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Certificate of Financial Responsibility (COFR)

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Federal

A COFR is issued to vessel operators who have demonstrated their ability to pay for cleanup and damage costs up to the liability limits required by the Oil Pollution Act. With a few limited exceptions, vessels greater than 300 gross tons and vessels of any size that are lightering or transshipping oil in the Exclusive Economic Zone (EEZ) are required to comply with the COFR regulations in order to operate in U.S. waters.

The Federal liability limits as of July 31, 2009 are as follows:

Source category New limit of liability
(a) Vessels:
(1) For an oil cargo tank vessel greater than 3,000 gross tons with a single hull, including a single-hull tank vessel fitted with double sides only or a double bottom only. The greater of $3,200 per gross ton or $23,496,000.
(2)For a tank vessel greater than 3,000 gross tons, other than a vessel referred to in (a)(1). The greater of $2,000 per gross ton or $17,088,000.
(3) For an oil cargo tank vessel less than or equal to 3,000 gross tons with a single hull, including a single-hull tank vessel fitted with double sides only for a double bottom only. The greater of $3,200 per gross ton of $6,408,000.
(4) For a tank vessel less than or equal to 3,000 gross tons, other than a vessel referred to in (3). The greater of $2,000 per gross ton or $4,272,000.
(5) For another vessel The greater of $1,000 per gross ton or $854,400.
(b) Deepwater Ports:
(1) For a Deepwater Port, other than a Deepwater Port with a limit of liability established by regulation under 33 U.S.C. 2704(d)(2). $373,800,000
(2) For the Louisiana Offshore Oil Port (LOOP). $87,606,000

Sources:

Federal Register/Vol. 74, No. 125/Wednesday, July 1, 2009/Rules and Regulations

33 CFR Part 138

Operators who do not comply with the COFR requirements are subject to:

  • Detainment
  • Denial of entry into U.S. ports
  • Civil penalties of up to $32,500 per day
  • Seizure or forfeiture of the vessel

Let Witt O’Brien’s be your one-stop source.  Due to proximity between the guarantors, Federal and State agencies, we can assist and follow-up with all your COFR needs in a timely manner.