OMSA TESTIFIES ON FOREIGN VESSELS OPERATING IN U.S. ECONOMIC ZONE

News Release Offshore Marine Service Association OMSA June 19, 2010

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OFFSHORE MARINE SERVICE ASSOCIATION TESTIFIES ON FOREIGN
VESSELS OPERATING IN EXCLUSIVE U.S. ECONOMIC ZONE
 
Harahan, LA – Offshore Marine
Service Association (OMSA) President/CEO Ken Wells testified today before the
Subcommittee on Coast Guard and Maritime Transportation of the House
Transportation and Infrastructure Committee, with regard to foreign vessels
operating in the economic zone exclusive to American vessels. 
Testifying on the activities of  foreign vessels that
carry cargo and do construction work at offshore energy projects in the Gulf of
Mexico, “our government enforcement agencies lack the tools to adequately
track them or even hold them to compliance,” Wells said.
 
OMSA members operate U.S. flag vessels and have made a
commitment to comply with the laws of the United States on safety, environmental
protection and security, and to pay American-level wages and American taxes.
Their vessels are built in American shipyards which must also comply with U.S.
laws and wage scales.   “All of those requirements
potentially place us at a disadvantage to foreign vessels which do not have to
meet those requirements,” Wells said.
 
Wells offered some facts from a recent economic study
commissioned by OMSA:  For every mariner who works on the
water, there are roughly nine shoreside jobs that support vessel
operations.  
 
According to a study of the offshore vessel market, the
American offshore industry is responsible for $18 billion in annual economic
activity in this country.  OMSA members generate $4.6 billion
in annual wages and more than $2 billion in taxes. 

 
And in the wake of the explosion of the Deepwater
Horizon, it was an American crew on an American vessel that saved the lives of
115 rig workers in the tragedy.     
 
“We have become very concerned that the Jones Act [U.S.
maritime cabotage law] is being degraded and that the numbers of foreign vessels
in the offshore energy sector is increasing.   We find
that many of these vessels are blatantly ignoring the Jones Act. 
Worse, we find that the agency charged with enforcing the Jones Act has
failed to live up to its responsibilities to enforce the law and to interpret
the law as Congress intended. Because of this, we are concerned that to a large
extent, American vessels are being written out of the script for the future of
our offshore energy policy,” Wells stated.
 
In looking at many of the foreign vessels
operating in the Gulf, Mr. Wells testified that there are safety concerns, Jones
Act violations non-compliance of tax laws. 

 
Wells said, “OMSA’s members developed the boats that work
offshore and then they shared their knowledge with the world.  
The United States still has the largest fleet of offshore energy vessels
in the world, but … our leading role and our future is
threatened.
 
A copy of Mr. Wells’ testimony is
attached.  
 
OMSA represents
more than 250 member companies, including 100 firms that own and operate marine
service vessels operating offshore.  It is the leading association for the
U.S. offshore transportation service industry.
 
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