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SHIP-TO-SHIP TRANSFER and an introduction to newCHAPTER 8 to MARPOL

and ANNEX 1

Presented by Captain Bob GilchristSafeSTS

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Contractualresponsibility Costmanagement Providingequipment Sourcingandproviding

Supportcraft Coordinatingpersonneland

equipment Supportivelocalinfrastructure

(utilitysupplies,supportservices,etc.)

LegalCompliance Operationalmanagement Clientrepresentation Professionalpersonnel Operationalevaluation Legislativecompliance STSOperational

Supervision Integrationwithavessel

team. MaintainingEquipment

MinimisingRisk

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IMO Chapter 8 Implementation

IMO adopted by Resolution MEPC. 186(59) a new Chapter 8 to Marpol and Annex I, aimed at the prevention of pollution during Ship-to-Ship Transfer of oil cargo

Full implementation 1st April 2012

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Change in STS regulation by Marpol implemented through Vessel ISM

Say what you do

Do what you say

Record it

Enforce accountability

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IMO Regulation Marpol Chapter 8 Reporting requirement to appropriate authorities Vessel specific STS Plan

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Reporting Requirement 48 hours Notice to Authorities for Ops within territorial waters or EEZ

of a party to the convention Coastal state to be given the name of the Person in Overall Advisory

Control (POAC).

The Administration, cargo owner / ship operator shall agree and designate a Person in Overall Advisory Control

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POAC Qualifications / Experience Management level International

Standard Certificate of Competency

All STCW and Dangerous Cargo Endorsements up to date and appropriate for the ship

GMDSS

Cargo familiarisation course

Attendance at a Suitable Ship handling course

Oil spill response training

Tanker loading/unloading

Thorough knowledge of the transfer plan

Thorough knowledge of the transfer area and surrounding areas

Conducted a suitable number of operations in similar circumstances

Oil spill response techniques and equipment familiarisation

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Responsibilities

POACAuthoritytoStoptheOp.oramendtheplan

ResponsiblefortheShip/ShipInterface

STSSuperintendent

CoastalAuthoritiesandFlagState

VesselCrew

VesselMasterResponsibleforhisownvessel

DesignatedbyTheAdministration

ExperienceoflocalareaandresourcesuniquetotheSTS

operation.

ProfessionallyQualified

NamedinnotificationtoCoastalState

ClearlyDefinedResponsibilities'on

bothvessels

KnowledgeorownershipoftheSTSequipment

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Charterer Responsibilities

STSProvider/POACAppointedbythecharterer

FlagState

Charterer

PortState

Vessel/OwnerLimitedtime/resourcesforduediligence

Oftenappointedonthebasisoflowest

cost

STSequipmenttestingnotverified.

Nocertificates

Professionalqualificationsneverchecked.Notvalid.

Duediligencenotusuallyperformed

Charterersliabilityisnotwithouttimelimit.STSprovidermayhavelimitedliability.

DeficiencyorNonConformance

Shipownerhasnotcompliedwiththelawandhas3yearliability.ShipownerhasnocontractualrelationshipwithSTSProvider

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Anoncompliantvesselcouldbe;

ImproperlyfillinginOilRecordBook Notkeepingproperrecordsofcompliance(recordstoberetainedfor3years) Impropernotification Carryingoutoperationsoutwiththeplanrequirementsofcertifiedequipment

andpersonnel.

BreachofSTSRegulation

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Intertanko - Charter-party Clauses CharterershavetherighttoorderOwnerstoconductshiptoshipcargo

operationsatanysafeportorplaceinaccordancewiththelatestOCIMFguidelines.OwnerswarrantthattheVesseliscapableofcarryingoutsuchoperations.

STSisRegulatedunderMarpolnotOCIMF OperationshavetobeinlinewithapprovedSTSplan

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Intertanko - Charter-party Clauses Theothervessel(s)involvedinsuchoperationsshallbeacceptabletoOwners

andChartererswarrantthattheothervessel(s)shallbeinallrespectsseaworthyandcapableofcarryingoutsuchoperations.

Charterersshallobtainanynecessarypermissionstoperformsuchoperationsfromtherelevantauthorities.

RefusaloftheSTSisreasonableifthedaughtervesselcannotshowcomplianceandisnotsuitableorsafetocarryouttheoperation.

Theissueofpermissionisnotrelatedtoacceptabilityandseaworthyness.ItisarequirementtonotifyauthoritiesinMarpolSignatorycountries

Candemurragestartbeforenotification/permissiongivenoraccepted.

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Intertanko - Charter-party Clauses Charterersshallarrangeandpayforadequatefendering,securingandmooring

equipment,anyotherequipmentnecessaryforsuchoperations,andanyadditionalpersonnel,includingmooringmasterifrequestedbytheMaster.CharterersshallreimburseOwnersforanyadditionalinsurancepremiumspayableinrespectofsuchoperations.

Theregulationrequirescertifiedequipment. Theregulationrequiresaqualifiedperson. AtthemomentnoadditionalpremiumsarepaidtowardsP&IforSTS.

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Insurance(Statements for discussion)

Owners have no contract with the STS Service Provider

STS Service Providers indemnify themselves against claims

Owners undertake no due diligence of STS Service Provider

The role of POAC is unclear but some duties are equivalent to or above that of the master in respect to

the operation.

Owners take on the liability for STS and rarely claim against charterer for damage

The POAC should be insured under the vessel P&I (charterers would have to pay)

P&I clubs should maintain list of audited STS companies (owners would have access)

STS contractor to be oil major audited (similar to vessels)

Service Provider Self Assessment managed by OCIMF (Similar to TMSA)

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Charter-party Clauses If,atanystagebeforeorduringsuchoperations,theMasterconsiderssuch

operationstobeunsafeforanyreason,includingtheadequacyoffendering,theweatherandseaconditions,theconditionofanyothervesselinvolvedandthecompetenceofitscrew,hemayrefuseororderimmediatecessationofsame. LegalcompliancewithApprovedSTSPlan

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Charter-party Clauses CharterersagreetoindemnifyOwnersinrespectofanyliabilities,lossesor

costs,arisingoutoforrelatedtosuchoperationsortheirsuspension.

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Charter-party Clauses(Voyagecharterpartiesonly)Notwithstandinganyotherprovisioninthischarterparty,alltimefromthearrivaloftheVesselatthelocationofsuchoperation(s)untiltheVesselisreadytoproceedonhervoyageshallcountaslaytimeortimeondemurrage,withoutanyexceptionstoapply.Anytimerelatingtotheprocurementorreturnofequipmentorpersonnelrequiredundersubclause3willbecompensatedatthedemurragerate.Thecostofbunkersconsumedwhiletimeisrunningunderthissubclause6shallbeforCharterersaccount.

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Example; Charter-party ClausesANYSHIPTOSHIPTRANSFER,THESTSSERVICEPROVIDERANDEQUIPMENT(FENDERS&HOSES)TOBEALWAYSIN

COMPLIANCEWITHMARPOLANNEX1 CHAPTER8ASWELLASTHELATESTRELEVANTINTERNATIONAL

STANDARDS&GUIDANCEOFOCIMF,PERFORMEDATLAWFULANDCUSTOMARYPLACES,WEATHERPERMITTING

ANDSUBJECTTOMASTERSSATISFACTIONWITHREGARDSTOSAFETY,WHICHNOTTOBEUNREASONABLY

WITHHELD.THELIGHTERING/RECEIVINGSHIPTOBEMAXIMUM20YEARSOLD,DOUBLEHULL,SEAWORTHY,

PROPERLYCLASSEDBYAMEMBEROFIACS,FULLYINSUREDANDENTEREDWITHAP&ICLUBMEMBEROFTHE

INTERNATIONALGROUPOFP&ICLUB,REGISTEREDUNDERANINTERNATIONALLYACCEPTABLEFLAG,WITHALL

THEIRCERTIFICATESVALID.

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Thank you for your attentionPlease feel free to ask questions

If you would like further information please contact us...

Tel: +44 (0) 1379 640021 (UK) orTel: +65 9818 6203 (Singapore)Email: operations@safests.com

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