California non-tank requirements for certificates of financial responsibility (COFRs) and oil spill contingency plans (January 2000)

Circular No. 21/99 January 2000

TO THE MEMBERS

Dear Sirs,

CALIFORNIA NON-TANK VESSEL REQUIREMENTS FOR CERTIFICATES OF FINANCIAL RESPONSIBILITY (COFRS) AND OIL SPILL CONTINGENCY PLANS

Members are referred to Circulars 2/99, 7/99 and 8/99 in which they were informed and updated on the developments of the State of California's non-tank vessel requirements. "Non-tank vessel" means a vessel of 300 gross tons or greater not designed to carry oil as cargo. As many Members are aware, these regulations have now been finalised and, with effect from 3 February 2000, Members operating non-tank vessels in California waters must have obtained a COFR for USD 300 million and submitted for approval an Oil Spill Contingency Plan (also known as a Vessel Response Plan or VRP) to the California Office of Oil Spill Prevention and Response (OSPR).

Certificates of Financial Responsibility

Although many Members have already made substantial progress toward meeting this requirement, Members are reminded that obtaining a COFR is a prerequisite to successfully completing the oil spill contingency plan since it is necessary to insert the COFR number in the plan. Members are strongly urged to apply for a Californian COFR as soon as possible. As previously mentioned, application forms can be obtained from:

The California Office of Oil Spill Prevention and Response (OSPR) by contacting Ms. Cheryl Mitchell on:

The completed and signed application form should be returned to OSPR, together with a copy of the Member's current certificate of entry, telefaxed documents are acceptable. Members will be given until 20 May 2000 to present OSPR with the 2000 certificate of entry. Details of this will be published by OSPR shortly. Lastly, a fee of USD 100 per vessel will be charged. This fee can be sent by wire transfer.**Oil Spill Contingency Plans**The finalised legislation requires that an approved oil spill contingency plan must contain certain fundamental elements which includes a shoreside response element, the naming of a Qualified Individual (QI), Spill Management Team, approved Oil Spill Response Organisations (OSRO), and a California Agent for Service of Process. The complete legislation can be found on the internet at: http://www.dfg.ca.gov/Ospr/regulation/index.html or can be obtained from the Association upon request.

Members are reminded that the firm of Corbett & Holt (contact details above) can provide assistance with all phases of this process for a one-time fee of USD 1,000 irrespective of the number of vessels covered by the plan. Furthermore, the Association has arrangements in place with NRC/Clean Pacific Alliance and MPA (for the services of MSRC) whereby the Member can list either or both of these organisations as OSRO free of charge.

The Association recognises that the individual Member's particular circumstances determine the best course of action in terms of contracting for assistance in the preparation of contingency plans. However, combining Corbett & Holt's offer with the the Association's OSRO arrangements provides a viable alternative.

Members who intend to trade non-tank vessels to California and wish to obtain further advice are encouraged to contact the Association.

Yours faithfully, ASSURANCEFORENINGEN GARD -gjensidig-

John G. Bernander Managing Director