TO THE MEMBERScircular ref 1/01.Dear Sirs,

2001 POLICY YEAR

Oil pollution limit

The Board has determined in accordance with Rule 5 B(iii) that for the 2001 policy year the sums to which the Association's liability in respect of any and all claims for oil pollution shall be limited are:

US$1,000 million each accident or occurrence in respect of each ship entered by or on behalf of an Owner not being a charterer other than a charterer by demise or bareboat charterer

or

US$100 million each accident or occurrence in respect of each ship entered by or on behalf of a charterer (other than a charterer by demise or bareboat charterer) or by more than one such charterer as Joint Owners, subject to an aggregate limit in accordance with proviso (c) to Rule 5 B(iii) of US$300 million.

The terms of Rule 5 B(iii) govern the application of these limits.

Oil pollution risks in the United States - additional premium

Details of the additional premiums for 2001 are set out in the Association's

War risks P&I

This special cover for claims otherwise excluded by the terms of Rule 5 E has been in place for some years. For 2001 the terms and conditions, including the US$100 million cover limit, are unchanged from the 2000 policy year cover. Members requiring a copy of the Board resolution setting out these terms and conditions in full should contact the Managers' London agents.

Yours faithfully,

THOMAS MILLER (BERMUDA) LIMITED