"We are not delaying the removal of the high priority ships," Schubert said. "We wanted to announce them all today, but we're going to hold off until we get the contracts signed."

The obsolete ships have become floating environmental hazards because, in addition to old oil and fuel reserves, the ships are loaded with asbestos and toxic PCBs.

The maritime agency - a branch of the Department of Transportation - is negotiating the details for the disposal of seven of the remaining nine high priority ships, Schubert said. In the past 15 months, 12 ships have left the James, but 63 remain, officials said.

Virginia Rep. Jo Ann S. Davis, R-Gloucester, expressed frustration over Thursday's announcement.

"Small contracts will not meet the 2006 congressional mandate to have these ships removed. This is good news, but MARAD has a long way to go until this problem is solved."

"I have no idea why it's only three (ships that are leaving)," she said. "I feel like we've gotten quite a lot of dollars appropriated over the last three years. We've given them money. Why aren't the ships moving? There should be more ships flowing out of that river."

Schubert said federal budget delays and legal proceedings have handcuffed the agency, which received $16 million for ship disposal this year. The new deal represents the first stage of a backup plan for a contract signed last summer that would have sent 13 of the shabbiest ships to Great Britain for scrapping.

That deal sparked a public outcry and led to lawsuits here and in Britain, where the government withdrew its permission for the project. Four ships were towed across the Atlantic, where they remain anchored off the coast; nine others are still awaiting court rulings.

So maritime officials negotiated a compromise, Schubert said, under which the British firm agreed to take other ships of comparable size. That way the maritime administration can rid the James of the most hazardous ships without voiding the prior contract. Schubert was optimistic about ongoing discussions with the British government, calling the negotiations "very encouraging." Environmental watchdog groups feared the agency was using the British contract to open the door to scrapping ships in other countries with less stringent environmental and safety regulations. Schubert attempted to quash those concerns Thursday.

"We have no plans to send any ships to China or Asia," he said.

This summer's contracts could be boon for local scrap yard Bay Bridge Enterprises of Chesapeake, which couldn't compete for the contract awarded Thursday because it is still breaking down five other ghost fleet ships.

"I'd be real surprised if we didn't get any more ships in August," said Mike Dunavant, the company's general manager. "I think you'll see us working with them for years to come."

For now, agency officials are relived to see the three ships go. "They're some of the worst," said Curt J. Michanczyk, the manager of the ship disposal program. "We've got ships that were built during World War II that are in better shape then these three."

Daily Press Washington Bureau reporter David Lerman contributed to this story.

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