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Tuesday, 04 June 19
MARPOL ANNEX VI - SULPHUR CAP 2020 - DEMYSTIFYING THE FONAR - SKULD
KNOWLEDGE TO ELEVATE
Fuel Oil Non-Availability Report (FONAR) is primarily a discretionary tool for a Member State to lessen the breach of MARPOL Annex VI, it is not an exemption but rather a self-declaration by owners that a breach has or is about to occur.
IMO’s Marine Environment Protection Committee (“MEPC”) 74 published its resolutions on 20 May 2019 and specifically Section 5 deals with the ramifications of the aforementioned report.
The concerns over non-availability of globally compliant bunkers of 0.5% bear identical hallmarks of the implementation of the ECA zones and availability of 0.1% back in 2015.
There has been much discussion on whether owners may rely on the FONAR due to non-availability of compliant fuel.
However, how it will be applied by each Member State remains to be seen.
The FONAR consists of an immensely detailed questionnaire. Owners who find themselves in breach of Regulation 18 can make use of a FONAR. However, the evidential threshold is high and succeeding on a dispensation or reduction of a fine will depend on whether best efforts were made to:
Source compliant fuel;
Source local alternative sources.
That said, even unavailability is not a carte blanche to breaching MARPOL since alternative compliant fuels could have, most likely, been purchased such as 0.1% distillates.
To support a claim that all efforts were made to source complaint fuel, owners will need to furnish exhaustive evidence that a voyage plan was in place, that there were valid reasons for being unable to source compliant bunkers and/or operational issues which would have endangered the vessel had the non-compliant bunkers been burnt.
Owners can be sure that the Port State Control (PSC) inspectors will investigate other vessels which called at a port which allegedly did not have compliant fuel available in order to verify the truth of the statements contained within the report.
The PSC will also look for evidence of any fuel changeovers conducted outside of the jurisdiction of the Member States and whether the vessel had working emission control equipment during its visit.
Interestingly, the PSC will keep record of how many FONARs a vessel and/or their operators have requested in a period of twelve months. Any patterns of non-compliance by a fleet will be found out, sanctioned and prevented from submitting future FONARs.
Stringent investigations are likely to ensue following the submission of a FONAR and the information will be shared between Member States to report on compliant fuel oil supply issues.
Owners should beware that only a small quantity of non-compliant bunkers should be stemmed, if at all, as entering a Member State will result in the entirety of the non-compliant bunkers being debunkered at owners’ expense to bring the vessel within compliance.
The new FONAR wording is set out at Annex 1 of MEPC 74.
Source: SKULD
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Thursday, 09 January 20
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- Kideco Jaya Agung - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Sarangani Energy Corporation, Philippines
- Therma Luzon, Inc, Philippines
- Power Finance Corporation Ltd., India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Sakthi Sugars Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- European Bulk Services B.V. - Netherlands
- Tamil Nadu electricity Board
- The State Trading Corporation of India Ltd
- International Coal Ventures Pvt Ltd - India
- Baramulti Group, Indonesia
- Altura Mining Limited, Indonesia
- Commonwealth Bank - Australia
- Eastern Energy - Thailand
- Sinarmas Energy and Mining - Indonesia
- Chamber of Mines of South Africa
- VISA Power Limited - India
- Binh Thuan Hamico - Vietnam
- Leighton Contractors Pty Ltd - Australia
- Lanco Infratech Ltd - India
- Bharathi Cement Corporation - India
- Karaikal Port Pvt Ltd - India
- Iligan Light & Power Inc, Philippines
- White Energy Company Limited
- Bukit Asam (Persero) Tbk - Indonesia
- Salva Resources Pvt Ltd - India
- Ind-Barath Power Infra Limited - India
- Marubeni Corporation - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Borneo Indobara - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Billiton Holdings Pty Ltd - Australia
- GMR Energy Limited - India
- Karbindo Abesyapradhi - Indoneisa
- CIMB Investment Bank - Malaysia
- Bangladesh Power Developement Board
- Australian Coal Association
- Jorong Barutama Greston.PT - Indonesia
- PNOC Exploration Corporation - Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- The Treasury - Australian Government
- Tata Chemicals Ltd - India
- India Bulls Power Limited - India
- Jindal Steel & Power Ltd - India
- Kepco SPC Power Corporation, Philippines
- Thai Mozambique Logistica
- Ministry of Mines - Canada
- Interocean Group of Companies - India
- Deloitte Consulting - India
- TNB Fuel Sdn Bhd - Malaysia
- Meralco Power Generation, Philippines
- Indika Energy - Indonesia
- Minerals Council of Australia
- Central Java Power - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Wood Mackenzie - Singapore
- Sojitz Corporation - Japan
- Siam City Cement - Thailand
- Barasentosa Lestari - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Aditya Birla Group - India
- Meenaskhi Energy Private Limited - India
- Bulk Trading Sa - Switzerland
- Africa Commodities Group - South Africa
- SMC Global Power, Philippines
- Latin American Coal - Colombia
- OPG Power Generation Pvt Ltd - India
- Gujarat Sidhee Cement - India
- Banpu Public Company Limited - Thailand
- Oldendorff Carriers - Singapore
- PetroVietnam Power Coal Import and Supply Company
- Xindia Steels Limited - India
- Bukit Baiduri Energy - Indonesia
- CNBM International Corporation - China
- Indogreen Group - Indonesia
- Energy Link Ltd, New Zealand
- LBH Netherlands Bv - Netherlands
- GAC Shipping (India) Pvt Ltd
- Holcim Trading Pte Ltd - Singapore
- Dalmia Cement Bharat India
- Mercuria Energy - Indonesia
- MS Steel International - UAE
- Central Electricity Authority - India
- Simpson Spence & Young - Indonesia
- Merrill Lynch Commodities Europe
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bayan Resources Tbk. - Indonesia
- Port Waratah Coal Services - Australia
- Riau Bara Harum - Indonesia
- Vedanta Resources Plc - India
- Vizag Seaport Private Limited - India
- Bukit Makmur.PT - Indonesia
- Bhushan Steel Limited - India
- Kartika Selabumi Mining - Indonesia
- Anglo American - United Kingdom
- Globalindo Alam Lestari - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Indo Tambangraya Megah - Indonesia
- Antam Resourcindo - Indonesia
- Independent Power Producers Association of India
- Mercator Lines Limited - India
- Carbofer General Trading SA - India
- Timah Investasi Mineral - Indoneisa
- Asmin Koalindo Tuhup - Indonesia
- Manunggal Multi Energi - Indonesia
- Energy Development Corp, Philippines
- Kohat Cement Company Ltd. - Pakistan
- SMG Consultants - Indonesia
- Wilmar Investment Holdings
- Indonesian Coal Mining Association
- Directorate Of Revenue Intelligence - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- London Commodity Brokers - England
- TeaM Sual Corporation - Philippines
- Edison Trading Spa - Italy
- Coalindo Energy - Indonesia
- Larsen & Toubro Limited - India
- Chettinad Cement Corporation Ltd - India
- Romanian Commodities Exchange
- Cement Manufacturers Association - India
- Orica Australia Pty. Ltd.
- PowerSource Philippines DevCo
- Price Waterhouse Coopers - Russia
- Posco Energy - South Korea
- Ambuja Cements Ltd - India
- Global Green Power PLC Corporation, Philippines
- Eastern Coal Council - USA
- Coal and Oil Company - UAE
- New Zealand Coal & Carbon
- Jaiprakash Power Ventures ltd
- McConnell Dowell - Australia
- Malabar Cements Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Samtan Co., Ltd - South Korea
- Coastal Gujarat Power Limited - India
- Metalloyd Limited - United Kingdom
- Essar Steel Hazira Ltd - India
- Videocon Industries ltd - India
- Medco Energi Mining Internasional
- Directorate General of MIneral and Coal - Indonesia
- Kaltim Prima Coal - Indonesia
- Star Paper Mills Limited - India
- Singapore Mercantile Exchange
- Rashtriya Ispat Nigam Limited - India
- IEA Clean Coal Centre - UK
- ICICI Bank Limited - India
- Agrawal Coal Company - India
- Alfred C Toepfer International GmbH - Germany
- Savvy Resources Ltd - HongKong
- PTC India Limited - India
- Orica Mining Services - Indonesia
- San Jose City I Power Corp, Philippines
- Semirara Mining Corp, Philippines
- Formosa Plastics Group - Taiwan
- Ministry of Transport, Egypt
- Heidelberg Cement - Germany
- Toyota Tsusho Corporation, Japan
- Thiess Contractors Indonesia
- Sree Jayajothi Cements Limited - India
- Indian Energy Exchange, India
- Petron Corporation, Philippines
- Maheswari Brothers Coal Limited - India
- Mjunction Services Limited - India
- Renaissance Capital - South Africa
- Straits Asia Resources Limited - Singapore
- Planning Commission, India
- South Luzon Thermal Energy Corporation
- Kobexindo Tractors - Indoneisa
- Kumho Petrochemical, South Korea
- Semirara Mining and Power Corporation, Philippines
- Electricity Generating Authority of Thailand
- Bahari Cakrawala Sebuku - Indonesia
- Aboitiz Power Corporation - Philippines
- Bhoruka Overseas - Indonesia
- Electricity Authority, New Zealand
- GVK Power & Infra Limited - India
- Global Business Power Corporation, Philippines
- Ceylon Electricity Board - Sri Lanka
- Gujarat Electricity Regulatory Commission - India
- Ministry of Finance - Indonesia
- Trasteel International SA, Italy
- Global Coal Blending Company Limited - Australia
- Intertek Mineral Services - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Bhatia International Limited - India
- Kapuas Tunggal Persada - Indonesia
- Uttam Galva Steels Limited - India
- Sical Logistics Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Madhucon Powers Ltd - India
- IHS Mccloskey Coal Group - USA
- Goldman Sachs - Singapore
- Attock Cement Pakistan Limited
- Kalimantan Lumbung Energi - Indonesia
- Australian Commodity Traders Exchange
- Sindya Power Generating Company Private Ltd
- Parry Sugars Refinery, India
- Georgia Ports Authority, United States
- Standard Chartered Bank - UAE
- Rio Tinto Coal - Australia
- Pendopo Energi Batubara - Indonesia
- SN Aboitiz Power Inc, Philippines
- The University of Queensland
- Grasim Industreis Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- ASAPP Information Group - India
- Siam City Cement PLC, Thailand
- Miang Besar Coal Terminal - Indonesia
- Indian Oil Corporation Limited
- Petrochimia International Co. Ltd.- Taiwan
- Mintek Dendrill Indonesia
- Economic Council, Georgia
- Makarim & Taira - Indonesia
- Parliament of New Zealand
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