American Club Circular No. 16/12 1 JUNE 8, 2012 CIRCULAR NO. 16/12 TO MEMBERS OF THE ASSOCIATION Dear Member: CONDITION SURVEY REQUIREMENT FOR TANKERS CARRYING HEAVY FUEL OIL (HFO) AS CARGO As part of a concerted industry effort to ensure higher ship standards, the International Group of P&I Clubs is continuing in its implementation of survey triggers for seagoing vessels of 10 years of age or more carrying HFO. As a consequence, all sea-going vessels aged 10 years or more which have carried heavy HFO as cargo within the previous 12 months will subject to condition survey, unless:  the vessel has undergone a P&I club condition survey during the previous 12 months; or  the vessel has undergone a Special Survey during the previous 6 months; or  the vessel has a valid Condition Assessment Program (CAP) rating of 1 or 2 with a classification society having membership in the International Association of Classification Societies (IACS). HFO is defined as residual fuel with a kinematic viscosity of 380 centipoises when measured at 50 degrees Celsius by the ISO 3104 test method. This excludes vessels carrying intermediate fuel oils or heavy crudes, as well as those carrying bitumen or tar. Members should note that a declaration is now required so that the Club may determine whether HFO has in fact been carried by an insured vessel as cargo during a relevant policy period. Therefore, the first declaration must be made this year as soon as possible, but not later than August 31, 2012 for vessels carrying HFO between March 20, 2011 and March 20, 2012. If a vessel continues to carry HFO as cargo over a period of successive years, the Club is not obliged to carry out a survey every year. However, a survey will need to be held at least every three years after the first survey has taken place. It is at the Club’s discretion whether or not to undertake surveys on a more frequent basis. As always, the Managers will be pleased to respond to all enquiries arising from the above. Please direct all declarations and inquiries to the Loss Prevention, Risk Control and Technical Services Department at surveys@american-club.com , or to fax number +1 212-847-4596. Yours faithfully, Joseph E.M. Hughes, Chairman & CEO Shipowners Claims Bureau, Inc., Managers for THE AMERICAN CLUB ANNUAL DECLARATION FORM FOR CARRIAGE OF HEAVY FUEL OIL—P&I OWNED ENTRIES ONLY For P&I owned entered vessels having carried HFO * in the period from March 20, 2011 to March 20, 2012. Please direct all declarations and inquiries to the Loss Prev ention, Risk Control and Technical Services Department at surveys@american-club.com , or to fax number +1 212-847-4596. HFO Ca rrie d Has a P&I Condition Survey been carried out within the last 12 months? Ha s th e ve sse l p a sse d a class Special Survey within the last 6 months? Y/N See note 2 Y/N See note 3 Y/N See note 4 Hull CAP:___ _ Date: Machinery CAP:___ _ Date: Cargo System CAP:___ _ Date: Hull CAP:___ _ Date: Machinery CAP:___ _ Date: Cargo System CAP:___ _ Date: Hull CAP:___ _ Date: Machinery CAP:___ _ Date: Cargo System CAP:___ _ Date: Notes: If YES please provide the date when the cap was obtained. VESSEL IMO 2) Answer YES (Y) if the vessel has carried HFO during the prior policy year. HFO is defined as follows:5) Complete only if the vessel HAS and is maintaining a CAP 1 or CAP 2 status with any IACS classification society. 3) Answer YES (Y) if the vessel has passed a P&I Condition Survey during the prior policy year 4) Answer YES