 
toll for certain small vessels to recover these expenses in a 
proportionate manner.
    The Commission will consider all submissions before publishing the 
final rule in the Federal Register. The final rule, as approved and 
published by the Commission, will be effective no earlier than 30 days 
after the date of its publication as final in the Federal Register.
    The Commission is exempt from Executive Order 12866. Accordingly, 
provisions of that directive do not apply to this rule. Even if the 
Order were applicable, this change would not constitute a ``rule'' as 
that term is defined in the Regulatory Flexibility Act [5 U.S.C. 
601(2)] because it concerns ``rates'' and ``practices relating'' 
thereto.
    Furthermore, the Commission has determined implementation of this 
rule will have no adverse effect on competition, employment, 
investment, productivity, innovation, or on the ability of the United 
States based enterprises to compete with foreign based enterprises in 
domestic or export markets.
    The Secretary of the Commission certifies these proposed regulatory 
changes meet the applicable standards of sections 3(a) and 3(b)(2) of 
Executive Order No. 12988 of February 7, 1996.

List of Subjects

35 CFR Part 133

    Navigation, Panama Canal, Tolls, Vessels.

35 CFR Part 135

    Measurement, Vessels.

[[Page 187]]

    For the reasons stated in the preamble, the Panama Canal Commission 
proposes to amend 35 CFR parts 133 and 135 as follows:

PART 133--TOLLS FOR USE OF CANAL

    1. The authority citation for part 133 is revised to read as 
follows:

    Authority: 22 U.S.C. 3791-3792.

    2. Section 133.1 is revised to read as follows:

Sec. 133.1  Rates of toll.

    The following rates of toll shall be paid by vessels using the 
Panama Canal:
    (a) On vessels over 38.10 meters (125.00 feet) in length overall:
    (1) On merchant vessels, yachts, army and navy transports, 
colliers, hospital ships, and supply ships, when carrying passengers or 
cargo (laden), $2.57 per PC/UMS Net Ton--that is, the Net Tonnage 
determined in accordance with part 135 of this chapter.
    (2) On vessels in ballast without passengers or cargo, $2.04 per 
PC/UMS Net Ton.
    (3) On other floating craft including warships, other than 
transports, colliers, hospital ships, and supply ships, $1.43 per ton 
of displacement.
    (4) All vessels whose PC/UMS Net Tonnage (laden or ballast) or 
displacement tonnage would result in a toll of less than $1,500 shall 
pay the fixed, minimum toll provided in paragraph (b) of this section.
    (b) On vessels less than or equal to 38.10 meters (125.00 feet) in 
length overall:
    (1) Vessels with or without passengers or cargo shall pay a fixed, 
minimum toll of $1,500.
    (2) Vessels whose constructional features are such as to render the 
application of this provision unreasonable or impractical, as 
determined by the Panama Canal Commission, shall have a PC/UMS Net or 
displacement tonnage determined and shall have the toll assessed in 
accordance with paragraph (a) of this section; however, in no case 
shall the toll be less than $1,500.

PART 135--RULES FOR MEASUREMENT OF VESSELS

    1. The authority citation for part 135 is revised to read as 
follows:

    Authority: 22 U.S.C. 3791-3792.

    1. Section 135.1 is amended by adding at the end thereof two new 
sentences to read as follows:

Sec. 135.1  Scope.

    * * * Vessels less than or equal to 38.10 meters (125.00 feet) in 
length overall are not required to be measured, except as provided for 
in Sec. 133.1(b)(2) of this chapter. Vessels greater than 38.10 meters 
(125.00 feet) in length overall may not be assigned a PC/UMS Net 
Tonnage if it is determined by the Panama Canal Commission the fixed, 
minimum toll provided for in Sec. 133.1(b)(1) will apply.

    Dated: December 29, 1997.
John A. Mills,
Secretary, Panama Canal Commission.
[FR Doc. 98-099 Filed 1-2-98; 8:45 am]
BILLING CODE 3640-04-P
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