CALIFORNIA OIL SPILL PREVENTION AND RESPONSE ACT 1990 CERTIFICATES OF FINANCIAL RESPONSIBILITY (COFR'S)
The California Oil Spill Prevention and Response Act required that as from the 1st July, 1995, the level of financial responsibility which tankers and tank barges will be required to demonstrate will be increased from $500 million to $750 million.
Proof of entry in an International Group P&I Club is accepted as evidence of financial responsibility for the first $500 million. In recognition of the level of additional insurance cover available in the form of the market excess oil pollution cover for $200 million, an amending bill has just been passed by the California Assembly which reduces the level of financial responsibility required from the 1st July, 1995 to $700 million. It now only remains for the Governor of California to sign the bill into law.
In the meantime, the California Office of Oil Spill Prevention and Response has said that it will be issuing a circular letter in the week commencing 26th June, giving notice of a 35 day grace period from the 1st July, 1995 in which to provide evidence of financial responsibility for the additional $200 million. It has also said that a current broker's cover note will be considered acceptable evidence of the $200 million excess cover.
THOMAS MILLER P & I
AS AGENTS FOR THE MANAGERS OF UK P & I (BERMUDA)