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Q1. What information do I need to provide for you to undertake oil spill modelling?
Q2. Why can't we change the terms and conditions in the membership agreements?
Q3. Is there any value at all to consider membership if oil spill risks are low or limited to tier 1 and tier 2 spills?
Q4. Can Associate Membership apply across different countries?
Q5. Why or when should I consider upgrading from Associate Membership to Participant Membership?
Q6. Under what circumstances can we pay in US$?
Q7. Why are the UK membership subscription fees subject to VAT?
Q8. At which stage of an oil spill incident should I contact Oil Spill Response? At which point of the contact will the charges be calculated?
Q9. If I have a spill in the Middle East, do I call Southampton or Singapore? How do I activate resources at the Bahrain base?
Q10. Is it expensive to call out Oil Spill Response?
Q11. If I have Associate Membership for one site and I have an emergency at another site, can I call out Oil Spill Response? What does guaranteed response mean?
Q12. Why is there a special form of membership for shipping?
Q13. My company has very low production - I think the lowest band is still expensive, can you explain?
Q14. Is there a charge to contact the Oil Spill Response Duty Manager when I am having an exercise?
Q15. If I have tier 1 and tier 2 coverage, why do I need tier 3 (and especially if it is very far away)?



What information do I need to provide for you to undertake oil spill modelling?
A modelling request form can be provided by Oil Spill Response which details all the information required to run an oil spill model. Please contact techsol@oilspillresponse.com for further details.

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Why can't we change the terms and conditions in the membership agreements?
We sincerely regret that these terms and conditions cannot be changed to suit every member. We are a cooperative with all members treated equally. These terms and conditions were deliberated upon for a long time among all the Participants who are also the Shareholders of Oil Spill Response. Each Shareholder's legal advisors had many good reasons, in the interest of their company to rewrite some of the terms and conditions. However, being Shareholders of Oil Spill Response at the same time also made them realise that their ownership role in Oil Spill Response requires them to accept these terms. In order for Oil Spill Response, as an oil industry organisation, to make available quality oil spill response and preparedness services at an affordable cost, compromises must be made.

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Is Membership of any value if oil spill risks are low or limited to Tier 1 and Tier 2 spills?
In today's business, while emphasis is often being placed on the bottom line marker, more and more companies are also realising the importance of ensuring sustainability within the environment they operate in. Many believe in and are committed to preparedness i.e. equipping their staff with the knowledge and resources in preventing and mitigating the damages caused by oil spills.

Membership allows a company to officially quote Oil Spill Response as their available resources in contingency plans. In the event of any incident or potential incident, our Duty Managers are just a call away to advise you at any time of the day. The value comes in the form of having your own "virtual" oil spill response department which you have "set up" for yourself without the equipment maintenance commitment nor the need for high capital investment.

The added value also comes in the form of on site techincal advisory service at no cost for the initial 48 hours. In the event that a response operation is initiated, terms and conditions, including rates, will revert to the Participant or Associate Agreement.

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Can Associate Membership apply across different countries?
A number of companies started as Associate Members covering either a single or a small number
of specified locations often in one particular region of the world. As their operations expand, they can upgrade their Associate Membership to cover multiple sites located in different countries under the same membership agreement. However, there will come a time where it will be more cost effective to consider Participant Membership which entitles a Member to global coverage for
all operations.
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Why or when should I consider upgrading from Associate Membership to Participant Membership?
Participant Membership provides coverage any where / any time to the member and covers all their operations whether upstream, downstream or during transportation. In addition, Participant Membership allows a member to call out Oil Spill Response on behalf of third parties, thereby, providing even more flexibility in their coverage. Participant Membership can be very cost effective when shared across the company.

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Under what circumstances can we pay in US$?
Prior to the forming of an Alliance in year 2000, both OSRL and EARL served different geographical markets. With the Alliance and the recent merger, our customers now enjoy the combined expertise and resources and also the convenience of utilising services from UK, Singapore or even the Bahrain base depending on proximity as they expand their businesses internationally. The applicable currency is very much determined by the regions in which the operations are based. For example, customers with an initial contract with Oil Spill Response having operations in Europe will continue to be invoiced in sterling pounds while those whose majority of operations in the Asia Pacific region will be invoiced in US dollars.

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Why are the UK membership subscription fees subject to VAT?
As stated by HM Customs and Excise, Oil Spill Response's annual subscriptions are considered a supply of services made where the supplier belongs, that is the UK and therefore the supply will be subject to Value Added Tax (VAT). The law on services supplied where the supplier belongs is in the VAT act, Section 7 (10).

For non UK based companies, VAT is fully recoverable but must be done within six months. Oil Spill Response, UK will provide documentation to aid the process of reclaiming VAT and any further information can be found on www.hmrc.gov.uk.

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At which stage of an oil spill incident should I contact Oil Spill Response? At which point of the contact will the charges be calculated?
A great advantage of membership is the peace of mind, knowing that you can call Oil Spill Response anytime, no matter the size of the spill, even if the spill becomes manageable and requires no activation from us.

Oil Spill Response practises pro-active activation whereby a judgement call will be made upon discussion with the member on the likelihood of requiring a response. If it is likely that an activation is necessary, Oil Spill Response will start recalling its Spill Response Specialists to the base to make logistic arrangements and to commence the loading of equipment so as to minimise any delay in reaching the spill site. A number of companies have started their membership of Oil Spill Response as an Associate Member covering either a single or a small number of specified locations often in one particular region of the world. As their operations grow, they can upgrade their Associate Membership to cover multiple sites located in different countries under the same membership agreement. However, there will come a time where it will be more cost effective to consider Participant Membership which entitles a member to global coverage for all operations.

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If I have a spill in the Middle East, do I call Southampton or Singapore? How do I activate resources at the Bahrain base?
You can either call our UK office or the Singapore office to activate resources at our Bahrain base.

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Is it expensive to call out Oil Spill Response?
This will very much depend on the amount of personnel and equipment resources that are called upon as well as the length of time involved. The rates for personnel and equipment hire are stated in the scale of fees in the yearbook. Oil Spill Response will always give an estimate in advance
of the costs likely to be incurred during a spill response as well as daily updates of actual costs incurred.

However, it is worth remembering that an oil spill incident does not have to be a ‘Tier 3’ to ask Oil Spill Response for assistance. In fact, in the majority of incidents our involvement is mainly
to provide advice on the appropriate response strategies or technical assistance to the Member’s own response team at the spill site. We are very happy to assist no matter what the scale of the incident is.

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If I have Associate Membership for one site and I have an emergency at another site, can I call out Oil Spill Response? What does guaranteed response mean?
Associate Membership is designed to provide a cost effective solution for companies with a limited number of operations with oil spill risk, for example, an FPSO or an exploration well. The Associate Member must name the site or sites to be coveredand the annual production. This information provides the basis for the annual fee.

For the named site, the Member is guaranteed a response from Oil Spill Response under the same terms and conditions as a Participant. However, coverage is strictly limited to those locations. It would not be fair to global Members, who pay a higher annual fee, to provide a guaranteed response in all circumstances to an Associate Member. The Associate
Member can still request assistance from Oil Spill Response but this would be considered in the same manner as any third party request for assistance, namely not guaranteed and subject to Directors’ approval.

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Why is there a special form of membership for shipping?
Recognising the growing interest in Membership by the tanker industry, Oil Spill Response established a new form of Associate Membership for shipping in 2005. This category is specially designed to meet the needs of tanker owners and operators with its own criteria for establishing the potential
risks and membership pricing. Pricing is based firstly on geographical coverage, Europe, Singapore or internationally and then a unit fee is applicable to each vessel covered (up to a maximum of 25 vessels). The fees are agreed in advance on the basis of the records of the company for the previous year.

At the end of the year, the Shipping Member makes a new declaration of activities and the fee is adjusted accordingly. The intention is to provide tanker owners and operators maximum flexibility in covering their operations worldwide.

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My company has very low production - I think the lowest band is still expensive, can you explain?
Oil Spill Response is wholly owned by more than thirty of the most responsible and evironmentally committed oil and energy companies to provide resources to enhance global preparedness and response. The Shareholders under the Service Level Agreement (SLA) agree the number and nature of the resources held by Oil Spill Response, for instance, maintaining a Hercules aircraft in both Singapore and Southampton. The annual membership fees plus income from preparedness services must balance out the costs of funding the SLA. These fees are approved by Shareholders every year.

Oil Spill Response offers different categories of membership, each with its own pricing structure in order to offer as many options as possible to existing and prospective Members. Although we understand that some companies may feel the fees are too high for their circumstances, we have tried to achieve a reasonable balance across the different categories and ensure parity among all Members.

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Is there a charge to contact the Oil Spill Response Duty Manager when I am having an exercise?
There is no charge to contact the Oil Spill Response Duty Manager when you are having a table top exercise. Indeed, we welcome such calls from members and are very happy to provide likely response times and logistic arrangements. Exercises are a great way to test out contingency plans and ensure that all the appropriate information on resources and contacts are up to date.

Oil Spill Response is also pleased to be further involved in member's exercises. This may range from developing scenarios and roles for the exercise to actual deployment of personnel and resources. The cost of this will depend on the nature and extent of the involvement.

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If I have tier 1 and tier 2 coverage, why do I need tier 3 (and especially if it is very far away)?
The oil industry strongly promotes the tiered response concept as the most efficient and effective way to manage resources for a major oil spill. Tier 1 refers to having equipment on site to deal with minor operational spills while Tier 2 means having access to in-country resources, both personnel and equipment, that are shared under a form of mutual aid agreement by the different companies working there and which provides for access to the resources in an emergency.

Tier 3 is designed to provide additional expertise and resources in the event of a major spill, either in terms of volume or complexity, which cannot be managed with available Tier 1 and Tier 2 resources. It is essential that any organisation with an oil spill risk has appropriate coverage at each tier in order to be able to effectively respond to an oil spill.

Do you have a question? Please contact us.

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