Maritime Partner Discusses CLEAR Act

Maritime partner Charlie Papavizas, based in Winston & Strawn's Washington, D.C. office, was quoted in Fairplay's September 2 article titled "Foreign vessels could pay the price for an 'Americanised' US offshore market."

The Consolidated Land, Energy, and Aquatic Resources Act of 2010, known as the CLEAR Act, was passed by the U.S. House of Representatives on July 30. This package of maritime reform measures is now awaiting approval in the U.S. Senate. Containing an 'Americanisation' amendment, this bill, if passed, would require any vessel engaged in U.S. offshore energy development, exploration, or production to be U.S.-flagged.

Mr. Papavizas predicts it would have major consequences in a U.S. offshore energy market, stating that it is "a real barrier" for foreign vessels. Although vessels can be built overseas, they must be owned by a Jones Act company, which requires 75% U.S. citizen beneficial ownership and U.S. management.

If enacted, the Americanisation amendment would apply to offshore activities that start on or after July 1, 2011.