---
kind: "section"
citation: "46 C.F.R. § 295.22"
title: "46"
number: "295.22"
heading: "Commencement and termination of operations."
url: "https://uscodex.org/cfr/46/295.22"
---

# §295.22. Commencement and termination of operations.

- (a) **Time frames.** A Contractor that has been awarded a MSP Operating Agreement shall commence operations of the Eligible Vessel, under the applicable agreement or a subsequently renewed agreement, within the time frame specified as follows:
  - (1) **Existing vessel.** Within one year after the initial effective date of the MSP Operating Agreement in the case of a vessel in existence on that date and after notification to MARAD within 30 days of the Contractor's intent; or
  - (2) **New building.** Within 30 months after the initial effective date of the MSP Operating Agreement in the case of a vessel to be constructed after that date.
- (b) **Unused authority.** In the event of a termination of unused authority pursuant to [paragraph (a)](#a) of this section, such authority shall revert to MARAD.

## Notes

### Authority

Authority: 46 App. U.S.C. 1171 et seq.; 46 App. U.S.C. 1114 (b), 49 CFR 1.66.

### Source

Source: 62 FR 37737, July 15, 1997, unless otherwise noted.