New controversy over Jones Act Waivers
There is new controversy about the granting of waivers to the Jones Act for ships carrying oil from the Strategic Petroleum Reserve (SPR), with allegations that oil companies are tailoring their withdrawals to avoid using U.S. flag ships.
The government set off a furor on June 23 when it announced the issuance of a blanket Jones Act waiver for ships moving oil sold from SPR.
A promotion group for domestic shipping, the American Maritime Partnership (AMP), issued a statement within hours stating it was 'dumbfounded by President Obama's decision to disregard the American maritime industry” and the Energy Department reversed itself, removing the notice of the blanket waiver that had been part of the original notice of sale of oil from the SPR, but said companies could still apply for waivers.
Now sources say oil companies are ordering large lots of oil that will not fit in U.S. flag tankers and barges, and have obtained waivers to use foreign flag vessels.
The American Waterways Operators (AWO), a group that represents the towing industry, said “more than seven Jones Act waivers have been granted, despite the availability of more than 2.2 million barrels of U.S.-flag coastwise-qualified tonnage.”
Anne Davis Burns, AWO vice president, said that group and AMP “have been fighting the waiving of the Jones Act based on arbitrary lot sizes, an action inconsistent with the administration's own stated policy of support for the Jones Act.
'Obviously, the result is to deny work to American vessels and American crews that are available to move the oil,' she said. 'It's outrageous, in our view. It's also inexplicable how the administration began with a blanket waiver, then pulled back after pressure from AMP, and then turned around and began issuing waivers again, this time based on lot sizes.”
She said “AWO, AMP, and our maritime industry partners have met with the White House, our allies on Capitol Hill, and the departments of Transportation, Homeland Security, and Energy, and we have sent the unified message that the administration must cease any further Jones Act waivers until all available domestic tonnage has been utilized.” ' Chris Dupin
New controversy over Jones Act Waivers
