Background

On November 2, 1999 in a letter to the Commission's Executive Director, Island Navigation asked for a two-year extension of the period in which to commence the vessel services authorized by D.97-11-027.1 In support of its request Island Navigation asserted that it had not been able to commence operations within the two-year period fixed by that decision for various reasons: first, it could not obtain parking spaces from the City of Long Beach at its Long Beach docking facilities; second, it could not obtain parking spaces at Dana Point; and third, it could not make the commitment to have a ship constructed until it had perfected its local docking arrangements at these locations. The additional two-year extension sought by Island Navigation in its letter would extend the date for exercising its operating rights until November 5, 2001.

The Executive Director granted the extension on November 5, 1999, and by letter mailed the next day Island Navigation informed all parties that the extension had been granted. On December 2, 1999, Catalina Channel Express, Inc. (Channel Express) wrote to the Executive Director to inform him that it had not been served with the original request, as required by Rule 48(b) of our Rules of Practice and Procedure (Rules), and to object to the extension that he had granted. On December 6, 1999, Island Navigation responded by letter conceding that Rule 48 required such service and admitting that it had inadvertently failed to serve other parties. The date for exercising the authority originally granted had by then passed, and Island Navigation left it to the Commission to determine the proper remedy for the problem.

On December 14, 1999, the Executive Director informed Island Navigation by letter that, based upon these circumstances, the extension granted in his November , 1999, letter was rescinded. His letter directed Island Navigation within thirty days to file and serve a formal petition to modify D.97-11-027, and to include a request for interim relief. Island Navigation filed the petition on January 13, 2000, citing the same reasons as those contained in its original letter request.2 Channel Express filed a response opposing the extension.

1 The authority granted to Island Navigation by that decision was for the operation of vessel common carrier services between mainland California points, on the one hand, and Santa Catalina Island, on the other hand. 2 The petition made no specific request for interim relief.

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