Charlie Papavizas Discusses Jones Act Exemptions with Platts

Maritime and Admiralty Practice Chair Charlie Papavizas was quoted in the Platts Oilgram News article “U.S. Regulators Seek Jones Act Exemptions for Cranes” published on September 18. The article examines an unusual request by federal offshore regulators to the U.S. Customs and Border Protection (CBP) seeking to exempt certain vessels used in the construction of deepwater floating oil platforms in the Gulf of Mexico from the Jones Act.

The request concerns determinations from CBP dating back to 2012 that the Jones Act applies to the movement of heavy lift crane vessels used to build deepwater floating oil platforms in the Gulf. According to the article, the Obama Administration and the maritime industry have expressed concerns that the application of the Jones Act in these circumstances could endanger drilling safety efforts and significantly slow future production. For that reason, the heads of the U.S. Coast Guard and the Bureau of Safety and Environmental Enforcement have pressed the CBP to exempt heavy lift crane vessels from Jones Act requirements. 

Mr. Papavizas said CBP’s determination shows problems in applying the rigid Jones Act.

“This illustrates how the Jones Act can create technical but important issues because it has no de minimis exemptions and there is very limited waiver authority,” Mr. Papavizas said.

To learn more about Winston’s Jones Act Practice, click here.