10 February 2003 TO ALL MEMBERS Dear Sirs OIL POLLUTION IN THE UNITED STATES TANKER VOYAGE ADDITIONAL PREMIUM SYSTEM 2003/4 POLICY YEAR Special arrangements to cover US OPA 90 pollution liabilities in respect of tankers, which are otherwise excluded under the Rules, will apply again for the 2003/4 policy year. Members requiring cover must agree, before 20 February 2003, to make quarterly declarations in accordance with the terms of Rule 9.15.1.5.3. Members who in previous years have made declarations and who require cover for the 2003/4 policy year must continue making them. The additional premium rates are set out overleaf and represent an increase of 40% on the 2002/3 rates. That figure is derived from the increase in cost to the Association of the first US$1billion of cover under the International Group’s excess of loss reinsurance programme. As in recent years, vessels equipped with segregated ballast tanks (SBT’s) in accordance with the requirements of Regulation 13 of Annex 1 to MARPOL 73/78 will be surcharged at lower rates. Voyage declaration forms for each of the four quarters ending 20 May 2003, 20 August 2003, 20 November 2003 and 20 February 2004 are available for downloading, together with the instructions for the completion of same, on the Association’s website (www.lsso.com) under “Reports and Circulars”. Members should state explicitly in the declaration forms if vessels are equipped with SBT’s as defined above, or not so equipped. In the absence of an explicit declaration, it will be assumed that vessels are not equipped with SBT’s, and the higher rate of additional premium will apply. Definitions of US voyages and persistent oils are shown on the back of the declaration forms, although the lists are not exhaustive. Members should please contact the Managers if further forms are required. Yours faithfully A BILBROUGH & CO LTD (Managers) 5:320 Non-SBT SBT US$ US$ 1. Tankers of more than 1,000 GT: $0.1428 $0.126 per entered ton (including parcel tankers) per US voyage LOOP or Lightening: $0.0714 $0.063 per entered ton per US voyage 2. Tankers of 1,000 GT or less: Either $143.00 $126.00 per voyage or $2,856.00 $2,520.00 per annum 3. Parcel tankers carrying less than 5,000 m/t of persistent oil as cargo: $428.00 $378.00 per US voyage 4. Parcel tankers carrying 5,000 – 9,999 m/t of persistent oil as cargo: $1,075.00 $941.00 per US voyage THE LONDON STEAM-SHIP OWNERS’ MUTUAL INSURANCE ASSOCIATION LIMITED U.S. VOYAGE QUARTERLY DECLARATION PERIOD 20 FEBRUARY 2003 TO 20 MAY 2003 TO BE RETURNED TO CLUB BY 20 JULY 2003 N.B. It will be assumed that vessels are not equipped with SBT’s as defined overleaf, unless explicitly declared to be so equipped in the box below. Equipped with SBT’s: Equipped with SBT’s: N O T E TANKER NAME(S) VOYAGE DETAILS YESNO YES NO 1 Voyage 1 (if no US voyages enter “None”) 2 Date loaded (L) / Discharged (D) 3 Port/Location (Port name/LOOP/Offshore) 4 Type of cargo: Persistent (P) / Non-persistent (NP) / Chemical (Chem) / Other (O) If not (P) specify cargo 1 Voyage 2 (if no US voyages enter “None”) 2 Date loaded (L) / Discharged (D) 3 Port/Location (Port name/LOOP/Offshore) 4 Type of cargo: Persistent (P) / Non-persistent (NP) / Chemical (Chem) / Other (O) If not (P) specify cargo 1 Voyage 3 (if no US voyages enter “None”) 2 Date loaded (L) / Discharged (D) 3 Port/Location (Port name/LOOP/Offshore) 4 Type of cargo: Persistent (P) / Non-persistent (NP) / Chemical (Chem) / Other (O) If not (P) specify cargo