Questions and Answers


What type of entity is Clean Gulf Associates?

Clean Gulf Associates (CGA) is a not-for-profit association of producing and pipe line companies operating in the Gulf of Mexico. It is recognized as an income tax exempt entity under 501(c)(6) of the Internal Revenue Code.

Who runs CGA?

CGA employs an Executive Director, who runs the day-to-day operations of CGA, including the administration of contracts and records relating to CGA equipment. He also acts as a liaison between CGA, its members, various CGA contractors and governmental agencies. The association's policy decisions are made by an Executive Committee, which includes representatives from both large and small oil and gas producers.

What is the Marine Spill Response Corporation (MSRC)?

MSRC is a national, private, not-for-profit marine spill response organization. MSRC is funded by grants from the Marine Preservation Association (MPA).

What is the relationship between CGA and MSRC?

CGA has Bare Boat Chartered its marine equipment to MSRC which maintains the equipment in its steady state as well as mobilizes it to CGA members and other MSRC customers alike (following preset criteria) at the time of a spill.

Similarly, MSRC handles the maintenance and mobilization of CGA non-marine equipment pursuant to a Contractor Service Agreement.

In what geographical areas do CGA and MSRC offer their services?

CGA's "Area of Interest" is essentially confined to the Gulf of Mexico. MSRC's primary "Operational Area" is the coastal and navigable waters of the U.S. East, Gulf and West Coasts, including the U.S. Caribbean and the Hawaiian Islands.

How do MSRC and CGA interrelate in the response plans of CGA members?

CGA members can cite in their response plans within CGA's Area of Interest: i) CGA equipment, based on its membership and the provisions of the CGA Oil Spill Contingency Agreement, and ii) MSRC personnel necessary to operate and supervise the CGA equipment, based on a "Service Agreement" between each CGA member and MSRC.

Under the arrangement between Clean Gulf Associates and MSRC, what spill response services does MSRC offer to Clean Gulf Associates members who are not also members of Marine Preservation Association?

Each member of Clean Gulf Associates executes a standard form Service Agreement with MSRC. If the Clean Gulf Associates member is also a member of MPA, the Service Agreement is the standard for MPA member Service Agreement. If the Clean Gulf Associates member is not a member of MPA, the Service Agreement is a modified MPA member Service Agreement reflecting a more limited scope of resources available for spill response and plan citation.

MSRC has contracts in place with many environmental contractors around the country, in addition to hundreds of other companies which provide support services during spill response. MSRC will activate these contracts as necessary to provide the resources or a capability requested by its customer.

What is the Spill Team Area Responders (STARs) program and who are the current participants?

STARs is an affiliation of environmental service providers that offer spill response capability in combination with the dedicated oil spill response infrastructure of MSRC. Currently, the STARs program includes approximately 69 environmental service contractors in various locations throughout the country.

What services or capabilities do the STARs contractors offer?

STARs contractors offer basic spill response equipment and personnel. Each individual organization has differing capabilities and resources at their disposal.

If a STARs participant is used by MSRC in providing requested capability, what charges will be passed through the customer?

Invoices for services performed by all MSRC subcontractors (STARs and others) are billed to the customer at cost plus 10%, consistent with industry standards.

In the event of a long term spill response, is there a mechanism in place to relieve MSRC from their contractual requirements with the STARs and other MSRC contractors?

Yes. The primary mission of MSRC is emergency oil spill response, where a key to success is the ability to mobilize large quantities of equipment in a relatively short period of time. The STARs contractors are key to MSRC's success in the emergency response "phase" of a spill response. However, as a spill response progresses, and logistical support is arranged, communications are developed, and all parties fall into a general rhythm, the "emergency phase" will often evolve into a "project oriented" phase.

At such time, a provision exists within MSRC's Service Agreement and MSRC's subcontractor agreements for MSRC subcontractors (other than Clean Gulf Associates and MSRC's vessel manning subcontractor) to be assigned directly to the customer, if both the customer and the subcontractor agree. This mechanism allows for the timely response to the "emergency" by MSRC, provides a mechanism to bring qualified STARs personnel to the spill, and allows for MSRC to return to its standby focus, ready for the next response.

Upon assignment of a MSRC subcontractor to the customer, the customer will be responsible for all payments directly to the subcontractor, and MSRC will not be eligible for the 10% mark up.

What access does a CGA member have to MSRC resources "in addition to or instead of CGA equipment"?

CGA members have access to MSRC spill equipment for spills not exceeding 1200 bbls. For any spill in excess of 1200 bbls., the CGA member must go through the U.S. Coast Guard. If, however, the CGA member is also an MPA member, the 1200 bbl. limitation does not apply

Can the CGA member access MSRC resources for spills outside of CGA's Area of Interest?

Yes. MSRC offers all MSRC resources (but not CGA resources without CGA's prior written consent) under the CGA member Service Agreement for use anywhere in the U.S. jurisdictional waters (subject to certain limitations, if outside MSRC's Operational Area) for spills or threats of the spill not exceeding 1200 bbls.