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Exchange of Notes between the Government of Canada and the Government of the United States of America constituting an Agreement together with an Annexed Memorandum of Agreement amending the Agreement concerning the Application of Tolls for the St-Lawrence Seaway (1959) as amended [1982] CATSer 7 (18 March 1982)

E100434 - CTS 1982 No. 28

EXCHANGE OF NOTES BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE UNITED STATES OF AMERICA CONSTITUTING AN AGREEMENT TOGETHER WITH AN ANNEXED MEMORANDUM OF AGREEMENT AMENDING THE AGREEMENT CONCERNING THE APPLICATION OF TOLLS FOR THE ST-LAWRENCE SEAWAY (1959) AS AMENDED

I

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

WASHINGTON, March 18, 1982

His Excellency Allan E. Gotlieb,
Ambassador of Canada.

Excellency:

I have the honor to refer to the Exchange of Notes between Canada and the United States of America signed in Ottawa on March 9, 1959, as amended in 1964, l967, l972, 1978, and 1980, with an annexed Memorandum concerning tolls to be charged for the use of the navigational facilities administered by the St. Lawrence Seaway Authority in Canada and the Saint Lawrence Seaway Development Corporation in the United States, and to recent discussions which have taken place between officials of those agencies concerning such tolls.

These discussions resulted on November 25, 1981, at Washington, D.C. in the signature by the Administrator of the Saint Lawrence Seaway Development Corporation and on November 30, 1981, at Ottawa in the signature by the President of The St. Lawrence Seaway Authority, of the annexed Memorandum of Agreement which would amend a Memorandum of Agreement between those parties dated January 29, 1959, as previously amended, by modifying, effective with the opening of the 1982 navigation season, the tariff of tolls annexed thereto.

I have the honor to propose that this Note, and the annexed Memorandum of Agreement, if such meet 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 Seaway effected by the Exchange of Notes of March 9, 1959, as previously amended.

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

Thomas Niles

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 their mutual need for additional revenues to satisfy their respective financial requirements, have agreed to recommend to their respective governments the following modifications to the Agreement:

1. THAT the Tariff of Tolls for the St. Lawrence Seaway annexed hereto be substituted, effective with the opening of the 1982 navigation season, for the Tariff of Tolls presently annexed to the Agreement. The Tariff of Tolls presently annexed was substituted by the exchange of notes dated March 20, 1978 which confirmed an agreement dated March 1, 1978 and was amended by the exchange of notes dated October 7, 1980 which confirmed an agreement dated October 25, 1979.

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

For The Saint Lawrence Seaway Development Corporation:

D. W. Oberlin, Administrator
Executed at Washington, D.C. this 25th day of November, 1981.

For The St. Lawrence Seaway Authority:

W. A. O’Neil, President
Executed at Ottawa, Ontario this 30th day of November, 1981.

ST. LAWRENCE SEAWAY TARIFF OF TOLLS

Title

1. This tariff may be cited as the St. Lawrence Seaway Tariff of Tolls.

Interpretation

2. In this tariff:

(a) “Authority” means The St. Lawrence Seaway Authority;

(b) “Bulk cargo” means such goods as are loose or in mass and generally must be shovelled, pumped, blown, scooped or forked in the handling and, without limiting the generality of the term or otherwise affecting its meaning, shall be deemed to include:

(i) cement, loose or in sacks;

(ii) coke and petroleum coke, loose or in sacks;

(iii) domestic package freight;

(iv) liquids carried in ships’ tanks;

(v) ores and minerals (crude, screened, sized or concentrated, but not otherwise processed) loose or in sacks, including alumina, bauxite, coal, gravel, phosphate rock, sand, stone and sulphur;

(vi) pig iron, scrap metals;

(vii) pulpwood, poles and logs, loose or bundled;

(viii) raw sugar, flour, loose or in sacks;

(ix) woodpulp, loose or in bales;

(c) “Cargo” means goods aboard a vessel whether carried as revenue or non-revenue freight, or carried for the vessel owner, except: empty containers and the tare weight of loaded containers, all such containers having a capacity of 18 cubic meters (635.665 cubic feet) or more; ships’ fuel, ballast or stores, or crew or passengers’ personal effects, and intransit cargo that is carried both upbound and downbound in the course of the same voyage which shall be reported in the Seaway Transit Declaration Form but is deemed to be ballast and not subject to toll assessment;

(d) “Containerized cargo” means any general cargo shipped in an enclosed, permanent, reusable, nondisposable, weathertight shipping conveyance having a capacity of 18 cubic meters (635.665 cubic feet) or more and fitted with a minimum of one hinged door;

(e) “Corporation” means the Saint Lawrence Seaway Development Corporation;

(f) “Domestic package freight” means cargo, the shipment of which originates at one Canadian point and terminates at another Canadian point, or which originates at one United States point and terminates at another United States point, but shall not include any import or export cargo designated at the point of origin for transshipment by water at a point in Canada or in the United States;

(g) “Feed grains” means barley, corn, oats, flaxseed, rapeseed, soybeans and other oilseeds, grain screenings, and mill feed containing not more than 35% of ingredients other than grain or grain products;

(h) “Food grains” means buckwheat, dried beans, dried peas, rye, and wheat;

(i) “General cargo” means all goods not included in the definitions under paragraphs (b), (g), (h), and (j);

(j) “Government aid cargo” means processed food products which have been donated by or the purchase of which has been financed on concessional terms by the Federal government of either the United States or Canada for the purposes of nutrition, economic development, emergency, or disaster relief programs;

(k) “Metric ton” means, unless otherwise stated, a metric unit of weight of 1,000 kilograms (2204.62 pounds);

(l) “Passenger” means any person being transported through the Seaway who has paid a fare for passage;

(m) “Pleasure craft” means a vessel, however propelled, that is used exclusively for pleasure and does not carry passengers;

(n) “St. Lawrence Seaway” includes all facilities and services authorized under the St. Lawrence Seaway Authority Act, Chapter 242, Revised Statutes of Canada, 1952, as amended, and under Public Law 358, 83rd Congress, May 13, 1954, enacted by the Congress of the United States, as amended, and including the Welland Canal, which facilities are under the control and administration or immediate financial responsibility of either the Authority or the Corporation;

(o) “Seaway” means the St. Lawrence Seaway;

(p) “Tolls” means the total assessment levied against a vessel, its cargo and passengers for complete or partial transit of the Seaway covering a single trip in one direction;

(q) “Vessel” means every type of craft used as a means of transportation on water, except a vessel of or employed by the Authority or the Corporation.

Tolls

3. (1) The tolls shall be as set forth in the Schedule hereto, and the toll level reached in 1983 shall remain in effect thereafter until modified.

(2) The tolls under this tariff are due from the representative of each vessel as soon as they are incurred, and upon demand of either the Authority or the Corporation payment shall be made within fourteen days of the date of such demand.

(3) The tolls for the section between Montreal and Lake Ontario shall be paid 71 percent in Canadian dollars and 29 percent in United States dollars. Payments for transit through locks in Canada only shall be in Canadian dollars, and payments for transit through locks in the United States only shall be in United States dollars.

(4) The tolls for transit of the Welland Canal shall be paid in Canadian dollars and shall accrue to the Authority.

Security for Payment

4. A representative of each vessel shall provide the Authority or the Corporation with security, satisfactory to the Authority or the Corporation, for payment of tolls.

Description and Weight of Cargo

5. (1) A cord of pulpwood shall be deemed to weigh 1,450 kilograms (3196.70 pounds).

(2) (a) 1,000 f.b.m. of sawn softwood lumber with less than 15% moisture content shall be deemed to weigh 770 kilograms (1697.56 pounds).

(b) 1,000 f.b.m. of sawn softwood lumber with 15% moisture content or over shall be deemed to weigh 950 kilograms (2094.39 pounds).

(c) 1,000 f.b.m. of sawn hardwood lumber with less than 15% moisture content shall be deemed to weigh 1,135 kilograms (2502,24 pounds).

(d) 1,000 f.b.m. of sawn hardwood lumber with 15% moisture content or over shall be deemed to weigh 1,405 kilograms (3097.49 pounds).

(3) The tonnage used in the assessment of tolls shall be calculated to the nearest 1,000 kilograms (2204.62 pounds).

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, but less than 96 hours after the clearance date: 80,000.00

The operational surcharge assessed vessels already at a port, dock or wharf within the St. Lambert-Iroquois Lock segment of the Montreal - Lake Ontario section at the clearance date shall be $20,000 less than the amount otherwise applicable.

Each vessel which reports more than 96 hours after the clearance date may transit only if a prior written agreement authorizing such transit has been entered into among the owner or agent of the vessel and the Authority and the Corporation. Such agreement may provide for additional surcharges.

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

SCHEDULE

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

WASHINGTON, March 18, 1982

Note No. 148

The Honourable Alexander M. Haig, Jr.,
Secretary of State,
Washington, D.C.

Sir,

I have the honour to refer to your Note of March 18, 1982 referring to recent discussions between officials of The St. Lawrence Seaway Authority in Canada and the Saint Lawrence Seaway Development Corporation in the United States concerning the tolls to be charged for the use of the navigation facilities administered by them, which resulted in the signature by the two Seaway entities on November 30, 1981, of a Memorandum of Agreement, annexed to your Note, which would amend the Memorandum of Agreement between those parties dated January 29, 1959, as previously amended, by modifying, effective with the opening of the 1982 navigation season, the tariff of tolls annexed thereto.

I have the honour to inform you that the proposals outlined in your Note 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.

Allan E. Gotlieb

Ambassador