VES-3-16-CO:R:P:C 109576 LLB
Cheryl Dendy, Esq.
Sub Sea International, Inc.
1600 Canal Street
P.O. Box 61780
New Orleans, Louisiana 70161
RE: Applicability of the Coastwise Laws to Deep Sea Diving
Operations Conducted from a Non-Coastwise-Qualified Vessel
on the Outer Continental Shelf
Dear Ms. Dendy:
Reference is made to your letter of June 15, 1988, in
which you request that we rule upon the proposed use of a
foreign-flag vessel to support deep sea diving operations to be
conducted on the outer Continental Shelf.
FACTS:
It is proposed that a foreign-flag vessel will be moored
in Houston, at which time a "saturation diving system" would be
placed aboard and welded to the deck. The system consists, in
part, of a diving bell meant to assist in deep dive operations.
The vessel will then proceed to a point on the outer
Continental Shelf in the Gulf of Mexico where it will take up a
stationary position. It will maintain position by use of a
"dynamic positioning system", whereby engines and thrusters are
employed which are controlled by surface and subsurface
positioning controls. There will be no anchors, chains, or
cables deployed to hold the vessel in position.
Once in position, the diving bell would be launched and
held off the bottom. Divers would then be deployed and would
swim to previously laid flexible pipelines. The ends of these
would be pulled together and bolted with flanges. This
procedure would be repeated for numerous cables, and would
proceed for a period of up to two months until all pipes were
connected. The vessel would then proceed back to port where
the diving system would be removed by having the weld spots
burned off.
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ISSUE:
Whether the coastwise laws are violated when a non-
qualified vessel is utilized to launch and support deep sea
diving operations on the outer Continental Shelf, while
stationary but not connected to the sea bed in any fashion.
Title 46, United States Code App., sections 289 and 883
(46 U.S.C. App. 289 and 883), respectively prohibit the
transportation of passengers or merchandise between coastwise
points in vessels which are not qualified to engage in the
coastwise trade. The vessel whose use is proposed in this case
is not so qualified by virtue of being registered under the
flag of a foreign nation.
The remaining issues concern whether the movement between
Houston and stationary location on the outer Continental Shelf
is a movement between coastwise points and whether the proposed
movement involves a transportation of passengers or
merchandise.
Section 4(a) of the Outer Continental Sheld Lands Act of
1953, as amended (43 U.S.C. 1333 (a)) (OCSLA), provides, in
pertinent part, that the laws of the U.S. are:
...extended to the subsoil and seabed of the
outer Continental Shelf and to all artificial
islands, and all installations and other devices
permanently or temporarily attached to the
seabed, which may be erected thereon for the
purpose of exploring for, developing, or
producing resources therefrom, or any such
installation or other device (other than a ship
or vessel) for the purpose of transporting such
resources, to the same extent as if the outer
Continental Shelf were an area of exclusive
Federal jurisdiction located within a State...
As discussed earlier, the vessel in question would not be
tethered or anchored in any way to the seabed of the outer
Continental Shelf. Neither would the diving bell come into
contact with the seabed, or engage in any extraction,
exploration, or production operations. Accordingly, the vessel
does not become a point on the outer Continental Shelf to which
the coastwise laws are extended by the OCSLA, and neither is
there any movement between Houston and a second coastwise
point.
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Even if it were to be determined that the
contemplated movement was between coastwise points, the
divers and crew, and the equipment carried aboard the
vessel, to include the diving bell and its attendant
equipment, would not be considered passengers or
merchandise within the contemplation of sections 289 and
883, respectively.
For purposes of interpreting the coastwise laws, it
is provided in section 4.50(b), Customs Regulations (19
CFR 4.50(b)), that:
(b) A passenger...is any person carried on
a vessel who is not connected with the
operation of such vessel, her navigation,
ownership, or business.
It is our understanding that all personnel aboard the
vessel are connected with its operation and are not,
therefore, passengers. Likewise, it does not appear that
any of the materials to be carried aboard the vessel, to
include the diving bell and its attendant equipment, is
merchandise within the contemplation of section 883.
We view that activities of the vessel, diving bell,
and divers to be closely analogous to a pipe-laying
operation or, even more closely, a pipe repair operation.
Such operations have been held by Customs to be
permissible non-coastwise trade activities.
It is important to note, however, that your plans may
call for the vessel to arrive at a port other than Houston
upon completion of the operation, for the purpose of
discharging the diving bell and equipment. Since the
coastwise laws prohibit either direct or indirect
movements, it would be a violation were the equipment to
be discharged at any point other than the precise point at
which it was taken aboard at the beginning of the voyage.
You must, therefore, return to the place of loading in
order to discharge the equipment and personnel.
HOLDING:
The use of a foreign-flag vessel to transport a
diving bell, its equipment, and divers from a coastwise
point to the outer Continental Shelf for the purpose of
supporting diving operations from a stationary, unanchored
position is permissible under the coastwise laws. The
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vessel must, however, return to the same location at which
it took the equipment and personnel aboard in order to
lawfully discharge the equipment and personnel
Sincerely,
B. James Fritz
Chief
Carrier Rulings Branch
LLBURTON:eav: 7/11/88