States and also release the tort-feasor or the persons who have occasioned the damage, injury, or death, if their identity is known. If the identity of such persons is unknown, the release should recite that the claimant also releases the person or persons who occasioned the damage, injury, or death, the names and identity of said person or persons being unknown to the claimant.

(c) The release should preclude any possible future assertion of the claim for which the United States has made compensation.

(d) A suggested release is contained in appendix section 22.1

§ 753.24 Appeal and reconsideration.

(a) Appeal. While there is no right to appeal from the action of a Foreign Claims Commission, the commission may reconsider its action upon the written request of the claimant or on its own initiative. If, after reconsideration, the commission again denies a claim, or the claimant declines to accept an award in full satisfaction of his claim, the commission's report shall be forwarded to the Judge Advocate General in accordance with § 753.21(d).

(b) Reconsideration. The Judge Advocate General may refer a claim for reconsideration to the original commission, a successor commission, or to a commission convened by the Judge Advocate General.

§ 753.25 Meritorious claims in excess of $25,000.

(a) Foreign claims which cannot be settled for $25,000 or less will be promptly considered and reported to the Judge Advocate General for legal review and appropriate administrative action. The record in such proceedings shall include signed statements of material witnesses or transcripts of their oral testimony. The Foreign Claims Commission shall forward with any such claim its findings and recommendations as to the action to be taken (including its findings as to the extent and nature of the damage, injury, and/or death sustained) together with, if practicable, a statement from the owner of the property or the

Filed as part of the original document.

person injured, or the legal representative of the person killed, signifying his willingness to accept the amount so found in full satisfaction and final settlement of his claim. In all such cases, the original and two copies of the report, claim, and supporting papers shall be forwarded. The remaining copy should be retained by the commission for its files.

(b) Upon review of the file, the Judge Advocate General will forward a recommended action to the Secretary of the Navy who will determine an appropriate award. The Secretary may authorize the claims commission to pay the claimant $25,000 and thereafter certify the excess to Congress in accordance with standard procedures. [39 FR 20682, June 13, 1974, as amended at 41 FR 26866, June 30, 1976]

§ 753.26 Claims outside the jurisdiction of the commission.

Claims arising from incidents on the high seas are ordinarily not within the jurisdiction of a Foreign Claims Commission. See § 753.17. In cases in which a commission considers that the claimant (or decedent in the case of a death claim) is not an inhabitant of a foreign country, or is not the government or a political subdivision of a foreign country, reports shall be forwarded in triplicate to the Judge Advocate General as in cases under § 753.25.

§ 753.27 Claims arising in specified foreign countries.

(a) NATO Status of Forces and similar agreements. The United States has ratified the NATO Status of Forces Agreement and has entered into similar agreements with other foreign countries. Article VIII of the NATO Status of Forces Agreement and certain provisions of other agreements are inconsistent with the unrestricted use of the Foreign Claims Act and its implementing regulations in certain countries. Accordingly, directives of the cognizant area commander shall be consulted and claims shall not be referred to foreign claims commissions until it has been determined that such action is consistent with the provisions of the aforementioned agreements and their implementing directives. Department of Defense Directive 5515.3

series (NOTAL) directs that, where a single service has been assigned responsibility for claims in a country or area, all claims arising under the Foreign Claims Act (10 U.S.C. 2734) and the Military Claims Act (10 U.S.C. 2733) shall normally be settled and paid by claims commissions or other claims settlemen authorities appointed by the Secretary of that military department, or his designee, in accordance with the department's regulations. In countries in which the NATO Status of Forces Agreement or other similar agreement is in force, incidents which may give rise to tort claims against the United States arising from acts or omissions of naval personnel, or members of the civilian component of the naval service, including claims for death or personal injury, resulting from the navigation or operation of a ship, or from the loading, carriage, or discharge of its cargo, shall be investigated and reports shall be made in accordance with instructions promulgated by the cognizant naval command

ers.

(b) Single-service responsibility and cross-servicing. Single-service responsibility for processing claims under this part shall be accomplished as provided in § 750.24. Where cross-servicing of claims has been accomplished, the forwarding command shall afford any assistance necessary to the appropriate service in the investigation and adjudication of such claims.

[39 FR 20682, June 13, 1974]

§ 753.28 Claims generated by civilian employees of the Department of Defense. (a) Department of Defense Directive 5515.3 series (NOTAL) provides that all Foreign Claims Commissions are designated to settle and pay claims for damage caused by civilian employees of the Department of Defense other than an employee of a military department.

[39 FR 20683, June 13, 1974]

§ 753.29 Advance payments.

(a) Advance payments may be made pursuant to the provisions of §§ 750.70-750.73 and 750.80 of this chapter. In addition to the adjudicating authorities authorized by § 753.72

§ 754.1 Settlement of Navy affirmative salvage claims.

(a) Authority. Under 10 U.S.C. 7365, the Secretary of the Navy, or his designee, may consider, ascertain, adjust, determine, compromise, or settle and receive payment of any claim by the United States for salvage services rendered by the Department of the Navy.

(b) Delegation of authority. Each of the following has been designated by the Secretary of the Navy to exercise the authority contained in 10 U.S.C. 7365:

(1) The Commander, Naval Sea Systems Command, Department of the Navy.

(2) The Supervisor of Salvage, Naval Sea Systems Command, Department of the Navy.

(3) The Assistant Supervisor of Salvage, Naval Sea Systems Command, Department of the Navy, Room 1313, Federal Office Building, 90 Church Street, New York, N.Y. 10007.

[42 FR 16622, Mar. 29, 1977]

§ 754.2 Per diem rates for salvage services. (a) Effective July 1, 1977, and subject to the rules set forth in paragraphs (b) through (g) of this section, the following vessel and deep-divesystem rates per day of 24 hours or part thereof have been established for salvage services rendered by the Department of the Navy:

Rates for other types of ships used for search, communications, control, and the like will be established on a caseby-case basis, wit. consideration being given to their special features as required for the particular operation.

(2) Harbor clearance craft. Rates for harbor clearance craft, pulling barges, diving boats and barges, launches, and support equipment in general will be specified on a case by case basis.

(3) Deep dive systems. Deep Dive Systems (DDS) used in search and salvage work will be charged at the following rates per day or any portion thereof:

Ship time in support of Deep Dive System will be charged as above. Bottom habitats, submersible vehicles, special surface navigation systems, and underwater search and navigation systems will be charged at a rate to be determined on a case-by-case basis.

(4) Supernumerary personnel. The rates in paragraph (a)(1) of this section for ships and tugs include charges for their normal crews. Additional personnel such as Salvage Masters, Lift Masters, Harbor Clearance Team members, and extra diving crews will be charged for at rates established in the Navy Comptroller Manual and based on normal military pay scales. Per diem and travel expenses will be charged at cost.

are normally made for the total elapsed time spent by the Navy ship performing the service from the moment she leaves her berth, or is diverted from her previous course, to the time she returns to her berth or resumes her prior voyage at the approximate point of diversion. The charges are independent of the values involved; and the user will be billed in the full amount, regardless of whether the vessel is saved or lost; that is, irrespective of the ultimate success or failure of the salvage operation.

(d) An exception to the method of calculating per diem charges set forth in paragraphs (a) through (c) of this section is made if the distressed commercial vessel carries a substantial amount of Government-owned uninsured cargo and if her distress occurs in areas (such as the mid-Pacific) where the Navy alone maintains facilities capable of conducting major salvage operations. Under these conditions, if Navy assistance is promptly requested, then no charge is made unless the Navy ship actually reaches and helps the stricken vessel either before she is saved or before she and her cargo are lost.

(e) The extent of the salvage services rendered by naval activities in any given case will, of necessity, be governed by the magnitude of the salvage effort required and the problems encountered and the availability of Navy salvage assets. Accordingly, the nature and amount of salvage equipment and other naval equipment, supplies, and materials will vary in each case. In addition, the number of naval personnel, both military and civilian (Civil Service), and their required specialized skills will also vary in each case. For these reasons it is not feasible to detail in this section the rates, costs, or charges for each item of naval equipment, material, supplies or personnel, that may be utilized in any given salvage operation. It is the policy of the Supervisor of Salvage to utilize the Navy Comptroller Manual (NAVSO P-1000) as the basis for determining the costs and charges for naval equipment, for which there are no published rates established by this section or previously determined by the Supervisor of Salvage. The Navy

(b) The per diem rates set forth in paragraph (a) of this section apply worldwide and are charged to pay the United States for the use of its Navy ship, operating crew, and towing hawser. If, as in the case of a stranding, special salvage equipment such as beach gear, pumps, compressors, and the like is required, then a per diem charge is also made for the use of that equipment. In addition, repair materials consumed and equipment lost or destroyed are billed at replacement cost.

(c) When used as the basis for billing, the per diem charges set forth in paragraphs (a) and (b) of this section

Comptroller Manual also provides a basis for computing statistical charges where salvage services are rendered on "in-house" Navy salvage operations, and to Military Sealift Command, Maritime Administration, and other non-Navy public vessels and aircraft. However, in determining the costs and charges for equipment, supplies, materials, and personnel the Supervisor of Salvage refers to the Navy Comptroller Manual for guidance only; he is not required to adhere to the rates set forth therein.

(f) Submission of Navy salvage claims on a per diem basis is solely a matter of administrative convenience and policy. That policy is not a waiver or surrender of the U.S. legal right to claim on a salvage-bonus basis in any individual case. If per diem billing is rendered, then it is submitted on the express condition that it be promptly paid in full; and until receipt by the Department of the Navy of such payment, all salvage rights are reserved, including the right to withdraw the per diem billing without notice and present claim on a salvage-bonus basis.

(g) The statutory authority of the Secretary of the Navy to provide salvage facilities for private vessels and to settle claims arising from such activity appears in 10 U.S.C. 7361-7367. This authority does not obligate the United States or the Department of the Navy to maintain salvage facilities in excess of its own needs nor to render salvage assistance on all occasions. The policy of the Department of the Navy, however, is to assist in the salvage of private commercial ships when such assistance is required and requested and where adequate privately owned salvage facilities do not exist or are not readily available.

[31 FR 16619, Dec. 29, 1966, as amended at 33 FR 11397, Aug. 10, 1968; 35 FR 5946, Apr. 10, 1970; 36 FR 3117, Feb. 18, 1971; 42 FR 16622, Mar. 29, 1977]

§ 754.3 Leasing of Navy salvage and oil pollution abatement equipment.

(a) Purpose. To delegate the authority for the leasing of Navy salvage equipment and oil pollution abatement equipment under control of the Department of the Navy to private sal

vage companies and to establish policy governing such leases.

(b) Background. (1) 10 U.S.C. 7362 authorizes the Secretary of the Navy to charter, lease, or otherwise transfer to private salvage companies salvage equipment to be used to support organized offshore salvage facilities for periods of time that the Secretary considers appropriate. The phrase "offshore salvage" concerns situations involving refloating stranded or sunken ships in exposed locations along the coasts, or on reefs or islands. Leases under the authority of 10 U.S.C. 7362 may involve salvage equipment only.

(2) 10 U.S.C. 2667 authorizes the Secretary of a military department whenever he considers it advantageous to the United States to lease personal property upon such terms as he considered will promote the national defense or be in the public interest. For the purposes of this section, leases under the authority of 10 U.S.C. 2667 may involve both Navy salvage equipment and oil pollution abatement equipment.

(c) Policies. (1) Prior to negotiation of a lease pursuant to the authority of 10 U.S.C. 2667 or 7362 it must be determined that:

(i) The equipment is not needed for public use during the period of the lease;

(ii) The proposed lease should not render the property unsuitable for future military use;

(iii) The equipment is not "excess property" as defined by 4 U.S.C. 472; (iv) The equipment or comparable equipment is not otherwise reasonably available from commercial sources.

(2) The term of any lease entered into pursuant to this section shall not exceed two years.

(3) Le ses entered into pursuant to the authority of 10 U.S.C. 2667 require a determination that the lease will be advantageous to the United States and will promote the national defense or be in the public interest. The Secretary determines that such a finding has been made if one or more of the following situations is found to exist:

(i) The presence of a petroleum product or other hazardous substance in United States waters caused by any means which present an imminent

danger to human life or property, public health, or the national environment;

(ii) The grounding, stranding, or sinking of any vessel in United States navigable waters or contiguous zones thereof which presents a danger to others, inhibits commerce, or poses an inconvenience to other vessels proceeding in the area;

(iii) The grounding, stranding, or sinking of any vessel which may present the danger of an oil spill of the character referred to in paragraph (c)(3)(i) of this section.

(iv) A situation in other than United States waters involving the grounding, stranding, or sinking of any vessel or the spillage of a petroleum product or other hazardous substance presenting an imminent danger to life, property, or the national environment where:

(A) A United States flag ship or other commercial vessel owned or operated by public or private United States interests is involved; (B) United States treaty obligations require or permit such aid; (C) The lease of Navy equipment would result in substantial good will being generated towards the United States; (D) The situation might result in an international incident involving potential adverse consequence to the United States.

(4) Leases executed pursuant to this section shall contain comprehensive indemnification and hold harmless provisions whereby users of Navy salvage equipment or oil pollution abatement equipment shall assume liability, including liability for loss of or damage to the equipment, and for third-party bodily injury and property damage.

(5) The proposed lessee must stipulate in writing that comparable equipment is not reasonably available from commercial sources.

(d) Lease. (1) Leases entered into pursuant to the authority of 10 U.S.C. 2667 or 7362 shall contain the following provisions:

(i) A description of the specific commercial salvage operation or pollution incident in which the equipment may be used.

(ii) A stipulation that the equipment may be utilized only in accordance with its designed operational purpose.

(iii) A provision requiring the lessee to maintain, protect, and preserve the equipment in accordance with the best commercial practices.

(iv) A provision permitting the Government to revoke the lease at any time, unless the Secretary shall have determined that the omission of such a provision will promote the national defense or be in the public interest.

(v) A right in the Government to revoke the lease during the national emergency declared by the President.

(vi) A provision prohibiting the lessee from entering into a sublease without the prior written approval of the Supervisor of Salvage, Naval Sea Systems Command.

(2) In addition to the foregoing terms and conditions:

(i) A lease covering the use of salvage equipment under the authority of 10 U.S.C. 7362 shall provide that the equipment will be used to support offshore salvage facilities for the term of the lease or for such lesser period as the Supervisory of Salvage, Naval Sea Systems Command, considers appropriate.

(ii) A lease of salvage equipment or oil pollution abatement equipment under the authority of 10 U.S.C. 2667 shall provide that, if and to the extent that the leased property is later made taxable by state or local governments under an act of Congress, the lease shall be renegotiated.

(e) Rates. (1) Fair market value of the equipment to be leased shall be charged in accordance with Department of Defense Instruction 7230.7.

(2) With respect to salvage equipment leased pursuant to 10 U.S.C. 7362:

(i) Rental rates set forth in § 754.2 shall be used when applicable.

(ii) Money rental received shall be credited to appropriations for maintaining salvage facilities by the Department of the Navy. However, if the amount received in any year exceeds the cost incurred by the Navy during that year in giving and maintaining salvage services, the excess shall be covered into the Treasury.