Chemical Tanker Sub-Committee (Americas)

Wednesday, September 12, 2007 Our Ref.: MD-22713/950000

MINUTES Chemical Tanker Sub-committee (Americas) MEETING Number 9 12 September 2007 Southshore Harbor Resort and Conference Center 2500 Southshore Blvd League City, Texas 77060 281-334-1000

ATTENDEES:

Company First Name Last Name

Dow Chemical Company Mr. James Prazak Lloyds Register Mr. Jim McInnis Broere Shipping BV Mr. Roel Vermeulen Stolt Nielsen Transportation Group Inc. Mr. Soren C. Ibsen Odfjell USA Inc. Mr. John Salvesen Odfjell USA Inc. Mrs. Denise Schaefer Odfjell ASA Inc. Mr. Leif Gunnar Alvaer Odfjell USA Inc. Capt George Pontikos Anglo-Eastern Ship Management Ltd. Capt. Anuj Chopra Odfjell ASA Mr. Svend Foyn-Brunn ChevronTexaco Shipping Mr. Cliff Frye ChevronTexaco Shipping Mr. Tim Hewlett-Parker INTERTANKO Mrs. Margaret Doyle INTERTANKO Capt Howard Snaith ABS Mr. Graham Marshall

Invited Guests

Company First Name Last Name

US Coast Guard – Houston VTS Mr. Steve Nerheim US Coast Guard – Sector Houston-Galveston LT TJ Parker US Coast Guard Haz Mat Standards Div - HQ CDR Rick Raksnis Foret Enterprises – HOGANSAC Ms. Tava Foret West Gulf Maritime Association Mr. Niels Aalund

Apologies from: Capt. Moriya Michihisa (Iino Singapore Pte. Ltd) Capt. Amit Jain (Unix Line Pte. Ltd) Capt. Victor Goldberg (Crowley Petroleum Services) Mr. Harald Nesse (Jo Tankers AS) Capt. Amarjit Singh (Aurora Tankers Sdn)

Minutes of CTSCA # 9 Page 1 of 7 held in League City, TX on 12 September 2007 Issue No. 1 Our Ref.: MD-22713/950000 Approved by: H.N. Snaith 1. ANTI-TRUST/COMPETITION LAW COMPLIANCE

INTERTANKO’s Anti-Trust/Competition law Compliance Statement 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. CTSCA Chair Welcome John Salvesen welcomed all, initiated introductions and gave an overview of the day's schedule.

3. USCG Update

3.1 – Lt. TJ Parker, Assistant Chief of the Port State Control for Sector Houston Galveston, addressed the Sub-committee on behalf of the Captain Diehl (CO Sector Houston), who was unable to attend because of a pollution incident that occurred earlier that morning. Lt Parker discussed in detail the activities in Sector Houston relative to the CTSCA.

3.2 - Steve Nerheim (VTS Houston) updated the CTSCA on the ANOA policy and the Houston Galveston Implementation. A copy of Mr. Nerheim's presentation is included below:

2007 Chem Tanker SubComm.ppt (...

3.3 - CDR Rick Raksnis (Chief, Hazardous Materials Standards Branch) discussed current CTAC and MARPOL implementation issues.

Intertanko-Mtg-907 .ppt (207 KB...

CDR Raksnis also addressed the CTSCA regarding the U.S. Coast Guard (USCG) Chemical Transportation Advisory Committee's (CTAC's) most recent meeting on the 12th April 2007 in Quincy Massachusetts. Agenda items from the full CTAC meeting included a report from the CTAC Hazardous Cargo Transportation Security (HCTS), the NFPA 472 and Outreach Sub- committees. Also included under the umbrella of the Outreach Sub-committee are the Barge Emissions and Placarding and the MARPOL Annex II Work Groups. CDR Raksnis also reminded the CTSCA that applications are still being accepted for the future slate of CTAC.

4. Dialogue with other associations

Minutes of CTSCA # 9 Page 2 of 7 held in League City, TX on 12 September 2007 Issue No. 1 Our Ref.: MD-22713/950000 Approved by: H.N. Snaith 4.1 - Tava Foret updated the CTSCA on the latest activity of the HOGANSAC Navigation Operations Sub-committee, and on behalf of Beverly Clark discussed the current activities of the HOGANSAC Deep Draft Entry Facilitation Sub-committee as well as any other HOGANSAC activities of relative interest. A copy of the HOGANSAC NAVOPS presentation can be found below:

HOGANSAC Nav Ops - CTSCA 09120...

4.2 – INTERTANKO has recently established a reciprocal membership with the National Institute of Oilseed Products (NIOP) in order to enhance the dialogue with the manufacturers and shippers of oilseed products, which has proven very useful to our members. The CTSCA Secretary reminded the Sub-committee that, at the request of the Board of Directors of the NIOP, on 5 June 2007, INTERTANKO participated in the NIOP Technical Committee in Washington, DC. INTERTANKO updated the NIOP Technical Committee on relevant IMO issues including an update from the 11th session of the Sub-Committee on Bulk Liquid and Gases (BLG), the subsequent Working Group on Environmental Safety and Pollution Hazards (ESPH) and the upcoming 56th Session of the Marine Environment Protection Committee (MEPC) to be held next month in London.

5. MINUTES OF THE LAST MEETING: (CTC # 30, # 29 and CTSCA # 8).

5.1. - The CTSCA reviewed the minutes of the CTC #29/CTSC #8 meeting that were circulated within the Committee and Sub-committee. The minutes were approved in the usual manner and were subsequently circulated in the Weekly NEWS, as a chemical contact bulletin and placed on the members’ area of the web site.

5.2. - The minutes of the CTC #30 in Singapore 30 May 2007 were also circulated within the Committee and Sub-committee and have been approved in the usual manner. These meeting minutes were included with the meeting materials.

The Sub-committee addressed three overlapping issue with regard to CTC #30. They are CTC Action Points, 1 (MFAG was included under the IMO Report) 5 and 13 stem from this meeting. These action points are being raised at this CTSCA meeting because of the timelines associated with the CTAC meeting and possible BLG 12 submissions.

CTC # 30 Action Point -5/CTSCA 9 Action point - 1: - Request feedback from the CTAC for thoughts and their consideration regarding how blends will be dealt with under OPA-90. – This will be brought up at the next CTAC meeting in November, which fortunately will directly follow the ESPH 13 where the blends issue will also be discussed.

CTC # 30 Action point 13/CTSCA Action Point – 2: - Make a submission to IMO highlighting the problems encountered when terminals insist on draining shore lines back to the ship on completion of discharge as it defeats the regulations contained with MARPOL Annex II. A revised draft of the submission will be prepared for the next CTC meeting.

Minutes of CTSCA # 9 Page 3 of 7 held in League City, TX on 12 September 2007 Issue No. 1 Our Ref.: MD-22713/950000 Approved by: H.N. Snaith 6. WORKING GROUP REPORTS

6.1 - Report from the INTERTANKO Cargo Vapour Emissions Work Group

Last year the CTSCA proposed that INTERTANKO should consider producing guidelines to reduce inadvertent cargo vapour release, similar to those developed by the American Waterway Operators, Best Management Practice (BMP) for INTERTANKO members with the intent of encouraging INTERTANKO members to incorporate these BMPs into their operations in order to proactively contribute to the control and reduction of emissions from tankers without the necessity of federal or state regulation. This proposal was subsequently endorsed by the INTERTANKO Council in November 2006, and the Committee was requested to proceed with its work with the intent that this would be presented to the Council at its meeting in Houston in March 2007 for final endorsement by Council. The BMPs have been published and members are encouraged to review and incorporate them into their own practices.

As a follow up, the Committee further agreed that once the BMPs were completed, a small working group would be established to undertake an assessment of a second stage of these guidelines with regard to addressing cargo vapour emissions in relation to tank cleaning.

This “stage 2” best practices work group met on 11 September 2007. During the CTSCA #9, The INTERTANKO Secretariat gave a verbal report on the CTSCA working group meeting the day before. As was reported, the next phase will address the steps taken to deal with your cargo vapours during tank cleaning, possibly creating a set of voluntary guidelines.

One best practice proposed, based on a study conducted in the Port of Rotterdam, focused on an additional cycle wash as a means of reducing the vapours released. We are seeking permission from the Port of Rotterdam to formally circulate its presentation.

Extensive debate ensued regarding the Port of Rotterdam approach and data from the RGS study. The draft meeting minutes and work plan were developed and will be distributed prior to the next WG meeting which will be held 16th October 2007 in London.

CTSCA Action Point # 3 – In conjunction with the drafting BMP Stage 2 report, request from RGS a copy of the Rotterdam study looking into the questions posed by the work group.

CTSCA Action Point # 4 – Starting with the flow chart developed during the Best Practice working group meeting on 11 September, prepare a draft document to be distributed to the WG, CTSCA and CTC that will address the step by step process involved in tank cleaning and the updated TOR for the WG.

The group also agreed that the next logical step (Stage 3) will aim to be a bit more specific; possibly focusing on vapour balancing practices. This may be discussed at the next BMP WG meeting tentatively scheduled for 16 October 2007 in London.

6.2 - Report from the INTERTANKO Tank Cleaning Terminology Work Group

Minutes of CTSCA # 9 Page 4 of 7 held in League City, TX on 12 September 2007 Issue No. 1 Our Ref.: MD-22713/950000 Approved by: H.N. Snaith This issue was raised at the previous CTC meeting and carried forward to CTC #29/CTSCA #8, and focuses on the problems stemming from the many different cleaning standards within the industry today for different grades of products. The concept of the proposal, however, is “not” to create standard cleaning techniques but rather a simplification of the standard they need to be cleaned to. The issue stems from the IIG work on concerns regarding over-cleaning of cargo tanks and the associated pressure placed on ships' crews to utilise solvents for tank cleaning. CDI has agreed to participate in this effort.

6.3 - Report on the implications of the recent TCEQ activity

Over the last six months, INTERTANKO has forwarded a number of bulletins relative to TCEQ flyovers similar to that sent on 27 July:

“TCEQ will be conducting overflights over pipelines, oil and gas production areas, and industrial areas along the Gulf Coast of Texas in the following counties: Orange, Jefferson, Chambers, Galveston, Harris, Brazoria, Calhoun, Victoria, San Patricio, and Nueces.”

The Sub-committee was invited to discuss any implications of these surveys.

7. IMO Update

7.1 - MEPC 56 Report

The CTSCA Secretary reported on the 56th Session of the meeting of IMO's Marine Environment Protection Committee (MEPC 56), which was held 9-13 July 2007, mentioning that the final official report was forwarded as soon as it was released. This report reflects much of what was reported in INTERTANKO Weekly NEWS Nos. 28 and 29 immediately after MEPC 56 concluded. Issues of concern to the CTSCA include clarification on the application of regulation 4.1.3 of MARPOL Annex II (discussed on page 51 of the report) and the proposal submitted by INTERTANKO regarding high viscosity cargoes, which were both reported on by Howard Snaith who attended all of MEPC 56.

In conjunction with the INTERTANKO proposal, it was also proposed at MEPC 56 that a Circular be issued to ensure that manufacturers and shippers understand their obligations relative to regulations 16.2.6 and 16.2.9. MEPC 56 agreed and approved the development of a joint MSC/MEPC Circular. MSC will be asked to endorse the Circular in October of 2007. In the meantime, if guidance is needed prior to October, INTERTANKO will be making some minor amendments to its document submitted to MEPC and then recommending its members utilise this form “if” the information is not supplied via the official shipping document. Both the MEPC 56 Report and Draft Circular were included in the meeting materials distributed.

The CTSCA was invited to take note.

7.2 FAME Special Requirements – Inconsistencies

The CTSCA Secretary reported that the following inconsistencies have been discovered within the amended IBC Code. The generic entry for Fatty Acid Methyl Ester (FAME) carries a special requirement under column “o” of 15.12.3. Under 15.12.3 Products shall:

.1 not be stowed adjacent to oil fuel tanks;

Minutes of CTSCA # 9 Page 5 of 7 held in League City, TX on 12 September 2007 Issue No. 1 Our Ref.: MD-22713/950000 Approved by: H.N. Snaith .2 have separate piping systems; and

.3 have tank vent systems separate from tanks containing non-toxic products.

The inconsistencies exist when you look at the other FAME products; Coconut Oil FAME, Palm Oil FAME and Rapeseed Oil FAME where it is noted that they do not have this reference. Clarification of this has been requested of GESAMP who have deferred it to the ESPH Secretary.

CTSCA Action Point # 5 – Follow up with the ESPH Chair and the IMO Secretariat prior to ESPH 13. If this is not addressed by then, the decision to submit something to BLG 12 will be made at the next CTC Meeting

7.3 - Report from the ESPH and BLG Meetings

INTERTANKO regularly attends the IMO Working Group on the Evaluation of Safety and Pollution Hazards (ESPH) and the secretary provided a brief overview of the meeting held during the 11th Session of the Bulk Liquids and Gases Sub-committee (BLG 11) 16-20 April 2007. Agenda items discussed included:

 The evaluation of cleaning additives

 The evaluation of new products

 Consideration of the practical implications regarding the long term funding of the GESAMP/EHS Work Group

 Review of MEPC.2 Circ - posting provisional tripartite agreements on the IMO website

7.4 - Latest update on the Carriage and Classification of Biofuels

The carriage of biofuels continues to be an issue of discussion at the IMO and will finally be discussed in detail at ESPH 13. Confusion still exists regarding the percentages of cargoes, such as ethanol and MTBE when combined with Annex I cargoes. The document submitted to BLG 11/10 (for further review by ESPH) suggests how to deal with the percentage mix issue within biofuels. In the interim period, many administrations are agreeing that any blend containing 85% or more mineral diesel oil or gasoline should be carried as an Annex I product. INTERTANKO suggests that if you have concerns in this regard you should contact the administration in question relative to that enquiry. The document currently being used (by the UK, Sweden and IPTA) was included as part of the CTSCA #9 meeting materials. The Sub-committee was informed that this issue will, hopefully, finally be addressed at ESPH 13.

7.5 Overview of the submissions to ESPH 13

The 13th Session of the BLG Working Group on the Evaluation of Safety and Pollution Hazards of Chemicals was held from Monday, 22 October to Friday, 26 October 2007 in Tokyo. In preparation for this meeting all of the current submissions were reviewed by INTERTANKO and the ESPH 13 Agenda reviewed by the Sub-committee

Minutes of CTSCA # 9 Page 6 of 7 held in League City, TX on 12 September 2007 Issue No. 1 Our Ref.: MD-22713/950000 Approved by: H.N. Snaith 7.6 - Discussion of MFAG with the ESPH

CTSCA 8 Action Point requests that a possible submission be made to ESPH regarding the discrepancies between the Amended IBC Code and the Medical First Aid Guide with a particular note regarding the lack of antidotes for certain cargoes. A submission may be made in 2008 to BLG 12. (4-8 February 2008) This will be brought up at ESPH in October. The submission dates for this meeting are:

 Bulk Submissions - 02/11/07

 Non-Bulk - 30/11/07

 Reactions - 14/12/07

CTSCA Action Point # 6 – Follow up with the ESPH Chair and the IMO Secretariat prior to ESPH 13. If this is not addressed by then, the decision to submit something to BLG 12 will be made at the next CTC meeting.

8. Other Issues and Future Meeting Dates

Any other Business – Classification of Phosphoric Acid Residue

Problems are being encountered by members transporting phosphoric acid residue in slurry (gypsum format). Discussion of the proper classification of this cargo followed.

The futures meetings of the Committees have previously been agreed as follows:

 Wednesday 17th October 2007 CTC Meeting London (INTERTANKO Offices)  Combined CTC # 31/CTSCA #10 – April 2008  Combined CTC # 32 – Singapore May/June 2008  CTSCA # 11 – September 2008

Minutes of CTSCA # 9 Page 7 of 7 held in League City, TX on 12 September 2007 Issue No. 1 Our Ref.: MD-22713/950000 Approved by: H.N. Snaith