TO ALL TANKER MEMBERS

Dear Sirs,

CLC CERTIFICATES - BLUE CARDS

Transitional Civil Liability Convention (CLC) certification arrangements currently in force are due to come to an end at midnight on 15th May, 1998.

Traditionally the Association has provided Blue Cards addressed to a ship's flag state, confirming that an owner has in place insurance to cover CLC liabilities. On presentation of a Blue Card to his flag state registry, an owner receives a CLC Certificate which he is required to retain on board and which he may be required to present on entering the waters of a state party to the CLC to demonstrate that he has in place insurance to cover claims for oil pollution up to a certain limit (determined by the tonnage of the vessel).

On 30th May, 1996 the 1992 Protocol to the 1969 CLC entered into force (providing, inter alia, substantially higher limits of liability per limitation ton than the 1969 CLC). For a transitional period states which were parties to the 1992 Protocol were not required to denounce the 1969 CLC if they were parties to both. As a consequence, if a spill occurred in the waters of a 1992 flag state, but the ship was flying the flag of a state party only to the 1969 CLC, the ship would be able to limit its liability to the relevant sum under the 1969 CLC and not the higher limit of the 1992 Protocol.

In response to these transitional arrangements, this Association issues "hybrid" Blue Cards endorsed to show, in relation to an entered ship, the existence of a policy of insurance satisfying the requirements of the 1969 CLC and the 1992 Protocol "where and when applicable". In exchange for his "hybrid" Blue Card, an owner receives from his flag state a certificate confirming insurance cover for liabilities under both conventions (where the flag state is a party to both) or under the 1969 CLC (where the flag state is a signatory to the 1969 CLC only).

From midnight on 15th May, 1998 it will not be possible for a state to be a party to both the 1969 CLC and the 1992 Protocol, and two separate regimes will then be in force for ships whose flag states are signatories to each convention.

On completion of renewal with the Association for the 1998 policy year, each owner will receive, as in previous years, a "hybrid" Blue Card. He will also receive advice on the further steps which, dependent upon the flag of the state or states which his ships fly, he may need to have taken with effect from 16th May, 1998. Since the necessary steps vary from state to state, Members are invited to seek further clarification, if needed, from either the Managers (Mr John Joslin - fax 0171 204 2089) or the relevant flag state registry.

Yours faithfully,

THOS. R. MILLER & SON (BERMUDA)