MEBA
Edition

MARINE ENGINEERS' BENEFICIAL ASSOCIATION (AFL-CIO)
         
"On Watch in Peace and War Since 1875"

M
EBA TELEX TIMES              JUNE 08, 2007

The Official Union Newsletter

NUMBER 23


In this issue...
SPT PICs M.E.B.A...LNG training standards...Thanks to members for LNG input...Nomination period begins...AOTOS awards announced...Going mouth to mouth, we exhale an aerobic, oxygenated issue packed to the gills with industry items. Don't hyperventilate over windbag newsletters that asphyxiate you with literary halitosis. They blow! Come fill your lungs as we resuscitate you with the maritime kiss of life. The Telex Times is a breath of fresh air!

M.E.B.A. LANDS DEAL FOR PIC JOBS AT LNG TERMINALS
M.E.B.A. closed on a new agreement that maximizes opportunities for our members through our new relationship with LNG shipping company Excelerate Energy. The new agreement taps M.E.B.A. officers to serve as PIC's (Person-in-Charge) at deepwater ports and terminals around the country for Skaugen Petro Trans (SPT) Offshore, LLC which provides terminal operation services for Excelerate Energy. They are the leading offshore lightering company in the U.S. performing ship-to-ship transfers of various cargoes including crude oil, petroleum products, LPG, LNG and providing Deepwater Port operations.

In addition, the company would like to initiate a program for the development of Deepwater Port PICs using M.E.B.A. licensed personnel. M.E.B.A. was able to get this deal done courtesy of our contracted company Armada Companies, LLC. M.E.B.A. has a collective bargaining agreement with Armada to supply officers to third party organizations that do not hold collective bargaining agreements of their own with the Union.

"M.E.B.A. is at the forefront when it comes to providing qualified, trained and completely vetted marine officers for the LNG trade," said M.E.B.A. President Ron Davis. "We are committed to working with any companies willing to utilize U.S. merchant mariners in the transportation of natural gas to the United States."

The agreement was engineered by Pres. Davis, Secretary-Treasurer Bill Van Loo and Baltimore Branch Agent Bill McHugh, with assistance from Deputy General Counsel William Doyle, Contracts Officer Mark Gallagher and key Calhoon School personnel including Director Lou Marciello, Scott Conway, Bob Smith and Barry Van Vechten.

PICs serve as a deepwater port operator's representative and are normally stationed aboard vessels during cargo operations. These highly skilled officers must be familiar with deepwater port operations, emergency and security procedures. PICs are also responsible for coordinating gas discharge operations between the Energy Bridge Regasification Vessels (EBRV), ports, pipeline operators and other downstream interests. They also monitor cargo transfer operations, disconnection, maneuvering off STL Buoys and maintain communications between the offshore port and the port managers. Under the terms of the agreement, M.E.B.A. will also supply marine officers for liquefied natural gas ship-to-ship (STS) transfer operations.

Construction commenced this week on Excelerate Energy's Northeast Gateway deepwater port. The new port, which is located 12 miles off the coast of Massachusetts, is New England's first LNG deepwater port and will be the second operating LNG deepwater port globally. The first, Gulf Gateway, is located approximately 100 miles off the coast of Louisiana. Gulf Gateway is also owned by Excelerate Energy.

M.E.B.A. recently signed a memorandum of understanding to supply qualified marine officers to Excelerate Energy to crew their expanding fleet of LNG tankers operating globally. M.E.B.A. also ramped up their training curriculum at the Calhoon M.E.B.A. Engineering School. This curriculum is specifically tailored for LNG deepwater port operations, making it the first program of its type in the world.

This agreement represents a successful public-private partnership between the U.S. Congress, the Department of Transportation's Maritime Administration (MarAd), and private industry. MarAd has worked tirelessly to promote the use of U.S. mariners in the international LNG trade, and has been successful in securing commitments with a number of operators to use American citizen mariners.

"This Deepwater Port Terminal agreement represents sound public policy," U.S. Maritime Administrator Sean T. Connaughton commented. "MarAd will continue to establish similar commitments with other deepwater port license applicants in order to prepare our maritime workforce for service in an industry vital to the nation's economic and security needs."

SPT is a fully dedicated lightering company operating out of Houston, Texas. In the last 20 years, SPT has performed more than 10,000 operations, transferring over 6 billion barrels of crude oil and petroleum products. On a daily basis, SPT lighters 1.1 million barrels of crude a day, or 15% of all seaborne crude oil into US ports. In February of 2007, SPT, in conjunction with Excelerate Energy and Exmar, completed the world's first full-scale commercial ship-to-ship transfer of liquefied natural gas. Approximately 138,000 cubic meters of LNG was transferred from the conventional LNG carrier EXCALIBUR to the EBRV EXCELSIOR inside Scapa Flow in the Orkney Islands. The operation took a total of 41 hours with the cargo transfer lasting 26 hours. The entire lightering operation went according to plan without any incident, accident or injury.

The collective bargaining agreement has been sent to the Union halls for review.

M.E.B.A. put out a press release on the new contract some of which was excerpted above. To view the complete text, visit the "Hot Site" accessed from M.E.B.A.'s homepage (www.meba.us) or follow this link: www.d1meba.org/MEBA_PIC_Press_Release.pdf

M.E.B.A. ISSUES THANKS TO MEMBERS WHO AIDED  MARAD REQUEST FOR LNG COMMENTS
M.E.B.A. President Ron Davis and Secretary-Treasurer Bill Van Loo sent an appreciative letter recently to members who participated in the Maritime Administration's request for comments concerning important LNG issues. MarAd was interested in hearing ideas on how to best expand and maximize the U.S. LNG role in terms of American vessels and crews. MarAd also sought input about the availability of qualified officers and crew as well as the advantages of using U.S. crews. M.E.B.A. members generated an awe-inspiring amount of feedback that impressed Maritime Administrator Sean Connaughton. The Davis/Van Loo letter lauded members for the almost 1000 letters supporting the use of American mariners aboard LNG ships saying that the comments "caught the attention of the maritime industry worldwide. And because of the enormous response by MEBA members, companies are now taking greater interest in considering MEBA officers for their LNG vessels."

Since that time, M.E.B.A. has made great strides in returning our members to work in the LNG trades. The letter concludes, "The aggressive activism of you and your fellow M.E.B.A. members, together with our new Maritime Administrator, who has been assertive in seeking ways to solidify a role for U.S. mariners in the burgeoning LNG trade, is showing results."

MARITIME UNIONS, SCHOOLS, ACADEMIES SIGN LNG TRAINING STANDARDS AGREEMENT
Maritime unions, their training schools and maritime academies, along with the Maritime Administration signed onto an agreement that will implement a set of standards in the training of crews for tankers carrying Liquefied Natural Gas (LNG). MarAd, which brought the parties together as part of an industry working group that developed the standards, believes that the agreement will expand job opportunities for U.S. mariners aboard LNG ships.

M.E.B.A. was represented at the signing ceremony by Secretary-Treasurer Bill Van Loo. Scott Conway, the Calhoon M.E.B.A. School's Executive Coordinator of LNG Training & Simulation attended on behalf of the CMES.

"The worldwide demand for qualified mariners, plus the growth in the LNG industry, provides a unique growth opportunity for U.S. merchant mariners and the U.S. maritime industry," noted Maritime Administrator Sean Connaughton.

Connaughton also noted that the LNG fleet is expanding rapidly; in January 2006 there were 194 LNG tankers worldwide, and the expected number at the end of 2007 is 373. There have been few opportunities for U.S. mariners to sail on those ships. While several maritime academies offer training for LNG, their training was not standardized, and standardization of training and credentials in an internationally accepted set of competencies will make it easier for U.S. mariners to be employed on the worldwide LNG fleet.

M.E.B.A. IS OFF TO A FLYING START IN NEW DEAL WITH FRONTIER DRILLING
A new arrangement that will put M.E.B.A. officers to work in the international subsea oil and gas industry is off to a great start. With the ink barely dry on a new contract brokered between Frontier, Armada Companies and the M.E.B.A., the Houston, Texas based Frontier let the Union know that it had an immediate and pressing need to fill five jobs aboard one of its vessels that was due to sail from a Singaporean shipyard this week. The FRONTIER DISCOVERER recently had an overhaul at the yard that included a new accommodation block and a modification of marine and drilling equipment aboard the vessel to ice-class requirements.

M.E.B.A. put the jobs out on the open board and rounded up the required officers early this week. They promptly flew out to join the ship bound for the Beaufort Sea. President Ron Davis stated, "M.E.B.A. officers have a long history of answering late-breaking and urgent calls for crewing up ships at a moment's notice. This week was no exception, and our members will demonstrate to Frontier Drilling that they are employing the world's premier maritime officers."

M.E.B.A. secured the deal utilizing a referral arrangement with contracted company Armada Companies. In addition to traditional sailing opportunities, M.E.B.A. is getting the opportunity to put members to work in a non-traditional job classification known as "subsea engineer." Frontier is an expanding company that has contracts with Shell Oil for the exploration of natural resources. More information is available in last week's Telex Times and in a separate online posting on the "Hot Site" that can be accessed from the M.E.B.A. webpage or viewed by following this link:  www.d1meba.org/Summary_of_Shell_Oil_In_Alaska.pdf

NOMINATION PERIOD BEGINS
Another stage of the M.E.B.A. election year has dawned as the nomination period for candidates interested in running for Union office has begun. Beginning on June 4 and concluding on July 6, members in good standing can forward their nominations for office. Important nomination and election information was mailed to members a few weeks ago. That information will be repeated as a courtesy in the coming edition of the Marine Officer that members will receive in the next few weeks.

At the July membership meetings, a rank and file Credentials Committee will be elected. That group will formalize nominations of candidates vying for elected offices and positions in the 2007 election. Nomination forms are also available in the Union halls.

THREE M.E.B.A. CONTRACTED COMPANY HEADS TO BE HONORED WITH AOTOS AWARDS
M.E.B.A. is pleased to announce that the presidents of three of our contracted companies have been selected as the next recipients of the prestigious AOTOS award, presented by the United Seamen's Service. The next honorees of the Admiral of the Ocean Sea awards will be James S. Andrasick, President and CEO of Matson Navigation Company, Inc., Morten Arntzen, President and CEO of Overseas Shipholding Group, Inc. and John F. Reinhart, President and CEO of Maersk Line, Limited. M.E.B.A. participated in the voting process and is delighted with the results.

The honors will awarded at a dinner to be held in New York City on November 2, 2007.

John Bowers, Chairman of the USS AOTOS Committee (and ILA President) noted, "These three leaders represent a remarkable cross-section of the seagoing sector of our industry," said Mr. Bowers. "Jim Andrasick, Morten Arntzen and John Reinhart all are outstanding leaders in their own areas of liner services, tanker shipping and U.S. Department of Defense support operations - all excellent symbols of the American maritime industry." Congratulations!

MARK BARKER NAMED INTERLAKE PRESIDENT
Interlake Steamship Company's Board of Directors announced that Mark W. Barker has been elected President, effective immediately. He succeeds James R. Barker, who remains as Chairman and Chief Executive Officer. M.E.B.A. has a very good relationship with Mark Barker who most recently served as the Company's Vice President and Treasurer. He previously served as Interlake's Director of Engineering, Assistant Vice President, and Fleet Engineer and has shipped out as an engineer aboard several of the boats in the fleet. He is a graduate of the State University of New York at Fort Schuyler.

MOLA TALLY COMMITTEE ELECTED
Members comprising a rank and file tally committee were elected at Union hall meetings this week to perform the ballot count of the MOLA referendum. The Merchant Officers' Labor Alliance is a cooperation pact between the M.E.B.A. and the MM&P that charts out a system for the unions to work together on items of mutual interest.

Five members of the Committee were elected along with two alternates. They are: Steve Jablonski (Baltimore), Brian Evjen (Houston), Lawrence Young (L.A./Wilmington), Bill Cadden (NY/NJ), and Alana Newman (Seattle). The alternates are Charles Feist (N.O.) and Jim Anderson (S.F./Oakland). The seven-person committee will meet at Headquarters on June 15, and along with the Impartial Administrator, will perform the ballot count.

The 90-day mail ballot must be in the depository by June 14, 2007. You must act quickly if you have not yet cast your ballot.

BILL TO FURTHER EXTEND TONNAGE TAX
Sen. Daniel Inouye (D-HI), along with co-sponsors Sen. Ron Wyden (D-OR) and Sen. Maria Cantwell (D-WA), has introduced a bill that would extend a tonnage tax measure that was originally made into law in 2004. The tonnage tax system, which was spearheaded by Rep. William Jefferson (D-LA) benefits U.S.-flag vessel owners engaging in international trade by preserving and enhancing maritime employment opportunities for U.S. mariners. It allows companies to elect a U.S. tax regime based on the tonnage - or weight in tons - of a taxpayer's U.S.-flag fleet, in lieu of regular income tax, making those companies more viable in the global market. M.E.B.A. was part of a broad maritime labor and industry coalition promoting the tonnage tax.

There have been several modifications to the law in the past few years to allow more shipping companies to take advantage of the provisions.

Currently, U.S.-flagships that operate in U.S. domestic commerce for more than 30 days per year are not eligible to take advantage of the tonnage tax provisions. The Inouye legislation (S. 1495) would repeal the existing "30-day limit" on domestic operations and enable U.S. vessels to utilize the tonnage tax on their international income.

Sen. Inouye noted, "This 30-day limitation dramatically limits the availability of the tonnage tax for those U.S. ships that operate in both domestic and international trade and, accordingly, severely hinders their competitiveness in foreign commerce. It is important to recognize that ships operating in U.S. domestic trade already have significant cost disadvantages vis-a-vis U.S. ships operating in international trade." He pointed out that the repeal of that language "is a necessary step toward providing tax equity between U.S. flag and foreign flag vessels." The bill was referred to the Committee on Finance.

NEXT REGULAR MONTHLY MEETINGS
Monday July 2 - Boston, Seattle;
Tuesday, July 3 - Baltimore, Houston, Jacksonville, San Francisco;
Thursday, July 5 - Charleston, New Orleans, New York, Norfolk, Tampa;
Friday, July 6 - Honolulu, L.A., Portland
 

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