Page 26: of Maritime Reporter Magazine (October 1997)

WORKBOAT ANNUAL

Why Should The Words "Substantial Alteration" Or "Major Modification" Scare Vessel Owners by Charley Havnen, contributing writer

Each U.S. Coast Guard (USCG) ruling that a vessel has undergone a substantial alteration or major conversion is a separate determi- nation that can trigger a cascade of requirements leading to the vessel being re-admeasured and inspect- ed by the USCG as if it were newly built. For any existing vessel, either of these rulings can be cata- strophic.

A ruling that a vessel has under- gone a substantial alteration for vessels involved in international voyages could mean the applicabil- ity of Safety of Life At Sea (SOLAS) Convention where not previously required, or the use of a new date of construction by which various requirements under

SOLAS are determined to apply.

For more than a year, the USCG has been indicating that any change in a vessel's gross tonnage of more than one percent will con- stitute a substantial alteration.

The USCG has recently modified this policy, increasing it to a five percent change in the ITC gross or net tons.

The change was published as

Change 2 to the USCG's

Navigation and Vessel Inspection

Circular (NVIC) 11-93.

It should be noted that the new five percent figure applies only to vessels constructed after July 18, 1982. Those vessels whose con- struction was started prior to the 1982 date will continue to have the one percent criteria applied to determine if a substantial alter- ation has occurred.

A vessel ruled by the USCG to have undergone a major conver- sion would require a new set of drawings reflecting the vessel's current as built condition and resubmitting them to the USCG for approval under the new ton- nage as if it were a new vessel.

The keel laying date is used to determine the application of domestic regulations, as well as international rules. If the vessel in question is an Offshore Supply

Vessel (OSV), it would mean applicability of the regulations now applicable to new OSVs, 46

CFR Subchapter L. For an older passenger vessel under 100 gross tons, it could mean being required to rebuild the vessel to today's lat- est regulations.

The origin of major conversion is a 1988 amendment to Title 46 of the U.S. Code. 46 USC 2101(14a) defines a major conversion as being a vessel modification that does one of the following: • Changes the dimensions or car- rying capacity; •Changes the type; (Continued on page 31)

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