California - Non-tank vessels, Certificates of Financial Responsibility, Contingency Plans (9th August 1999)

Circular No. 8/99 9 August 1999

TO THE MEMBERS

Dear Sirs,

CALIFORNIA - NON-TANK VESSELS CERTIFICATES OF FINANCIAL RESPONSIBILITY CONTINGENCY PLANS

Members are referred to Circulars Nos. 2/99 and 7/99 in which they were informed that, with effect from 1 September 1999, non-tank vessels operating in California state waters will be required to obtain certificates of financial responsibility (COFRs) of USD 300 million and to file contingency plans with the Authorities.

Certificates of Financial Responsibility

The regulations have still not been finalised. However, a provisional COFR application form has been published. Members are strongly urged to apply for a Californian COFR as soon as possible. Application forms can be obtained from:

Fax No.1-916-323-4727, or

Contingency Plans

Under Californian Statute, non-tank vessel owners will be required to file with the state contingency plans before they can operate in Californian waters after 1 September 1999. The regulations have not yet been finalised and are not expected to be finalised before 1 September 1999. We attached a copy of a letter dated 5 August 1999 from the California Department of Fish and Game explaining the position. The effect of the letter is that the contingency planning requirements for non-tank vessels will not be enforced until 30 days after the regulations are finalised. The regulations are therefore unlikely to be enforced before 1 October 1999. Nonetheless, since no firm date has been fixed, Members are recommended to continue the preparation of plans.

Further Action

Members should immediately apply for a Californian COFR.

Members requiring assistance with the drafting of plans should register with the Association immediately if they have not done so already.

Members' attention is drawn to circular No. 7/97 concerning guidelines for the consideration of vessel response contracts. Copies of this circular are available from the Association or can be found on the Gard web site under this reference.

Should Members experience difficulty going directly to this site, simply go to Gard's web site at http://www.gard.no, look under "News" then look under "Member circulars" and then scroll down to the circular date.

Note: Some response contracts contain onerous terms which could prejudice P&I cover. Before entering into a contract with Qualified Individuals, Spill Managers and Oil Spill Response Organisations (OSROs), a requirement for the completion of the contingency plan, Members can check with the Association to find out whether a contract has been "approved" by the International Group.

Members will be advised when further information is available from the Californian Authorities.

Yours faithfully, ASSURANCEFORENINGEN GARD -gjensidig-

John G. Bernander Managing Director