Page 17: of Maritime Reporter Magazine (February 2004)

OMI Pleads Guilty to Illegal Dump, To Pay $4.2M Fine

The U.S. Department of Justice said that OMI Corporation pleaded guilty to preparing false documents in an effort to cover up the illegal dumping of thou- sands of gallons of waste oil and sludge at sea. OMI also agreed to pay a S4.2 million fine and serve three years proba- tion. A ship captain and chief engineer previously pled guilty in connection with the case. The ship involved in the case, the Motor Tanker Guadalupe, owned and operated by wholly owned subsidiaries of OMI Corporation, made port calls in the U.S.. Europe, the

Caribbean and Latin America. Ships such as the Guadalupe generate waste oil and sludge in the process of purify- ing the heavy fuel oil that is used to power the ship. Like other ships, the

Guadalupe was equipped with a system for processing this waste oil and sludge.

Under this system, the waste oil and sludge is supposed to be burned in an on-board incinerator or off-loaded to shore or barge disposal facilities,

Christie said.

In addition, the Guadalupe was equipped with an oily water separator system designed to process oily water that collects in lowermost compartments of the ship.

The clean water is discharged into the sea, but the oily bilge water is supposed to be sent to the system for processing waste oil and sludge. Under U.S. law, ships such as the Guadalupe that enter

U.S. waters are required to maintain an

Oil Record Book relating to the han- dling of oil produced in the engine room.

OMI admitted to Judge Hayden that, from around May to September of 2001, a chief engineer authorized ship engi- neers to bypass the incinerator and oily- water separator system on the

Guadalupe, discharging waste oil, sludge and oily-water mixtures directly into the high seas. In an effort to conceal these oil discharges, false and fraudulent entries were made in the Oil Record

Book relating to the handling and dis- charge of the waste oil.

On September 10, 2001, the U.S.

Coast Guard and the Environmental

Protection Agency boarded the ship in the Port of Carteret to conduct an inspection, and were presented with the false Oil Record Book. OMI admitted.

In addition, once he learned that dis- charges had taken place, the Captain of the ship participated in efforts to cover up what had happened. OMI admitted.

UAE Shipbuilder Wins $500M in Contracts

A United Arab Emirates shipbuilding company has won a $500m contract from the Gulf Arab state's navy to build six warships using French technology.

Abu Dhabi Ship Building (ADSB) said that the corvettes, known as the

Baynunah Class, will be 70 m long and equipped with combat systems includ-

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