****Client Alert 13-2006**** USCG OPA 90 Certificate of ... - Skuld

****Client Alert 13-2006****
July 21, 2006
USCG OPA 90 Certificate of Financial
Responsibility (COFR) Limit Increase
On July 11, 2006, President Bush signed into law H.R. 889, the "Coast Guard and
Maritime Transportation Act of 2006." One of the provisions in the legislation increases
the limits of financial liability for oil spills from vessels.
The new limits are as follows:
Double-hull tankers 3,000 gt or less - $1,900 per gross ton or $4 million, whichever
is greater.
Double-hull tankers greater than 3,000 gt - $1,900 per gross ton or $16 million,
whichever is greater.
Single-hull tankers 3,000 gt or less - $3,000 per gross ton or $6 million, whichever
is greater.
Single-hull tankers greater than 3,000 gt - $3,000 per gross ton or $22 million,
whichever is greater.
Non tank vessels - $950 per gross ton or $800,000, whichever is greater.
The revised limits are effective immediately for non-tank vessels but only become
effective for tank vessels after 90 days, (9 October, 2006).
However, although the revised limits take effect on the dates specified above, there is no
immediate requirement to provide evidence to the United States Coast Guard, (USCG), of
financial responsibility at the higher limits. Your existing USCG Certificates of Financial
Responsibility (COFRs) will remain in place as valid. Those vessels with traditional P&I
Club cover with an International Group P&I Club and a USCG COFR (financial) guaranty
with ARVAK, Shoreline or SIGCO should not be required to provide new evidence of
financial responsibility to the USCG as their P&I Club cover is adequate to cover these
increased limits and their financial guarantor (ARVAK, Shoreline, SIGCO) have in place
sufficient evidence to the USCG to sustain the increased amounts.
Vessels with US oil pollution insurance and USCG COFR guarantees with the same
provider Water Quality Insurance Syndicate (WQIS), Environmental Pollution Group
(EPG) or Great American may need to pay additional premiums to these providers and
ensure these providers have adequately increased their insurance coverage and
associated financial guarantees to the USCG. We suggest you contact your insurance
department and/or insurance broker to confirm as such.
As background, vessel operators must have a USCG OPA 90 Certificate of Financial
Responsibility (COFR) for vessels over 300 gross tons using the navigable waters of the
United States. In addition, any vessel, regardless of tonnage, that is lightering or
transshipping oil in the Exclusive Economic Zone (EEZ) of the USA, must have a COFR.
Contact Ann Cioffi at ecmwilton@ecmmaritime.com with any questions.

Updated List of National Operational Contact Points
IMO issued an updated List of National Operational Contact Points on 19
July 2006. A copy of this new list may be downloaded at:
http://www.imo.org/home.asp
Once on the site, select “Circulars” in the left hand column; then select
“Contact points” in the right hand column. You may then open the file:
MSC-MEPC.6/Circ.1 (ANNEX 2 for SOPEP)
Should you have any questions, please contact Renée Bowen at
ecmwilton@ecmmaritime.com.