Coast Guard Regulations for Oil Industry Vessels

The U.S. Coast Guard requires that offshore oil vessels follow rigorous regulations to ensure the safety of people and the environment. The intricacy of USCG regulations for oil vessels is beyond the scope of the article, but reviewing some of the main areas of regulation can help you get a good idea of the enormity of rules that vessel owners are expected to uphold.

Environmental Regulations

Given the unique environmental threat of oil spills, the USCG has special rules and standards by which oil industry vessel owners must abide to minimize risks. Ensuring the soundness of the ship and its components, creating plans to deal with emergency situations and holding vessel owners responsible for any mishaps are some of the USCG’s main directives.

For instance, one of the ways the USCG attempts to minimize the environmental and financial impact of potential oil spills is the Certificate of Financial Responsibility (COFR) program. The program essentially holds vessel owners liable for damages and cleanup costs, should an oil spill occur.

The COFR explains that “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.”

When you’ve met their standards, the Coast Guard will issue you a COFR. If you fail to comply, penalties include:

• detainment;
• vessel seizure;
• denial of entry to U.S. ports; and
• fines of up to $32,500/day.

“CAPS” Regulations

Offshore oil vessels also need to be in compliance with the Vessel and Facility Response Plans for Oil: 2003 Removal Equipment Requirements and Alternative Technology Revisions or the “CAPS” rule. This rule makes it mandatory for vessels to have vital resources in place that will become immediately available, should a spill occur.

The U.S. Department of Homeland Security (DHS) clearly states the purpose of “CAPS”: “The objective of this rule is to increase pollution response preparedness before oil spill occurs, thus mitigating the possible environmental harm from such spills.”

The three main resources that are required to meet “CAPS” standards are:

• dispersants and related delivery equipment;
• aerial tracking; and
• trained observation personnel.

Vessel owners can read about the specifics on the DHS Homeport website.

Meeting Federal Regulations

COFR and “CAPS” are just the tip of the iceberg when it comes to offshore oil industry rules; there are dozens and dozens of additional regulations laid out in the Code of Federal Relations. Offshore oil vessel owners should read and understand the requirements laid out in 33 CFR Part 155, Oil and Hazardous Material Pollution Prevention Regulations for Vessels.

The laws cover nearly every aspect of oil vessel operation, including areas such as:

• vessel equipment;
• personnel;
• procedures;
• record keeping;
• tank vessel response plans; and
• more.

Meeting the Record-Keeping Regulations

There are numerous types of documentation and logbooks you’ll need to keep on hand and available upon request to the USCG. For high-quality logbooks that meet federal standards, take a look at our premium logbooks in the My Vessels Logs shop. For questions, call 888-468-3757.