Numbering of Undocumented Barges

DEPARTMENT OF TRANSPORTATION

Coast Guard

33 CFR Chapter I

[USCG-1998-3798]

RIN 2115-AF13

Numbering of Undocumented Barges

AGENCY: Coast Guard, DOT.

ACTION: Advance notice of proposed rulemaking.

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

SUMMARY: The Coast Guard seeks public comments on establishing a

statutorily required numbering system for operating undocumented barges

more than 100 gross tons. The numbering of these barges would increase

owner accountability and deter their abandonment, making fewer barges

available for disposal of oil and hazardous substances.

DATES: Comments must reach the Coast Guard on or before November 3,

1998.

ADDRESSES: You may mail comments to the Docket Management Facility

[USCG-1998-3798], U.S. Department of Transportation, room PL-401, 400

Seventh Street SW., Washington DC 20590-0001, or deliver them to room

PL-401, located on the Plaza level of the Nassif Building at the same

address, between 10 a.m. and 5 p.m., Monday through Friday, except

Federal holidays. The telephone number is 202-366-9329.

The Docket Management Facility maintains the public docket for this

rulemaking. Comments will become part of this docket and will be

available for inspection or copying at room PL-401, located on the

Plaza level of the Nassif Building at the same address, between 10 a.m.

and 5 p.m., Monday through Friday, except Federal holidays. You may

also access this docket on the Internet at http://dms.dot.gov.

FOR FURTHER INFORMATION CONTACT: For information concerning this

document, call Mr. Thomas Willis, Director, National Vessel

Documentation Center, U.S. Coast Guard, telephone 304-271-2506. For

questions on viewing, or submitting material to, the docket, call

Dorothy Walker, Chief, Documents, Department of Transportation,

telephone 202-366-9329.

SUPPLEMENTARY INFORMATION:

Request for Comments

The Coast Guard encourages you to participate in the early stages

of this rulemaking by submitting written data, views, or arguments.

Persons submitting comments should include their names and addresses,

identify this document [USCG-1998-3798], the specific section or

question in this document to which your comments apply, and give the

reason for each comment. Please submit all comments and attachments in

an unbound format, no larger than 8\1/2\ by 11 inches, suitable for

copying and electronic filing. If you want acknowledgment of receipt of

your comments, you should enclose a stamped, self-addressed postcard or

envelope.

The Coast Guard will consider all comments received during the

comment period.

The Coast Guard plans no public meeting. You may request a public

meeting by submitting a comment requesting one to the address under

ADDRESSES. The request should include the reasons why a meeting would

be beneficial. If the Coast Guard determines that a meeting should be

held, we will announce the time and place in a later notice in the

Federal Register.

Background and Purpose

The Abandoned Barge Act of 1992, sections 5301 to 5305 of Pub. L.

102-587 (the Act), enacted on November 4, 1992, added a new chapter 47

to Title 46 of the United States Code (46 U.S.C. 4701-4705) and amended

46 U.S.C. 12301 to require the numbering of undocumented barges

measuring more than 100 gross tons operating on the navigable waters of

the U.S. In enacting this legislation, Congress noted that an abandoned

barge could become the site for the disposal of hazardous cargoes,

wastes, and petroleum products, which can lead to water pollution

incidents. Numbering these undocumented barges will increase owner

accountability, reducing the likelihood barges will be abandoned and

used for disposal of oil and hazardous substances.

Regulatory History

On October 18, 1994, the Coast Guard published a notice in the

Federal Register [59 FR 52646] requesting comments on issues related to

a numbering system for undocumented barges measuring more than 100

gross tons. The primary issues addressed in the notice concerned who

should administer a barge numbering system, what type of number should

be required, and how much the numbering would cost. The Coast Guard

received twenty-two comments in response to the notice.

Summary of Comments

The following is a summary of the comments received in response to

the questions and issues addressed in the 1994 Notice of Request for

Comments. Comments can be viewed on the Internet at http://dms.dot.gov.

Administering Agency

All comments recommended the Coast Guard, not the States,

administer a numbering system for undocumented barges. The comments

noted several difficulties the States would encounter administering

barge numbering programs, including coordination with other States,

resource burdens, and enacting State legislation.

The comments discussed several advantages of having the Coast Guard

administer a barge numbering system, such as its experience with the

vessel documentation system, the Marine Safety Information System

(MSIS), and providing a single source for barge registration.

Undocumented Barge Number

Several comments suggested the Coast Guard should use a numbering

code similar to the code used for documented vessels, as long as codes

differentiate between documented and undocumented barges. Some comments

suggested assigning undocumented barges Hull Identification Numbers

(HINs), while others suggested painting the company name and homeport

on barges instead of numbers.

A few comments discussed a perceived difference between inspected

undocumented barges and uninspected undocumented barges, and suggested

addressing only uninspected undocumented barges.

Attaching Numbers to Barges

Some comments suggested that the barge numbers be permanently

welded

[[Page 36385]]

on a structural component of a barge and clearly visible. Other

comments stated that welding a number on the interior of a barge could

make the number difficult to locate.

Some comments recommended numbering undocumented barges in a manner

similar to recreational vessels, and others pointed out that these

numbers are not permanently affixed, and could be easily removed.

Application Information

Several comments suggested that a barge numbering application

should require information similar to that required to document a

barge.

Other comments stated that barge owners should only provide proof

of vessel ownership or a signed affidavit of ownership because it may

be difficult to provide information proving ownership for an

undocumented barge.

Some comments stated that a number should not change when barge

ownership changes, and additional registration or renewal should be

required only if ownership changes.

Economic Impacts

A few comments indicated that it would take a survey of the barge

industry to determine the total undocumented barge population and the

potential economic impact of any regulations. Several comments

mentioned that it is difficult to identify how many undocumented barges

are in operation because many barges are not tracked by government

agencies or other organizations. One comment estimated that there are

approximately 13,000 to 14,000 undocumented barges measuring more than

100 gross tons in operation.

Several comments supported an estimated cost for attaching barge

numbers of $500-$1,500 per barge. Another comment stated that related

costs to be considered include barge out-of-service time, fleeting

expenses, shifting expenses, tug service, and gas free certificates.

Attaching numbers during regularly scheduled maintenance or inspections

could minimize such overhead costs. The comments recommended a two-year

phase-in period for any regulations.

Some comments stated that barge owners should not be charged a fee

for initial registration, and that any charges for subsequent

registration (change of ownership, for example) should be scaled to

vessel documentation service fees. Other comments stated that the Coast

Guard should charge fees to recover its costs for setting up and

administering a numbering program.

Other Issues

One comment suggested that barge owners should be allowed to

voluntarily number undocumented barges measuring 100 gross tons or

less.

Another comment opposed a costly numbering system that would not

solve the abandoned barge problem, and suggested the repeal of the

Abandoned Barge Act of 1992. One comment pointed out that even

identifying a few barge owners through barge numbers would probably not

lead to an owner with sufficient assets to remove the barge, and the

taxpayers would continue to pay for removal of barges.

General Proposals and Related Questions

Based on the comments received, the Coast Guard is considering

options for establishing a Coast Guard numbering system administered by

the National Vessel Documentation Center (NVDC). Unlike vessel

documentation, which serves multiple purposes such as establishing

vessel nationality, admitting vessels to restricted trades, and

permitting vessels to be the subject of preferred mortgages, the

numbering of operating undocumented barges more than 100 gross tons

would be used to simply identify their owners.

The Coast Guard requests comments on the following questions,

although comments on other issues addressed in this advance notice are

also welcome. In responding to a question, please explain your reasons

for each answer, and follow the instructions under Request for Comments

above.

Inspected Undocumented Barges

Only documented vessels are required to obtain and mark Official

Numbers per 46 CFR part 67, subparts H and I. The Coast Guard

acknowledges that some inspected undocumented barges may have Official

Numbers and these numbers may still be marked on the vessels. However,

Official Numbers on existing undocumented barges may not provide

accurate owner information.

How should the Coast Guard address undocumented inspected

barges with Official Numbers? Should the barge owner be required to

obtain a number under this proposed system?

What Number Should the Coast Guard Use for Undocumented Barges?

The Coast Guard believes assigned barge numbers should be similar

to the numbers used for documented vessels. We do not plan on including

undocumented barges in the Hull Identification Number (HIN) system

since most existing undocumented barges do not have HINs.

Are there other options the Coast Guard should consider

for undocumented barge numbers?

How Should Owners Attach Numbers to Barges?

At this point, the Coast Guard believes numbers should be

permanently welded externally to discourage removal and be clearly

visible from a distance to help identify barge owners. The Coast Guard

does not believe numbers should be marked on the interior as this makes

identification difficult.

Should barge numbers be attached to the exterior of a

vessel's hull? How large should the numbers be? Where exactly should

the numbers be attached? Would numbers possibly interfere with other

barge markings?

Should barge numbers be bead welded to the hull? Are there

other attachment methods that the Coast Guard could consider?

What Information Should Barge Owners Provide on Barge Numbering

Applications?

The Coast Guard recognizes that in many cases, it may be impossible

for owners of undocumented barges to prove vessel ownership. The

purpose of the proposed barge numbering system is to identify the

owners of barges. The Coast Guard does not expect owners of

undocumented barges to provide the same information that is required to

document a vessel. The Coast Guard plans to propose accepting any

available information indicating ownership (such as a bill of sale), or

a signed affidavit of ownership.

Under this approach, barge owners may be required to submit an

application with the following identifying information: owner name,

address, e-mail, and phone number; company name; proof or affidavit of

ownership; general barge description; and barge operating area. We do

not anticipate requiring application renewal, except when ownership

changes. Barge owners would also be responsible for updating

application information as appropriate (change of address, new phone

numbers, etc.).

Is the proposed application information discussed above

adequate to identify barge owners? Should the application request barge

operator information? Is the proposed information readily available?

How long after the effective date of any future

regulations should owners submit their numbering applications to the

Coast Guard?

Who should initiate numbering application renewal upon

change of

[[Page 36386]]

ownership, the seller or the new owner? How long after a change of

ownership should this paperwork be submitted to the Coast Guard?

If you had the option of submitting a numbering

application or application update electronically via the Internet,

would you take advantage of the service?

How Many Operating Undocumented Barges Measuring More Than 100 Gross

Tons are There?

Based on available information, we estimate that there are

approximately 10,000 to 14,000 undocumented barges measuring more than

100 gross tons and operating on the navigable waters of the United

States. The Coast Guard's Marine Safety Information System (MSIS)

contains records on just under 10,000 undocumented barges measuring

more than 100 gross tons.

However, since most undocumented and uninspected barges are listed

in the database only when Coast Guard personnel enter information as a

result of marine safety-related activity (casualty, boarding, etc.),

many barges may not even be listed in the database. It is also possible

that many undocumented barges listed in the database are no longer

operating. The Coast Guard is in the process of commencing a study of

the barge industry to determine the number of undocumented barges.

Is the population range of 10,000 to 14,000 undocumented

barges measuring more than 100 gross tons accurate?

How can the Coast Guard obtain a more accurate population

estimate? What is the best way to contact owners and operators of

undocumented barges measuring more than 100 gross tons?

What are the Potential Economic Impacts of the Proposed Numbering

System?

The Preliminary Regulatory Assessment section of this document

discusses the potential economic impacts of this rulemaking. Please

refer to that section when reviewing the following questions. This

rulemaking will affect owners of undocumented barges measuring more

than 100 gross tons. Barge owners would bear the cost of providing

needed owner and barge information and costs associated with attaching

numbers to the barges. Submitting this information to the Coast Guard

should impose only a minimum cost burden. Costs associated with

attaching barge numbers depend on the form, size, and attachment

method(s) established.

The Coast Guard may charge a fee for initial and subsequent barge

numbering to offset agency costs, and is interested in comments

regarding the appropriateness of such fees.

Is the cost estimate of $500 to $1,500 for attaching

permanent numbers to barges accurate? Does it include all costs

associated with barge numbering (barge out-of-service costs, shifting

expenses, etc.)? Will most barge owners attach numbers in-house or have

a shipyard do the work? How would costs differ according to types of

barges (tank barge versus construction barge, for example)?

What are the common uses (services) for undocumented and

uninspected barges measuring more than 100 gross tons? Where do most

barges operate?

What are the average maintenance intervals for

undocumented barges measuring more than 100 gross tons?

What is the average barge service life for undocumented

barges measuring more than 100 gross tons?

What is the average annual construction rate for new

undocumented barges measuring more than 100 gross tons?

How often, on average, do barges measuring more than 100

gross tons change owners?

How Will any Future Regulations Affect Small Entities?

The Small Entities section of this advance notice discusses

potential impacts on small entities and available assistance for small

entities. Please refer to that section when reviewing the following

question. We believe many undocumented barge owners are small entities,

and are interested in feedback from potentially affected small

businesses, agencies, and organizations.

If your small business, organization, or agency may be

affected by any future barge numbering system, please tell how, and

what flexibility or compliance alternatives we should consider to

minimize the regulatory burden on you while promoting the intent of the

Abandoned Barge Act.

Preliminary Regulatory Assessment

The cost for mandatory numbering of undocumented barges more than

100 gross tons is not expected to exceed $100 million. As discussed,

preliminary population estimates for the number of undocumented barges

measuring more than 100 gross tons ranges from just under 10,000 to

14,000 barges.

An industry-provided cost estimate for attaching barge numbers

ranges from $500 to $1,500 per barge, depending on the method used and

whether the work is done in-house or at a shipyard. Assuming a per

barge cost of $500 to $1,500 for as many as 14,000 barges, the

preliminary cost estimate ranges from $7.0 to $21.0 million. Other

associated costs to consider include shipyard tug services, barge out-

of-service costs, numbering fees, fleeting expense, and shifting

expense. Avoiding future environmental damage and potentially reducing

clean-up costs are the primary benefits associated with this

rulemaking. From January 1988 to September 1991, the Coast Guard spent

an estimated $4.4 million to clean up pollutants from abandoned

vessels.

Approximately 15% of these pollution incidents were attributable to

abandoned barges. According to 1997 figures, there are just over 1,000

abandoned barges in our nation's waterways; approximately 25 barges

pose hazards to navigation, and 15 pose a potential pollution threat.

Small Entities

Under the Regulatory Flexibility Act [5 U.S.C. 601 et seq.], the

Coast Guard must consider whether any potential rulemaking would have

significant economic impacts on a substantial number of small entities.

``Small entities'' include small businesses, not-for-profit

organizations that are independently owned and operated and are not

dominant in their fields, and governmental jurisdictions with

populations of less than 50,000.

Many owners of undocumented barges subject to future barge-

numbering regulations may be small entities. Because we have not yet

proposed specific requirements and because the number of affected small

entities has not been identified, we cannot accurately estimate the

potential impact on small entities at this time. The Coast Guard would

like comments discussing the potential impacts of any future regulatory

changes on small entities.

Assistance for Small Entities

Under section 213(a) of the Small Business Regulatory Enforcement

Fairness Act of 1996 [Pub. L. 104-21], the Coast Guard wants to assist

small entities to understand this document so they can better evaluate

the potential effects of this rulemaking on them and participate in the

rulemaking process. If you believe that your small business,

organization, or agency may be affected by this rulemaking, please

explain how you could be affected, and tell us what flexibility or

compliance alternatives the Coast Guard should consider to minimize the

burden on you.

If you have questions concerning this document, you may call the

Coast Guard point of contact designated in FOR FURTHER INFORMATION

CONTACT. We also

[[Page 36387]]

maintain a small business regulatory assistance Web Page at http://

www.uscg.mil/hq/g-m/regs/reghome.htm which has current information on

small entity issues and proposed Coast Guard regulations. To help small

entities become more involved in this rulemaking, the Coast Guard will

mail copies of this advance notice to Small Business Development Center

(SBDC) State Directors nationwide for distribution to local SBDC

offices and interested small businesses.

Collection-of-Information

Under the Paperwork Reduction Act [44 U.S.C. 3501 et seq.], the

Office of Management and Budget (OMB) reviews each proposed rule that

contains a collection-of-information requirement to determine whether

the practical value of the information is worth the burden imposed by

its collection. Collection-of-information requirements include

reporting, record-keeping, notification, and other similar actions.

This proposal would include new collection-of-information requirements.

Barge owners would have to provide readily available information

identifying undocumented barges and barge owners to the Coast Guard.

This information should be readily available, so the burden should be

minimal. We cannot estimate the exact paperwork burden associated with

this rulemaking because specific requirements have not been proposed.

We expect that comments received in response to this advance notice

will assist us in estimating the potential paperwork burden, as

required under the Paperwork Reduction Act. Once a specific proposal is

developed, the Coast Guard will prepare a request for OMB approval of

any collection-of-information requirements.

Environment

The Coast Guard will consider preparing an Environmental Assessment

before publication of a notice of proposed rulemaking. The Coast Guard

expects that an environmental impact statement would not be required.

By increasing owner accountability, this rulemaking may prevent future

marine pollution incidents from abandoned barges and providing a

beneficial impact on the environment. The Coast 1 Guard invites

comments addressing possible effects that this rulemaking may have on

the environment or addressing possible inconsistencies with any

Federal, State, or local law or administrative determinations relating

to the environment.

Dated: June 29, 1998.

R.C. North,

Rear Admiral, U.S. Coast Guard, Assistant Commandant for Marine Safety

and Environmental Protection.

[FR Doc. 98-17814 Filed 7-2-98; 8:45 am]

BILLING CODE 4910-15-P