Page 94: of Maritime Reporter Magazine (October 1992)

Farrell Predicts Flaws In

Oil Pollution Law Will Draw

Public Outcry

Speaking on behalf of the barge and towing industry, Joe Farrell, president of the American Water- ways Operators, predicted that the

American public's desire to balance environmental protection with pre- serving their standard of living will ultimately help temper some of the unnecessarily harmful effects of the

Oil Pollution Act of 1990 (OPA 90).

Mr. Farrell told the Houston

Marine Insurance Seminar, in an address on September 15, that "the heavy penalties and burdensome re- quirements of OPA 90 will result in higher standards of care, which will cut down on pollution due to human error."

He acknowledged the fact that the law will be a clear benefit to the nation, in helping to prevent oil spills, but said that the statute has a number of "intolerable flaws," in- cluding a provision that could ulti- mately shut down the waterborne system that transports 30 percent of the nation's petroleum. However, he also predicted that key govern- ment decision makers, urged on by public opinion, will strike a balance that will assure both continued en- vironmental protection and contin- ued energy supply. "The U.S. consumes 17 million barrels of oil a day, making us by far the world's number one energy con- sumer. While our citizens are de- manding a higher standard of care to protect our environment, con- sider how those same citizens would react to any threat to diminish their lifestyle, which largely rests on the consumption of petroleum and pe- troleum products," Mr. Farrell said.

Mr. Farrell said that one of OPA 90's most ominous requirements is that marine insurers be held equally liable for potentially unlimited dam- ages alongside an oil spiller. Be- cause of this yet-to-be-enacted pro- vision, the marine insurers have threatened to withhold insurance coverage for oil transport compa- nies, a move that would shut down the waterborne petroleum supply system nationwide.

The American Waterways Opera- tors is the 300-member company national trade association of the in- land and coastal tug and barge in- dustry.

New Rules To Minimize

Vessel Capsizing Adopted

By U.S. Coast Guard

The U.S. Coast Guard recently amended the stability design and operational regulations for inspected vessels.

The new rule amends the Inter- national Convention for the Safety of Life at Sea, 1974, as amended (SOLAS).

The new rule specifically deals with the stability of a passenger vessel after it sustains damage, the use of draft marks and indicators, optional use of stability computers, periodic determination of lightship characteristics, the use of stability information and the closing of load- ing doors before going to sea.

The requirements will apply to all new and existing vessels, with certain exceptions. The rule is ef- fective December 10, 1992.

For more information, contact:

Ms. P.L. Carrigan at (202)267- 2988.

Completion Of Dalian

Dry Dock Delayed

Completion of the VLCC dry dock, currently under construction in

Dalian, China, has been delayed until late 1994. The owners of the dry dock would like to have the first

VLCC built for China. However, if

VLCC orders do not materialize, it has been reported that New Dalian

Shipyard will place bids for Suezmax and Capesize vessels.

Second Edition of Marine

Insurance Book Available

The Insurance Institute of

America is offering its second edi- tion of "Ocean Marine Insurance."

The text consists of two volumes and includes topics such as cargo, hull, protection and indemnity; freight and loss of hire, and builders risk, as well as many others. For additional information, call (212) 644-2100. 5832 Harvey Wilson

Houston, TX 77020 MILLIGAN MARINE SUPPLY, INC. (713) 675-4434 (713) 337-6194

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Circle 344 on Reader Service Card

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October, 1992 Circle 233 on Reader Service Card 95