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NORTH AMERICAN PANEL MARCH 19, 2007 UPDATE ON US LEGAL ISSUES JOSEPH ANGELO DIRECTOR, REGULATORY AFFAIRS AND THE AMERICAS.

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Presentation on theme: "NORTH AMERICAN PANEL MARCH 19, 2007 UPDATE ON US LEGAL ISSUES JOSEPH ANGELO DIRECTOR, REGULATORY AFFAIRS AND THE AMERICAS."— Presentation transcript:

1 NORTH AMERICAN PANEL MARCH 19, 2007 UPDATE ON US LEGAL ISSUES JOSEPH ANGELO DIRECTOR, REGULATORY AFFAIRS AND THE AMERICAS

2 MASSACHUSETTS LAWSUITMASSACHUSETTS LAWSUIT RHODE ISLAND LAW FOR LNG TANKERSRHODE ISLAND LAW FOR LNG TANKERS BALLAST WATER LAWSUITBALLAST WATER LAWSUIT CALIFORNIA AIR RESOURCE BOARD AIR EMISSION REGSCALIFORNIA AIR RESOURCE BOARD AIR EMISSION REGS

3 MASS LAWSUIT JULY FEDERAL COURT RULES PROVISIONS OF MASS LAW INVALIDJULY FEDERAL COURT RULES PROVISIONS OF MASS LAW INVALID DECISION UPHOLDS COAST GUARD AUTHORITY OVER VESSEL OPERATIONS IN US WATERSDECISION UPHOLDS COAST GUARD AUTHORITY OVER VESSEL OPERATIONS IN US WATERS REINFORCES UNANIMOUS US SUPREME COURT DECISION IN US vs LOCKE WHEN INTERTANKO TOOK STATE OF WASHINGTON TO COURTREINFORCES UNANIMOUS US SUPREME COURT DECISION IN US vs LOCKE WHEN INTERTANKO TOOK STATE OF WASHINGTON TO COURT

4 MASS LAWSUIT SEPT MASS FILES NOTICE TO APPEAL FEDERAL COURT DECISIONSEPT MASS FILES NOTICE TO APPEAL FEDERAL COURT DECISION DECEMBER MASS FILES APPEALDECEMBER MASS FILES APPEAL FEBRUARY FEDERAL GOVT AND INDUSTRY COALITION SUBMIT RESPONSE TO MASS APPEALFEBRUARY FEDERAL GOVT AND INDUSTRY COALITION SUBMIT RESPONSE TO MASS APPEAL

5 RHODE ISLAND LAW RI LAW PROHIBITS LNG TANKERS FROM TRANSITING NARRAGANSETT BAY UNLESS OPERATIONAL CONDITIONS ARE METRI LAW PROHIBITS LNG TANKERS FROM TRANSITING NARRAGANSETT BAY UNLESS OPERATIONAL CONDITIONS ARE MET USCG INDICATES THAT THIS LAW IS PREEMPTED BY THEIR REGULATIONSUSCG INDICATES THAT THIS LAW IS PREEMPTED BY THEIR REGULATIONS CURRENTLY NO LNG TANKERS TRANSIT NARRAGANSETT BAYCURRENTLY NO LNG TANKERS TRANSIT NARRAGANSETT BAY PLANS BEING CONSIDERED TO BUILD LNG FACILITY AT FALLS RIVER, MASSACHUSETTSPLANS BEING CONSIDERED TO BUILD LNG FACILITY AT FALLS RIVER, MASSACHUSETTS USCG MONITORING DEVELOPMENTS TO DETERMINE IF COURT ACTION IS NEEDEDUSCG MONITORING DEVELOPMENTS TO DETERMINE IF COURT ACTION IS NEEDED

6 BALLAST WATER LAWSUIT SEPT 2006 FEDERAL COURT ORDERS EPA TO DEVELOP REGS FOR ALL SHIP DISCHARGES, INCLUDING BALLAST WATER, UNDER NPDES PERMIT SYSTEM NO LATER THAN SEPT 2008SEPT 2006 FEDERAL COURT ORDERS EPA TO DEVELOP REGS FOR ALL SHIP DISCHARGES, INCLUDING BALLAST WATER, UNDER NPDES PERMIT SYSTEM NO LATER THAN SEPT 2008 JUDGE ACKNOWLEDGES THAT USCG HAS AUTHORITY UNDER CERTAIN LAWS, BUT BELIEVES CONGRESS ALSO GAVE AUTHORITY TO EPA UNDER THE CLEAN WATER ACTJUDGE ACKNOWLEDGES THAT USCG HAS AUTHORITY UNDER CERTAIN LAWS, BUT BELIEVES CONGRESS ALSO GAVE AUTHORITY TO EPA UNDER THE CLEAN WATER ACT

7 BALLAST WATER LAWSUIT EPA DISAGREES WITH COURT DECISION - SIGNIFICANT IMPACT ON EPAEPA DISAGREES WITH COURT DECISION - SIGNIFICANT IMPACT ON EPA NOVEMBER 2006 – FEDERAL GOVT AND INDUSTRY COALITION FILE NOTICES OF INTENT TO APPEAL COURT ORDERNOVEMBER 2006 – FEDERAL GOVT AND INDUSTRY COALITION FILE NOTICES OF INTENT TO APPEAL COURT ORDER NOVEMBER 2006 – INDUSTRY COALITION SENDS LETTER TO DOJ URGING THEM TO SUBMIT APPEALNOVEMBER 2006 – INDUSTRY COALITION SENDS LETTER TO DOJ URGING THEM TO SUBMIT APPEAL MARCH 5 – FEDERAL GOVT AND INDUSTRY COALITION FILE APPEALSMARCH 5 – FEDERAL GOVT AND INDUSTRY COALITION FILE APPEALS

8 CARB AIR EMISSION REGS JAN 1, REGS FOR AUXILIARY ENGINES AND DIESEL ELECTRIC MAIN PROPULSION ENGINES IN EFFECTJAN 1, REGS FOR AUXILIARY ENGINES AND DIESEL ELECTRIC MAIN PROPULSION ENGINES IN EFFECT PMSA HAS GONE TO FEDERAL COURT SEEKING INJUNCTIVE RELIEFPMSA HAS GONE TO FEDERAL COURT SEEKING INJUNCTIVE RELIEF LAWSUIT ADDRESSES LIMITED ISSUESLAWSUIT ADDRESSES LIMITED ISSUES - 24 MILE JURISDICTION - FAILURE TO REQUEST EPA APPROVAL

9 CARB AIR EMISSION REGS CARB AIR EMISSION REGS ISSUED UNDER AUTHORITY OF CLEAN AIR ACTCARB AIR EMISSION REGS ISSUED UNDER AUTHORITY OF CLEAN AIR ACT CLEAN AIR ACT SPECIFICALLY GIVES CALIFORNIA AUTHORITY TO ISSUE MORE STRINGENT REQUIREMENTSCLEAN AIR ACT SPECIFICALLY GIVES CALIFORNIA AUTHORITY TO ISSUE MORE STRINGENT REQUIREMENTS CARB AIR EMISSION REGS ARE PERFORMANCE BASED, NOT PRESCRIPTIVE REQUIREMENTSCARB AIR EMISSION REGS ARE PERFORMANCE BASED, NOT PRESCRIPTIVE REQUIREMENTS

10 CARB AIR EMISSION REGS SHIPOWNER IS GIVEN THE OPTION OF HOW TO COMPLYSHIPOWNER IS GIVEN THE OPTION OF HOW TO COMPLY - FUEL WITH SULPHUR CONTENT LESS THAN 0.5% - INSTALL EQUIPMENT (??) ALTERNATIVE CONTROL EMISSION PLAN APPROVED BY CARB (FOR EXAMPLE - SHORE SIDE POWER)ALTERNATIVE CONTROL EMISSION PLAN APPROVED BY CARB (FOR EXAMPLE - SHORE SIDE POWER) PAYMENT OF NON-COMPLIANCE FEEPAYMENT OF NON-COMPLIANCE FEE

11 CARB AIR EMISSION REGS D/E ENGINES OTHERS D/E ENGINES OTHERS 1 ST PORT$32,500$13,000 2 ND PORT$65,000$26,000 3 RD PORT$97,500$39,000 4 TH PORT $130,000$52,000 5 TH PORT $162,500$65,000 OR MORE OR MORE

12 LEGAL APPROACH INTERTANKO IS NOT SEEKING TO TAKE A STATE TO FEDERAL COURTINTERTANKO IS NOT SEEKING TO TAKE A STATE TO FEDERAL COURT WHEN A STATE TAKES PREEMPTIVE ACTION, INTERTANKO ENCOURAGES THE FEDERAL GOVT TO TAKE THE STATE TO FEDERAL COURTWHEN A STATE TAKES PREEMPTIVE ACTION, INTERTANKO ENCOURAGES THE FEDERAL GOVT TO TAKE THE STATE TO FEDERAL COURT WHEN THE FEDERAL GOVT TAKES A STATE TO COURT, THEY ENCOURAGE INDUSTRY TO SUPPORT THEIR ACTIONWHEN THE FEDERAL GOVT TAKES A STATE TO COURT, THEY ENCOURAGE INDUSTRY TO SUPPORT THEIR ACTION

13 THANK YOU YOU


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