17 AAC 70.280 - Liquidated damages for delays to marine highway system schedules

(a) If a private sector user fails to remove the user's vessel from a berth or clear attendant facilities at a marine highway system terminal, causing a delay to a vessel of the Alaska Marine Highway System, or another private sector vessel scheduled to use the facility, the private vessel causing the delay and its owner and operator are liable to the state for liquidated damages of $2,500 per hour of delay. For a fractional part of any additional hour less than 30 minutes, the charge is $1,000. For a period of 30 minutes or longer, the full hourly charge applies.

(b) A delay has occurred if

(1) the berth is not cleared one hour before the scheduled arrival or three hours before the scheduled sailing of an Alaska Marine System vessel or another vessel scheduled to use the facility, whichever is earlier;

(2) the attendant facilities at the marine highway system terminal are not cleared two hours before the scheduled arrival or three hours before the scheduled sailing of an Alaska Marine Highway System vessel or another vessel scheduled to use the facility, whichever is earlier.

(c) For good cause shown in writing, the system director may waive or adjust the liquidated damages provisions in (a) of this section.

(d) Before a terminal use authorization or contract will be issued, a private sector user must submit a payment bond or other financial instrument acceptable to the system director in the amount of $25,000 to guarantee payment of liquidated damages.

(e) Vessels of the Alaska Marine Highway System have priority for the use of marine highway system terminal facilities. If a private vessel authorized to use a marine highway system terminal facility is delayed by the use of the facility by an Alaska Marine Highway System vessel, or another private vessel, no claim of any sort may be made against the Alaska Marine Highway System.

Notes

17 AAC 70.280

Eff. 9/22/84, Register 91; am 1/23/93, Register 125

Authority:AS 44.42.020

AS 44.42.030