World Bunkering > News > Spring 2011 > Legal Eagle

Cosco Busan settlement with Californian fishermen

The Maritime Advocate reports that observers of the costs of oil pollution have another piece of the pricing jigsaw with the news that the 2007 spill has resulted in a settlement with local fishermen around San Francisco Bay of some of $6 million in damages.

The container ship spilled roughly 53,000 gallons of residual fuel oill into the bay on 7 Nov, 2007, after it struck a fender around one of the Bay Bridge’s towers and cut a 212-foot gash in the ship’s hull. About 120 fishermen launched a class action for losses suffered as a result of the spill, which affected some 26 miles of shoreline and killed over 2,000 birds. The ship hit the San Francisco-Oakland Bay Bridge and ruptured a bunker tank. The pilot was jailed for 10 months for environmental offences while Fleet Management was fined $10 million for various offences relating to the navigation of the vessels and of obstructing the US Coast Guard investigation.

The local fishermen filed a series of class action suits against the owners and operators of the container ship in both federal court in San Francisco and in San Francisco Superior Court. Lawsuits were brought against both Fleet Management and the ship’s owner, Regal Stone Ltd. of Hong Kong.

Both lawsuits claimed fishermen suffered “profound” economic damage from the oil contamination and sought certification as class actions on behalf of all commercial operations that catch fish in and near San Francisco Bay.

A settlement was recently reached to pay Bay Area commercial herring, halibut and other finfish fishermen $3.65 million for longterm damages claims in addition to monies previously recovered, according to an attorney for the fishermen. About 120 commercial finfish fishermen will split the $3.65 million settlement. The fishermen’s lawyer, Stuart Gross, is quoted as saying: “They fought us hard but ultimately came to the table and agreed to a very fair and adequate settlement.”

A National Transportation Safety Board report concluded that the accident, which happened in thick fog, was due to poor decisions by the pilot, who was found to have been medically unfit, and the ship’s master and bridge team, and to poor communications on the bridge.

US Customs withdraws Jones Act Offshore Rulemaking

US law firm Blank Rome has issued an advisory bulletin which describes a continuing uncertainty in the operations of offshore operators, and which could potentially affect suppliers offering offshore bunkering services.

On 15 November, 2010, US Customs and Border Protection (CBP) withdrew an Advance Notice of Proposed Rulemaking (ANPRM) regarding the transportation of merchandise and equipment by foreign-flag vessels engaged in the support of Outer Continental Shelf activities. The ANPRM was under review by the Office of Management and Budget (OMB) when it was withdrawn prior to publication in the Federal Register. This would appear to mean that most of CBP’s OCS-related rulings issued over the last 30 years remain valid as precedent, subject to CBP review on a case-by-case basis when it considers new requests for rulings by industry for future projects.

Owners, operators, charterers and other parties that have an interest in offshore operations potentially involving the use of non-coastwise-qualified vessels and the transportation of merchandise and/or carriage of equipment should confer with counsel and CBP with regard to seeking offshore Jones Act rulings for future projects, the firm advises.

The bulletin is available in full at: www.blankrome.com/siteFiles/Maritime1210-11.pdf