Page 27: of Maritime Reporter Magazine (September 1998)

EGAL UPDATE itatus Of OPA 90 Phase-Outs On U.S.-Flag Tankers Of Over 10,000 DWT irt Dimopoulos and Susan Geiger

Tie Oil Pollution Act of 1990

A 90) was passed in the wake he Exxon Valdez oil spill. The ;ute addresses oil pollution and iblishes liability for the dis- rge or substantial threat of a charge of oil to U.S. navigable ters and shorelines. OPA 90

Iresses the wide-ranging prob-

IS associated with preventing, ponding to, and paying for oil lution. It does so by creating a nprehensive prevention, ponse, liability, and compensa- n regime for dealing with vessel i facility-caused oil pollution in 3. territorial waters and the 1-mile Exclusive Economic Zone

S. Waters).

OPA 90 increases federal over- ht of oil transportation while rviding for greater environmen- safeguards. OPA 90 establishes tndards for vessel construction, jates requirements governing ?w licensing and manning; man- tes contingency planning; hances federal response capabil- r; broadens enforcement authori- l increases penalties; creates a w research and development ogram; increases potential lia- lities; and significantly increases lancial responsibility.

The most far reaching OPA 90 quirement in terms of macroeco- imic effects stems from Section 15 of OPA 90 which sets forth a andatory regime aimed at reduc- g the number of oil spill inci- ;nts involving single-hull tank ;ssels through mandating dou- e-hulls. Single-hull tank vessels ' 5,000 gt or more are prohibited om operating in U.S. Waters ?ter specified dates determined by le age of the vessel. Vessels with juble bottoms or double sides are igible to trade in U.S. Waters for period of five years later than an ijuivalent single-hull vessel. All

Jigle-hull vessels over 5,000 gt re prohibited from trading in U.S. /aters after 2015. Single-hull essels can use U.S. deepwater orts or designated lightering reas until 2015.

As statistics from the Maritime idministration indicate, several

J.S. companies operating Jones k.ct tankers will feel the effect of

Section 4115 during the next five o 10 years as they transition to double-hulls. The table and chart below indicates that a substantial percentage of the anticipated U.S.- flag tank phase-outs will occur from 1999-2008. In the year 2000 alone, 14 vessels representing 1,221,886 dwt. will be eliminated from U.S. trade. Single hull ves- sels scheduled for special survey shortly before their OPA 90 exit date, are likely to exit the trade at the time of their special survey in

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September, 1998 27