Jones Act Law

Two U.S. government agencies have waived restrictions in an effort to rebuild infrastructure and respond to citizen needs in the aftermath of Hurricanes Harvey and Irma. The Environmental Protection Agency has extended a 38-state fuel emissions waiver for storm related supply distributions across the U.S. The emissions waiver will be in effect until September 15^th, and eliminates the need for states to meet strict emission requirements for low-volatility gasoline. These waivers will allow fuel to make it to market more quickly and reduce supply shortfalls caused by the storms.

In a similar sanction, the Department of Homeland Security Acting Secretary Elaine Duke approved a waiver of the Jones Act. The waiver will ensure that all options for the distribution of fuel are available to states and territories impacted by Hurricanes Harvey and Irma.

“This is a precautionary measure to ensure we have enough fuel to support lifesaving efforts, respond to the storm, and restore critical services and critical infrastructure operations in the wake of this potentially devastating storm,” said Acting Secretary Duke.

Furie Operating Alaska, LLC (“Furie”) has agreed to pay a $10 million civil penalty handed down by the U.S. Customs and Border Protection agency for violation of the Jones Act. The settlement is the largest Jones Act penalty in the history of the Act. The company focuses on the exploration and production of natural gas and oil in the Cook Inlet region of Alaska.

Attorney Bryan Schroder, Acting United States Attorney for the District of Alaska, announced that the company was assessed the penalty after it was found to have transported the Spartan 151 jack-up drill rig to Alaska from the Gulf of Mexico using a vessel sailing under a foreign flag.

Under the Merchant Marine Act of 1920, also known as the Jones Act, cargo moved from one U.S port to another U.S port must be transported by a vessel that is U.S. built, U.S. owned and U.S. crewed. Violation of this law may result in the assessment of a civil penalty equal to the value of the merchandise transported. In special circumstances, a waiver may be requested from the Secretary of the Department of Homeland Security. A waiver may be granted if there is no U.S. vessel available or it is believed to be in the best interest of national defense.

Articles Posted in Jones Act Law

Jones Act Waiver Issued by Homeland Security

Alaska company fined $10 million for Jones Act violation