Alaska Oil Pollution Certificates for Non-Tank Vessels - Proof of Financial Responsibility Requirements

Advice

Published: 18 August 2000

As from 1 September 2000 a recent State Law requires owners and operators of non-tank vessels in excess of 400 GT to obtain Certificates of Financial Responsibility (COFRs) for oil spills occurring in Alaskan waters.

The Alaska Department of Environmental Conservation (ADEC) has announced that the regulations to implement the requirements will not be effective by 1 September, and that an interim policy on certification will be adopted.

Proof of financial responsibility must be established as follows:

1) For vessels carrying predominantly persistent products, USD 300 per incident for each barrel of oil storage capacity, or USD 5 mill, whichever the greater;

2) For vessels carrying predominantly non-persistent products, USD 100 per incident for each barrel of oil storage capacity or USD 1 mill, whichever the greater.

A Certificate of Entry in the Association will be accepted as evidence of Financial Responsibility, except for sums falling within the deductible under the COE. It appears that ADEC will require some other form of financial responsibility for the deductibles. The following options are available:

  • Affidavit of self-insurance and most recent audited financial statement
  • Insurance certificate and insurance policy
  • Surety Bond
  • Financial guarantee, accompanied by guarantor’s evidence of self-insurance
  • Certificate of deposit with assignment of negotiable interest

3) Owners and operators who already have approved Certificates of Financial Responsibility for tank vessels, may amend their current applications to include non-tank vessels.

Application forms can be obtained from the following address:

Alaska Department of Environmental Conservation
Financial Responsibility
Division of Spill Prevention & Response
4101 Willoughby Avenue, Suite 105
Juneau, Alaska 99801-1795, USA

Telephone: +1 (907) 465 5225, Telefax: +1 (907) 465 5245

To ensure compliance with the 1 September 2000 deadline, owners or operators of non-tank vessels must submit their application together with supporting documentation to the Alaskan Department of Environmental Conservation no later than.