Published 12 July 2006
Circular No. 3/2006
July 2006
Dear Sirs
Upward adjustment of the US OPA 90 liability limits and COFRs
The US Oil Pollution Act 1990 (OPA 90) limits have been increased by legislation which came into force on 11 July 2006. The increased limits take effect immediately for non tank vessels. For tank vessels the new limits apply 90 days after the law came into effect. The increased OPA limits will not affect standard P & I cover.
Certificates of Financial Responsibility (COFRs)
For the time being it is understood that vessels can continue to trade with their current COFRs.
Under OPA 90 vessels are required to file with the National Pollution Funds Center evidence of financial responsibility up to the relevant limits of liability prior to entering US waters. The methods by which this could be done were outlined in an Interim Final Rule published on 1 July 1994. The US Coast Guard (USCG) will publish new regulations stating how owners can comply with the increased limits. It is not known when the USCG will publish these regulations. Although the increased limits for non tank vessels are already in effect (for tank vessels 90 days after signing into law), according to the USCG, the vessels can trade with their current certificates. Until the regulations are brought into force, it will not be possible to take further action. It is understood that COFR providers are in contact with the USCG and are monitoring developments. Members will be notified when there are further developments.
A schedule of the increased limits is appended.
Yours faithfully,
GARD AS As agent only for Assuranceforeningen Gard -gjensidig -
Claes Isacson
Chief Executive Officer
Schedule of Increased Limits
The US Coast Guard and Maritime Transportation Act of 2006 (USCG MTA 06), which was signed into law on 11 July 2006, increased limits of liability under OPA 90.
The limits are as follows:
Vessel type
?Old?OPA 90 limits
The greater of:
?New?USCG MTA 06
The greater of:
A. Single hull tank vessels (including single hull fitted with double sides only or a double bottom only)
USD1,200 per gross ton
OR
USD 3,000 per gross ton
OR
In the case of a single hull tank vessel greater than 3,000 gross tons
USD 10,000,000
USD 22,000,000
In the case of a single hull tank vessel of 3,000 gross tons or less
USD 2,000,000
USD 6,000,000
B. Double hull tank vessels
USD 1,200 per gross ton
OR
USD 1,900 per gross ton
OR
In the case of a double hull tank vessel greater than 3,000 gross tons
USD 10,000,000
USD 16,000,000
In the case of a double hull tank vessel of 3,000 gross tons or less
USD 2,000,000
USD 4,000,000
C. For any non-tank vessel
USD 600 per gross ton or USD 500,000
USD 950 per gross ton or USD 800,000
Gard is a member of
