Page 9: of Maritime Reporter Magazine (September 2004)

Government Update

Signed Confessions

Dennis L. Bryant, Senior Maritime

Counsel at the law firm of Holland & Knight, Washington, D.C., is a contributing editor of MR/EN.

By Dennis Bryant, Senior Counsel,

Holland & Knight LLP

Many in the maritime industry are beginning to view the oil record book as a signed confession. The number of prosecutions in the United States for fraudulent entries in oil record books is rising exponentially and fines have recently skyrocketed. In the years 1998 through 2001, research has revealed one prosecution in each year for oil record book violations. In 2002, there were seven prosecutions - and four of those were against individual chief engineers.

In 2003, nine prosecutions, four of which were again against individual chief engineers. Through the middle of

August 2004. there have been seven prosecutions, and only two were direct- ed at individual chief engineers.

Criminal fines to date have totaled $52,285,000. Shipping companies are also being required to implement court- supervised compliance programs.

There has been a veritable explosion in the number and amounts of awards made to crewmembers who report viola- tions to the U.S. Coast Guard. In 1998, the first award ($500,000) was made to a crewmember on a cruise ship operat- ing in Alaska. In 2002, an award of $250,000 was made to a crewmember on another cruise ship, this one operat- ing out of Florida. The third award ($225,000) was made in 2003 to a crewmember on a bulk carrier docked in

Portland, Oregon. So far in 2004, there have been three awards totaling $3.4 million. The awards have reached a level where virtually any crewmember suspected of implication in an oil record book falsification or an environmental violation (or simply disgruntled with his

September 2004 or her employer) may be willing to pro- vide evidence to the Coast Guard or other law enforcement official.

How do we get to this sad state of events?

Waste liquids naturally accumulate in the bilges of ships. Part of those waste liquids consists of oil. To prevent the waste liquids from overwhelming the cargo spaces and the engine room, the material is periodically discharged over the side and into the ocean. Some years

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