ITOPF – Associate Status for Non-Tankers

June 1999

The following is a copy of the Club’s January 1999 circular:

To the Members January 1999

Dear Sirs,

INTERNATIONAL TANKER OWNERS POLLUTION FEDERATION LIMITED ASSOCIATE STATUS FOR NON-TANKERS

The International Tanker Owners Pollution Federation Limited (ITOPF) was established as a non-profit making organisation in 1968, primarily to administer the Tanker Owner's Voluntary Oil Spill Compensation Agreement (TOVALOP). This remained an important function until 20 February 1997, when TOVALOP was terminated. Members were informed of these changes in the Club's Circular of December 1996 (B.257) at which time it was clear that ITOPF would continue to provide a broad range of technical services and advice to its tanker owner members and their P&I Clubs. This indeed has been and continues to be the case, and one of the principal benefits of ITOPF membership has been access to its technical staff, who can attend at and provide expert advice upon oil spills in any part of the world.

Most of the 400 incidents attended by ITOPF since the mid-1970s have involved tankers, but ITOPF's staff are also regularly called upon to assist in cases concerning other types of vessels. About 25% of all oil spills attended by ITOPF have in fact been bunker spills from non-tankers, whose owners and P&I Clubs have benefited from such assistance. ITOPF itself also benefits from involvement in non-tanker incidents, the income and experience thus generated allowing for further investment in and strengthening of its resources.

Last year ITOPF's Board agreed that non-tanker owners could for the first time enrol as associates of ITOPF, giving them access to its services. The Boards of the Group Clubs have supported this initiative, and subscription by non-tanker associates will follow the arrangements already in place for tanker owner members of ITOPF. So far as Members of the Club are concerned, therefore, the position concerning ITOPF as of 20 February 1999 will be as follows:

(1) The Club will continue to enrol its Members who are tanker owners as members of ITOPF, paying dues on their behalf out of the funds of the Association. The Club will enrol its Members who are non-tanker owners as associates of ITOPF, paying dues on their behalf out of the funds of the Association. Tanker owners can only become members, and not associates, of ITOPF.

(2) Dues for tanker owner members of ITOPF will be 0.85 of a U.K. penny per gross ton (reduced from the current rate of 0.9) from 20 February 1999. Dues for non-tanker owner associates of ITOPF will be 0.23 of a U.K. penny per gross ton from the same date.

(3) The rights and obligations of associates are set out in the terms and conditions of associate status, as approved by the Board of ITOPF, and attached to this circular. The terms and conditions of ITOPF membership, for tanker owners, are provided to its members by ITOPF.

Associates and their P&I Clubs will have access to the spill response services offered by ITOPF, and may obtain its publications and advice upon request and without charge. Although a number of existing ITOPF directors represent owners who operate both tankers and other types of vessel, ITOPF's board has decided to appoint two further directors to represent owners with associate status.

For the purposes of membership, ITOPF's definition of "tanker" now includes

"Any ship (whether or not self-propelled) designed, constructed or adapted for the carriage by water in bulk of crude petroleum, hydrocarbon products and any other liquid substance".

This definition is consistent with that of the Group Clubs, and it means that the owners of LPG and LNG carriers, as well as other types of tanker not previously eligible for ITOPF membership, will qualify for membership from 20 February 1999. In accordance with the procedures set out above, the Club will arrange for such membership unless instructed otherwise in any case.

Yours faithfully,