Special Tanker Circular - California - Tank vessel certificate of financial responsibility (COFR) requirements (January 2000)

Special Tanker Circular No. 2/99 January 2000

TO TANKER OWNERS

Dear Sirs,

CALIFORNIA TANK VESSEL CERTIFICATE OF FINANCIAL RESPONSIBILITY

(COFR) REQUIREMENTS

We refer to Circular No. 20/99 relating to the reinsurance arrangements for the 2000 policy year. In this circular Members were advised that the limit of insurance for oil pollution liabilities would increase to USD 1 billion (USD 500 million in 1999) per event, each owner's entry with effect from 20 February 2000.

This increase in pollution cover coincides with a change in the California tank vessel COFR requirements which increase the value of the COFR required to USD 1 billion on 20 February 2000 from the 1999 level of USD 750 million. Members may be aware of the increase since the California Office of Spill Prevention and Response (OSPR) has recently begun the process of sending out its COFR renewal letters. Members are advised that, unlike last year, meeting the California requirements in 2000 will not require the purchase of additional insurance.

Members who wish to obtain further information should contact the Association.

Yours faithfully, ASSURANCEFORENINGEN GARD -gjensidig-

John G. Bernander Managing Director