HELLENIC FORUM MARCH 6, 2007

1. HELLENIC FORUMMARCH 6, 2007 OVERVIEW OF US ISSUES JOSEPH ANGELO DIRECTOR, REGULATORY AFFAIRS AND THE AMERICAS

2. LEGAL ENVIRONMENTAL SECURITY PORT STATE CONTROL

3. LEGAL • MASSACHUSETTS LAWSUIT • RHODE ISLAND LAW FOR LNG TANKERS • BALLAST WATER LAWSUIT • CALIFORNIA AIR RESOURCE BOARD AIR EMISSION REGS

4. MASS LAWSUIT • JULY 2006 - FEDERAL COURT RULES PROVISIONS OF MASS LAW INVALID • DECISION UPHOLDS COAST GUARD AUTHORITY OVER VESSEL OPERATIONS IN US WATERS • REINFORCES UNANIMOUS US SUPREME COURT DECISION IN US vs LOCKE WHEN INTERTANKO TOOK STATE OF WASHINGTON TO COURT

5. MASS LAWSUIT • SEPT 2006 - MASS FILES NOTICE TO APPEAL FEDERAL COURT DECISION • DECEMBER 2006 - MASS FILES APPEAL • FEBRUARY 2007 - FEDERAL GOVTAND INDUSTRY COALITION SUBMIT RESPONSE TO MASS APPEAL

6. RHODE ISLAND LAW • RI LAW PROHIBITS LNG TANKERS FROM TRANSITING NARRAGANSETT BAY UNLESS OPERATIONAL CONDITIONS ARE MET • USCG INDICATES THAT THIS LAW IS PREEMPTED BY THEIR REGULATIONS • CURRENTLY NO LNG TANKERS TRANSIT NARRAGANSETT BAY • PLANS BEING CONSIDERED TO BUILD LNG FACILITY AT FALLS RIVER, MASSACHUSETTS • USCG MONITORING DEVELOPMENTS TO DETERMINE IF COURT ACTION IS NEEDED

7. BALLAST WATER LAWSUIT • SEPT 2006 FEDERAL COURT ORDERS EPA TO DEVELOP REGS FOR ALL SHIP DISCHARGES, INCLUDING BALLAST WATER, UNDER NPDES PERMIT SYSTEM NO LATER THAN SEPT 2008 • JUDGE ACKNOWLEDGES THAT USCG HAS AUTHORITY UNDER CERTAIN LAWS, BUT BELIEVES CONGRESS ALSO GAVE AUTHORITY TO EPA UNDER THE CLEAN WATER ACT

8. BALLAST WATER LAWSUIT • EPA DISAGREES WITH COURT DECISION - SIGNIFICANT IMPACT ON EPA • NOVEMBER 2006 – FEDERAL GOVT AND INDUSTRY COALITION FILE NOTICESOF INTENT TO APPEAL COURT ORDER • NOVEMBER 2006 – INDUSTRY COALITION SENDS LETTER TO DOJ URGING THEM TO SUBMIT APPEAL • MARCH 2007 – FEDERAL GOVT AND INDUSTRY COALITION FILE APPEALS

9. CARB AIR EMISSION REGS • JAN 1, 2007 - REGS FOR AUX. ENGINES AND DIESEL ELECTRIC MAIN ENGINES IN EFFECT WITHIN 24 MILES OF CALIF • PMSA HAS GONE TO FEDERAL COURT SEEKING INJUNCTIVE RELIEF • LAWSUIT ADDRESSES LIMITED ISSUES - 24 MILE JURISDICTION - FAILURE TO REQUEST EPA APPROVAL

10. CARB AIR EMISSION REGS • CARB AIR EMISSION REGS ISSUED UNDER AUTHORITY OF CLEAN AIR ACT • CLEAN AIR ACT SPECIFICALLY GIVES CALIFORNIA AUTHORITY TO ISSUE MORE STRINGENT REQUIREMENTS • CARB AIR EMISSION REGS ARE PERFORMANCE BASED, NOT PRESCRIPTIVE REQUIREMENTS

11. CARB AIR EMISSION REGS • SHIPOWNER IS GIVEN THE OPTION OF HOW TO COMPLY - MDO WITH SULPHUR CONTENT LESS THAN 0.5% OR MGO - INSTALL EQUIPMENT (??) • ALTERNATIVE CONTROL EMISSION PLAN APPROVED BY CARB (FOR EXAMPLE - SHORE SIDE POWER) • PAYMENT OF NON-COMPLIANCE FEE

12. LEGAL • INTERTANKO IS NOT SEEKING TO TAKE A STATE TO FEDERAL COURT • WHEN A STATE TAKES PREEMPTIVE ACTION, INTERTANKO ENCOURAGES THE FEDERAL GOVT TO TAKE THE STATE TO FEDERAL COURT • WHEN THE FEDERAL GOVT TAKES A STATE TO COURT, THEY ENCOURAGE INDUSTRY TO SUPPORT THEIR ACTION

13. ENVIRONMENTAL • AIR EMISSIONS • BALLAST WATER • RECEPTION FACILITIES • ENVIRONMENTAL CRIMES • RIGHT WHALES

14. AIR EMISSIONS • APRIL 2006 US SENATE GIVES ITS ADVICE AND CONSENT FOR US TO RATIFY ANNEX VI OF MARPOL • US DOS DECIDES US WILL NOT SUBMIT INSTRUMENT TO IMO UNTIL NATIONAL LEGISLATION IS PASSED • LEGISLATION IN FINAL STAGES IN US CONGRESS (COULD EXTEND ENFORCEMENT TO EEZ)

15. AIR EMISSIONS • FEB 2003 EPA ISSUES REGULATIONS FOR ENGINES INSTALLED ON US SHIPS THAT MIRROR ANNEX VI STANDARDS • PREAMBLE STATES - EPA COMMITTING TO TAKE FURTHER ACTION FOR MARINE DIESEL ENGINES BY APRIL 2007 ON US AND FOREIGN FLAG SHIPS • EPA INDICATES THEY WILL GIVE IMO DISCUSSIONS ON REVISION OF ANNEX VI TIME TO MATURE BEFORE ACTING

16. BALLAST WATER • IMO BALLAST WATER MANAGEMENT TREATY ADOPTED IN 2004 • IN 2005 US SENATE COMMITTEE PASSED BWM BILL THAT CONTAINS MANY OF THE IMO TREATY PROVISIONS, BUT INCLUDES BWM STANDARD THAT IS 100 TIMES GREATER THAN IMO • USCG DEVELOPING BWM STANDARD THAT WILL MOST LIKELY EXCEED IMO TREATY STANDARD

17. BALLAST WATER • INDUSTRY PRIORITIES IN US BWM LEGISLATION: - ESTABLISH SINGLE LAW THAT GOVERNS BALLAST WATER DISCHARGES IN US WATERS - ESTABLISH US COAST GUARD AS LEAD FEDERAL AGENCY - PREEMPT STATE REGULATIONS - MIRROR IMO TREATY REQUIREMENTS

18. RECEPTION FACILITIES • USCG RESPONDS TO INTERTANKO CONCERNS OF INADEQUATE RF IN US BY DIRECTING COTPs TO VERIFY RF WITH CERTIFICATES OF ADEQUACY • USCG PROVIDES UP TO DATE LIST OF RECEPTION FACILITIES ON WEB http://cgmix.uscg.mil/default.aspx • USCG REQUESTS INTERTANKO HELP IN IDENTIFYING INADEQUATE RF

19. RECEPTION FACILITIES • INTERTANKO NA PANEL REQUESTS SECRETARIAT TO DEVELOP FORMAT • USCG/INTERTANKO DEVELOP FORMAT TO BALANCE ANONYMITY WITH INFO FOR CG TO CONDUCT INVESTIGATION • USCG RECOMMENDS SHIP REPORT PROBLEMS TO COTP IMMEDIATELY • IF NOT POSSIBLE OR DESIRED, SUBMIT FORMAT TO SECRETARIAT (WN 2/2007)

20. ENVIRONMENT CRIMES • USCG/DOJ FOCUS IS CRIMINAL PENALTIES FOR THOSE WHO KNOWINGLY VIOLATE THE LAW • CONCENTRATION IS ON FLAGRANT AND REPETITIVE VIOLATORS AND THOSE WHO ATTEMPT TO OBSTRUCT AN INVESTIGATION • DOJ - EXTREMELY AGGRESSIVE POSTURE TOWARD PROSECUTION

21. ENVIRONMENT CRIMES • USCG IS FINDING VIOLATIONS ON A FAIRLY FREQUENT BASIS • DOJ ALWAYS INVESTIGATES TO DETERMINE IF THERE IS A LINK TO THE COMPANY MANAGEMENT • RECENT US COURT RULING BRINGS INTO QUESTION DOJ’S ABILITY TO PROSECUTE FOR VIOLATIONS THAT OCCUR OUTSIDE OF US WATERS

22. ENVIRONMENT CRIMES • INTERTANKO IS DEVELOPING A GUIDE ON ENGINE ROOM WASTE TREATMENT ASSOCIATED SYSTEMS • TANKER COALITION IN THE US (WITH USCG AND INTERTANKO) HAS ESTABLISHED STEERING COMMITTEE TO DEVELOP/SHARE BEST PRACTICES • HUMAN ELEMENT COMMITTEE LOOKING AT COMPLIANCE ISSUES

23. RIGHT WHALES • NORTHERN ATLANTIC RIGHT WHALE PROTECTED UNDER US LAW AS ENDANGERED SPECIES • 1999 IMO ADOPTED MANDATORY REPORTING SYSTEM FOR SHIPS ENTERING 2 AREAS – OFF THE COAST OF CAP COD, MASS AND N. FLORIDA • POPULATION HAS NOT RECOVERED PROMPTING FURTHER ACTION

24. RIGHT WHALE • NATIONAL MARINE FISHERIES SERVICE HAS PROPOSED THE FOLLOWING: - REVISED TSS INTO BOSTON, MASS - SPEED RESTRICTION OF 10 KNOTS JAN – JULY OFF CAPE COD NOV – APRIL OFF N. FLORIDA NOV – APRIL WITHIN 30 MILES OF MID ATLANTIC PORTS - “DYNAMIC MANAGEMENT AREAS” WITH SPEED RESTRICTIONS WHEN WHALES SEEN OUTSIDE THESE TIMES

25. SECURITY • LONG RANGE IDENTIFICATION AND TRACKING (LRIT) • BOARDING POLICY • CREW SHORE ACCESS

26. LRIT • US WILL IMPLEMENT IMO LRIT REQUIREMENTS TO ENHANCE THEIR “MARITIME DOMAIN AWARENESS” • INFO TO BE TRANSMITTED: - SHIP IDENTITY (IMO NUMBER) - SHIP POSITION (LONG AND LAT) - DATE AND TIME OF POSITION • GOVERNMENT SHALL BEAR COST FOR REQUESTING/RECEIVING INFO

27. LRIT • SHIPS FLYING THE FLAG OF THE CONTRACTING GOVT – ANYWHERE • SHIPS INDICATING THEIR INTENTION TO CALL AT A PORT OF THE CONTRACTING GOVT – ANYWHERE • SHIPS NOT INTENDING TO CALL AT A PORT OF THE CONTRACTING GOVT – WITHIN 1000 MILES OF ITS COAST

28. LRIT SHIPBORNE EQUIPMENT SHALL BE: • CAPABLE OF AUTOMATICALLY TRANSMITTING SHIP’S LRIT INFO AT 6-HOUR INTERVALS • CAPABLE OF BEING CONFIGURED REMOTELY TO TRANSMIT LRIT INFO AT VARIABLE INTERVALS • CAPABLE OF TRANSMITTING LRIT INFO FOLLOWING RECEIPT OF POLLING COMMANDS

29. LRIT SHIPBOARD EQUIPMENT SHALL (CON’T): • INTERFACE DIRECTLY WITH SHIPBORNE NAVIGATION SATELLITE SYSTEM EQUIPMENT • BE SUPPLIED WITH ENERGY FROM THE MAIN AND EMERGENCY SOURCE OF ELECTRICAL POWER • BE TESTED FOR ELECTROMAGNETIC COMPATIBILITY (IMO RES A.813(19))

30. LRIT

31. BOARDING POLICY • 2004 DHS WORKING GROUP STANDARDIZES PROCEDURES FOR BOARDING COMMERCIAL VESSELS - IDENTIFY YOURSELF - PRESENT OFFICIAL GOVT ID - DO NOT SURRENDER ID - SIGN LOGBOOK AS VISITOR - AUTHORIZED TO CARRY FIREARMS - NOT REQUIRED TO CONSENT TO BAGGAGE SEARCH

32. BOARDING POLICY • PROCEDURES DO NOT APPLY WHEN ASSESSING SHIP DURING EMERGENCY • ATTEMPTS TO TEST SHIP SECURITY PROCEDURES BY FABRICATING OR REFUSING TO SHOW ID SHOULD NOT BE UNDERTAKEN • INTERTANKO RECOMMENDS THAT IF PROBLEMS OCCUR, CONTACT OUR NORTH AMERICAN REP

33. CREW SHORE ACCESS • USCG REGULATIONS FOR FACILITIES HAVE GENERAL SECURITY MEASURES FOR ACCESS CONTROL • USCG REGULATIONS FOR FACILITY SECURITY PLAN REQUIRES PLAN TO ADDRESS ACCESS CONTROL • USCG DOES NOT HAVE AUTHORITY TO IMPOSE ACCESS CONDITIONS ON PRIVATELY OWNED TERMINALS

34. CREW SHORE ACCESS CG AUTHORIZATION ACT FOR 2007 SEC 307. SEAMEN’S SHORESIDE ACCESS EACH (APPROVED) FACILITY SECURITY PLAN SHALL PROVIDE A SYSTEM FOR SEAMEN (AND OTHERS) TO BOARD AND DEPART THE VESSEL THROUGH THE FACILITY IN A TIMELY MANNER AT NO COST TO THE INDIVIDUAL

35. PORT STATE CONTROL US COAST GUARD REPORT SHOWS: • SAFETY DETENTIONS DOWN 176 TO 127 • SECURITY DETENTIONS DOWN 92 TO 51 • NUMBER OF SHIPS VISITING THE US HAS RISEN BY 500

36. PORT STATE CONTROL SAFETY DETENTIONS - VESSEL TYPE BULK CARRIER - 43 GENERAL DRY CARGO - 28 CONTAINERSHIP - 20 TANKSHIP - 8 CHEMICAL TANKSHIP - 5 OIL TANKSHIP - 2

37. PORT STATE CONTROL SECURITY DETENTIONS – VSL TYPE BULK CARRIER - 16 GENERAL DRY CARGO - 12 CONTAINERSHIP - 10 PASSENGER SHIP - 5 RO/RO CARGO - 3 TANKSHIP - 1

38. PORT STATE CONTROL • PRIMARY SAFETY DEFICIENCIES - FIREFIGHTING APPLIANCES - MARINE POLLUTION VIOLATIONS - ISM RELATED VIOLATIONS - LIFESAVING APPLIANCES • PRIMARY SECURITY DEFICIENCIES - ACCESS CONTROL - RESTRICTED AREAS - SHIP SECURITY PLAN VIOLATIONS

39. PORT STATE CONTROL • ALL DETENTIONS ARE REVIEWED AT USCG HDQTS • REVIEW IS NOT CURSORY • MANY DETENTIONS ARE OVERTURNED BY HDQTS

40. PORT STATE CONTROL GREECE ALL NO. 1 YR 3 YR 1 YR 3 YR 2000 5 1.45 1.62 2.52 3.55 2001 4 1.11 1.32 2.19 2.69 2002 4 1.12 1.22 2.50 2.40 2003 3 0.78 1.00 1.99 2.22 2004 6 1.68 1.19 2.43 2.30 2005 4 1.18 1.20 1.61 2.00 2006 1 > 1 ? > 1 ? 1.50? 1.85?

41. THANK YOU