1 / 22

Houston Marine Insurance Seminar 2002

Houston Marine Insurance Seminar 2002. Pollution Basics. Exposures OPA 90 CERCLA State law Cargo owner’s contingent exposures Criminal and civil penalties. OPA 90 Definitions. Act of god Gross ton- ITC verses GRT Owner and operator Means owner and operator Demise charterer

twyla
Download Presentation

Houston Marine Insurance Seminar 2002

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Houston Marine Insurance Seminar2002

  2. Pollution Basics • Exposures • OPA 90 • CERCLA • State law • Cargo owner’s contingent exposures • Criminal and civil penalties

  3. OPA 90 Definitions • Act of god • Gross ton- ITC verses GRT • Owner and operator • Means owner and operator • Demise charterer • Shipyards and boat dealers • Tank vessel

  4. OPA 90 Amendments • Exclusions from definition of tank vessel • Edible oils financial responsibility • Offshore facility financial responsibility • Interim payments • Response vessel financial responsibility • Clarification of liability in response

  5. Additional OPA 90 Issues • Act of war /terrorism • Mobile offshore drilling unit (MODU) • Carrying oil from an offshore facility • Failure to cooperate

  6. State Regulation • Liability limits often greater than federal limits • Financial responsibility requirements • Response/contingency planning

  7. State Regulation…continued • Alaska • California • State law broader in scope

  8. State Regulation…continued • OPA 90 does not preempt state law in many areas of regulation • U.S. v. Locke (INTERTANKO) • Supreme Court Decision • Federal law controls equipment and operating standards • State standards OK for liability and financial responsibility • Bottom Line : States continue to pass new requirements for financial responsibility,ballast water, and in other environmental areas.

  9. Criminal Liability • Background • Greater potential that environmental violations will be treated criminally • Statutory Basis for Liability • OPA 90 • Migratory Bird Treaty Act • Refuse Act • Unseaworthyness

  10. Ballast Water…continued • Issue – non-indigenous aquatic species • Federal act ineffective • States have enacted mandatory ballast water management programs • Problematic statutory solutions • Greywater regulations in Alaska

  11. Incident Response • Coverage conflicts among pollution, hull and P & I and underwriters • Salvage/wreck removal • Firefighting • Pollution

  12. Ballast Water • Should invasive species events be considered “pollution?” • Will industry react?

  13. Criminal Liability • One Example: Eklof Towing (1998) • $9.5 million fine • Fine and Probation for company president and tug captain • Collateral Consequences • Lose Gov’t Contracts • Onerous terms of Probation

  14. Criminal Liability • Other Examples • Canadian Prosecution for Migratory Bird Convention Act (2001) • Other U.S. Prosecutions for Deliberate Discharges or falsification of Log Books

  15. Criminal Liability • Miscellaneous issues • No more insurance for fines? • Financial guarantee system • Effect of criminal investigation on spill response efforts

  16. Criminal Liability • Solutions • Legislative • Educate Employees • Identify Criminal Defense Counsel • EPA / DOJ want compliance programs • Choose Location of a Violation Carefully

  17. Defense Fines and Penalties Endorsement • Covers Certain fines under FWPCA, Refuse act and MBTA. • Legal Defense • Public policy

  18. Foreign Asset Control Act • The Cuban Assets Control Regulations, 15 CFR Part 515 • issued by the U.S.Government on 8 July 1963 under the Trading With the Enemy Act in response to certain hostile actions by the Cuban government. • Administered by the U.S.Treasury Department's Office of Foreign Assets Control. • www.ustreas.gov/ofac • Goal of the sanctions is to isolate the Cuban government economically and deprive it of U.S. dollars.

  19. Foreign Asset Control Act …Continued • Criminal penalties for violating the sanctions range up to 10 years in prison,$1,000,000 in corporate fines,and $250,000 in individual fines.Civil penalties up to $55,000 per violation may also be imposed. • ...No products,technology,or services may be exported from the united states to Cuba, either directly or through third countries,such as Canada or Mexico.…Provision of consulting services is also prohibited.

  20. Cargo Owners • Alaska • California • Florida(contingent) • Maryland • New Jersey (contingent) • North Carolina • Oregon • Washington

  21. Additional Endorsements • Offloading • Public vessels • Derelict substance • Marina coverage • Storage ashore

  22. Further Information WWW.WQIS.COM

More Related