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Agenda for the Meeting of CTSCA #23 Page 1 of 28 To be held in Houston, USA on 30 October 2014 Issue No 1 Our Ref.: AGO-333013/ 1450000 Approved by: A. Gour Our Ref.: AGO 333013/ 1450000 AGENDA Chemical Tanker Sub-Committee, Americas (CTSCA) Meeting #23 South Shore Harbour Resort & Conference Center 2500 South Shore Blvd. League City, TX 77573 30 October 2014 0900~1700hrs

AGENDA Chemical Tanker Sub-Committee, Americas · PDF fileo Interim Rule on Liquid Chemical Categorisation – Capt. Soren Ibsen o Report from Chemical Transportation Advisory Committee

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Page 1: AGENDA Chemical Tanker Sub-Committee, Americas · PDF fileo Interim Rule on Liquid Chemical Categorisation – Capt. Soren Ibsen o Report from Chemical Transportation Advisory Committee

Agenda for the Meeting of CTSCA #23 Page 1 of 28 To be held in Houston, USA on 30 October 2014 Issue No 1 Our Ref.: AGO-333013/ 1450000 Approved by: A. Gour

Our Ref.: AGO 333013/ 1450000

AGENDA

Chemical Tanker Sub-Committee, Americas (CTSCA)

Meeting #23

South Shore Harbour Resort & Conference Center

2500 South Shore Blvd. League City,

TX 77573

30 October 2014 0900~1700hrs

Page 2: AGENDA Chemical Tanker Sub-Committee, Americas · PDF fileo Interim Rule on Liquid Chemical Categorisation – Capt. Soren Ibsen o Report from Chemical Transportation Advisory Committee

Agenda for the Meeting of CTSCA #23 Page 2 of 28 To be held in Houston, USA on 30 October 2014 Issue No 1 Our Ref.: AGO-333013/ 1450000 Approved by: A. Gour

1. ANTI-TRUST/COMPETITION LAW COMPLIANCE

“INTERTANKO’s policy is to be firmly committed to maintaining a fair and competitive environment in the world tanker trade, and to adhering to all applicable laws which regulate INTERTANKO’s and its members’ activities in these markets. These laws include the anti-trust/competition laws which the United States, the European Union and many nations of the world have adopted to preserve the free enterprise system, promote competition and protect the public from monopolistic and other restrictive trade practices. INTERTANKO’s activities will be conducted in compliance with its Anti-trust/Competition Law Guidelines.”

2. ADOPTION OF THE AGENDA

The chairman will set the schedule for the meeting.

The proposed agenda items are as below. Members will be requested to table their suggestions for discussion under AOB.

• Anti-Trust/Competition Law Compliance • Adoption of Agenda • Minutes from the last meeting • Review of Committee membership, attendance and ToR's • Review of Action Points • IMO/Regulatory update

o Issues at IMO § Inhibitors § MSC-MEPC.2/Circ.14 & discussion re expansion of Circ.14 § Guidance on Blending

• Report from ESPH Working Group • Report from MEPC • Chemical Tanker Committee (CTC) Update • US Issues and Updates

o Presentation – Mr. Jamie Wilson o Presentation – Mr. Pat Keffler o Presentation – Mr. Joseph Angelo o Port State Control Issues - USCG o MARPOL Annex I issues at terminals – Capt. Stale Eide o Prep Guidelines – John Salvesen o Interim Rule on Liquid Chemical Categorisation – Capt. Soren Ibsen o Report from Chemical Transportation Advisory Committee (CTAC) – James Prazak o WGMA Update – Niels Aalund

• CDI Issues o Update on relevant issues.

• Any Other Business. • Next Meeting

3. MINUTES FROM THE LAST MEETING

The draft minutes from the last joint meeting of CTC and CTSCA (CTC # 44 & CTSCA #22) are attached as per APPENDIX 1 to the agenda.

The members are invited to note and comment as appropriate.

Page 3: AGENDA Chemical Tanker Sub-Committee, Americas · PDF fileo Interim Rule on Liquid Chemical Categorisation – Capt. Soren Ibsen o Report from Chemical Transportation Advisory Committee

Agenda for the Meeting of CTSCA #23 Page 3 of 28 To be held in Houston, USA on 30 October 2014 Issue No 1 Our Ref.: AGO-333013/ 1450000 Approved by: A. Gour

4. MEMBERSHIP AND ATTENDANCE

As a permanent item on the agenda list - the membership list and the Terms of Reference for the sub-committee are attached as per APPENDIX 2 to the agenda.

4.1 ELECTION OF CHAIRMAN AND VICE-CHAIRMAN

The chairman of the sub-committee has been elected to the chair of the CTC and therefore the sub-committee will be requested to elect a new vice-chairman.

The sub-committee has Mr. Stale Eide as their present vice-chairman and it is expected that Mr. Eide will be nominated to the chair for the committee to consider.

Members will be asked for any additional nominations to this position.

The sub-committee will subsequently also have to consider nominations to the position of the vice-chairman and will be requested to put forward nominations for consideration.

The members are invited to note.

5. ACTION POINT STATUS REVIEW.

A consolidated list of action points and their status arising from the last joint meeting of the committee and the sub-committee (CTC #44 & CTSCA #22) is attached as APPENDIX 3.

The members are invited to review the action point status

6. IMO UPDATE

6.1 ISSUES AT IMO

6.1.1 INHIBITORS

INTERTANKO had at the last ESPH (19) proposed that IBC Code 15.13.3.2 should be amended tto make it a more generic requirement which ensures that certificates accompanying inhibitors contain the information required to keep the oxygen content in the tank within the limits required to keep the inhibitors active.

6.1.2 MSC-MEPC.2/CIRC.14 & DISCUSSION RE EXPANSION OF CIRC.14

ESPH at their last meeting (20) discussed a proposal from the UK and DGAC to revise MSC-MEPC.2/Circ.14 to expand its scope to include those inhibitors that require oxygen content above that which is required by SOLAS (i.e. 5% at point of delivery). The proposal specifies procedures to maintain the oxygen content in the tank at a level that permits the inhibitor to be effective.

The group recognised that oxygen content specified in SOLAS is 55 at the “fans” which in turn allows that the oxygen content in the tanks will be at most 8%. The group also noted that the procedures outlined in the proposal were too prescriptive and detailed and that these could not be included in the form of a circular.

CTC reviewed this issue and members were of the opinion that the manufacturing industry had not provided any information on such inhibitors or cargoes that required such O2 sensitive inhibitors. The committee, therefore, were of the opinion that in recommending that SOLAS inert gas limits be exceeded, issues such as reactivity times of cargoes, the handling of the water introduced in the tanks, how such cargoes are stored in shore tanks, safety issues related to commencing washing and introducing flush water without first inerting the tanks would not have been addressed.

The issue of venting the tank atmosphere to the environment would also be considered as an issue of concern as this operation could result a release of toxic gases to the atmosphere in a

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Agenda for the Meeting of CTSCA #23 Page 4 of 28 To be held in Houston, USA on 30 October 2014 Issue No 1 Our Ref.: AGO-333013/ 1450000 Approved by: A. Gour

port environment.IT was proposed therefore that the proposal be reviewed by the proponents and, if necessary, a refined proposal be put forward at PPR 2

An example of a Certificate of Protection was, however, agreed by the group with some minor revisions to be issued as a Circular.

6.1.3 GUIDANCE ON BLENDING

The committee noted that based on questions and enquiries being received by the industry, a paper co-sponsored by INTERTANKO was submitted to MSC 93 requesting clarifications to be developed by PPR on the implementation of this regulation.

CTC reviewed the issue and agreed that a paper should be submitted to MSC 94 along with co-sponsors.

6.2 ESPH

The secretariat will provide the members with an update on the latest discussions from the IMO in this regard to this meeting.

6.2.1 THE EVALUATION OF NEW PRODUCTS AND NEW CLEANING ADDITIVES.

6.2.1.1 LIST 1

The group evaluated and approved seven new products for inclusion in List 1 (All Countries, No Expiry date) of the MEPC.2/Circ. Some of these products were approved with minor corrections to their proposed carriage requirements.

6.2.1.2 LIST 3

Thirteen trade-named mixtures were submitted for evaluation by the group for inclusion in List 3 of the MEPC.2/Circ. Of these thirteen, the submission by Norway (Ethanol/Bitrex) was withdrawn as the group noted that ethanol was the primary component and listed in Chapter 18 of the IBC Code and confirmed that products listed in chapters 17 & 18 of the IBC Code and List 1 could be shipped under their product name if they contained less than 1% of unassessed components.

The submission by the United Kingdom of Heavy Aromatics HVA 9B, 9c, 9E, 9K, 9V and 9Z was considered to be from a single chemical family and very similar in formulation and therefore these would be covered by a single List 1 entry in a manner similar to that of Alkylbenzenes mixtures (containing naphthalene) rather than in List 3.

The group also considered 21 cleaning additives were presented for evaluation. Of the cleaning additives considered, 16 met the criteria outlined in MEPC.1/Circ.590 and these chemicals can be used as of now. Other cleaning additives were rejected due to the lack of information on the biodegradability of ingredients.

These will be published in the new MEPC.2/Circ. which will be published in December 2014.

6.2.2 MODIFICATIONS TO THE ISSUE DATE AND EFFECTIVE DATE OF THE PROVISIONAL CATEGORISATION OF LIQUID SUBSTANCES (MEPC.2/CIRC.)

The group noted that the Provisional Categorisation of Liquid Substances is presently issued by the Organisation on 17 December of each year in accordance with regulation 6.3 of MARPOL Annex II and is disseminated as an MEPC Circular (MEPC.2/Circ.)

It was noted that this circular becomes effective on the date of issue superseding the previous version of the circular. In this regard the group considered a proposal by the secretariat to modify the issue date and the effective date of this circular.

Page 5: AGENDA Chemical Tanker Sub-Committee, Americas · PDF fileo Interim Rule on Liquid Chemical Categorisation – Capt. Soren Ibsen o Report from Chemical Transportation Advisory Committee

Agenda for the Meeting of CTSCA #23 Page 5 of 28 To be held in Houston, USA on 30 October 2014 Issue No 1 Our Ref.: AGO-333013/ 1450000 Approved by: A. Gour

It was concluded that the new date of issue for the circular would be 01 December of each year and the circular would come into effect on 01 January of the following year. The expiry date for all tripartites would therefore also be extended from 17 to 31 December of the respective years.

The group also agreed to rename the circular to “Provisional categorisation of liquid substances in accordance with MARPOL Annex II and the IBC Code”

These changes will come into effect in 2015 subject to concurrence by PPR2 and approval by MEPC 68.

6.2.3 TRIPARTITE AGREEMENTS

The group noted that 33 tripartite agreements were set to expire in December 2014 and that some of these had been resubmitted to the group for evaluation.

6.2.4 PRODUCTS REQUIRING OXYGEN-DEPENDENT INHIBITORS

The group noted that PPR-1 had, based on a document submitted by INTERTANKO (PPR 1/1/11), developed amendments to the IBC code which was approved by MEPC 66 and MSC 93 and issued as a joint MSC-MEPC Circular (MSC-MEPC.2/Circ.14).

In this regard the group noted a proposal by United Kingdom and DGAC which proposed to expand Circ.14 to include those inhibitors which require oxygen content in the tank of at least 5%.

The group did not agree on the proposed expansion noting that this would create conflict with SOLAS Reg II-2/16.3.3.3 and the procedures outlined in the proposed circular could not be implemented.

The group agreed that DGAC should, taking into consideration the discussions at ESPH 20, make a submission to PPR 2 in this regard

The group however, agreed that the sample of a certificate of protection as was set out in the paper by UK.DGAC would be useful and should be disseminated by way of a PPR circular.

6.2.5 ASSIGNMENT OF TRADE-NAMES

The group noted that a number of products submitted for entry into list 3 had been assigned trade names that were similar, or the same as associated chemical names, the group reconfirmed the need for Member States to ensure that, in accordance with MEPC.1/Circ.512 trade named products submitted for assessment were not assigned names that could be confused with generally used chemical descriptions or generic product names and urged Member States to convey this information to their respective manufacturers.

The members are invited to note and comment as appropriate. 6.3 MEPC

MEPC 67/16/1 - Brazil and Finland - Review of the MARPOL Annex I and Annex II in order to include technically suitable bio-fuels under the scope of MARPOL Annex I This document proposes a new post-biennial output for the Sub-Committee on Pollution Prevention and Response (PPR) to consider the revision of MARPOL Annex I and Annex II in order to accommodate technically suitable bio-fuels under the scope of MARPOL Annex I. Accordingly, the 2011 Guidelines for the carriage of blends of petroleum oil and bio-fuels (MEPC.1/Circ.761) to the scope of MARPOL Annex I, should be revised. During the last decade, since the revision of MARPOL Annex I and Annex II in 2004, production, trade and use of bio-fuels have increased rapidly. The burgeoning demand for bio-fuels increases also their marine transports. Due to a changed operational environment, more flexibility is needed in the future regarding the regulations of the carriage of bio-fuels in liquid bulk by sea in order to increase operational efficiency and reduce greenhouse gases emitted by transported tonne and transport costs.

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Agenda for the Meeting of CTSCA #23 Page 6 of 28 To be held in Houston, USA on 30 October 2014 Issue No 1 Our Ref.: AGO-333013/ 1450000 Approved by: A. Gour

Overview:

This is a proposal to consider a new post-biennial output for PPR to consider the revision of MARPOL Ann I & II to accommodate technically suitable biofuels under Ann I.

The CTC considered this and were of the view that the submission does not provide sufficient supporting data and study so as to establish “compelling need” that this should be supported. The information paper has second hand data from a variety of sources and is presented without any cohesiveness.

CTC Overview:

As for the technical issues which will be taken up if this goes ahead to PPR these were put forward at CTC as below:

The committee noted the proposal (MEPC 67-16-1) by Finland and Brazil for MEPC 67 to consider including a new “post-biennial” output for the PPR Sub-Committee to consider the revision of MARPOL Annex I and Annex II so as to accommodate technically suitable bio-fuels under the Scope of MARPOL Annex I

The committee noted that although at this stage this proposal was simply to consider the inclusion of this item in the work programme of PPR, the committee realised that related technical issues could be raised at the MEPC meeting.

The committee noted that although the co-sponsors had also submitted an information paper (MEPC 67-Inf.10) to support their proposal.

The committee, in discussing the proposal raised some concerns, which were raised as follows with the recommendation that these issues be taken into account when discussing this proposal at IMO.

The committee also noted that the proposal at MEPC should only be considered with a view to including a new “post-biennial” agenda output for PPR and that technical aspects of this discussion should only be addressed at PPR. 1. The proposal does not provide any definition of “technically suitable” bio-fuels i.e.: bio-diesel

or bio-ethanol. 2. The proposal refers to the increasing demand for transport of bio-fuels however there is no

study of the availability of the existing tonnage demonstrating whether there is a shortage. Considering that most product tankers are also rated with IMOII/III classification, it appears that there should not be any such shortage.

3. The committee also noted that the UN and EU have recognised the negative impact of bio-fuels and that the EU had reduced the target for crop-based bio-fuel component in transport fuel from 10% by 2020 to 5%.

4. The proposal also does not take into account issues relating to the carriage of bio-fuels as Annex I particularly with regard to:

a. discharge through ODME b. the properties of bio-fuels that are known to affect transportation and possible

contamination certain Annex I cargoes which therefore may affect the carriage of such Annex I cargoes.

5. The committee noted the reference in the proposal to the existing 25% cut-off division between Annex I and Annex II when considering the carriage of bio-fuels. The committee however, also noted that this (25%) was a reflection of various present and future national bio-fuel targets which had dictated the carriage of such blends at sea.

6. The committee also noted that the proposal made reference to “inconsistency in regulations on how bio-fuels can be used as marine fuels and stored in fuel tanks but not transported as a pure product on MARPOL Annex I oil tankers” and in this regard stated that this applies to all fuels that may be carried as cargo and as this was IMO procedure cannot be applied to only bio-fuels.

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Agenda for the Meeting of CTSCA #23 Page 7 of 28 To be held in Houston, USA on 30 October 2014 Issue No 1 Our Ref.: AGO-333013/ 1450000 Approved by: A. Gour

7. The committee noted that this was a discussion which affected not only bio-fuels but when applied as a matter of principle would also affect a number of other products currently regulated under the IBC Code which can be seen to have oil-like properties.

8. Oo8The committee were of the view that this proposal appeared to be primarily to do away with the IMO process of assessing new cargoes on a scientific basis and thereafter assigning carriage requirements which take into account relevant safety and pollution factors.

The committee were of the opinion that comments in the submission suggest that such a change would also provide a possible commercial benefit to certain parties

7. CTC UPDATE

The Chemical Tanker Committee met in London on 18 September 2014 and discussed a number of issues. The main ones are recapped below.

7.1 CHAIRMAN AND VICE-CHAIRMAN OF CTC

The committee, at its meeting in London on 18 September, elected Mr. Roger Restaino (Stolt Tankers (USA)) as its chairman.

It also elected Capt Per Trysted Jorgensen (Eitzen A/S) as its vice-chairman

7.2 ACCESS TO TERMINALS IN US

A member raised the issue of proper access to terminals in the US where usually there is no provision from the terminal to provide access and there is no room on the pier to place the ships gangway.

This was noted by the committee as being an issue which does need to be addressed and also that the CG should assist in this regard. It is suggested that this could come under the certificate of adequacy requirements of the terminal and that where this is an issue the local CG should be advised and engaged in this regard.

8. CDI

8.1 COST OF SHIP INSPECTIONS

Following a request at the last meeting, members have been providing the secretariat with data on costs from 2012 and 2013. These costs have been collated and analysed and a preliminary report will be presented to the committee at the meeting.

A working group has been formed under the aegis of the Vetting Committee (and the chairmanship of Capt. Patrick Russi) which is reviewing these costs and will be finalising a report on the issue of cost of ship inspections.

The Committee is invited to note, discuss and comment as appropriate.

8.2 CREW PROFICIENCY TESTING

At the last meeting it was noted that CDI continues to run this programme stating that only statistics gained are kept.

Members had noted, however, that increasing numbers of companies are actively advising their officers to decline the test and therefore the general opinion of the committee was to advise CDI that this programme should be stopped.

This opinion was conveyed to the CDI Executive Board at their last meeting (July 2014) and the board has decided to cease the program in line with the forthcoming revision of the SIR.

The Committee is invited to note.

Page 8: AGENDA Chemical Tanker Sub-Committee, Americas · PDF fileo Interim Rule on Liquid Chemical Categorisation – Capt. Soren Ibsen o Report from Chemical Transportation Advisory Committee

Agenda for the Meeting of CTSCA #23 Page 8 of 28 To be held in Houston, USA on 30 October 2014 Issue No 1 Our Ref.: AGO-333013/ 1450000 Approved by: A. Gour

8.3 CDI COMMITTEES

INTERTANKO maintains its liaison with CDI through representation on different CDI committees. A brief update on the work of the two committees is outlined below.

8.3.1 ACCREDITATION COMMITTEE

INTERTANKO is represented by Capt. Bernhard Stein (Odfjell) on this committee and forms part of the panel which interviews CDI inspectors before they are accredited. The committee also reviews appeals and any other inspector related issues.

The committee is presently made up of the following:

1. Terry Frith (CDI) 2. Bernhard Stien (Intertanko) 3. Andrew Hills (IPTA) 4. Chris Westley (Exxonmobil) 5. Jan van Benten (Unigas) 6. Peter Van Herck (BASF) 7. Andrejs Jumakovs (V Ships) 8. Andrew Aitchison (Shell)

The committee met last on 18 June 2014 and the next meeting is scheduled for Riga on 09 December.

The committee and discuss as appropriate.

8.3.2 TECHNICAL COMMITTEE

The technical committee meets bi-annually and has been working on the revision of the CDI-SIR (7th Ed.).

The SIR is now in the final stages of revision and a draft version will be circulated to the members under separate cover.

A summary of the changes to the SIR is as follows:

• The T/C has had extensive (3 day meetings) on 3 occasions during 2014 as part of the revision process for the 8th edition SIR

• In addition to a general update new significant changes relate to the navigational section in particular ECDIS and position fixing.

• There is a new Officer Competency section regarding documentary evidence of on-board training systems.

• A new Self-Inspection (S.I.) format. • New references to all CDI publications and CDI’s best practice paper regarding

the use of Nitrogen. • Inspectors will be able to view owners’ comments, as agreed at CDI Marine

EB#40

INTERTANKO is represented on the technical committee by Capt J. Pocklington.

The Committee is invited to note and discuss as appropriate.

8.3.3 CDI EXECUTIVE BOARD

INTERTANKO are invited to attend the CDI executive board meetings and contribute to relevant issues that are discussed at the meeting.

A summary of the meetings and the minutes are circulated under separate cover.

The Committee is invited to note and discuss as appropriate.

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Agenda for the Meeting of CTSCA #23 Page 9 of 28 To be held in Houston, USA on 30 October 2014 Issue No 1 Our Ref.: AGO-333013/ 1450000 Approved by: A. Gour

9. PRESENTATIONS

9.1 REGULATORY UPDATE – MR. JOSEPH ANGELO

Mr. Joe Angelo, DMD – INTERTANKO will provide the sub-committee with a presentation on issues and developments at IMO that are relevant in the US e.g. Ballast Water

9.2 UNITED STATES COAST GUARD (USCG)

Attending USCG Officers will provide the committee with a presentation covering port state control issues and staffing changes.

9.2.1 MR. JAMIE WILSON

Mr. Wilson will provide the Sub-Committee with a presentation covering Port State Control and staffing issues.

9.2.2 MR. PATRICK KEFFLER

Mr. Patrick Keffler will provide the sub-committee with and update of status of regulatory affairs from USCG Washington.

The sub-committee will be invited to note the information provided and discuss.

9.3 WEST GULF MARITIME ASSOCIATION (WGMA)

Mr. Niels Aalund of the WGMA will provide the committee with an update on the activities of the Lone Star Harbour Safety Committee (LSHSC).and of the West Gulf Maritime Association.

The sub-committee will be invited to note the information provided and discuss.

10. US REGULATORY ISSUES AND UPDATES

10.1 MARPOL ANNEX I ISSUES AT TERMINALS – CAPT. STALE EIDE

Capt. Stale Eide will provide the committee with an update on the MARPOL Issues that ships are faced with at Terminals.

10.2 PREP GUIDELINES – JOHN SALVESEN

The issue of US “Exercise Program (PREP) Guidelines” was raised by Capt. John Salvesen. It was pointed out that the agency that was looking after this issue in the US was the Bureau of Safety and Environmental Enforcement (BSEE) whose Parent Agency is the Department of the Interior (DOI).

The BSEE has invited comments on the update to the Draft National Preparedness for Response Exercise Program (PREP) Guidelines. It was noted that as the BSEE has published this notice instead of the USCG, it is possible that this has been missed by the industry.

It was noted that in this comment period not many comments were received and as this was seen to be a revision which could impact the industry in terms of the numbers of exercises required by every ship as well as the cost to the industry, submitting comments to this docket should be important for the members.

Capt John Salvesen will provide the Sub-Committee with an update on this issue.

10.3 INTERIM RULE ON LIQUID CHEMICAL CATEGORISATION – CAPT. SOREN IBSEN

INTERTANKO has in the recent past, conducted a preliminary review of the interim rule as a result of which we have noted certain cargoes which are categorised such that they are in different compatibility groups to what they have been until now.

Capt Soren Ibsen will provide the sub-committee with an update on the latest status of the USCG Interim Rule on Liquid Chemical Categorisation.

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Agenda for the Meeting of CTSCA #23 Page 10 of 28 To be held in Houston, USA on 30 October 2014 Issue No 1 Our Ref.: AGO-333013/ 1450000 Approved by: A. Gour

10.4 REPORT FROM CHEMICAL TRANSPORTATION ADVISORY COMMITTEE (CTAC) – JAMES PRAZAK

Mr. James Prazak, the chair of the Chemical Transportation Advisory Committee (CTAC) will provide the attendees with an update on the activities of the Committee.

The sub-committee is invited to note and comment as appropriate.

11. AOB

Members are requested to advise the secretariat on any issues that they would like to be added to the agenda for discussion during the meeting.

11.1 CUSTOMS PROCEDURES IN ARGENTINIAN PORTS

A member has raised the issue of challenges of difficult customs procedures in Argentinian Ports with particular reference to San Nicolas.

It is commented that customs officers in these ports regularly board ships and scrutinise the customs declaration of stores and spares against the actuals. In doing, so the customs authorities routinely highlight any discrepancies however minute and will either levy hefty fines or will prevent cargo operations.

The sub-committee is invited to discuss the above.

12. NEXT MEETING

It is proposed that the next meeting of the Sub-Committee will be a joint meeting with the Committee.

This meeting is scheduled to be held in the Spring of 2015 with a date to be confirmed in consultation with the committee.

The sub-committee is invited to discuss.

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Minutes of the Joint Meeting of CTC #44 & CTSCA #22 Held in Stamford, Connecticut, USA on 20 March 2014 Our Ref.: AGO - 22713/1300001

APPENDIX 1 Our Ref.: AGO 22713/ 1300001

MINUTES

Chemical Tanker Committee Meeting #44

& Chemical Tanker Sub-Committee

Meeting #22

Hilton Stamford Hotel & Executive Meeting Center, One First Stamford Place,

Stamford CT 06902 USA

20 March 2014 0930hrs ~ 1700hrs

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Minutes of the Joint Meeting of CTC #44 & CTSCA #22 Held in Stamford, Connecticut, USA on 20 March 2014 Our Ref.: AGO - 22713/1300001

ATTENDEES:

No. Name Committee Organisation

1. Capt. Stephen Hardy CTC – Chairman Interorient marine Service Ltd.

2. Mr. Roger Restaino CTC / Chairman-CTSCA Stolt-Nielsen USA Inc.

3. Capt. Amit Jain CTC Unix Line Pte. Ltd

4. Capt. Michael Wilson CTC Laurin Maritime (America) Inc.

5. Mr. Torben Hertel CTC Eitzen Chemical ASA

6. Mr. Peter Frömming CTC (Mr. Alexander F. Walster RHL Hamburger Lloyd Tanker GmbH & Co. KG

7. Capt. Hatano Masakuzo CTC/CTSCA Iino Singapore Pte. Ltd

8. Capt. Stale Eide CTC/CTSCA Eitzen Chemical AS

9. Capt. George Pontikos CTSCA (Capt. Salvesen) Odfjell USA Inc.

10. Capt. Iqbal Kazi CTSCA (Capt. Anuj Chopra) Rightship

11. Capt. Soren C. Ibsen CTSCA Q88.com

12. Mr. Roy Bleiberg CTSCA ABS Marine Services, Inc.

13. Mr. Arent Skjoldborg CTSCA Navig8 Ship management Pte Ltd

14. Mr. Patrick Keffler Guest (Speaker) USCG - Acting Chief, Hazardous Materials Division (CG-ENG-5)

15. LCDR Steve Koch Guest USCG - Chief of Port State Control, Sector New York

16. LT Beth Newton Guest USCG - Marine Inspector & chemical engineer

17. CIV Adrian Kavanagh Guest USCG - Sector Long Island Sound

18. Mr. James Monigan Guest (IINO) Allied Chemical Carriers, LLC (JV with Iino Lines)

19. Mr. James Varley Guest Stolt-Nielsen USA Inc.

20. Capt. Patrick Russi Guest Stolt-Nielsen USA Inc.

21. Mr. Peter Young Guest Stolt-Nielsen USA Inc.

22. Mr. John Ashielfie Guest Stolt-Nielsen USA Inc.

23. Capt. Atul Vatsa Guest Thome Ship Management Pte. Ltd.

24. Capt. Sven Strauss Guest Ernst Jacob GmbH & Co KG

25. Mr. Ajay Gour Secretariat INTERTANKO

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Minutes of the Joint Meeting of CTC #44 & CTSCA #22 Held in Stamford, Connecticut, USA on 20 March 2014 Our Ref.: AGO - 22713/1300001

APOLOGIES:

No. Name Committee Organisation

1. Mr. Bertil Anderson CTC Laurin Maritime AB

2. Mr. Svend Foyn-Bruun CTC Odfjell SE

3. Mr. Lars Modin CTC International Tanker Management Holding Ltd

4. Capt. Eng Chuan Loo CTC MISC Berhad

5. Capt. Alasdair Campbell CTC (Capt. Brian King) MOL Tankship Management (Europe) Ltd.

6. Capt. William B. Lunn CTC Bernhard Schulte Shipmanagement

7. Mr. Luciano Casella CTC Finbeta SpA

8. Mr. Alexander F. Walster CTC RHL Hamburger Lloyd Tanker GmbH & Co. KG

9. Capt. Alasdair Campbell CTC MOL Tankship Management (Europe) Ltd.

10. Mr. Kostas Vavourakis CTC Elmira Tankers Management SA

11. Capt. Anuj Chopra CTC Anglo Eastern Ship Management

12. Capt. Rohit Guiliani CTC Selandia Shipmanagement

13. Mr. Kostas Vlachos CTC Consolidated Marine Management

14. Capt. Martin Hislop CTC/CTSCA Tokyo Marine Europe Limited (TME)

15. Capt Amarjit Singh CTSCA Aurora Tankers USA Inc

16. Mr. Lance Nunez CTSCA DOW Chemical

17. Capt. John Salvesen CTSCA Odfjell USA Inc.

18. Mr. Helal Jafri CTSCA Anglo-Eastern (Houston) LLC

19. Mr. Chris Mantooth CTSCA Chevron International Oil Company

20. Mr. Chris Desmond CTSCA Lloyd'S Register North America, Inc.

21. Mr. Philip G. Rynn CTSCA ABS Marine Services, Inc.

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Minutes of the Joint Meeting of CTC #44 & CTSCA #22 Held in Stamford, Connecticut, USA on 20 March 2014 Our Ref.: AGO - 22713/1300001

1. INTRODUCTION The chairman of the Chemical Tanker Committee, Capt. Steve Hardy, chaired the joint meeting of the 44th session of the CTC and the 22nd session of the CTSCA The chairman and secretariat advised the attendees of housekeeping and schedule for the meeting. All attendees provided a brief introduction of themselves and their organisations.

2. ANTI-TRUST/COMPETITION LAW COMPLIANCE The Chairman brought to the attention of all those present, the INTERTANKO anti-trust/competition law compliance statement as included in the agenda and as noted below.

“INTERTANKO’s policy is to be firmly committed to maintaining a fair and competitive environment in the world tanker trade, and to adhering to all applicable laws which regulate INTERTANKO’s and its members’ activities in these markets. These laws include the anti-trust/competition laws which the United States, the European Union and many nations of the world have adopted to preserve the free enterprise system, promote competition and protect the public from monopolistic and other restrictive trade practices. INTERTANKO’s activities will be conducted in compliance with its Anti-trust/Competition Law Guidelines.”

3. AGENDA The chairman introduced the agenda and asked for comments.

The committee accepted the agenda and the following issues were raised for discussion under AOB:

i. Carriage of used cooking oil ii. Waste Disposal iii. Vapour Emissions in Texas iv. Panama Canal Issues v. IMO Guidance on new regulations vi. Access to Terminals in US

4. REVIEW OF COMMITTEE MEMBERSHIP, ATTENDANCE AND TOR

4.1 COMMITTEE MEMBERS The committee noted that a new application to had been received from Capt.Veeresh Bahadur of Thome Shipmanagement Pte Ltd.

Capt. Bahadur’s CV was reviewed and members supported his application to the committee. Capt. Bahadur will be advised of his membership accordingly.

The committee noted that Mr. Steffen Tunge was now not a member as he had moved to a non-member company.

The membership of the committee was reviewed and it was felt that the chemical tanker owning members of INTERTANKO could be better represented on the committee. It was agreed that the secretariat should advertise for more members to join the committee.

The chairman advised the members of the committee that his second term is coming to an end at the next meeting (fall 2014) he would be stepping down.

It was noted that Mr. Restaino holds the position of Vice-Chair to the committee and would take the chair in the fall meeting, however, if anyone would like to put themselves forward for the position of chairman then they should advise the secretariat accordingly.

Action: Secretariat to advertise (via weekly news and bulletins) for new members to the committee

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4.2 ATTENDANCE The committee noted that in accordance with its Terms of Reference, the committee will meet twice every year and that all members should endeavour to attend at least one meeting every year.

In this regard it was agreed that secretariat will remind all members of this obligation and will write to those members whose attendance is low reminding them that membership to the committee depends on regular attendance as per the terms of reference.

4.3 TERMS OF REFERENCE The committee noted the terms of reference and noted that the council had, since the last meeting, reviewed the ToR’s of all committees with a view of standardising, as far as possible, the terms of membership across all the committee.

The changes as discussed and recommended at the last meeting have been accepted. These have been incorporated in the revised Terms of Reference as attached.

Terms of Reference - CTC-Rev 2014

4.4 5-YEAR STRATEGIC PLAN The committee were reminded that at previous meetings committee members had discussed, together with the INTERTANKO Deputy Managing Director, discussed and agreed that Chemical Tanker Operations should be a key focus area for INTERTANKO in its 5-year strategic planning. In this respect the committee had also developed desired outcomes and tactics.

The committee were advised that the proposed desired outcomes and associated tactics as had been agreed were reviewed by the Executive Committee. The EXCOM reviewed the proposal and were of the opinion that while the Desired Outcome was good, the associated Tactics did not seem to support the Desired Outcome and these lacked the necessary quality goals.

They were of the opinion that the current tactics are not goal based but are process based using terms such as “work proactively”, “act as a resource base”, “act as a link”, “develop and continue dialogue”.

The committee conducted a brief discussion on the tactics and agreed that while these tactics could be reviewed and revised to make them more goal orientated, a small working group should be set up to finalise properly draft the tactics.

The committee in discussing these issues made the following comments and suggestions:

In respect of the first tactic members suggested that the visibility of the work of the committee should be increased. In doing so a library or a database which provides members with easier access to the work should be considered as should the release of a quarterly newsletter summarising issues relted to chemical tanker industry. It was also recommended that the 5-year strategic plan should be linked to the Issues/Goals/Objectives of the committee.

With regard to the second tactic members comments that the costs associated with chemical tanker operations should be referenced such as waste disposal, Terminal Costs and “Life of ship” costs. It was also suggested that INTERTANKO should engage with USCG to speak at their national conferences.

With regard to the last tactic, it was suggested that key associations should be identified and specified.

Action: Secretariat to write to those members that are not attending meetings asking them to either confirm that they are stepping down from the committee

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It was agreed that Capt. Hardy would chair a working group consisting of Mr. Restaino, Capt. Stale Eide, and Mr. Roy Bleiberg. The secretariat would provide support and also a sample of a 5-yr plan for another focus area as guidance.

5. MINUTES FROM THE LAST MEETING The committee noted the minutes from the last meeting were unavailable. These would be circulated separately.

6. ISSUES; GOALS & OBJECTIVES The committee noted the “Issues, Goals and Objectives” as provided in the agenda notes and agreed that the issues of Inert Gas, Tank Cleaning Terminology and the US Hazardous Substance Response Plans (HSRP) should be kept on the document until these issues are resolved.

It was noted that the amendments to the inert gas regulations are going through their final stages at IMO and that HSRP is an ongoing issue at the USCG.

The committee also noted that although the Tank Cleaning Standards have been completed, these were noted to be coming into focus with the imminent changes to the inert gas regulations for new ships. It was noted that some owners/operators as well as some charterers have moved away from requiring pre-load tank inspections and wallwash tests. Of particualr note were some menthanol manufacturers.

Members were also advised that secretariat had been advised (by a third party lab) that some cargoes which traditionally did not require wall wash testing were now being tested prior load and that this “trend” appeared to be driven by the Tanker Cleaning Standards. Members stated that they had not observed any such trend or practice and so could not comment.

The committee agreed that this document should be updated as necessary by the secretariat and circulated.

The “Issues, Goals and Objectives” as reviewed by the members present at the meeting is as attached in Annex 3. This will be revised and circulated before the next meeting.

7. ACTION POINT STATUS REVIEW The Committee reviewed the Action points from the last meeting to the agenda. The Committee made the following comments with regard to these action points:

7.1 Action: (Cost of Inspections - CDI)

It was noted that this was an ongoing issue and that secretariat would be issuing requests for information on costs for the period 2012/2013.

The information collated would be used to verify the CDI view that they had observed a significant reduction in the number of claims of motivated reasons for cost as well as a reduction in the costs of a ship inspection.

7.2 Action: (Cleaning of cargo Tanks from Annex I to Annex II)

It was noted that the committee had held the view that this was an issue where the decision would have to be made onboard by the master and/or chief officer.

However, the secretariat would review this issue with Capt. Ibsen and assess whether any guidance would be beneficial.

Action: • Secretariat to update and circulate the “Issues, Goals and Objectives”.

Action: • Working group to review and finalise desired outcomes and tactics for Chemical Tanker

Operations as a key focus area for INTERTANKO. • Secretariat to support WG and circulate sample document on outcomes and tactics.

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7.3 Action: (Shore Access as per MLC) It was noted that this issue has been raised with CG in the USG area and that they have been helpful in resolving this issue. However, it was noted that this was still an issue in other areas and that the CG should be engaged whenever this problem arises. See also minutes # 17.7.

8. REPORTS FROM WORKING GROUPS The committee noted that although there are no active working groups at present, the working group on tank cleaning standards is kept dormant as this issue could come into focus as a consequence of the amendments to the inert gas regulations.

9. IMO/REGULATORY UPDATE The committee members noted the update provided by the secretariat and Mr. Restaino regarding the following:

9.1 Prohibition of the blending of Bulk Liquid Cargoes during sea voyages.

The committee noted that the new SOLAS regulation VI/5-2 related to the prohibition of the blending of bulk liquid cargoes and production processes during sea voyages entered into force on 1 January 2014. This new regulation however, appears to have generated a number of questions regarding its application. The committee noted that the questions were primarily related to MARPOL Annex I cargoes.

In this regard the committee noted that Member Governments and international organizations to submit relevant proposals to MSC 93 and INTERTANKO had co-sponsored a paper to MSC 93 proposing the development of guidance clarifying the application of this regulation.

The committee noted the update.

9.2 Products requiring Oxygen-dependent inhibitors.

The committee noted that INTERTANKO had, at ESPH 19 (Oct 2013) proposed the amendment of IBC Code 15.13.3.2 which requires that when a cargo requiring an oxygen dependent inhibitor is carried then that cargo should be accompanied by a certificate. The amendment recommended that this certificate should also contain information on the levels of oxygen required to be maintained in the vapour space of the tank to keep the inhibitor effective. This would eliminate the need to pursue the manufacturing industry to provide information on such inhibitors so that circulars similar to the one developed for Styrene (Circ.879) could be developed for other inhibitors. This information would become increasingly relevant once the amendments to the IG regulations become effective.

The members noted that this proposal was accepted and will be issued as a MSC-MEPC Circular to give it more immediate effect rather than wait for the next round of IBC Code amendments.

In this regard Capt. Ibsen noted that given the lack of information available for oxygen dependent inhibitors what would a ship be expected to do in the event that the oxygen limits required for an inhibitor used for a low-flashpoint cargo were either equal to or more than 5%? Would the vessel be prevented from carrying the cargo?

It was advised that DOW now require partial inerting when using a vapour return. This was more due to the fact that the shore facility usually is not able to handle fully inerted return.

The committee were of the opinion that some form of guidance by INTERTANKO could be explored in this regard. It was then recommended that this issue be discussed with Mr. Joe Angelo, DMD for his opinion on a possible way forward.

Action: • Secretariat to explore possible guidance on products requiring oxygen dependent inhibitors.

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9.3 Clarification on the use of Generic Cleaning Products.

The committee noted the information provided in the agenda notes regarding the wording that would be included in Annex 10 of the MEPC.2/Circ which would then clarify that where products or their solutions that appear in Chapter 17 or 18 of the IBC Code or List 1 of the Circular are used as washing media then they do not need to be listed in Annex 10 and that their discharge will be governed by Regulation 13.5.1 of MARPOL Annex II.

The committee also noted that the discharge of such cleaning media would be governed by the quantities stipulated by the stripping requirements.

The members requested that the latest MEPC.2/Circular and the ESPH report be circulated to the committee.

9.4 Issues related to the discharge of high-viscosity and persistent floating products.

The members noted the information provided in the agenda notes and that North and Baltic Sea States had been picking up paraffin from their beaches which was causing a negative impact on tourism and increased cleanup costs.

Members noted that this issue would be reviewed again at ESPH 20 (Oct 2014) where papers have been requested to be submitted and amongst some of the issues that are expected to be reviewed the definition of “enroute” will also be reviewed.

It has been noted that although there may be a large import of such substances into Europe from ports in these areas, ships that leave these ports and clean their tanks do so legitimately but may not be spreading the cleaning over as wide and area as possible. It was also felt that this could be a manifestation of the topography of the region.

Members also commented that when these issues are reviewed the issue of shore reception facilities should be reviewed.

It was agreed that secretariat will keep the members advised of the progress of this issue at IMO.

9.5 Review of safety criteria guidelines used in chapter 21 of the IBC Code.

Members noted the information provided regarding the ongoing work at IMO on the review of chapters 17 & 18 of the IBC Code.

9.6 IMO meeting schedules

The committee noted the IMO meeting schedule for ESPH, MEPC and MSC as outlined in the agenda notes.

10. US REGULATORY UPDATE The committee were provided an update on USCG regulations and requirements by Mr. Patrick Keffler of the USCG and by Mr. Roger Restaino.

10.1 Presentations

10.1.1 USCG

Mr. Patrick Keffler provided the committee with an update on the USCG issues including an update on the USCG leadership and directorate postings.

He also provided an overview of the regulations under development as well as MARPOL Annex VI issues.

Action: • Secretariat to circulate the latest MEPC.2/Circ and the final ESPH report..

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HSRP – Mr. Keffler said that this is presently on ‘hold’ and this lack of interest in the HSRP is due to the lack of Marine casualties in the chemical tanker sector and encouraged the members on the performance.

This lack of interest in HSRP could also be attributed to a non-alignment of economic analysis and assured the members that they would engage with INTERTANKO when the work on this is restarted.

MARPOL Pre-Wash – Members in the committee raised the issue of pre-wash and the issues that members face when conducting pre-washes and the subsequent discharge of washings. It was noted that any issues which appear to create a barrier to discharge of washings should be raised with USCG and could have Certificate of Adequacy implications for the terminal.

Mr. Keffer’s presentation is attached.

Keffler Presentation to INTERTANKO

The committee thanked Mr. Keffler for attending and making his presentation.

10.1.2 CTAC

Mr. Restaino and Mr. Keffler provided the committee with an update on the issues that CTAC has been addressing since it has been recently revived.

It was noted that from within the INTERTANKO membership, Mr. Restaino and Capt Salvesen are members of CTAC and keep the membership updated of the work that CTAC conducts.

11. CDI UPDATE

11.1 CDI Crew Knowledge and Proficiency (CKP) Testing Scheme

The committee noted the information provided in the agenda notes regarding the data (statistics) as supplied by CDI at the latest Executive Board Meeting.

Members also noted the plans that CDI have indicated for the continued use of this programme.

In this regard members were of the opinion that the programme was not providing much value to them and raised a number of issues which they felt were concerns with the system.

Members felt that the test could not accurately reflect the proficiency of the officers/crew. Issues such as the timing of the test which may be done following a 10hr inspection could be detrimental to results, language in a test situation is critical and English may not always be appropriate, it is seen as extending the inspection for no particular gain.

Increasing numbers of members comment that they are actively advising their officers to decline the test and therefore the general opinion of the committee was to advise CDI that this programme should be stopped.

Secretariat will advise CDI accordingly and at their next EB meeting.

11.2 CDI Inspector Working Group

The committee noted the information provided regarding the inspector working group which had been endorsed by the CDI-EB.

Members were advised of the change with regards to inspectors’ access to owner’s comments and the fact that this change was put in place to enhance inspector improvement. A member commented

Action: • Secretariat to advise CDI accordingly and at their next EB meeting.

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however, that it is observed that CDI could be much better at policing their inspectors and are very reluctant to amend observations and comments in the report even when these maybe incorrect.

With regard to cancellation of inspections and the proposal that the same inspector will still hold the nomination for 30 days in the event that another request for inspection is made in the same geographical zone. In this regard, members asked what would happen if the inspector is then otherwise occupied or if the inspector cancelled the inspection.

The secretariat will liaise with CDI to keep the members advised of the status of the initiatives that this CDI inspector working group is developing.

11.3 Cost of Inspections

Members noted that CDI had held in abeyance all the initiatives that had been proposed to bring costs associated with CDI inspections in check on the basis that the they had observed a significant reduction in the number of claims of motivated reasons for cost and an increase in negotiations between the ship operator and the inspector regarding terms as well as a reduction in the costs of a ship inspection.

Members disagreed noting that they had not observed a reduction of costs and commented that they could not see the logic behind the same inspector opting for economy travel when on SIRE business and for business class travel when on CDI travel.

The members noted that CDI would monitor this situation for the next 6 months and it was agreed that in this time the secretariat should request feedback from members and collate costs of inspections form the members for 2012 and 2013 to provide this to CDI at the next opportunity.

11.4 Report from the CDI Technical Committee

Members noted that the CDI technical Committee was meeting in the same week and Capt. John Pocklington is representing INTERTANKO at this meeting.

It was noted also that the Technical Committee is reviewing the CDI SIR and that this would be its last meeting in this regard. It was noted that the Technical Committee members had been instructed to keep all revisions of the SIR confidential to the group and therefore the committee would not be able to participate in the revision process as had been done with the SIRE VIQ.

It was also noted that Capt Pocklington would be retiring at the end of the year and would therefore also step down from the committee at the next meeting. The committee would then look to appoint a new representative to the CDI Technical Committee.

12. FOSFA ISSUES

12.1 CODEX and EU List of Acceptable Cargoes

Members noted that the EU list of acceptable cargoes was being reviewed so as to align this with trade as well as with the FOSFA list of cargoes.

It was noted that the CODEX was also being reviewed along similar lines and that FOSFA had, in this regard requested support from the committee to assess the possible changes to the lists and the possible impact on trade.

Action: • Secretariat to liaise with CDI with regard to the Inspector WG initiatives.

Action: • Secretariat to request feedback from members and collate information on costs of CDI

inspections for the period 2012 and 2013

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The committee reviewed the information and noted that while they were more than willing to assist FOSFA in this regard they felt that with limited market information their ability to assist would also be limited. They would however do what they could to assist.

Therefore, in this regard the committee requested for the information provided by FOSFA to be circulated by the secretariat with a request for comments and for FOSFA to be advised accordingly.

13. TANK CLEANING

13.1 INTERTANKO Tank Cleaning Standards

The committee were advised that with the changes in the inert gas regulations and the move away from pre-load tank inspections, there is increased focus on the use of the tank cleaning standards that have been created by the committee.

In this regard the committee were also advised that an independent lab had approached INTERTANKO with comments alleging that the standard had been driving charterers to go for the highest standards regardless of the cargo. As a result, the lab stated that cargoes which had traditionally always been shipped without a wall wash now routinely required one.

Members reviewed the standards and a member stated that it could be possible that one or two cargoes are asking for wall wash testing. Another member commented that these test standards are also driven by commercial and other such demands which should also be considered. However, generally the committee were of the opinion that this was not the case and that industry was not of the opinion that cleaning standards are being driven up.

A member commented that it could be possible that standard number 2 is being misunderstood such that ships are being asked to conduct wall wash tests whereas to warranty a water white standard of cleanliness the ship is the one that should be conducting the wall wash test prior certifying the tank as clean to a water white standard.

It was agreed that this could be clarified within the standards and that secretariat should liaise with the chairman of the WG (Mr. Svend Foyn Bruun) to incorporate clarifications to this standard (2). It was agreed also that secretariat would revert back to the independent lab with the opinions of the members regarding the standards.

14. MEDICAL TESTING The chairman provided the committee with an update of the issue of medical testing of crew and the lack of uniform procedures and suitable guidance in the industry.

The committee noted that although blood testing was the norm, organ function was also being tested depending on the cargoes carried.

Benzene exposure was a particular area for review where the seafarer may not be aware that they have been exposed and yet depending on how long after the incident the seafarer is tested, blood testing may not be an appropriate test.

The chairman advised the committee that he had met Mr. Paul Aston who is a doctor and is involved in seafarer health from this perspective and that he had indicated his willingness to support any initiative taken by the committee.

Action: • Secretariat to circulate information to committee with a request for comments which will be

provided to FOSFA.

Action: • Secretariat to liaise with chairman of the tank cleaning standards working group (Mr. S. Foyn-

Bruun) to incorporate clarifications for standard 2. • Advise the independent lab of the opinions of the committee regarding cleaning standards.

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It was agreed to invite Dr. Aston to the next meeting of the committee. In this regard it was also agreed that a working group be set up to develop guidance for members/industry.

The working group would be chaired by Capt. Hardy and would be comprised of capt. Jain and Capt. Varley.

15. INVITATION TO SUBMIT INPUT FOR PHASE II OF THE TANKER SAFETY EXPERT PANEL’S REVIEW. The committee noted the request from the Canadian government for views and input from an international perspective on any ememrging issues related to hazardous and noxious substances that may provide us with any information that would be of use in Canada with regard to their ship-source oil spill preparedness and respose regime.

In this regard the committee were of the opinion that the comments which had been submitted to the USCG docket in response to the development of their Hazardous Subtance Response Plans (HSRP) should be adjusted for the Canadian request and provided to Canada.

Secretariat to liaise with MR. Roger Restaino in this regard.

16. ACCIDENT REPORT The committee noted that the report of the Bunga Aplina was available at the IMO GISIS database and had been circulated for comment.

Members were advised that MISC had requested that while they would welcome comments and questions on the report, as this report was not the company’s investigation, they would be grateful if this could be retained on the agenda for the next meeting when they would be able to attend and be available to participate in any discussions.

Members agreed that this request from MISC should be honoured and that detailed discussions on the incident should be held off until the next meeting to allow their participation. However, members noted that there were still some important lessons to be learnt from this report and therefore circulating it was important. Some members had already circulated this report to their fleet.

Members also requested that the report be provided to the chairman of the Terminal Vetting Database working group for his review/investigation on recommendations for the terminal.

17. ANY OTHER BUSINESS 17.1 Carriage of used cooking oil

A member raised the issue of categorisation of used cooking oils for the purposes of its carriage. It was noted that when a tripartite agreement is agreed the cargo should only be carried under the name of the company that raised the tripartite. However, when the cargo is a generic trade name such as “used cooking oils” then effectively this trade name is patented by that company.

Further for the sake of clarification the member also observed that nowhere in any associated IMO documentation is the fact that the restriction of this carriage to the one particular manufacturer. The addendum to the certificate of fitness simply names the cargo and does not mention the tripartite or the manufacturer.

Action: • Secretariat to invite Dr. Aston to the next meeting and to set up and support the WG. Circulate

details to the WG.

Action: • Secretariat to liaise with Roger Restaino and provide Canada with comments.

Action: • Secretariat to keep the issue on the agenda for the next meeting. • Secretariat to provide the report to chair of the TVD WG for review and investigation of the

status of recommendations for the terminal.

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It was noted that this could cause issues with ships that may get cargoes, particularly those with generic names, listed on the addendum to their CoF and carry these from manufacturers other than the ones on the tripartite.

It was requested that the secretariat obtain clarification on this issue from IMO and explore the possibility of including some commentary in related IMO documents.

17.2 Waste Disposal

Mr. Restaino highlighted the issue of waste disposal in the US and how this is an issue that members are having to deal with. It was noted that when ships arrange waste disposal in the US this is usually associated with exorbitant fees.

Terminals are imposing fees even when they do not provide any support and facility in such operations and the use of offshore barges was noted as an example when facilities impose fees even when they have nothing to do with the operation.

It was noted that this issue has been flagged up with the USCG in the USG area and that they have advised that this is a CoA matter and any such unreasonable fees should be reported to the local CG who will investigate the issue.

This was noted by the CG representatives attending.

17.3 Vapour Emissions in Texas

Mr. Restaino raised this issue and advised the committee that terminals in texas operate on air quality permits with allowances which limit the amount of emissions that are allowed at each facility.

With the pressure of new terminals being built it is possible that ships come under greater scrutiny. In monitoring this situation ships can be inspected for “fugitive emissions”. It was also noted that presently there appears to be a lack of procedures for monitoring these emissions and that this could become an issue. Members are therefore advised to keep an eye on this issue and if possible advise the secretariat of any incidents where monitoring has been done.

The committee agreed that the secretariat would publicise this to members in a discreet manner.

17.4 Vapour Emissions in Panama Canal

In continuing the discussion on vapour emissions, it was also noted by Mr. Restaino that when vessels are transitting the canal that marine chemists have been monitoring such emissions for a number of years.

It has been noted that inspectors sometimes quite literally insert the testing probe into the PV valve which then always gives them a reading that exceeds any limits that they may have. This also points out the lack of inspector knowledge and training in this area.

This is a concern and it was recommended that INTERTANKO should approach the Panama Canal Authority to bring this issue to their attention.

Post Meeting Comment: Mr. Restaino advised that they were in contact with panama canal authorities and would therefore, prefer to hold in abeyance any action by INTERTANKO.

Action: • It was requested that the secretariat obtain clarification on this issue from IMO and explore the

possibility of including some commentary in related IMO documents

Action: • Secretariat to publicise this issue within membership.

Action: • INTERTANKO to approach Panama Canal Authority to highlight this issue.

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17.5 IMO Guidance on new regulations

Mr. Restaino advised the committee that while there are a number of amendments to IBC code, particularly with the new chapters 17/18/19 which are coming into force. However, it was noted that these amendments are promulgated in different documents and are diffficult to reference.

Different class societies use different documents and it would be easier if all the amendments could be issued under one document. When checked with the IMO, they advised that “It is quite normal to reference resolutions that are part of reports of the technical Committees, as these are indeed the decision-making bodies and the valid references that are frequently referenced by Member States and industry.”

Members were advised that if the amendments to chapters 17/18/19 are issued in a single IMO document then this would assist industry and class in being able to reference just one docuemnt which is recognised as being the latest.

It was suggested that INTERTANKO (liaise through Mr. Angelo, DMD) could make a proposal to IMO for such a consolidated document to be issued.

17.6 Access to Terminals in US

A member raised the issue of proper access to terminals in the US where usually there is no provision from the terminal to provide access and there is no room on the pier to place the ships gangway.

This was noted by the committee as being an issue which does need to be addressed and also that the CG should assist in this regard. It is suggested that this could come under the certificate of adequacy requirements of the terminal and that where this is an issue the local CG should be advised and engaged in this regard.

18. DATE AND PLACE OF NEXT MEETING It was agreed that the next meeting of the CTC would take place on 25 September 2014 in London.

It was proposed that the Sub-Committee would aim to meet in the first week of November 2014 in Houston with the date to be agreed with the sub-committee.

Action: • Explore whether INTERTANKO could make a proposal to IMO for such a consolidated

document to be issued.

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Minutes of the Joint Meeting of CTC #44 & CTSCA #22 Held in Stamford, Connecticut, USA on 20 March 2014 Our Ref.: AGO - 22713/1300001

APPENDIX 2

Terms of Reference

ChemicalTankerSub-Committee(Americas)(CTSCA)

1 AIMS AND OBJECTIVES

1.1 The aim of the CTSCA is to further the interests of independent chemical tanker owners trading in the North and South America region by being closely involved in the following areas:

1.1.1 Technical and operational issues affecting all chemical tankers trading to the region.

1.1.2 Local, national and international regulatory development

1.1.3 Pollution prevention and response issues

1.1.4 Improvement of safety standards on board chemical tankers trading in the region

1.1.5 Security issues specific to chemical tankers trading to the region

1.2 The CTSCA shall, in addition to acting as a resource group for the Chemical Tanker Committee (CTC) and

the INTERTANKO organisation, whenever possible act as a link between INTERTANKO, the chemical industry and its trade organisations. This with the aim of ensuring that chemical tanker owners’ interests are fully represented.

1.3 In its work the CTSCA is to pay due regard to relevant work being done by other INTERTANKO Committees and by other organisations and regulatory authorities.

1.4 The CTSCA shall develop and continue dialogue with CSA, ACC, ILTA, AWO NIOP and other shipping organisations and co-operate with them, where it is found to be useful and beneficial for INTERTANKO chemical tanker owners. Duplication of work and representation should be avoided wherever possible.

1.5 The CTSCA shall continue the dialog with the US Coast Guard, Environmental Protection Agency and other local and state regulatory bodies.

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2 MEMBERSHIP

2.1 The CTSCA is a Subcommittee of the Chemical Tanker Committee (CTC), for members operating chemical tankers, and associate members with a relevant chemical interest applicable to the work of the sub-committee.

2.2 A chemical tanker is defined as a vessel which complies with the IMO, IBC/BCH code and is issued with a Certificate of Fitness. In the interest of efficiency the group will be restricted to about 20 members.

3 CHAIRMAN

3.1 The Chairman and Vice Chairman shall be nominated by CTSCA for election by the Council. The term of office will be for a two-year period, which can be extended for one further such period.

4 MEETINGS

4.1 The Subcommittee will typically meet twice a year. Subcommittee members shall endeavour to attend a minimum of one meeting per year. Should a member not be able to attend, the member will be encouraged to submit written comments. The Chairman will be able to call a meeting on an ad hoc basis if the need arises.

5 TRAVEL EXPENSES

5.1 The travel expenses of the Subcommittees’ membership should be paid for by the member company.

6 TERMS OF REFERENCE

6.1 The Terms of Reference shall be approved by the Council.

7 SECRETARIAL DUTIES

7.1 The INTERTANKO Secretariat undertakes the secretarial and administrative tasks for the CTSCA. The INTERANKO Chemicals Manager has overall responsibility as secretary to the CTSCA and will participate in all activities of the Subcommittee.

8 REPORTING

8.1 The CTSCA will report to the CTC and if necessary, to the INTERTANKO Council.

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APPENDIX – 3 List of Consolidated Action Points – CTC #44 & CTSCA #22

1. Action: Secretariat to advertise (via weekly news and bulletins) for new members to the committee Ongoing

2. Action: (Membership) • Secretariat to write to those members that are not attending meetings asking them to either confirm that they

are stepping down from the committee. Ongoing

3. Action: (5-Year Strategic Plan) • Working group to review and finalise desired outcomes and tactics for Chemical Tanker Operations as a key

focus area for INTERTANKO. • Secretariat to support WG and circulate sample document on outcomes and tactics.

Ongoing

4. Action: (Issues, Goals and Objectives) • Secretariat to update and circulate the “Issues, Goals and Objectives”. Completed/Ongoing

5. Action: (Oxygen-dependent inhibitors) • Secretariat to explore possible guidance on products requiring oxygen dependent inhibitors. Ongoing

6. Action: (Generic Cleaning Products) • Secretariat to circulate the latest MEPC.2/Circ and the final ESPH report. Completed

7. Action: (CDI Crew Knowledge and Proficiency (CKP) Testing Scheme) • Secretariat to advise CDI accordingly and at their next EB meeting. Completed

8. Action: (CDI Inspector Working Group) • Secretariat to liaise with CDI with regard to the Inspector WG initiatives. In Progress\

9. Action: (CDI Cost of Inspections) • Secretariat to request feedback from members and collate information on costs of CDI inspections for the

period 2012 and 2013 In Progress

10. Action: (CODEX and EU List of Acceptable Cargoes) • Secretariat to circulate information to committee with a request for comments which will be provided to

FOSFA. Completed

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11. Action: (INTERTANKO Tank Cleaning Standards) • Secretariat to liaise with chairman of the tank cleaning standards working group (Mr. S. Foyn-Bruun) to

incorporate clarifications for standard 2. • Advise the independent lab of the opinions of the committee regarding cleaning standards.

In Progress

12. Action: (Medical Testing) • Secretariat to invite Dr. Aston to the next meeting and to set up and support the WG. Circulate details to the

WG. In Progress

13. Action: (Invitation to submit input for Phase II of the tanker safety expert panel’s review) • Secretariat to liaise with Roger Restaino and provide Canada with comments. Completed

14. Action: (Accident Report) • Secretariat to keep the issue on the agenda for the next meeting. • Secretariat to provide the report to chair of the TVD WG for review and investigation of the status of

recommendations for the terminal.

Completed

15. Action: (Carriage of Used Cooking Oil) • It was requested that the secretariat obtain clarification on this issue from IMO and explore the possibility of

including some commentary in related IMO documents. Completed/In Progress

16. Action: (Vapour Emissions in Texas) • Secretariat to publicise this issue within membership. Completed

17. Action: (Vapour Emissions in Panama Canal) • INTERTANKO to approach Panama Canal Authority to highlight this issue. Completed