American Club Circular No. 26/12 1 OCTOBER 5, 2012 CIRCULAR NO. 26/12 TO MEMBERS OF THE ASSOCIATION Dear Member: POLLUTION IN THE UNITED STATES: NRC AND MSRC: ADDENDA CONCERNING USE OF DISPERSANTS TO CONTRACTS FOR TANK VESSELS. VESSEL RESPONSE PLANS: GENERAL CONFORMITY WITH INTERNATIONAL GROUP GUIDELINES. Members will recall that, as from February 22, 2011, tank vessel operators were required to include a capability for the aerial application of dispersants in their vessel response plans (VRPs). Both of the main oil spill removal organizations (OSROs), Marine Spill Response Corporation (MSRC) and National Response Corporation (NRC), confirmed that they had such capability. However, as advised in Circular No. 24/11 of August 31, 2011, MSRC required that its customers sign an addendum (MSRC Addendum) to their standard service agreement before including MSRC dispersant capability in their VRP. The MSRC Addendum has the footer “Version 22 August 2011.” NRC are now introducing a similar addendum (NRC Addendum) to their existing contract: “Agreement for provision of Response Services,” bearing the footer: “Version September 15, 2004.” The NRC Addendum is entitled “Alternative Technologies Amendment to Agreement for Provision of Response Resources (Tank Vessels)” and has the footer “September 27, 2012.” It will come into effect on January 1, 2013. Certain terms of both the MSRC Addendum and the NRC Addendum do not conform with the International Group (IG) guidelines on VRPs. Therefore, agreeing to the terms of either addenda could result in Members’ incurring liabilities which fall outside the scope of Club cover. Members wishing to obtain additional cover from the market for such liabilities can contact the Managers for details (as previously advised in relation to the MSRC Addendum). However, it should be noted that this additional insurance provides a limited level of cover. For NRC clients, there is also the alternative of not signing the NRC Addendum, but instead paying an additional annual charge of USD 250 per vessel. This option would not prejudice Club cover and would avoid the need for additional insurance. The full limits of Club cover would remain in place. All Members operating tank vessels are reminded that, whether they have cited NRC or MSRC in their plans, if their vessels are calling at Hawaiian ports it will be necessary to cite Clean Islands Council in the VRP as well. The Clean Islands Council contract does not conform with the IG VRP guidelines. Therefore, signing their contract could result in Members’ incurring liabilities which fall outside the scope of Club cover. Members wishing to obtain additional cover from the market for such liabilities can contact the Managers for details. At the present time non-tank vessels are not required to include a capability for the aerial application of dispersants in their VRPs. American Club Circular No. 26/12 2 Vessel Response Plans – General Conformity with International Group Guidelines Members are reminded that, as set out in Circular No. 15/09 of May 28, 2009, certain contracts for pollution response services do not conform with the IG guidelines for vessel response plan contracts. Use of such contracts – which in certain geographical areas may be unavoidable for want of alternative resources – may consequently expose Members to liabilities that fall outside Club cover. A list of conforming contracts is available from the Managers. Clubs are able to arrange some limited cover fo