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Federal Register / Vol. 86, No. 152 / Wednesday, August 11, 2021 / Rules and Regulations for an E5 to mail a 0.5-inch manual.107
We estimated that it costs $3.15 for an E4 and $3.78 for an E5 to mail a 5page amendment.108 We took an average
of the E4 and E5 rates, thus deriving an estimated labor cost of $3.96 per 0.5inch manual and $3.47 per 5-page amendment.109 Thus, the average total
cost to mail a 0.5-inch manual is $13.21, and to mail a 5-page amendment is $11.70. These costs are summarized in table 21.

TABLE 21COAST GUARD SHIPPING AND HANDLING COSTS
Shipping and handling costs Mailing costs Manuals
Amendments

In addition to the documents that have been found adequate, there is the issue of those documents that are deemed inadequate by the COTP. The current regulations require the COTP to notify the facility in writing.110 This notification usually comes in the form of a marked-up copy of the document, showing what needs to be corrected.

This final rule provides the COTP the option to respond electronically or in print to either electronic or printed copies from the facility operators. The COTP will not be obligated to respond in the same format that the manual is submitted.
In summary, the cost savings for the Coast Guard will arise from the reduced
$9.25
8.23

Handling labor costs
Total
$3.96
3.47

$13.21
11.70

number of printed Operations Manuals, Emergency Manuals, and amendments returned to LNG, LHG, and MTR
facilities. These savings can be broken out into the labor costs and the shipping costs. Table 22 shows these annual cost saving calculations.

TABLE 22COAST GUARD ANNUAL COST SAVINGS FROM SHIPPING AND HANDLING COSTS FOREGONE
Instances of documents per year 1

Expected rate of electronic documents production %

Shipping and handling costs
LNG/LHG Manuals Submitted
LNG/LHG Amendments Submitted
MTR Manuals Submitted
MTR Amendments Submitted
LNG/LHG Manuals Found Inadequate
LNG/LHG Amendments Found Inadequate
MTR Manuals Found Inadequate
MTR Amendments Found Inadequate

18
42
261
442
18
42
261
442

90
90
75
75
2 27
3 14
4 23
5 11

$13.21
11.70
13.21
11.70
13.21
11.70
13.21
11.70

$214.00
442.26
2,585.86
3,878.55
64.20
68.80
793.00
568.85

Total

8,615.52

Cost savings to the coast guard
Annual cost savings
1 See
tables 12 and 13.
percentage of LNG/LHG manuals sent electronically times 30% percentage of LNG/LHG manuals found inadequate equals 27%.
3 90% percentage of LNG/LHG amendments sent electronically times 15% percentage of LNG/LHG amendments found inadequate equals 14%.
4 75% percentage of MTR manuals sent electronically times 30% percentage of MTR manuals found inadequate equals 23%.
5 75% percentage of MTR amendments sent electronically times 15% percentage of MTR amendments found inadequate equals 11%.
2 90%

The summary of these calculations for 10 years is provided in table 23.

TABLE 23COAST GUARD COSTS SAVINGS ON A NOMINAL BASIS AND DISCOUNTED AT 7%

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Coast guard cost savings Year Year Year Year Year Year Year Year
1 2
3 4
5 6
7 8

Nominal terms

107 0.08 multiplied by $45 equals $3.60 and 0.08
multiplied by $54 equals $4.32.
108 0.07 multiplied by $45 equals $3.15 and 0.07
multiplied by $54 equals $3.78.

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17:21 Aug 10, 2021

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109 Both of these figures are rounded to the nearest whole cent.
110 33 CFR 154.320a1 states, The COTP will notify the facility operator of an MTR facility in writing of any inadequacies. 33 CFR 127.019d
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$8,615.52
8,615.52
8,615.52
8,615.52
8,615.52
8,615.52
8,615.52
8,615.52

7% Discounted rate 1
$8,051.89
7,525.13
7,032.83
6,572.74
6,142.75
5,740.88
5,365.31
5,014.31

states, If the COTP finds that the Operations Manual or the Emergency Manual does not meet this part, the Captain of the Port will return the manual with an explanation of why it does not meet this part to the LNG or LHG facility.

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