{"id":211469,"date":"2015-09-30T06:06:00","date_gmt":"2015-09-29T20:06:00","guid":{"rendered":"http:\/\/www.saipantribune.com\/?p=211469"},"modified":"2015-09-30T06:06:00","modified_gmt":"2015-09-29T20:06:00","slug":"cpa-eyes-suit-for-2-vessels-that-ran-aground","status":"publish","type":"post","link":"https:\/\/www.saipantribune.com\/index.php\/cpa-eyes-suit-for-2-vessels-that-ran-aground\/","title":{"rendered":"CPA eyes suit for 2 vessels that ran aground"},"content":{"rendered":"

The Commonwealth Ports Authority board is on the cusp of suing a company that owns two ships that ran aground in CNMI waters because nothing is being done yet by agencies that are responsible for the two vessels.<\/p>\n

The two vessels\u2014Lady Carolina and Miss Saipan\u2014are owned by Saipan USA Fisheries Inc. that used to be tied up in a bankruptcy proceeding.
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\"A<\/a>
A man waits for colleagues at the Delta dock of the Port of Saipan to post up a sign for no entry to any vehicles or patrons since the dock is structurally unsound. Seen behind him is Miss Saipan\u2019s prow that is now resting on the dock. (Jayson Camacho)<\/figcaption><\/figure>
\nCPA Saipan port manager Christopher Tenorio told the board that divers who inspected the docks for damage in the wake of Typhoon Soudelor have recommended that the Delta dock be condemned, in part due to the proximity to the two grounded ships. Delta dock is located at the north end near the CPA building at the Port of Saipan.<\/p>\n

Right now, Saipan Sea Ventures uses that dock but it is trying to find another location and vehicles, pedestrians, and vessels are not allowed in the area, according to Tenorio.<\/p>\n

He hopes to meet with Saipan Sea Ventures sometime this week for a timeline on their plan to move out of the area.<\/p>\n

\u201cHowever, the two vessels are still out there,\u201d Tenorio said.<\/p>\n

CPA legal counsel Robert Torres said the U.S. Army Corps of Engineers and one other company have deemed the Delta dock as \u201cnot sound.\u201d<\/p>\n

\u201cThe advice is that it is structurally unsound so it is a risk,\u201d Torres told board members. \u201cWe have to\u2026commission a study on its condition and what has to be done and the cost for it. That will bring further issues into any possible plans due to ongoing interest of expansions of tenants.\u201d<\/p>\n

CPA officials noted that Lady Carolina is out in the reef area and isn\u2019t under their jurisdiction but under the Department of Lands and Natural Resources. Miss Saipan is aground and is attached to the Delta dock\u2014basically the ship\u2019s front area is on top of the dock.<\/p>\n

Salvage the ship, seek federal help<\/strong><\/p>\n

Torres explained to the CPA board the legalities surrounding the grounded vessels.<\/p>\n

\u201cCPA has no role over there. They had bankruptcy proceedings, but the bankruptcy judge and trustee dismissed the proceedings because there are not enough assets to pay the creditors,\u201d Torres said.<\/p>\n

CPA tried to ask the Federal Emergency Management Agency for public assistance in the removal of the vessel but \u201cwe haven\u2019t heard back from FEMA,\u201d he said.<\/p>\n

Torres said if the vessel owners do not step up within the next week or two, CPA will have to file a complaint for the salvage of the vessels\u2014to basically chop it up. He said the CNMI government could possibly join in the complaint, suing the owners of Lady Carolina and Miss Saipan and its creditors for the salvage of the vessels.<\/p>\n

Saipan USA Fisheries has three secured creditors: the Commonwealth Development Authority, Independence Bank, and the First Hawaiian Bank.<\/p>\n

CPA will also have to commission a salvor\u2014one who salvages or assists in salvaging a ship or its cargo\u2014\u201cto chop up this vessel and remove it and somehow try and see to recover the cost of it,\u201d Torres said.<\/p>\n

If Saipan USA Fisheries or its three secured creditors don\u2019t respond or don\u2019t do anything about the vessels, a complaint may be filed for admiralty, he added.<\/p>\n

Miss Saipan needs to be removed prior to the Delta dock repairs, because it is aground and cannot be moved or lifted up.<\/p>\n

\u201cIf they don\u2019t do that, then we have to undertake that to remove it. Hopefully the U.S. Coast Guard will look under the \u2018Wreck Removal Act\u2019 and it is a month after the storm and we haven\u2019t seen any parties removing this vessel. We have to coordinate with DLNR and the AG\u2019s office to bring suit if everything else fails,\u201d Torres said.<\/p>\n

CPA hopes they don\u2019t have to do that because it\u2019ll be a cost that CPA has to bear and that will be additional costs that will have to be borne by the wharfage fees and burden the community because CPA would have to maintain their debt service ratio.<\/p>\n

Using Wreckage Removal Act<\/strong><\/p>\n

Saipan Tribune learned that the removal of the two vessels is not under CPA\u2019s jurisdiction but under DLNR, as the Coast Guard has ordered the owners to clean out the vessels of all oil and possible pollutants. The owners have done so.<\/p>\n

According to CPA, the local detachment for USCG said that once they were done with that, they have nothing further to do.<\/p>\n

CPA didn\u2019t quite agree with that and wrote to USCG that they do have jurisdiction under the \u201cWreck Removal Act.\u201d The agency urged the Coast Guard to exercise its authority, saying they would run it up the chain of command of USCG. CPA has yet to hear from them.<\/p>\n

When a vessel is grounded or sunk in navigable waters of the U.S., the law places certain strict duties on its owner. Both the USCG and U.S. Army Corps of Engineers are empowered to enforce these duties and find their authority in the Wreck Removal Act.<\/p>\n

Section 409 also requires the owner to take immediate action to remove the wreck. If the owner does not undertake removal, the wreck may be considered abandoned. In that scenario, the U.S. government may undertake removal of the wreck and then seek reimbursement of its costs from the responsible owner. <\/p>\n","protected":false},"excerpt":{"rendered":"

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