B-125817, NOVEMBER 2, 1955, 35 COMP. GEN. 267

B-125817, NOVEMBER 2, 1955, 35 COMP. GEN. 267

ST. LAWRENCE SEAWAY DEVELOPMENT CORPORATION - CONSTRUCTION OF AIDS TO NAVIGATION UNDER THE ACT OF MAY 13, 1954, THE COST OF THE UNITED STATES PORTION OF THE ST. LAWRENCE SEAWAY IS THE SOLE RESPONSIBILITY OF THE ST. LAWRENCE SEAWAY DEVELOPMENT CORPORATION AND ALL SUCH COSTS ARE REQUIRED TO BE RECOVERED FROM THE TOLLS COLLECTED, THEREFORE THE COSTS OF CONSTRUCTION AND MAINTENANCE OF AIDS TO NAVIGATION SHOULD BE A PART OF THE COST OF SEAWAY AND CONSIDERED IN THE TOLL RATE BASE FOR AMORTIZATION.

TO THE ADMINISTRATOR, ST. LAWRENCE SEAWAY DEVELOPMENT CORPORATION, NOVEMBER 2, 1955:

REFERENCE IS MADE TO YOUR LETTER OF OCTOBER 18, 1955, REQUESTING TO BE ADVISED WHETHER FUNDS AVAILABLE TO THE ST. LAWRENCE SEAWAY DEVELOPMENT CORPORATION MAY BE USED FOR THE INSTALLATION, MAINTENANCE, AND OPERATION OF AIDS TO NAVIGATION ON THE UNITED STATES SIDE OF THE BOUNDARY OF THE ST. LAWRENCE SEAWAY, AND WHETHER SUCH EXPENDITURES, IF OTHERWISE PROPER, SHOULD BE INCLUDED IN THE TOLL BASE.

THE ST. LAWRENCE SEAWAY DEVELOPMENT CORPORATION, ESTABLISHED BY THE ACT OF MAY 13, 1954, 68 STAT. 92, 33 U.S.C. 983, IS AUTHORIZED AND DIRECTED BY SECTION 3 OF THAT ACT TO CONSTRUCT CERTAIN NAVIGATION WORKS AND TO OPERATE AND MAINTAIN SUCH WORKS IN COLLABORATION WITH THE ST. LAWRENCE SEAWAY AUTHORITY OF CANADA. IT IS EXPLAINED IN YOUR LETTER THAT THESE EXPENDITURES FOR NAVIGATION AIDS WOULD BE LIMITED TO THOSE INSTALLED ON THE UNITED STATES SIDE OF THE BORDER WHICH ARE NEEDED FOR THE SAFE AND EFFICIENT UTILIZATION OF THE LOCKS, CANALS, AND CHANNELS INCLUDED IN THE AUTHORIZED NAVIGATION WORKS.

ORDINARILY, THERE WOULD BE LITTLE QUESTION BUT THAT SPECIFIC AUTHORITY TO CONSTRUCT THE LOCKS, CANALS, AND CHANNELS OF THE UNITED STATES PORTION OF THE SEAWAY WOULD, BY NECESSARY IMPLICATION, INCLUDE AUTHORITY TO CONSTRUCT NECESSARY WORKS ANCILLARY THERETO AND SUCH OTHER WORKS AS ARE REQUIRED FOR THEIR SAFE AND EFFICIENT USE. HOWEVER, QUESTION ARISES IN THIS MATTER BY REASON OF THE FACT THAT THE LAWS RELATING TO THE UNITED STATES COAST GUARD SPECIFICALLY AUTHORIZE THE COAST GUARD TO ESTABLISH, MAINTAIN, AND OPERATE AIDS TO NAVIGATION IN THE TERRITORIAL WATERS OF THE UNITED STATES AND CERTAIN OTHER SPECIFIED AREAS. SEE SECTIONS 2 AND 81 OF TITLE 14, U.S.C.

THE ST. LAWRENCE SEAWAY IS BEING CONSTRUCTED JOINTLY BY THE UNITED STATES AND CANADA AND, UNDER SECTION 12 OF THE ACT OF MAY 13, 1954, THE CORPORATION IS AUTHORIZED AND DIRECTED TO NEGOTIATE AN AGREEMENT WITH THE CANADIAN AUTHORITY CONCERNING TOLL RATES WHICH ARE TO BE CALCULATED TO COVER ALL "COSTS OF OPERATING AND MAINTAINING THE WORKS UNDER THE ADMINISTRATION OF THE CORPORATION, INCLUDING DEPRECIATION.' IN ADDITION, IT IS REQUIRED THAT SUCH RATES SHALL PROVIDE FOR THE CORPORATION REVENUES SUFFICIENT TO AMORTIZE THE PRINCIPAL OF THE DEBTS AND OBLIGATIONS OF THE CORPORATION OVER A PERIOD OF NOT TO EXCEED 50 YEARS.

THESE PROVISIONS REASONABLY ESTABLISH AN INTENT BY THE CONGRESS THAT RESPONSIBILITY FOR THE ADMINISTRATION AND COST OF THE UNITED STATES PORTION OF THE SEAWAY SHOULD BE SOLELY THAT OF THE CORPORATION AND THAT ALL COSTS RELATED TO THE CONSTRUCTION, OPERATION, AND MAINTENANCE OF THE SEAWAY SHOULD BE RECOVERED FROM THE TOLLS COLLECTED. CONSEQUENTLY, IT APPEARS THAT THE COST OF CONSTRUCTION AND MAINTENANCE OF THE AIDS TO NAVIGATION WHICH ARE REQUIRED FOR THE SAFE AND EFFICIENT USE OF THE LOCKS, CANALS, AND CHANNELS MAY BE CONSIDERED AS A PART OF THE COST OF THE SEAWAY. IT IS OUR OPINION, THEREFORE, THAT THE CONSTRUCTION AND MAINTENANCE OF SUCH AIDS IS A RESPONSIBILITY OF YOUR CORPORATION AND THAT THE COSTS THEREOF PROPERLY SHOULD BE INCLUDED IN THE TOLL RATE BASE.