TO THE MEMBERS

Dear Sirs,

OIL POLLUTION RISKS IN THE UNITED STATES - ADDITIONAL PREMIUM SYSTEM
1998 POLICY YEAR

There is a change in the treatment of parcel tankers. As was the case in 1997, a parcel tanker carrying 5,000 metric tonnes or less of persistent oil cargo will pay the same as a 3,000 gross tons ship, irrespective of the actual size of the parcel tanker. This continues for 1998. In addition (and new for 1998), a parcel tanker carrying between 5,001 and 10,000 metric tonnes of persistent oil cargo will pay the same as a 7,500 gross tons ship. Parcel tankers carrying more than 10,000 metric tonnes of persistent oil cargo will be charged on the full gross tonnage of the ship.

The rates for 1998 will be as follows:

non-SBT tankers SBT tankers

(A) Tankers of more than 3,000 gt U.S.$0.16 U.S. $0.14 per entered ton,

each U.S. voyage

LOOP or lightening U.S.$0.08 U.S. $0.07 per entered ton,

each U.S. voyage

(B) Tankers of 3,000 gt or less

Either

or

$480

$9,600

$420

$8,400 each U.S. voyage

annum

(C) Parcel tankers carrying 5,000 m/t or

of persistent oil as cargo U.S. $480 U.S. $420 each U.S. voyage

(D) Parcel tankers carrying more

than 10,000 m/t of persistent

oil as cargo U.S.$1,200 U.S.$1,050 each U.S. voyage

(E) U.S.$0.16 U.S.$0.14 per entered ton each

U.S. voyage

Otherwise the terms are unchanged. The U.S. Oil Pollution Clause 20.2.98 reflecting the above rates will be incorporated in the certificates of entry or endorsement slips for the ships concerned.

Yours faithfully,

THOS. R. MILLER & SON (BERMUDA)

The additional premium system for tankers carrying persistent oil to or from the United States will continue for the 1998 policy year. The new rates, which represent a reduction on 1997, are set out below. As in 1997 a lower rate per entered ton will apply to tankers equipped with segregated ballast tanks (SBT) in accordance with the requirements of Regulation 13 of Annex 1 to MARPOL 73/78.