By: Lars Perkins 36 Mill Plain Road, Suite 410 Danbury, CT Phone: (203) Fax: (203)

OPA Removal Obligations Are Defined Broadly Enough To Require Raising A Vessel Hull Underwriters collect premiums to provide sue & labor and salvage coverage P&I Underwriters collect premiums to provide coverage for removal of wreck obligations Pollution Underwriters do not wish to duplicate coverage for raising a vessel but cannot raise policy defenses as a COFR guarantor

Past Results Are Not A Guarantee Of Future Performance Minimize Impact On Pricing By Explaining What Has Been Done To Prevent Similar Spills In The Future

Self-Propelled Vessels Fuel & Oil Aboard To Operate Can Spill Themselves Can Cause Third Party Spills Non-Self-Propelled Vessels Risks Defined More By Pollutants Aboard Subrogation Rights May Exist Against Tug

GT Is A Volumetric Measurement Defines Liability Under Both OPA and CERLCA Regulatory Tonnage Lower Than ITC Tonnage 33 CFR Part – Using Regulatory versus ITC Application For Simplified Measurement

Certificate Of Financial Responsibility 33 USC § 2716 – The responsible party for 1)any vessel over 300 GRT (except a non-self- propelled vessel that does not carry oil as cargo or fuel) 2)any vessel using the waters of the EEZ to transship or lighter oil shall establish and maintain evidence of financial responsibility

The Oil Pollution Act of 1990 limits of liability for vessels are Single-Hull Tank Vessels Over 3,000 GT Greater Of $23,496,000 or $3,200 Per Gross Ton Less Than Or Equal To 3,000 GT Greater Of $6,408,000 or $3,200 Per Gross Ton Double-Hull Tank Vessels Over 3,000 GRT Greater Of $17,088,000 or $2,000 Per Gross Ton Less Than Or Equal To 3,000 GT Greater Of $4,272,000 or $2,000 Per Gross Ton Any Vessel Other Than A Tank Vessel Greater Of $854,400 or $1,000 Per Gross Ton Source: 33 CFR § – Effective July 31, 2009

CERCLA – Hazardous Substance Liability Comprehensive Environmental Response Compensation And Liability Act CERCLA liability limits for vessels are the greater of $500,000 or $300 per gross ton for vessels not moving hazardous substances as cargo $5,000,000 or $300 per gross ton for vessels moving hazardous substance as cargo List Of CERCLA Substances – 40 CFR § 302.4

Policy Specifically Addresses U.S. Liabilities Foreign Waters Endorsement Is Available Lower Liability Outside US May Be Offset By Higher Response Costs

Self-Propelled versus Non-Self-Propelled Cargo 1) Oil (Persistent/Non-Persistent) 2) Hazardous Substances – MSDS 3) Non-OPA/Non-CERCLA Substances Construction – Single versus Double Hull GT

Tugs Gross Tonnage Towing Oil/Chemical Barges Fishing Vessels Gross Tonnage Description Of Type Of Fishing Vessel Offshore Supply Vessels Gross Tonnage CERCLA Substances As Cargo? Other Vessels – Crewboats, Passenger Vessels, Pleasure Yachts Gross Tonnage

Barges Type/Description Gross Tonnage Hazardous Substances As Cargo? Amount Of Fuel/Oil Aboard a) <5 Gallons – COFR not required b) <10,000 Gallons c) >10,000 Gallons

Special Equipment Spuds Legs Lifts Jack-ups Description Of Operations Dredging Salvage Drilling Tankerman Duties Aboard Unscheduled Vessels

Pollution Liabilities Are Here To Stay & Will Continue To Become More Onerous Cargo Owner Shipping Oil In Single Hull Vessel Is Responsible Party After 12/31/10 Fully Describe Risk Profile To Underwriter To Adequately Insure Review Adequacy Of Limits Annually Next Change To Vessel Limits Due In 2012