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Certificate of Financial Responsibility (COFR)  


Federal:

 

A COFR is issued to vessel operators who have demonstrated their ability to pay for cleanup and damage costs up to the liability limits required by the Oil Pollution Act. With a few limited exceptions, vessels greater than 300 gross tons and vessels of any size that are lightering or transshipping oil in the Exclusive Economic Zone (EEZ) are required to comply with the COFR regulations in order to operate in U.S. waters.

The Federal liability limits as of July 31, 2009 are as follows:

Source category New limit of liability
(a) Vessels:
(1) For an oil cargo tank vessel greater than 3,000 gross tons with a single hull, including a single-hull tank vessel fitted with double sides only or a double bottom only. The greater of $3,200 per gross ton or $23, 496,000.
(2)For a tank vessel greater than 3,000 gross tons, other than a vessel referred to in (a)(1). The greater of $2,000 per gross ton or $17,088,000.
(3) For an oil cargo tank vessel less than or equal to 3,000 gross tons with a single hull, including a single-hull tank vessel fitted with double sides only for a double bottom only. The greater of $3,200 per gross ton of $6,408,000.
(4) For a tank vessel less than or equal to 3,000 gross tons, other than a vessel referred to in (3). The greater of $2,000 per gross ton or $4,272,000.
(5) For ano other vessel  The greater of $1,000 per gross ton or $854,400.
(b) Deepwater Ports:
(1) For a Deepwater Port, other than a Deepwater Port with a limit of liability established by regulation under 33 U.S.C. 2704(d)(2). $373,800,000
(2) For the Louisiana Offshore Oil Port (LOOP). $87,606,000
Sources:
Federal Register/Vol. 74, No. 125/Weddnesday, July 1, 2009/Rules and Regulations
33 CFR Part 138

Operators who do not comply with the COFR requirements are subject to:

  • Detainment
  • Denial of entry into U.S. ports
  • Civil penalties of up to $32,500 per day
  • Seizure or forfeiture of the vessel
Please click here for additional information regarding our filing procedures for the Federal COFR.



California:

In addition to the Federal COFR requirement, California requires a California COFR for:

  • tank vessels and barges that transport oil in bulk across state marine waters;
  • nontank vessels of 300 gross tons or greater which carry oil as fuel; and
  • marine facilities which are located where a spill could impact California marine waters (including marine terminals, marine refueling docks, offshore facilities, pipelines and mobile transfer units.
The California liability limits are as follows:

Tankers: Owners or operators of tankers and large barges must demonstrate the financial ability to pay at least one billion U.S. dollars (USD $1,000,000,000) for damages arising from an oil spill.

Nontanks: Operator(s) or owner(s) of nontank vessels are required to demonstrate $300,000,000 USD in financial responsibility, except those that have a carrying capacity of 6,500 barrels of oil or less, or a carrying capacity of 7,500 barrels of oil or less for nontank vessels owned and operated by California or a federal agency, shall demonstrate their current financial ability to pay the following appropriate amount of financial responsibility:

$2,000,000 for those that have a carrying capacity from less than 1 to not more than 10 barrels;

$5,000,000 for those that have a carrying capacity greater than 10 to not more than 50 barrels;

$10,000,000 for those that have a carrying capacity greater than 50 to not more than 500 barrels;

$18,900,000 for those that have a carrying capacity greater than 500 to not more than 1,000 barrels.

In order to apply for a California COFR on your behalf, we will require a copy of your current P&I Certificate of Entry. Please note that applications and evidence of financial responsibility will be reviewed by CA DFG within 21 calendar days of receipt.

Please contact us at cofr@obriensrm.com for additional information or to apply for a California or Federal COFR.

 

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O’Brien’s Response Management Inc.
Vessel Services
+1.609.275.9600 or vesselservices@obriensrm.com

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