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Exchange of Notes between Canada and the United States of America amending the Agreement concerning the Application of Tolls for the St-Lawrence Seaway (1959) as amended [1980] CATSer 9 (7 October 1980)

E100457 - CTS 1980 No. 19

EXCHANGE OF NOTES BETWEEN CANADA AND THE UNITED STATES OF AMERICA AMENDING THE AGREEMENT CONCERNING THE APPLICATION OF TOLLS FOR THE ST-LAWRENCE SEAWAY (1959) AS AMENDED

I

The Secretary of States of the United States of America to the Ambassador of Canada

October 7, 1980

His Excellency Peter M. Towe,
Ambassador of Canada

Excellency:

I have the honor to refer to the discussions which have taken place between officials of the St. Lawrence Seaway Authority of Canada and the Saint Lawrence Seaway Development Corporation of the United States regarding the establishment of a system of operational surcharges in connection with closing of the navigational season on the St. Lawrence Seaway.

These discussions resulted, on October 25, 1979, at Ottawa, Ontario, Canada, in the signature by the Administrator of the Saint Lawrence Seaway Development Corporation and the President of the St. Lawrence Seaway Authority of the attached Memorandum of Agreement. The Memorandum of Agreement, together with the annex attached thereto, sets forth operational surcharges to be incorporated into the Tariff of Tolls of the St. Lawrence Seaway Memorandum of Agreement of January 29, 1959, which was annexed to the Exchange of Notes between our two Governments of March 9, 1959 and amended in 1964, 1967, 1972, and 1978. The operational surcharges are designed for use by the respective Seaway entities in order to encourage the orderly and timely exit of vessels prior to the close of the navigation season.

I have the honor to propose that the clearance date for a given navigation season will be announced during the season but no later than July 1. If conditions warrant, the clearance date may subsequently be changed upon the agreement of the Authority and the Corporation. The operational surcharge may be suspended in whole or in part upon the agreement of the Authority and the Corporation, provided, however, that such suspensions may not be granted on an individual vessel basis.

I have the further honor to propose that this note and the attached Memorandum of Agreement, if such meets with the approval of your Government, together with your note in reply indicating such concurrence, shall constitute an Agreement between our two Governments effective on the date of your reply.

Upon entry into force, this Agreement shall amend and supplement the Agreement governing tolls on the St. Lawrence effected by the Exchange of Notes of March 9, 1959, as previously amended.

Accept, Excellency, the renewed assurances of my highest consideration.

Sharon E. Ahmad

for the Secretary of State

MEMORANDUM OF AGREEMENT

Between the St. Lawrence Seaway Authority, hereinafter referred to as “Authority” and the Saint Lawrence Seaway Development Corporation, hereinafter referred to as “Corporation,” respecting the Memorandum of Agreement between the parties dated January 29, 1959, as amended, hereinafter referred to as the “Agreement” and the St. Lawrence Seaway Tariff of Tolls.

The Authority and the Corporation, recognizing the importance of preventing vessel traffic congestion conditions during the closing of the navigation season on the Montreal-Lake Ontario section of the Seaway, have agreed to recommend to their respective governments that existing operational surcharges designed to encourage the timely and orderly exit of vessels prior to the close of navigation be incorporated into the existing Agreement and Tariff of Tolls.

This is to be accomplished by the addition of the following modification to the Agreement:

1. THAT a new section 8 of the Agreement be added as follows:

“8. THAT the Authority and the Corporation may annually designate a date certain to be known as the “clearance date” for the Montreal-Lake Ontario section of the Seaway after which no vessel will be permitted to transit unless it pays the operational surcharge set forth in the Tariff of Tolls. Once a clearance date has been designated, it can be changed only with the concurrence of both the Authority and the Corporation. Furthermore, the operational surcharge may be suspended in whole or part upon the agreement of the Authority and the Corporation.

2. THAT the Tariff of Tolls for the St. Lawrence Seaway be modified by the addition of paragraph 6 as annexed hereto.

3. THAT the terms and conditions of the Agreement, except as herein modified shall continue to remain in full force and effect.

Paul D. Normandeau, President

THE ST. LAWRENCE SEAWAY AUTHORITY

David W. Oberlin, Administrator

SAINT LAWRENCE SEAWAY DEVELOPMENT CORPORATION

EXECUTED at Otttawa, Ontario, Canada this 25th day of October, 1979.

ST. LAWRENCE SEAWAY TARIFF OF TOLLS

Post-Clearance Date Operational Surcharges

6. If the Authority and the Corporation so determine, they may establish a clearance date for the transit of the Montreal -Lake Ontario section. Each vessel which does not comply with the conditions announced by the Authority and the Corporation in establishing the clearance date may be required to pay in dollars an operational surcharge as follows:

(a) Vessels reporting during the 24 hour period immediately following the clearance date: 20,000.00

(b) Vessels reporting more than 24 hours late, but less than 48 hours after the clearance date: 40,000.00

(c) Vessels reporting more than 48 hours late, but less than 72 hours after the clearance date: 60,000.00

(d) Vessels reporting more than 72 hours late: 80,000.00

Assessed operational surcharges will be prorated on a per lock basis. Surcharges representing transit through U.S. locks will be for the account of the Corporation and payable in U.S. funds and surcharges representing transit through Canadian locks will be for the account of the Authority and payable in Canadian funds.

II

The Ambassador of Canada to the Secretary of States of the United States of America

Washington, October 7, 1980

No. 503

The Secretary of State,
Washington, D. C.

Sir,

I have the honour to refer to your Note of October 7, 1980 which refers to the conclusion of discussions between officials of our two Governments concerning the establishment of a system of operational surcharges in connection with the closing of the navigation season of the St. Lawrence Seaway, under the jurisdiction of the St. Lawrence Seaway Authority in Canada and the St. Lawrence Seaway Development Corporation in the United States, and to the signature by the two Seaway entities of the Memorandum of Agreement attached to your Note.

I have the further honour to inform you that these proposals are acceptable to the Government of Canada and to confirm that your Note, together with the attached Memorandum of Agreement, and this reply, which is authentic in English and French, shall constitute an Agreement between our two Governments which shall enter into force on the date of this Note.

Accept, Sir, the renewed assurances of my highest consideration.

Peter M. Towe

Ambassador of Canada