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Barge Industry Says USCG Proposal Could Paralyze Oil Transport The U.S. Coast Guard has pro- posed that all petroleum-carrying ships and barges operating in U.S. waters be able to provide proof they have new, higher levels of insurance sufficient to pay the cleanup costs of a major oil spill—or stop operating. But the tug and barge industry, which transports almost 30 percent of all U.S. petroleum, claims that if implemented, the rule would shut down the waterborne movement of petroleum—including gasoline, die- sel fuel, home heating oil, lube oils and other petroleum products in many coastal areas of the U.S. "Many coastal states are totally dependent on waterborne transpor- tation of oil for the bulk of their citizens' energy requirements. This proposal is big trouble for energy consumers," said Joe Farrell, presi- dent of the American Waterways Operators (AWO), the primary trade association of the tug and barge in- dustry. The Coast Guard proposal is an outgrowth of the Oil Pollution Act of 1990, a bill passed by Congress last year in the wake of the Valdez spill. Among other provisions, the bill re- quires the Coast Guard to develop rules to enforce the requirement that all petroleum transportation com- panies carry a Certificate of Finan- cial Responsibility (COFR) for each vessel—proof that they can fully cover their liability for a catastrophic spill. Insurance companies in the U.S. and abroad have stated they will refuse to issue the insurance guar- antees necessary to comply with the new requirements. Without such guarantees, virtually all petroleum transport companies must cease operations. "One can infer from the Coast Guard's proposed rule that the new requirements for COFRs are man- ageable, when in fact, they are not," said Mr. Farrell. "Arguably, the Coast Guard has been caught be- tween the Congress—which was frenzied by the Valdez spill when it passed the new Oil Pollution Act— and the insurance industry, which claims it cannot provide the neces- sary guarantees for companies to get a COFR. Without a COFR, petroleum transport vessels cannot operate." Mr. Farrell noted that the Coast Guard intends to conduct a regula- tory impact study in order to deter- mine the economic effects of its pro- posal. "To the extent that the pro- posal has redeeming qualities, it is by its stated requirement to conduct a regulatory impact study, and pub- lish it before the Coast Guard pub- lishes its final rule on this issue. The answers to the questions about economic impact should make an irrefutable case that something has to give. AWO intends to help make this case, directly from the industry it represents, and indirectly by work- ing with allied industries and Ameri- can consumers of energy." Turner Marine Fleeting Begins Operations In New Orleans Turner Marine Fleeting, Inc., a full-service fleeting and harbor ser- vice company in New Orleans, re- cently commenced operations. The company's headquarters and pri- mary operations are located at mile 64.1 on the Mississippi River Gulf Outlet (mile 10 on the Intercoastal Waterway, east of the Harvey Locks). Turner Marine Fleeting provides fleeting, shifting, tug assist services, barge cleaning, cover stacking and spreading, according to Capt. Kenny Montz, operations manager of the new firm. Mr. Montz notes that up to 72 jumbo hopper barges can be serviced and fleeted at the company's location. 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