Dumped sludge, lied to USCG, found guilty

 

According to the Department of Justice, evidence presented during the two-week trial demonstrated that in January 2010, DSD Shipping knew that the oily-water separator aboard its106,541 dwt crude oil tanker Stavanger Blossom was inoperable. In an internal corporate memo, DSD Shipping noted that the device could not properly filter oil-contaminated waste water and stated that individuals “could get caught for polluting” if the problem was not addressed. Rather than repair or replace the oily-water separator, however, DSD Shipping used various methods to bypass the device and force the discharge of oily-wastes into the ocean. During the last months of the vessel’s operation prior to its arrival in the Port of Mobile, the M/T Stavanger Blossom discharged approximately 20,000 gallons of oil-contaminated waste water.

The evidence at trial also established that DSD Shipping employees intentionally discharged fuel oil sludge directly into the ocean. Specifically, crew members cleaned the vessel’s fuel oil sludge tank, removed approximately 264 gallons of sludge and placed the waste oil into plastic garbage bags. After hiding the sludge bags aboard the ship from port authorities in Mexico, defendants Chen and Zhong ordered crew members to move as many as 100 sludge bags to the deck of the vessel. There, Zhong threw the sludge bags overboard directly into the ocean.

The Department of Justice says that DSD Shipping, Dancu, Gao, Chen and Zhong, all attempted to hide these discharges from the U.S. Coast Guard by making false and fictitious entries in the vessel’s oil record book and garbage record book. Further, after arriving in Mobile, Chen and Zhong lied to the U.S. Coast Guard about the discharge of sludge and ordered lower ranking crewmembers to do the same.

At the conclusion of trial, DSD Shipping was convicted of one count of conspiracy, three counts of violating APPS, three counts of obstruction of justice and one count of witness tampering. Defendant Gao was convicted of one count of conspiracy and two counts of obstruction of justice. Defendant Chen was convicted of one count of violating APPS, three counts of obstruction of justice and one count of witness tampering. Finally, Zhong was convicted of two counts of violating APPS, two counts of obstruction of justice and one count of witness tampering.

DSD Shipping could be fined up to $500,000 per count, in addition to other possible penalties. Gao, Chen and Zhong face a maximum penalty of 20 years in prison for the obstruction of justice charges

The case was investigated by the U.S. Coast Guard Sector Mobile, U.S. Coast Guard District Eight, CGIS and the EPA, Criminal Investigations Division. Assistant U.S. Attorney Michael D. Anderson, with the U.S. Attorney’s Office for the Southern District of Alabama, and the Department of Justice’s Environmental Crimes Section Trial Attorney Shane N. Waller prosecuted the case.

Crowley tanker first to get ABS LNG-Ready approval

The LNG-Ready Level 1 approval was issued, along with an approval in principle, for the recently delivered Ohio, the first vessel in a series built by Aker Philadelphia Shipyard and operated by Crowley Maritime Corporation.

By achieving compliance with the ABS Guide for LNG Fuel Ready Vessels, Crowley has the option to convert the product tankers in the series to LNG fueled propulsion at a later date having already been granted a conceptual review.

“ABS has played a fundamental role in supporting the ambitions of the maritime industry as it moves to embrace the opportunity of LNG as fuel,” says ABS Chairman, President and CEO Christopher J. Wiernicki. “This milestone builds upon our work to provide owners with the guidance and support they need to move ahead with shipbuilding projects that allow them the flexibility to respond to changes over the lifetime of their vessels.”

ABS published the Guide for LNG Fuel Ready Vessels in 2014. The LNG-Ready endorsements allow shipowners and yards the flexibility to limit their initial investment while planning for the future conversion to dual fuel or gas-powered combustion engines. A well-thought-out plan can prepare shipowners to face ever-increasing stricter environmental regulations as well as help save time and money by considering basic gas-fueled ship requirements during the preliminary design and minimizing the potential changes during the future conversion.

“Crowley is proud to be the first company to actually receive this designation from ABS,” says Rob Grune, SVP and general manager petroleum services for Crowley. “As our business continues to shape itself to better meet the requirements of our customers, these vessels that stand ready and able to operate on a cleaner, alternative fuel source are our way of anticipating future demands.”

“Working with ABS and Crowley to build the first LNG-Ready product tanker has been a valuable process and has allowed the shipyard to deliver a vessel with the flexibility to evolve in the future” says Scott Clapham, SVP of Aker Philadelphia Shipyard.

Falsifying oil record book costs Chandris $1 million

The U.S. Attorney’s Office for the Southern District of Texas reports that Chandris, the operator of the the 158, 519 dwt Suezmax tanker M/V Sestrea, which made calls in multiple ports in Texas, pleaded guilty to a violation of the Act to Prevent Pollution from Ships for failing to properly maintain an oil record book as required by federal and international law, as well as a violation of making a false statement for making a false entry in the ship’s oil record book.

Shortly following the plea, U.S. District Judge Judge Nelva Gonzales Ramos ordered the company to pay an $800,000 criminal fine along with a $200,000 community service payment to the congressionally-established National Marine Sanctuary Foundation. The money will be designated for use in the Flower Garden and Stetson Banks National Marine Sanctuary, headquartered in Galveston, to support the protection and preservation of natural and cultural resources located in and adjacent to the sanctuary.

Chandris was also sentenced to three years probation. As a condition of the probation, all ships Chandris manages and that are involved in transporting crude oil will be forced to comply with an Environmental Compliance Plan.

According to a joint factual statement, on or about Dec. 18, 2014, the chief engineering officer on board the M/V Sestrea acting on behalf of Chandris used a hose to pump fresh water through the Oil Content Meter. Because of this, the meter was “tricked” into sensing that all of the oily bilge water being run through the Oil Water Separator within normal limits.

As a result, the system discharged oily water in excess of 15 parts per million overboard into the sea.

According to court documents, the chief engineer knowingly failed to make the required entries into the oil record book including the fact that oily waste had been discharged directly into the sea. The chief engineer also made false entries in the oil record book to conceal the fact that the pollution control equipment had not been used. The crew members then attempted to conceal the discharge on Dec. 18, 2014, during a Coast Guard boarding at the port in Corpus Christi by providing the falsified oil record book to the boarding crew.

The investigation was conducted by the Coast Guard – Corpus Christi Sector and the Coast Guard Investigative Service in Corpus Christi.

Alaska and U.S. drop pursuit of further Exxon Valdez claims

A statement released today by the Alaska Department of Law and the Department of Justice notes that the grounding of the tanker onBligh Reef in Prince William Sound, Alaska, spilled nearly 11 million gallons of North Slope crude oil that ultimately contaminated some 1,500 miles of Alaska’s coastline. It affected three national parks, four national wildlife refuges, a national forest, five state parks, four state critical habitat areas, a state game sanctuary and killed enormous numbers of birds, marine mammals and fish and disrupted the lives and livelihoods of Alaskans who rely on those resources.

Now, though, the Prince William Sound harlequin ducks and sea otters thought in 2006 to have been impacted by lingering subsurface oil, have recovered to pre-spill population levels. Over time, says the statement, the exposure to subsurface oil has diminished to the point that scientists believe it is no longer of biological significance to the ducks and otters. Accordingly, the governments have decided to withdraw their 2006 request to Exxon to fund bio-restoration of subsurface lingering oil patches.

On Oct. 8, 1991, U.S. District Court Judge Russel Holland approved both a plea agreement resolving criminal charges against Exxon Corporation and Exxon Shipping (Exxon) under various federal environmental laws and a settlement agreement between Exxon and the United States and the State of Alaska resolving all civil claims between them pertaining to the spill. Under the plea agreement, the company paid $125 million for a criminal fine and restitution. The civil settlement required Exxon to pay $900 million to the governments over 10 years to reimburse past costs and fund the restoration of injured natural resources.

Since 1991, the Exxon Valdez Oil Spill Trustee Council, composed of representatives from both governments, has used civil settlement monies for significant restoration efforts in the areas affected by the spill, including: projects designed to restore the environment, manage human uses and reduce marine pollution; habitat protection and acquisition; and monitoring and research.

These restoration efforts, says the statement, have successfully accelerated and documented the recovery of natural resources that were injured by the spill. Further, due to income earned on the settlement funds, the Trustee Council currently has more than $200 million at its disposal for future restoration work.

One unresolved aspect of the 1991 settlement has been a provision in the consent decree entitled “Reopener for Unknown Injury” that allowed the governments to seek up to an additional $100 million if they later found substantial losses or declines in populations, habitats or species that could not have been anticipated at the time of the settlement. This provision allowed the governments to obtain additional funding from Exxon to restore injuries shown to be both unforeseeable and “substantial” if several conditions were met. Those conditions include presenting a detailed plan to Exxon by Sept. 1, 2006, for how to restore the substantial loss or decline of natural resources.

The governments took preliminary actions in 2006 to preserve a potential Reopener claim, by presenting to Exxon a plan to address patches of oil from the Exxon Valdez spill that recent surveys had found in the subsurface sediments and among rocks of a number of beaches in the spill area. Although this “lingering oil” occurred on only a small fraction of the originally oiled shoreline, the governments viewed it as a substantial loss of habitat because it appeared to be impeding the recovery of two species, harlequin ducks and sea otters, that were injured by the Exxon Valdez spill and forage in the types of beach sediments where the oil persists, thereby exposing them to the lingering oil.

When Exxon declined to participate, the governments undertook the first stages of the habitat restoration plan, which consisted of a series of scientific studies to improve understanding of why the oil had not yet degraded and to design specific measures to make it non-toxic. These studies were funded by the Trustee Council from the original settlement monies and have produced significant public information about the distribution and characteristics of the lingering oil, as well as pilot tests to improve techniques for accelerating the bio-degradation of subsurface oil in various types of beaches. These studies will inform restoration and resource management decisions both in Prince William Sound and in similar areas across the United States and the world.

During this period, however, continued wildlife monitoring showed that the harlequin ducks and sea otters that had appeared vulnerable to the lingering oil in 2006, have recovered to pre-spill population levels and are no longer exposed to oil more than populations outside the spill area.

Based on this information, the governments and the trustee agencies – the Departments of Agriculture Forest Service and of the Interior, National Oceanic and Atmospheric Administration (NOAA), Alaska Department of Environmental Conservation, Alaska Department of Fish and Game and Alaska Department of Law – have concluded that the legal requirements for pursuing a Reopener claim are no longer met.

“Although we will not be pursuing Exxon for additional damages, our decision today does not close the book on lingering oil,” said Attorney General Craig Richards for Alaska. “We are fortunate to have alternatives for dealing with this issue that can be undertaken without the constraints of the Reopener language. We will be engaging Alaskans through the Trustee Council process to advise us on what steps they would like to see us take. “

“Our decision today highlights the trustees’ commitment to excellent science and the success of their restoration efforts since the spill,” said Assistant Attorney General John Cruden for the Justice Department’s Environment and Natural Resources Division. “The Reopener in our settlement with Exxon was unique and set a high bar for recovery of additional damages. Together with our partners in the Alaska Department of Law, we preserved a potential Reopener claim and investigated it to its logical end. Our action today allows us to celebrate all that has been accomplished in Prince William Sound since the spill.”

“I expect the Trustee Council will evaluate whether active restoration should be performed at any lingering oil sites using the same standards and process by which it considers other potential restoration projects,” said Trustee Council member and Senior Advisor Michael Johnson for Alaska Affairs to the Secretary of the Interior.The Council has directed restoration efforts since the 1991 settlement and has established transparent procedures, with opportunities for public proposals and comment, for spending the restoration funds paid by Exxon.

NOAA scientists, who were instrumental in developing the information that led to the 2006 habitat restoration plan, will continue to monitor lingering oil sites and provide information to the Trustee Council for use in determining whether additional restoration measures will benefit the affected coastline.

“Naturally, the persistence of oil is of concern to us,” said Lois Schiffer of NOAA General Counsel. “Although the lingering oil is largely in subsurface soil or rocks, it does have the potential, if disturbed, to expose intertidal resources to oil, and its presence can be disturbing to people who come across it. The real question is whether it is better to intervene or to leave it to break down over time.”

New Eco-Ships launched at Hyundai Vinashin for d’Amico

The energy efficient design of two vessels, the 39,000 dwt Ice Class handysize tanker Cielo di Ulsan, and the 50,000 dwt product tanker High Trader, allow them to already meet IMO standards that will come into force in 2025.

With the addition of the two ships, the DIS fleet now controls through ownership, charters and joint ventures 51.83 double-hull tankers, with an average age of 7.6 years. It owns 25.33 vessels and charters another 26.50. The two eco-ships, worth a total of over $62 million, are a part of $755 million investment plan that DIS started in 2012 and which includes, to date, a total of 22 high performance vessels, 10 of which have already delivered.

Marco Fiori, CEO, d’Amico International Shipping S.A., says, “We have added two more ships of great construction quality to our young fleet, which are capable of offering our customers safety, efficiency and profitability.”

Both of these new tankers are under time charter contracts to two major international oil companies, one lasting 30 months and the other three years, managing to anticipate the extraordinary global demand in the transport of refined petroleum products, today favored both by the transfer of refineries (from the main consuming regions to oil production areas) and the decreasing of crude oil prices.

The 183m x 29m Ice Class Cielo di UIsan is equipped to operate in temperatures as low as -20°C. It will operate in routes in Northern Europe, the Arctic and the Northern Sea. This is the first model of a group of four ships that will join the DIS fleet, resulting from the joint work of the company’s engineers and Hyundai Vinashin.

The 183m x 32m High Trader is the sister ship of two other vessels already delivered to DIS. One of its selling points is that it can guarantee an average savings of 6 tons of fuel per day (with ship fully loaded and a constant speed of 14 knots) and consequently a 20% reduction in CO2 emissions. Moreover, the profitability of the ship is driven by its great commercial versatility: High Trader can carry up to nine different types of cargo during the same trip. Cielo di Ulsan and High Trader are equipped with systems for the treatment of ballast water so as to minimize the impact on marine ecosystems and comply with IMO3 and IMO2 requirements.

DIS has an extensive newbuilding program underway, with 12 new eco-ships on order, including three Handysize, three Medium-Range and six LR1, tankers under construction.

“This extremely positive moment on the market,” says Fiori, “and increasingly close relations with major oil companies and multinational manufacturers of vegetable oils, which request our ships more and more often, confirm that DIS has taken the right route. With the addition of other 12 eco-ships currently under construction by 2018, we will further consolidate our competitive position on the global shipping market that today already sees us among the leaders.”

 

 

Deltamarin and Aker Arctic develop Arctic Aframax design

The concept ship combines Deltamarin’s expertise in affordable, energy efficient cargo vessels with Aker Arctic’s arctic vessel expertise to deliver cost efficient and reliable tanker operation both in open water and in ice.

The Arctic Aframax tanker is intended for crude oil and oil product transports. It is strengthened to ice class PC5 level (equals approximately Russian Maritime Register of Shipping category ARC6) and is capable of continuously breaking thicker than one-meter level ice.

It can operate on the Northern Sea Route during the extended summer months, and with assistance even longer. During the winter months the vessel can operate in other sub-arctic sea areas such as the Baltic Sea or Sakhalin.
Deltamarin’s experience in designing cost efficient cargo vessels with track record of hundreds of contracted vessels is utilized in minimizing the newbuilding and operating costs.

According to Deltamarin’s Director of Ship Design, Markku Miinala, and Aker Arctic’s Project Manager, Riku Kiili, “the design integrates optimized ice breaking and open water performance as well as the latest energy efficiency features applied together with the Polar Code requirements. This unique combination results in an affordable building and improved transport economy by cost efficient operation. The design can be fine-tuned according to the customer’s wishes.”

The bow and hull shape of the vessel combine the optimum balance of open water performance with icebreaking capabilities. The specially designed hull strengthening improves safety in operations in the arctic waters. The hull is equipped with an Ice Load Monitoring System, which measures ice loads from the hull and provides online support to the officers ensuring safe operations. The system will also help the shipowner in the long term by analyzing the data and creating information for the optimal operations.  The emphasis has also been on winterization for cold climates in all aspects of the concept design.

The vessel is equipped with two CP-propellers and shaft lines directly coupled with slow speed diesel engines. The vessel can also be fitted to run on LNG with dual fuel engines. Further there is a possibility for two bow thrusters and shaft PTO/PTI (Power Take Off / Power Take In) systems.  A special focus has been on developing an improved command bridge, where the new Aker Arctic ARC Bridge Concept was used. The visibility from the bridge is excellent in all directions and good ergonomics including access and passages to command posts is created.

Arctic Aframax 118,000 DWT Crude Oil Carrier
Main Dimensions:

Hull and Performance:    

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