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AWO AND INTERTANKO EXPRESS DISAPPOINTMENT WITH MASSACHUSETTS SPILL LEGISLATION

WASHINGTON, D.C. - The American Waterways Operators (AWO), the trade association for the American tugboat, towboat and barge industry, joins the International Association of Independent Tanker Owners (INTERTANKO) in expressing disappointment with oil spill legislation passed by the Massachusetts state legislature and signed today by Governor Romney. The legislation was enacted in the wake of an April 2003 tank barge accident that resulted in an oil spill in Buzzards Bay.

AWO President and Chief Executive Officer Tom Allegretti commented, "AWO shares the interest of the citizens of Massachusetts in ensuring the safe transportation of oil through their waterways. AWO's leadership in promoting the highest standards of safety for the American tugboat, towboat and barge industry is longstanding and well known. We are committed to carrying the vital energy supplies that keep homes warm and the lights on for New England in the safest and most environmentally-benign way. A sound, consistent federal regulatory regime overseen by the U.S. Coast Guard is the best way to improve safety and environmental protection in Massachusetts and nationwide. AWO is therefore profoundly disappointed that Massachusetts policymakers have enacted legislation that oversteps state authority and risks compromising safety by undermining the goal of consistent federal standards."

The Massachusetts legislation makes law in areas that are reserved to the Federal Government, despite the attempts of the United States Coast Guard, AWO, INTERTANKO and other organizations to help correct this course in the early stages in order to enact a bill that would provide real safety benefits. According to the United States Supreme Court, states are forbidden from undermining federal law affecting vessel operations, crew qualifications, and related matters. This is necessary to promote uniformity and to prevent conflicting or duplicative state laws governing an industry that necessarily operates across numerous states' borders.

INTERTANKO Technical Director and Regional Manager for North America Dragos Rauta said, "We expect that the Federal Government will now move to protect its prerogatives and we support the U.S. Coast Guard's efforts in that regard. We also anticipate that the Coast Guard will issue clear guidance to mariners confirming that federal safety and environmental protection laws govern their activities on the waters of Massachusetts and identifying the specific provisions of the new law that are without force and effect."

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The Tugboat, Towboat and Barge Industry Association