377 



Requirements to Comply with Amendment 



Disoharge limitations under the bill will require that vessels not practicing 

 LOT either : 



(1) Use improved LOT during a ballast voyage ; 



(2) Carry segregated ballast in lieu of dirty ballast ; 



(3) Discharge dirty ballast and tank washings at an oil residue reception 

 facility ; 



(4) Clean cargo tanks at off-loading port, discharging residues at a reception 

 facility, and taking on clean ballast for entire return trip : or 



(5) Discharge ballast outside of 50 miles subject to discharge limitations. 

 Increased retention of dirty ballast and tank washings by vessels will place an 



increased demand on the need for oil residue reception facilities. A survey, done 

 by the Coast Guard for the Inter-Governmental Maritime Consultative Organi- 

 zation (IMCO). has recently been completed and contains information on oil 

 residue reception facilities available in U.S. ports, along with the needs of port 

 ba.sed on full application of the 1969 Amendments to the International Conven- 

 tion for the Prevention of Pollution of the Sea by Oil, 1954. The survey, which 

 includes inputs from all nations participant to IMCO, will be published when 

 completed, and made available to vessel owners and operators to provide infor- 

 mation on the availability of reception facilities. Updates of the information 

 will be published routinely. 



Physical impact of the inclusion of these amendments to the 1961 Act will be 

 the need by some ports for either enlarged or the new construction of oily waste 

 reception facilities. Facilities available, but unable to process the oily residues, 

 will either have to develop such a capability or transport received residues to 

 another reception facility or oil refinery that can. Vessels unable to discharge 

 their LOT slops or dirty ballast and tank washings at a port that has neither ade- 

 quate nor any reception facilities will therefore have to discharge at a facility 

 available elsewhere, taking on clean ballast for the remainder of the trip. 



Increa.ses in the quantity of oil residues received will also increase the need for 

 and use of processing facilities. This process includes the separation of oil from 

 water and the refining or re-reflning of the residue oil. 



Economically, the bill will have an impact on the cost of shipping oil by tanker 

 because of the costs involved with abiding by the new amendments and regula- 

 tions thereunder. These include : 



( 1 ) The cost to discharge at a reception facility ; 



(2) The cost of utilization of the LOT procedures by vessels not already doing 

 so ; and 



(3) The cost of using segregated ballast. 



The first cost is incurred by the construction of reception facilities to receive 

 residues in ports that are not adequately equipped to handle the residues of ves- 

 sels, and the additional vessel operation cost of retaining dirty ballast and tank 

 washings for discharge at reception facilities plus any delays attendant upon 

 shoreside discharge. LOT incurred costs apply to vessels not already equipped to 

 carry out this proce<lure and requiring modification to use it. Also, vessels 

 desiring to u.se LOT in.stead of either retaining the ballast and washings or carry- 

 ing segregated ballast may have to spend additional time at sea to allow proper 

 oil and water separation if time at sea would normally be too short to permit the 

 proper .separation. Of all LOT co.sts, aside from ve.ssel modification, lost turn- 

 around time is the largest. 



Segregated ballast operations involve two costs. Using sesrregated ballast, ves- 

 sels tend to become weight limited ra flier than volume limited, increasing ship- 

 ping costs because of the need for more vessels to carry an equal quantity of oil. 

 Existing vessels can u«e clean ballast, but will therefore carry a reduced load. To 

 meet shipment demands, an increase in vessel sorties or numlter of vessels is nec- 

 essary, so that a combination of vessel operating costs and vessel construction 

 costs result from the sole use of segregated ballast. 



Comnliance with the bill will involve a combination of the three systems by ves- 

 .sel owners. Certain procedures will have to be u.sed in lieu of others depending on 

 the situation. For example, using the LOT procedure, the discharge often contains 

 more oil than the 100 t)T«m requirement of the 1961 Act. Unless the discharge is 

 watched clo.sely and continuously, it is possible that it will be above the allowed 

 oil-in-water level. With motion induced turbulence during a voyaee. settling is 

 only partially effective, and it has been shown that the concentration of oil can 



