Proposed Revision to MTMC Freight Traffic Rules Publication No. 10, Item 350, ``Mileage Allowances''

The proposed effective date for the change will be March 1, 1999 and will affect the reimbursement paid by commercial rail carriers for the use of DOD's freight cars (except tank cars). The purpose of the change is to ensure that DOD's maintenance costs for its freight cars are adequately reimbursed by their users. The current regulation reads: Mileage Allowances: The mileage allowances set forth in Railroad Publication Services, Agent Tariff ICC RPS 6007-series (PHJ Series) will be the minimum allowances accepted by the Government from the railroads for use of Government owned rail cars, except that mileage allowances for other than tank cars published in Tariff ICC CR 9337 will apply for account Consolidated Rail Corporation. The proposed regulation will replace the current regulation in its entirety with the following:

Item 350--Mileage Allowances

1. This item applies to all freight cars bearing the reporting marks of the Department of Defense or of any of its services, including but not limited to DODX, USAX, USA, USNX, USN, DAFX, USAF, hereinafter ``DOD freight cars.'' 2. Whenever DOD freight cars are used by a carrier for a revenue movement, such movement shall be considered a loaded movement (except empty tank cars subject to excess empty tank car mileage computations in accordance with the provisions of Agent's Freight Tariff, RPS 6007, Item 187) and a mileage allowance shall be payable by the carrier to DOD. 3. The mileage allowances specified in this item are based on actual mileage. If specified in advance of the movement, the carrier may choose to pay the mileage allowances based on short-line rail mileage. In such cases, the minimum amount payable to DOD shall be the relevant allowance shown in the table in paragraph 6 plus 30 percent. 4. The allowances specified in this item apply only to movements for which the freight transportation rate specifies the use of DOD freight cars. In all other cases, such as when the freight transportation rate: a. Specifies use of railroad-supplied cars, or b. Specifies use of either railroad-supplied cars or DOD freight cars, or c. Fails to specify the ownership of the car to be used; and DOD freight cars are actually used for the movement, the minimum allowances payable shall be the time and mileage payments that would have applied had non-deprescribed cars of the same type bearing railroad reporting marks been used. 5. The mileage allowances specified in this item are to be calculated on the basis of US dollars per mile, regardless of where the mileage accumulated. Allowances not paid in US dollars will be paid based on the exchange rate in effect at the close of the service month. For example, the minimum allowance for a movement of DODX freight car 36000 traveling 200 miles in Canada shall be 200 US dollars, or 300 Canadian dollars assuming an exchange rate of US $1.00=$1.50 Canadian dollars. 6. The minimum mileage allowances for DOD freight cars shall be as follows:

------------------------------------------------------------------------ Minimum mileage allowance (US For DOD freight cars dollars per actual mile) For short-line miles, add 30% ------------------------------------------------------------------------ DODX 900-905 (Caboose)................. $0.50 DODX 29500-29508 (Refrigerator Cars)... $1.00 DODX 36000-36006 (Two-platform $1.00 container flat car). DODX 40000-40573 (Six-axle flat car)... $0.376 Tanks Cars (as defined in Agent's As listed in Agent's Freight Freight Tariff, RPS 6007, Item 187). Tariff, RPS 6007, Item 187 All other DOD freight cars............. $0.065 per axle, Examples: ____________ (4-axle $0.26) (6-axle $0.39) (8-axle $0.52) (12-axle $0.78) ------------------------------------------------------------------------

7. Detailed car hire reports, as defined in the Railway Equipment Register, Rule 3.B.1, in the format specified by the Code of Car Hire Rules, Appendices G and I, shall be sent to: Military Traffic Management Command, Deployment Support Command, ATTN: MTDC-RF, Fort Eustis, VA 23604-5000. 8. Mileage allowances shall be paid by check payable to ``DFAS-OM/ ACT'' and sent to: DFAS-OM/ACT, ATTN: DBOF-T, PO Box 7050, Bellevue, NE 68005-1950.

(If a carrier's preferred practice is to mail the check and the car hire report in the same envelope, the MTMC address in paragraph 7 should be used for the combined mailing.) Francis A. Galluzzo, ADCOPS, Transportation Services. [FR Doc. 98-32948 Filed 12-10-98; 8:45 am] BILLING CODE 3710-08-M