OCTOBER 14, 2010 CIRCULAR NO. 29/10 TO MEMBERS OF THE ASSOCIATION (This Circular is addressed to owners of tank vessels carrying oil and calling at US ports) Dear Member: US VESSEL RESPONSE PLANS: SALVAGE AND MARINE FIREFIGHTING REQUIREMENTS: FINAL RULE: DECEMBER 31, 2008: DEADLINE FOR IMPLEMENTATION – FEBRUARY 22, 2011: UPDATE: SALVAGE AGREEMENTS Reference is made to Circular No. 21/10 of August 23, 2010 concerning the above, which provided a list of salvor contracts/funding agreements which had been reviewed by the International Group. On September 27, 2010 the US Coast Guard published Navigation and Vessel Inspection Circular **(NVIC) No 2-10** providing guidance for the implementation and enforcement of the requirements under the Final Rule. This NVIC can be found using the following link and instructions for access: www.uscg.mil/vrp - select “What’s new?” and then **NVIC 2-10** The NVIC provides a summary of the procedural steps necessary for updating owners’ existing vessel response plans as well as appendices containing answers to frequently asked questions and a glossary of terms. Your Managers regret that in the previous Circular there was an error in Annex 4 which contained a technical comparison of the contracts reviewed and a rate comparison. On page 4 there is an error under “contract” in the first two columns. In addition T&T Bisso has published some new rates which came into effect on September 1, 2010. A revised Annex 4 is attached updated and amended where relevant. The amendments are shown in yellow. There has been a small amendment to the DonjonSmit contract and this has been reissued with a new footer. The current salvor contracts/funding agreements which have been reviewed by the International Group and found to conform with the Vessel Response Plan salvage guidelines are the following: DonjonSmit – July 2010, Version 1.1 on page 1 and Version 1.0 on subsequent pages MRA – Dated August 2, 2010 Resolve – Dated June 14, 2010 T&T Bisso – Non US – April 22, 2010; US – June 15, 2010 Yours faithfully, Joseph E.M. Hughes, Chairman & CEO Shipowners Claims Bureau, Inc., Managers for THE AMERICAN CLUB All Clubs in the International Group of P&I Clubs have issued similar circulars. ANNEX 4 - IG Rate Comparison TECHNICAL COMPARISON OF CONTRACT TERMS DONJON-SMIT - July 2010, Version 1.1 on page 1 and Version 1.0 on subsequent pages (1) Category 1 - vessel adrift TOWHIRE SCOPIC rates with 20% uplift, out-of-pocket expenses at cost plus 15% 1.5 times retail price cap included, and 50% standby rate if not used New York Arbitration (2) Category 2 - lightly aground WRECKHIRE SCOPIC rates with 50% uplift, out-of-pocket expenses at cost plus 15% 1.5 times retail price cap included, and 50% standby rate if not used New York Arbitration (3) Category 3 - major casualty LOF2000 with SCOPIC incorporated [If Clause invoked] SCOPIC rates and uplift (25%) 1.5 times retail price cap included, and 50% standby rate if not used English law, Lloyd’s arbitration Owners’ right to appoint an owners’ representative is included. Insurance terms are included. MARINE RESPONSE ALLIANCE - Dated 2 August 2010 In-house tariffs with a range of rates depending on which entity is brought in. The entities are:  Marine Pollution Control Corp. for Emergency Lightering  Marine Hazard Response for Firefighting  Titan Salvage LLC for Marine Salvage Operations with Crowley Maritime Services tug rates The rates are the various in-house tariffs with no caps and no sta