5 January 1999 TO ALL MEMBERS Dear Sirs ITOPF - ASSOCIATE STATUS The International Tanker Owners Pollution Federation Ltd (ITOPF) was established as a non-profit making organisation in 1968, primarily to administer the TOVALOP voluntary oil spill compensation agreement. This remained an important function up until 20 February 1997 when TOVALOP was terminated. However, the main focus of ITOPF’s activities for more than 25 years has been and continues to be the provision of a broad range of technical services in the field of oil pollution to and on behalf of shipowners (most especially the organisation’s tanker owner Members), their P&I insurers and other groups such as the International Oil Pollution Compensation Funds. At the request of its Board, ITOPF has recently undertaken a comprehensive review of its services, which include: ∗Response to marine spills ∗Damage assessment and claims analysis ∗Contingency planning and advisory work ∗Training and education ∗Information services ITOPF’s activities in all these areas have established its credibility as a source of objective technical advice, expertise and information on oil spill matters. This has generated many valuable relationships with Governments, regional authorities and intergovernmental organisations around the world. ITOPF’s priority service is responding to marine oil spills and the organisation’s team of highly-experienced technical staff are at constant readiness to travel anywhere in the world at a few hours notice. Although the majority of the 400 incidents attended on-site by ITOPF staff since the mid-1970=s have involved tankers, the Clubs have often called upon ITOPF to assist in cases of bunker spills from non-tankers. Whereas tanker owners who are Members of ITOPF pay dues and receive technical assistance following a spill on an expenses only basis, non-tanker owners have been charged a daily fee for such assistance. Over the last ten years, about 25% of all oil spills attended by ITOPF have been bunker spills from non-tankers, although only about 3% of ITOPF’s total income has derived from such activities. Whilst the work of ITOPF has therefore been of considerable benefit to the shipowning community in general, it is evident that the cost of maintaining the organisation’s expertise and technical services has been unfairly distributed between tanker owners and non-tanker owners. - 2 On the recommendation of its Board, the ITOPF Membership at its Annual General Meeting on 5 November 1998 accordingly voted in favour of a Special Resolution to amend the organisation’s Memorandum and Articles of Association, amongst other things to permit non-tanker owners to become Associates of ITOPF with effect from 20 February 1999. Oil spills are viewed with increasing concern by Governments and others around the world. The way in which each spill is handled can have a direct effect on the attitudes of Governments and claimants in subsequent cargo and bunker spills. By permitting non-tanker owners to become Associates of ITOPF additional income will be generated which will allow ITOPF to strengthen its technical resources and increase the extent of its core activities. This will benefit all shipowners and their Clubs. Your Committee, along with the Boards/Committees of all the other Clubs in the International Group, has considered and given its support to enrolling non-tanker owners as Associates of ITOPF. Because the potential number of Associates comprises owners of approximately