U.S.: Californian Salvage Regulations For Non-Tank Vessels

June 2003

New regulations concerning salvage, as described in Title 14. Sub-chapter 4. Section 827.02(n) of the Californian Code of Regulations, came into effect on 28 October 2002.

With effect from that date, all non-tank vessels of 300gt are required to identify in their vessel response plans certain pre-contracted resources for salvage, fire-fighting, emergency towage and wreck removal services. Such resources must maintain their equipment in a constant state of readiness and be capable of responding to a casualty within certain time periods specified in the regulations.

California's Office of Spill Prevention and Response have confirmed that agreements with salvors in the form of letters of intent, with specific contractual terms to be agreed in the event of a casualty, are acceptable. The Club would recommend that any contracts entered into with salvors be agreed on this basis to satisfy the Californian response planning requirements. The Club is available to advise which salvors are contracting on terms which conform with the Group's guidelines.

In the event of a casualty in circumstances where the abovementioned services are required, it is recommended that the shipowner liase closely with both his hull underwriters and the Club before any specific terms for services are agreed.