1 February 2002 TO ALL MEMBERS Dear Sirs OIL POLLUTION IN THE UNITED STATES TANKER VOYAGE PREMIUM SURCHARGE SYSTEM 2002/2003 POLICY YEAR Since 1991 the International Group of P&I Clubs has applied a voyage surcharge in premium to tankers carrying persistent oil to or from the United States, in order to protect the International Group’s Pooling and Excess Loss Reinsurance arrangements against the distorting effect of the likely increase in pollution costs arising from the United States Oil Pollution Act 1990 (“OPA 1990”), and similar legislation enacted by individual States. Similar arrangements have applied for subsequent Policy Years, subject to annual variations in the surcharge rates. This additional premium system will continue to apply for the 2002/2003 Policy Year, but with a 20% increase in last year’s rates. The Club’s cover for all tankers capable of carrying oil in bulk as cargo will continue to incorporate the following Exclusion Clause: “Excluding any and all claims in respect of oil pollution arising out of any incident to which the U.S. Oil Pollution Act 1990 is applicable”. The Exclusion Clause will apply unless Members agree before 20 February 2002 to undertake (1) to make quarterly declarations in arrears, at the latest within two months of the end of each quarter shown on the attached declaration forms, and (2) to pay the additional premium required in respect of voyages to or from the USA or to U.S. waters. However, requests from Members in previous years for the lifting of the Exclusion Clause will be treated as applying also to 2002/2003, and such Members need therefore take no action until the first declaration form is due to be returned, unless they wish the Exclusion Clause to be reinstated, in which case they should contact the Managers. Members should note: (a) special considerations will continue to apply to Parcel Tankers, which are defined as ships constructed or adapted primarily to carry cargoes of noxious liquid substances in bulk, and capable of carrying at least 10 grades simultaneously, having been issued with an international certificate of fitness for the carriage of dangerous chemicals in bulk; P.T.O. - 2 (b) as for the last few years, vessels equipped with segregated ballast tanks (SBT’s) in accordance with the requirements of Regulation 13 of Annex 1 to MARPOL 73/78 will be surcharged at lower rates; (c) in all cases, the surcharge rate will be halved in respect of cargoes exclusively discharged at LOOP (Louisiana Offshore Oil Port) or exclusively transferred to another ship at a place approved by the U.S. Coast Guard and in the Exclusive Economic Zone (“EEZ”) as defined in OPA 1990. Non-SBTSBT TankersTankers 1.Tankers of more than US$0.102US$0.09per gross ton, per 1,000 g.t.U.S. voyage 2.Tankers of EitherUS$102US$90per U.S. voyage 1,000 g.t. or lessorUS$2,040US$1,800per annum 3.Parcel Tankers carrying less than 5,000 m/t of US$306US$270per U.S. voyage persistent oil as cargo 4.Parcel tankers carrying 5,000 to 9,999 m/t US$768US$672per U.S. voyage of persistent oil as cargo The maximum charge or “cap” of 20 voyages in the Policy Year will continue to apply. Voyage declaration forms for each of the four quarters ending 20 May 2002, 20 August 2002, 20 November 2002 and 20 February 2003 are attached to this Circular. Members should state explicitly on the declaration forms if vessels are equipped with SBT’s as defined above, or not so equipped. In the absence of an explicit declaration, it will be as