US terminal operator ruled liable for oil spill 12 years ago
A US federal district court has ruled in favour of the owners of the panamax tanker 'Athos' I on a claim related to the tanker in 2004 striking an uncharted nine tonne anchor on the river bed, which was just off the CITGO Asphalt Refining Co (CARCO) berth at Paulsboro, New Jersey, resulting in an oil spill.
Judge Joel Slomsky ruled that the CARCO berth had breached its safe berth warranty, a contractual guarantee to the tanker operator that the ship could be able to safely reach the dock so long as her draft was less than a specified depth, reported London's Tanker Operator.
During the collision with the anchor the single bottom tanker was holed in her No 7 port ballast tank and No 7 centre cargo tank, resulting in a spill of 265,000 gallons of heavy crude oil.
Some 280 miles of river shoreline was affected, including 70 miles, which were said to be heavily to moderately oiled. This incident resulted in clean-up costs, natural resources and third party claims totalling $300 million.
The US Coast Guard found that the 'Athos I her crew and her pilots had not made errors in their approach to the dock and were not at fault in the underwater collision. In addition, no fines or penalties were levied on owners Frescati Shipping Co or operator Tsakos Shipping & Trading.
In a claim filed against CARCO in 2004, Frescati Shipping Co claimed that it had incurred and was owed $143 million in spill response costs, less $88 million refunded by the US Government, which joined the suit to recover the remainder of the money.
As compensation, Judge Slomsky ruled that CARCO must pay the balance of Frescati's $55 million costs, plus half of the federal government's costs, or $44 million, plus interest.
A US federal district court has ruled in favour of the owners of the panamax tanker 'Athos' I on a claim related to the tanker in 2004 striking an uncharted nine tonne anchor on the river bed, which was just off the CITGO Asphalt Refining Co (CARCO) berth at Paulsboro, New Jersey, resulting in an oil spill.
Judge Joel Slomsky ruled that the CARCO berth had breached its safe berth warranty, a contractual guarantee to the tanker operator that the ship could be able to safely reach the dock so long as her draft was less than a specified depth, reported London's Tanker Operator.
During the collision with the anchor the single bottom tanker was holed in her No 7 port ballast tank and No 7 centre cargo tank, resulting in a spill of 265,000 gallons of heavy crude oil.
Some 280 miles of river shoreline was affected, including 70 miles, which were said to be heavily to moderately oiled. This incident resulted in clean-up costs, natural resources and third party claims totalling $300 million.
The US Coast Guard found that the 'Athos I her crew and her pilots had not made errors in their approach to the dock and were not at fault in the underwater collision. In addition, no fines or penalties were levied on owners Frescati Shipping Co or operator Tsakos Shipping & Trading.
In a claim filed against CARCO in 2004, Frescati Shipping Co claimed that it had incurred and was owed $143 million in spill response costs, less $88 million refunded by the US Government, which joined the suit to recover the remainder of the money.
As compensation, Judge Slomsky ruled that CARCO must pay the balance of Frescati's $55 million costs, plus half of the federal government's costs, or $44 million, plus interest.