Alaska Financial Responsibility and Contingency Plan Regulation for Non-Tank Vessels (No.2)
|Please refer to our circular No.00-009 dated 7 August 2000 concerning the captioned subject. In that circular we informed you of the outline of new Alaska regulations on oil pollution by self-propelled non-tank vessels over 400 gross tons in the water of the state, but without definite guidance in respect to (1) the practical deadline of application for Certificate of Financial Responsibility (COFR), (2) the necessity of separate proof of financial responsibility for insurance deductibles and (3) Contingency Plan requirements, because no final regulations were adopted yet.
On 27 November, 2002, the State of Alaska enacted new regulations over COFR and Contingency Plan for non-tank vessels. Based on a report of our correspondent in Alaska, Messrs. Keesal, Young & Logan, we now brief you on the new regulations including the above three points based on their report.
Those members who own and/or manage non-tank vessels trading in Alaska waters may have been or will be advised about their COFR renewal procedures and a guidance of Contingency Plan requirements by their agents or such service providers. We call the relative members' attention to take necessary steps in time in accordance with their advice.
|1.||COFR (Certificate of Financial Responsibility)
|(1)||Amounts of Financial Responsibility
|a).||Non-tank vessels over 400GT having predominately persistent product on board US$400.20 per incident, per barrel of storage capacity, US$ 6,670,000 minimum|
|b).||Non-tank vessels over 400GT having predominately non-persistent product on board US$133.40 per incident, per barrel of storage capacity, US$ 1,334,000 minimum|
|1.||Under the State law, "oil" means oil of any kind and in any form, including crude oil, fuel oil, gasoline, lubricating oils, oily sludge, oil refuse, LNG, LPG and other liquid hydrocarbons regardless of specific gravity.|
|2.||Under the state law, non-persistent product means petroleum-based oil that consists of hydrocarbon fractions (1) at least 50 percent of which by volume distill at a temperature of 340deg C(645deg F) and (2) at least 95 percent of which by volume distill at a temperature of 370deg C(700deg F), and persistent product means all petroleum-based oil other than the above.|
|3.||The amount of financial responsibility required under the state law as described in our former circular No.00-009 is to be adjusted every third year, based upon increases in the consumer price index. The amounts shown in the recent regulations were so adjusted ones.|
|4.||The amount of financial responsibility required does not increase with multiple vessels operated by the same applicant. Instead, the applicant must show proof of financial responsibility in an amount equal to the highest applicable amount required by the regulations.|
|5.||Since the Association provides oil pollution coverage up to US$1 billion for oceangoing vessels, such vessels as enter with the Association satisfy the above amounts required.|
|Effective November 27, 2002, a Deductible exceeding $50,000 in any insurance policy or Club cover requires separate proof of financial responsibility.Therefore any members who apply for Alaska COFR for a vessel with a deductible exceeding $50,000 will please request us to attach an endorsement to the Certificate of Entry to the effect that the Association will waive its defense of the Deductible in respect of the members' responsibility for oil pollution claims under the Alaska state law, with receiving the members' guarantee of repayment to us of equal amount to the deductible.
|(3)||COFR application form
|Members can obtain the application form through the following URL.
|(4)||Time limit for submission of COFR application
|As originally provided in the law, an application for approval of financial responsibility must be submitted to Alaska Department of Environmental Conservation ("ADEC") at least 15 days before operations in state waters are commenced. However, if the applicant demonstrates unanticipated circumstances prevented it from meeting the 15 days deadline, an application received at least 5 days prior to operations may be accepted.
|(5)||Means of Application
|The application must be made on the designated form completed and signed by the applicant. An application by facsimile will be accepted provided the original is also sent by registered or certified mail or by courier, and is post-marked or dated by courier within two working days after it was sent by facsimile.
|(6)||Amendment to the financial responsibility information
|Any amendment to the financial responsibility information which would change the amount of financial responsibility must be submitted at least 30 days prior to the change or 15 days prior to placing the changed operations into service within state waters.
|(7)||Renewal of COFR
|Renewal of proof of financial responsibility for non-tank vessels must be submitted to ADEC at least 30 days, but no earlier than 90 days, before the current approval of financial responsibility expires. As COFR expires on 20 February where P&I Club coverage is used as proof of financial responsibility, a renewal confirmation letter from the P&I Club must be submitted to ADEC no later than 60 days after the renewal of P&I Club coverage. The certificate holder must also submit Club Certificate of Entry (COE) showing renewal of P&I Club no later than 90 days after the renewal. (If the COE is submitted to ADEC no later than 60 days after renewal of P&I Club coverage, a renewal confirmation letter is unnecessary.) Members in possession of Alaska COFR may have begun renewal procedures, but we call those members' attention to mail a copy of the Certificate of Entry for 2003 Policy Year to ADEC (through their agents or such service providers) by 21 April 2003.
|Non-tank vessels exceeding 400GT which operate in Alaska waters must submit applications for approval of contingency plans on or before 27 May, 2003. Applications submitted by that date will be considered provisionally approved. Effective May 27, 2003, a non-tank vessel exceeding 400GT may not be operated within Alaska waters, or cause or permit the transfer of oil to or from the vessel unless an application for approval of such a plan has been submitted to ADEC.
Contingency Plan regulations and various application forms are available on ADECs website at:
Outlines of Contingency Plan are as follows:
|(1)||Who Must Apply
|An application for approval of a non-tank vessel contingency plan must be submitted by:|
|a.||the charterer, if the non-tank vessel is chartered by demise;|
|c.||the owner, if the agents or employees of the owner retain control and responsibility for operation of the non-tank vessel; or|
|d.||in any other case, the person with "primary operational control"|
|(2)||Types of Response Plans - Streamlined and Equivalent Plans
|The new response plan regulations for non-tank vessels create two different types of plans.
|"Streamlined Plan" is designed for applicants who wish to arrange for cleanup contractors and incident management services by contract with existing companies who are approved by the state to act with respect to non-tank vessel discharges. ADEC will approve a completed application for a Streamlined Plan within five days. Most of applicants shall utilize this Plan.
"Equivalent Plan" is designed for companies who intend to utilize their own cleanup resources and capability, and provide their own incident management team to respond to an oil spill. However, the requirements for approval of the Plan are detailed and complex and regulations do not specify the time within which ADEC must complete its review of the Plan.
|(3)||The information required for approval of a Streamlined Plan
|1)||name, address, and telephone number of plan holder;|
|2)||for each covered vessel, its name, official number and country of registry, as well as the name and address of the owner and operator;|
|3)||the application date and first scheduled date of entry into waters of the state;|
|4)||name, telephone number, title, e-mail address and fax number for each qualified individual for the plan holder;|
|5)||a description of immediate reporting actions to be taken in the event of a spill, including names and telephone numbers for personnel responsible for making notification, and telephone numbers for each appropriate government agency to be notified of a discharge;|
|6)||the length overall, beam, gross tonnage, type and configuration of each vessel;|
|7)||a description or diagram of each covered vessel for reference in conducting emergency response operations. Each diagram must clearly mark the location of any feature "pertinent to the response, including:|
|a. the location, size, and storage capacity of each oil storage tank
b. the type of oil carried in each tank; and
c. any other information that a responder may need to know in an emergency;
|8)||the name, location, and telephone number of an emergency contact who would have access to detailed plans for each vessel which shows:|
|a. the location of personnel quarters and each emergency exit;
b. the location of all fuel piping locations, including valve locations and identification;
c. the location and size of each tank, tank valve, overflow pipe, and tank access point;
d. the location of each internal or portable pump on board;
e. the location of each emergency shutdown switch; and
f. other detailed information pertinent to emergency response operations
|9)||the maximum fuel capacity, in barrels, of each covered vessel and the volume used to calculate the response planning standard required of the vessel|
|10)||each geographic region in the state for operation of each covered vessel|
|11)||names, telephone numbers and e-mail addresses for each contracted non-tank vessel cleanup contractor and non-tank vessel incident management team, except for a plan utilizing a response planning facilitator;|
|12)||except for plan using a "response planning facilitator," a statement certifying that: for each region of operation identified in the plan the applicant has a contract with, or is a member of at least one non-tank vessel cleanup contractor for that region of operation|
|a. for each region of operation identified in the plan the applicant has a contract with, or is a member at least one non-tank vessel cleanup contractor for that region of operation
b. each non-tank vessel cleanup contractor identified in the plan the applicant is registered by regulation with ADEC for the appropriate vessel fuel classification and region of operation identified in the plan; and
c. each contact or membership agreement with a non-tank vessel cleanup contractor demonstrates that the contractor will respond on behalf of the applicant
|13)||except for plans using a response planning facilitator, a statement certifying that:|
|a. for each region of operation, the applicant has a contract with at least one non-tank vessel incident management team for that region;
b. each non-tank vessel incident management team identified in the statement is registered with ADEC for the appropriate fuel classification and region of operation identified in the plan; and
c. each contract with a non-tank vessel incident management team demonstrates the team will respond on behalf of the applicant;
|14)||where a plan is submitted by a response planning facilitator, the name, telephone and fax number, title and e-mail address of the facilitator. The applicant must also specify whether the facilitator and the applicant have contracted for the provision of contractor and incident management team services, or whether the facilitator and applicant have contracted for the provision of contractor and incident management team services, or whether the applicant has contracted directly with those entities;|
|15)||a statement signed by an authorized individual certifying that each vessel complies with "applicable federal and international maritime requirement" ;|
|16)||a statement signed by an authorized individual committing the resources necessary to implement the plan, and certifying the contents of the application.|
|(4)||Response Planning Standards/Regions of Operation
|Regulations require that a non-tank vessel plan holder maintain or have available under contract sufficient cleanup equipment and other resources in each region of operation. The regulations divide the state into ten separate geographic regions and require that the plan holder have available under contract or membership agreement or capable of arriving in the region of operation within 24 hours, and maintain or have available sufficient storage, transfer, and cleanup equipment, personnel, and other resources to contain and control 15% of the maximum oil capacity of the vessel within 48 hours.
|(5)||Response Planning Facilitators
|The regulations provide for what is termed a "response planning facilitator" to assist owners of vessels on spot charter or other vessels calling infrequently in the state, who may not wish to go through the plan application and approval process themselves in order to comply with the regulations. An approved response planning facilitator may submit a Streamlined Plan on behalf of a non-tank vessel by acting as an intermediary between the applicant or "plan holder" and cleanup contractors and incident management teams required for that particular vessel in its region or regions of operation within the state. The response planning facilitator may either assist in the execution of the contract between the plan holder and its designated cleanup contractor and incident management team, or directly enter into agreements with contractors and incident management teams, and then contract with the vessel owner or operator to access the cleanup contractor and incident management team. Those members who have utilized these contractors for COFR application may be approached by them in respect of their plan making services , and we recommend to use such services if necessary.
|(6)||Non-tank Vessel Cleanup Contractors and Incident Management Teams
|Non-tank vessel cleanup contractors and incident management teams must be approved by ADEC. Many contractors including the local and nation-wide ones are said to be applying the approval or preparing the application. Any members who need recent information, may please ask for it to your contact office of the Association.
|(7)||Inspections and Drills
|Under the regulations, ADEC may conduct inspections of vessels to verify compliance and discharge exercises to ensure those contingency plans are adequate. Inspections and Drills may be conducted with announce or without announce.|