Published 19 November 1997
Circular No. 7/97 November 1997
TO THE MEMBERS
Dear Sirs,
UNITED STATES OIL POLLUTION
Vessel Response Plans - Contracts for Services
This circular is addressed to all shipowner Members including owners of dry cargo vessels and tankers.
Previous advice to Members on the terms of contract which are required under the Federal regulations on vessel response plans in the United States has concentrated on four issues which are of importance to the Associations, as well as to the Member. These are the scope of indemnities contained in these contracts, provisions for control of the contractor's operations by the owner, provisions for funding of the contractor's invoices and warranties by the contractor that he is competent to perform the contracted service.
In the course of preparation of Members' Vessel Response Plans (VRPs) during 1993, a large number of contracts for various services, particularly of companies acting as "qualified individual" (QI) and oil spill response organisations (OSROs) were reviewed by the Managers of the Associations/Clubs in the International Group either at the request of individual Members or the contractors themselves. In many cases this review process included a discussion with the contractor concerned on modification of the originally proposed contract terms so as to conform with the general guidelines suggested by the Managers/Clubs. These guidelines are attached as Appendix 1 to this circular.
As a result of this review process many contracts were confirmed (a) to contain an indemnity which could be covered by the Association and (b) generally, in respect of other provisions in the contract, not to conflict with the guidelines suggested by the Managers/Club. It is inevitable that this confirmation has been regarded by contractors and Members alike as "approval by the International Group of P&I Clubs".
The present position is that many contractors have made amendments to their contracts and the following comments may be helpful to clarify the significance of "approval" by the International Group of P&I Clubs in this context.
Whilst under Federal law Vessel Response Plans are only required from tanker owners, under State law such plans are sometimes required from owners of other vessels. A list of VRP requirements for individual States is attached as Appendix 2. States which are not mentioned on the list do not have separate requirements.
Attached as Appendix 3 is a schedule of those contractors whose contracts have been "approved" within the terms of the circular. Appendix 4 lists contractors whose contracts have been considered by the International Group but have not been "approved".
Yours faithfully, American Steamship Owners Mutual Protection and Indemnity Association, Inc. Assuranceforeningen Gard Assuranceforeningen Skuld The Britannia Steam Ship Insurance Association Limited The Japan Ship Owners' Mutual Protection and Indemnity Association Liverpool and London Steamship Protection and Indemnity Association Limited The London Steam-Ship Owners' Mutual Protection and Indemnity Association Limited The Newcastle Protection and Indemnity Association The North of England Protecting and Indemnity Association Limited The Shipowners' Mutual Protection and Indemnity Association (Luxembourg) The Standard Steamship Owners' Protection and Indemnity Association (Bermuda) Limited The Steamship Mutual Underwriting Association (Bermuda) Limited Sveriges Angfartygs Assurans Forening (The Swedish Club) The United Kingdom Mutual Steam Ship Assurance Association (Bermuda) Limited The West of England Ship Owners Insurance Association (Luxembourg)
APPENDIX 1
INTERNATIONAL GROUP GUIDELINES ON VRP CONTRACTS
APPENDIX 2
STATES REQUIRING VESSEL RESPONSE PLANS
ALASKA Vessel Response Plans (VRP), called "Oil Discharge Prevention and Contingency Plans", must be submitted and carried on board all tank vessels and oil tank barges.
CALIFORNIA Vessel Response Plans, called "Vessel Contingency Plans", must be submitted and carried on board all tank vessels. A federally-approved VRP will be accepted as long as the additional information required by California is contained in an addendum to the plan.
FLORIDA Vessel Response Plans, called "Spill Prevention and Control Contingency Plans", must be carried on board all vessels capable of carrying 10,000 gallons or more of pollutants as fuel or cargo. A federally-approved ship-specific contingency plan will be accepted.
LOUISIANA Owners or operators of tank vessels are required to submit and carry on board Vessel Response Plans prepared in accordance with OPA 90.
MAINE All tank vessels must carry on board and have available for inspection, but need not submit, Vessel Response Plans prepared in accordance with OPA 90.
MARYLAND All vessels must carry on board, but need not submit, Vessel Response Plans prepared in accordance with OPA 90.
NEW JERSEY Vessel Response Plans, consisting of "Discharge Prevention, Control and Countermeasure Plans" and "Discharge Response, Clean-up and Removal Contingency Plans", are not required to be carried on board or submitted unless hazardous substances, including oil, are transferred between vessels.
NEW YORK Vessel Response Plans, consisting of "Habitat Protection Plans", not required to be carried on board or submitted unless petroleum is transferred between vessels.
OREGON Vessel Response Plans, called "Oil Spill Prevention and Emergency Response Plans", must be submitted and carried on board all tank vessels, and all cargo and passenger vessels of 300 gross tons or more.
RHODE ISLAND Vessel Response Plans currently are not required to be submitted, but may be required in the future pursuant to draft regulations that are under development.
TEXAS Any vessel with the capacity to carry 10,000 gallons or more of oil as fuel or cargo must carry on board but need not submit federally-approved vessel-specific response plans. Vessels required to prepare VRPs in accordance with OPA 90, must submit certain sections from the VRP: General Information & Introduction; Notification Procedures; List of Contacts; Geographic-Specific Appendices for applicable COTP zones in Texas; Vessel-Specific Appendices; and Shore-Based Response Activities. In addition, the vessel must submit a letter from the individual who submitted the VRP to the Coast Guard verifying that the sections submitted conform with those submitted to the Coast Guard, along with approval correspondence from the Coast Guard.
VIRGINIA Vessel Response Plans, called "Oil Discharge Contingency Plans", must be submitted and carried on board all tank vessels transporting or transferring oil upon state waters having a maximum storage, handling or transporting capacity of at least 15,000 gallons of oil. Tank vessel operators required to prepare VRPs in accordance with OPA 90 may submit copies of their U.S. Coast Guard-issued VRP approval letters in lieu of separate state plans.
WASHINGTON Vessel Response Plans, called "Vessel Contingency Plans", must be submitted and carried on board by tank vessels (including those operating on the Columbia River), and all cargo vessels and passenger vessels of 300 or more gross tons that are operating on waters of the State. Cargo vessels and passenger vessels may join a Columbia River or Washington State oil spill co-operative in lieu of submitting a VRP. Tank vessels also must submit separate "Oil Spill Prevention Plans".
APPENDIX 3
CONTRACTS CONFORMING WITH THE INTERNATIONAL GROUP GUIDELINES ON VESSEL RESPONSE PLAN CONTRACTS
(The date of the "approved" version or other means of identification is inserted in the right hand column)
QUALIFIED INDIVIDUAL SPILL MANAGER QI / SPILL MANAGER OIL SPILL RESPONSE ORGANISATIONS
Attachment "A", September 14 1993
Attachment "B" - September 3, 1993
Attachment "C" - 10/01/95
Attachment "D" - 12/20/95
Number 6361
(General contract not "approved") New contract not "approved" Standard (tankers) (Dry cargo) (New contract not "approved").
SALVAGE, FIREFIGHTING AND EMERGENCY CONTRACTS
None. Effective as from 1.1.96 Rev. 3-96
There exists an amended agreement which has not been "approved"
PERSON IN CHARGE - TEXAS WILDLIFE REHABILITATION CONTRACTS CANADA
(Marine Response Corporation) (Non-Bulk Oil)
September 29, 1995
(Marine Response Corporation) (Bulk Oil)
September 29, 1995
Ship (Bulk Oil) Membership Agreement
August 31, 1995
Standard Ship Bulk Oil, ECRC
April 1, 1996
(Non-Bulk Oil)
August 31, 1995
Standard Ship Non-Bulk, ECRC
April 1, 1996
(Bulk Oil)
April 1, 1996
(Non-Bulk Oil)
August 31, 1995
Standard Ship (Non-Bulk) GLRC,
April 1, 1996
SPILL MANAGER AUTHORISED INDIVIDUAL
February 1996
APPENDIX 4
LIST OF CONTRACTORS WHO HAVE SUBMITTED CONTRACTS TO THE INTERNATIONAL GROUP WHICH HAVE NOT BEEN CONSIDERED TO COMPLY WITH INTERNATIONAL GROUP GUIDELINES
SPILL MANAGER PERSON IN CHARGE - TEXAS OIL SPILL RESPONSE ORGANISATIONS
D Contract not "approved" but indemnity clause "approved"
SALVAGE, FIREFIGHTING AND EMERGENCY CONTRACTS N/A SALVAGE N/A WILDLIFE REHABILITATION CONTRACTS N/A
CANADA
OSROS
Final sentence of Cl. 6.9 (b) which deems charge out costs to be reasonable should be withdrawn.
Word "reasonable" should be inserted before "fees charged" in Clause 8.1. Word "reasonable" should be inserted before "fees charged" in Clause 11.1.
AUTHORISED INDIVIDUAL
Gard is a member of
