NORTH AMERICAN PANEL OCTOBER 7, 2009 INTERTANKO OVERVIEW REPORT JOSEPH ANGELO DEPUTY MANAGING DIRECTOR

MEMBERSHIPBUDGETSECRETARIATLAWSUITS EXCOM ISSUES

MEMBERSHIP 270+ Members 3,100+ Tankers 250+ Million DWT Members in 40+ countries MORE THAN 80% OF THE INDEPENDENT TANKER FLEETMORE THAN 80% OF THE INDEPENDENT TANKER FLEET 330+ Associate Members

MEMBERSHIP Members/million dwtNo. of tankers

BUDGET (BUDGET) Total Operating Income (US$)7,960,745 8,689,980 8,897,105 Total Operating Expenses (US$)7,590,3648,473,8227,871,811 Operating Result 370, ,1581,025,294 Non-operating Income/expenses 158, ,883 15,000 Result for the Year 529, ,7251,040,294

SECRETARIAT 24 STAFF MEMBERS IN FOUR OFFICES: 12 – Oslo 10 – London 1 – Singapore 1 – USA STAFF INCLUDES - Managing Director - General Counsel - Technical Director - Director, Regulatory Affairs - Marine and Chemical Director

LAWSUITS Massachusetts lawsuit EPA Vessel General Permit California Air Resources Board (CARB) air emission

MASS LAWSUIT INTERTANKO CONCERNS District Court 2006 decision upholds Coast Guard authority over vessel operations in US waters Reinforces unanimous US Supreme Court decision in 2000 when INTERTANKO took the state of Washington to court

MASS LAWSUIT DEVELOPMENTS In July the District Court Magistrate Judge issued his recommendation to the District Court to grant the U.S. Government's motion for a permanent injunction enjoining the State of Massachusetts from enforcing the tug escort and vessel manning provisions of the states oil spill prevention regulations. The State of Massachusetts has objected to this recommendation We await the District Court’s decision.

EPA VGP INTERTANKO CONCERNS Federal Court orders EPA to develop regulations for all ship discharges under NPDES permit system of Clean Water Act Judge acknowledges that US Coast Guard has authority under certain laws, but believes that Congress also gave authority to EPA under Clean Water Act Ruling has two federal agencies responsible for same subject matter

EPA VGP DEVELOPMENTS VGP requirements have been effective since February Environmental groups have sued EPA stating that the VGP discharge requirements, in particular those relating to ballast water, are not stringent enough. Lake Carriers Association, American Waterways Operators and World Shipping Council have sued EPA requesting the court to vacate the VGP Detailed motions must be submitted by October 15 Expected outcome is that court will maintain in place the existing VGP, while remanding the VGP back to EPA for reconsideration.

CARB Air Emission INTERTANKO CONCERNS CARB implements unilateral requirements that are not consistent with IMO standards Fuel switching to low sulphur fuels could have safety implications

CARB Air Emissions DEVELOPMENTS June 2009 U.S. District Court denies the Pacific Merchant Shipping Association's (PMSA) motion to dismiss CARB air emission regulations for ocean- going vessels Court also ruled that California has the authority to apply the regulations 24 miles from their coast because they only applied to ships entering Californian ports. No further legal action is expected. In August San Francisco Harbor Safety Committee meeting discusses engine failures in San Francisco Bay as a result of fuel switching to comply with this CARB regulation. CARB representative at the meeting made it very clear that suspending the CARB regulation is not an option.

EXCOM AGENDA Organizational Review Greenhouse Gas Policy Paper EU Directive on using marine fuel with 0.1% sulphur content (Jan 2010) Relationship with IMPA/APA Human Element Committee Terms of Reference 2010 Annual Tanker Event

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