5th January 1998 TO ALL TANKER MEMBERS Dear Sirs, BLUE CARDS CLC CERTIFICATES 1969 AND 1992 CIVIL LIABILITY CONVENTIONS From 16th May 1998, shipowners will require two Civil Liability Convention (CLC) certificates in order to trade world wide: one certifying 1969 CLC liabilities, the other 1992 CLC liabilities. Traditionally, Clubs have provided blue cards addressed to a vessel’s flag state, confirming an owner has in place insurance to cover Civil Liability Convention liabilities. On presentation of this blue card to the flag state registry, an owner has received in return a CLC certificate. The owner may be required to present the certificate 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 ship. Background Until 30th May 1996 only one Civil Liability Convention was in force: the 1969 CLC providing limits of liability on a sliding scale starting at SDR 133 per limitation ton up to a maximum of SDR 14 million (approximately USD 20.2 million). On 30th May 1996 the 1992 Protocol to the 1969 CLC entered into force. The limits under the 1992 Protocol are SDR 3 million (USD 4.3 million) for tankers not exceeding 5,000 gross tons rising by SDR 420 (USD 604) per gross ton to a maximum of SDR 59.7 million (USD 86 million). For a transition period the states which were parties to the 1992 Protocol (1992 CLC) were not required to denounce the 1969 CLC if they were parties to both. The effect of this was that 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 CLC. Clubs issued “dual” blue cards with the following endorsement: “This is to certify that there is in force in respect of the above-named ship while in the above ownership a policy of insurance satisfying the requirements of (A) Article VII of the International Convention on Civil Liability for Oil Pollution Damage, 1969 and (B) Article VII of the International Convention on Civil Liability for Oil Pollution Damage, 1992 where and when applicable.” - 2 If the flag state was a party to both the 1969 and 1992 CLC the shipowner received in return a certificate certifying that the shipowner had in place insurance covering liabilities under both Conventions. If the state was party only to the 1969 CLC, a certificate was issued covering 1969 CLC liabilities only. The transition period comes to an end on 15th May 1998. After that date a state will not be able to be a party to both the 1969 and 1992 CLC. Practical effect From midnight on 15th May 1998 two separate regimes will be in force: the 1969 CLC and the 1992 CLC. (a)Ships flying flags of 1969 CLC states Ships flying the flag of a state party to the 1969 CLC will be able to obtain from the ship’s flag registry a 1969 CLC certificate covering liabilities under the 1969 CLC as usual. They will need to obtain a certificate covering 1992 CLC liabilities from another source in order to be permitted to enter the waters of states parties to the 1992 CLC. Those States 1 are: Australia, Bahrain, Denmark, Egypt, Finland, France, Germany, Greece, Japan, Liberia, Marshall Islands, Mexico, Monaco, Netherlands, Norway, Oman, Spain, Sweden, Switzerland and United Kingdom. (By 16th May it will also have entered into force in