Bryant’s Maritime Blog–4 February 2011

Headlines: USCG – Great Lakes Pilotage rate adjustment; Potomac River – Marine Corps Base Quantico restricted area; FEMA – extension requests for FY 2006 preparedness grants; USCG – NMC performance report; House – bill introduced re payment of full costs of offshore oil spills; Senate – bill introduced to research Arctic oil spills; Senate – bill introduced to study offshore oil spills; Senate – bill introduced re sharing of revenues from Arctic OCS; Senate – bill introduced re payment of full costs of offshore oil spills; Senate – bill introduced re payment of full costs of oil spills; UN – anti-piracy action plan; EC – work with IMO on GHG emissions; EMSA – work program; and UK Supreme Court – cargo damage covered by “all risks” policy.

February 4, 2011

Bryant’s Maritime Blog
Bryant’s Maritime Consulting - 4845 SW 91^st Way - Gainesville, FL 32608-8135 - USA

Tel: 1-352-692-5493 – Email: dennis.l.bryant@gmail.com – Internet: http://brymar-consulting.com

Note: This blog is one section of the Bryant’s Maritime Consulting website. Visit the site for more extensive maritime regulatory information. Individual concerns may be addressed by retaining Dennis Bryant directly. Much of the highlighted text in this newsletter constitutes links to Internet sites providing more detailed information. Links on this page may be in PDF format, requiring use of Adobe Acrobat Reader. Comments on these postings are encouraged and may be made by clicking the envelope that appears at the end of each posting. Be aware that the daily blog entry is a single posting, even though it contains a number of individual items. Remembering the future.

USCG – Great Lakes Pilotage rate adjustment

The US Coast Guard issued a final rule increasing the rates for pilotage service on the Great Lakes to generate sufficient revenue to cover allowable expenses, target pilot compensation, and return on investment. The rule comes into effect on August 1. 76 Fed. Reg. 6351 (February 4, 2011). Note: Possibly the most interesting part of this otherwise routine rulemaking is the 0.994% deflation factor, reflecting deflation between 2008 and 2009, the latest years for which data are available.

Potomac River – Marine Corps Base Quantico restricted area

The US Army Corps of Engineers issued a final rule establishing a restricted area in certain waters of the Potomac River offshore of the Marine Corps Air Facility at Marine Corps Base Quantico. The rule comes into effect on March 7. 76 Fed. Reg. 6327 (February 4, 2011).

FEMA – extension requests for FY 2006 preparedness grants

The Federal Emergency Management Agency (FEMA) Grant Programs Directorate (GPD issued Information Bulletin 354 announcing that extension requests for FY 2006 Preparedness Grant Programs (including the Port Security Grant Program – PSGP) must be received by FEMA no later than March 31 and that there will be no extensions on FY 2006 performance periods past June 30. (2/1/11).

USCG – NMC performance report

The US Coast Guard National Maritime Center (NMC) released its January Performance Report. The report shows that the inventory of merchant mariner credential applications has grown during the period and that the throughput has decreased. (2/3/11).

House – bill introduced re payment of full costs of offshore oil spills

Representative Holt (D-NJ) introduced the Big Oil Bailout Prevention Act of 2011 (H.R. 492) to amend the Oil Pollution Act of 1990 to require responsible parties to pay the full cost of offshore oil spills, and for other purposes. (1/26/11).

Senate – bill introduced to research Arctic oil spills

Senator Begich (D-AK) introduced the Responsible Arctic Energy Development Act of 2011 (S. 203) to direct the Administrator of the National Oceanic and Atmospheric Administration to institute research into the special circumstances associated with oil spill prevention and response in Arctic waters, including assessment of impacts on Arctic marine mammals and other wildlife, marine debris research and removal, and risk assessment, and for other purposes. (1/26/11).

Senate – bill introduced to study offshore oil spills

Senator Begich (D-AK) introduced the Resources of Oil Spill Research and Prevention Act (S. 204) to amend the Oil Pollution Act of 1990 to permit funds in the Oil Spill Liability Trust to be used by the National Oceanic and Atmospheric Administration, the Coast Guard, and other Federal agencies for certain research, prevention, and response capabilities with respect to discharges of oil, for environmental studies, and for grant programs to communities affected by oil spills on the outer Continental Shelf, and to provide funding for such uses and for other purposes. (1/26/11).

Senate – bill introduced re sharing of revenues from Arctic OCS

Senator Begich (D-AK) introduced the Alaska Adjacent Zone Safe Oil Transport and Revenue Sharing Act (S. 205) to amend the Outer Continental Shelf Lands Act to require that oil produced from Federal leases in certain Arctic waters be transported by pipeline to onshore facilities and to provide for the sharing of certain outer Continental Shelf revenues from areas in the Alaska Adjacent Zone. (1/26/11).

Senate – bill introduced re payment of full costs of offshore oil spills

Senator Menendez (D-NJ) introduced the Big Oil Bailout Prevention Unlimited Liability Act of 2011 (S. 214) to amend the Oil Pollution Act of 1990 to require oil polluters to pay the full cost of oil spills, and for other purposes. (1/27/11).

Senate – bill introduced re payment of full costs of oil spills

Senator Menendez (D-NJ) introduced the Big Oil Bailout Prevention Trust Fund Act of 2011 (S. 215) to amend the Internal Revenue Code of 1986 to require oil polluters to pay the full cost of oil spills, and for other purposes. (1/27/11).

UN – anti-piracy action plan

The United Nations (UN) issued a news release stating that Secretary-General Ban Ki-moon is calling for a long-term strategy of deterrence, security, rule of law, and development to fight the scourge of piracy off the Somali coast. In announcing the launch of the World Maritime Day theme, IMO Secretary-General Efthimios Mitropoulos said: “We were appalled by yesterday’s news that pirates had executed, apparently in cold blood, a seafarer on the Beluga Nomination.” The main aims of the Action Plan are to: (1) increase pressure at the political level to secure the release of all hostages held by the pirates; (2) review and improve the Best Management Practices to deter pirate attacks; (3) promote better support from and cooperation with navies operating in pirate waters; (4) promote anti-piracy coordination; (5) assist States to build capacity to deter piracy and to bring pirates to justice; and (6) provide care for those attacked and their families. (2/3/11).

EC – work with IMO on GHG emissions

The European Commission (EC) issued a press release stating that, in a global sector such as maritime transport, efforts to reduce greenhouse gas (GHG) emissions that are the most environmentally effective and make economic sense can best be achieved at the global level, through the IMO. The EU will continue its efforts to achieve an international solution in the UN. (2/3/11).

EMSA – work program

The European Maritime Safety Agency (EMSA) released its Work Programme 2011. Among the topics addressed are maritime surveillance; monitoring the implementation of EU legislation; technical and scientific assistance; and pollution preparedness. (2/1/11).

UK Supreme Court – cargo damage covered by “all risks” policy

In a 50-page judgment that included separate, but concurring opinions by four of five Lords, the UK Supreme Court ruled that fatigue failure of the legs of a large jack-up rig were the result of perils of the sea and not by inherent vice or nature of the subject matter insured. In the instant case, the insured purchased the rig for conversion into a mobile offshore production unit. This required transportation of the rig from Galveston to Malaysia. The rig was placed on a large barge, to be towed around the Cape of Good Hope. The three legs of the rig extended approximately 300 feet into the air. The insurers required that the rig, and particularly its legs, be carefully inspected at Galveston and again in South Africa. In South Africa, stress fractures were discovered and repairs were made. Shortly after departing South Africa, all three legs broke off as the barge rolled in moderately severe weather. Insurers denied coverage, asserting that the damage was caused by inherent vice or the nature of the subject matter insured, as the weather was not outside what should be expected in those waters. The Supreme Court ruled that, applying commonsense principles, the loss was the result of perils of the sea. Cargo is not required to be seaworthy to be entitled to coverage by an “all risks” insurance policy. Global Process Systems v Syarikat Takaful Malaysia Berhad, [2011] UKSC 5 (1 February 2011).

If you have questions regarding the above items, please contact the editor:

Dennis L. Bryant

Bryant’s Maritime Consulting

4845 SW 91^st Way
Gainesville, FL 32608-8135

USA

1-352-692-5493
dennis.l.bryant@gmail.com

http://brymar-consulting.com

© Dennis L. Bryant – February 2011

Redistribution permitted with attribution