Alaska - Nontank Vessel Financial Responsibility Increase

September 2008

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The Alaska Department of Environmental Conservation (ADEC) previously announced an increase in the Financial Responsibility requirements for oil terminals, railroad tank cars and vessels operating in Alaska. These proposed changes will only  impact on nontank owners/operators that currently have Alaska COFRs, but do not have pollution insurance coverage in excess of Alaska‚Äôs new requirements.

As of 1 October 2008, the amount of pollution coverage required for nontank vessels carrying primarily persistent fuel oil would be $469.80 per barrel or $7,830,000, whichever is greater. For vessels carrying primarily non-persistent fuel oil the amount would be $156.60 per barrel or $1,566,000, whichever is greater. 

Owners and operators affected by these requirements should ensure that the validity of their Alaska COFR is maintained and, if necessary, make arrangements to increase pollution coverage accordingly.  

Based on information provided in ECM Maritime Services Client Alert 22 of 23 September 2008