Appendix B – SCR Provision

Final draft – 24.2.99

1. The SCR shall be selected from a panel (the "SCR Panel") appointed by a Committee (the "SCR Committee") comprising of representatives appointed by the following:
   
   3 representatives from the International Group of P and I Clubs
   3 representatives from the ISU
   3 representatives from the IUMI
   3 representatives from the International Chamber of Shipping
   
   
2. The SCR Committee shall be responsible for an annual review of the tariff rates as set out in Appendix A.
   
   
3. The SCR Committee shall meet once a year in London to review, confirm, reconfirm or remove SCR Panel members.
   
   
4. Any individual may be proposed for membership of the SCR Panel by any member of the SCR Committee and shall be accepted for inclusion on the SCR Panel unless at least four votes are cast against his inclusion.
   
   
5. The SCR Committee shall also set and approve the rates of remuneration for the SCRs for the next year.
   
   
6. Members of the SCR Committee shall serve without compensation.
   
   
7. The SCR Committee's meetings and business shall be organised and administered by the Salvage Arbitration Branch of the Committee of Lloyd's (hereinafter called "Lloyds") who will keep the current list of SCR Panel members and make it available to any person with a bona fide interest.
   
   
8. The SCR Committee shall be entitled to decide its own administrative rules as to procedural matters (such as quorums, the identity and power of the Chairman etc.)

2. The primary duty of the SCR shall be the same as the Contractor, namely to use his best endeavours to assist in the salvage of the vessel and the property thereon and in so doing to prevent and minimise damage to the environment.
   
   
3. The Salvage Master shall at all times remain in overall charge of the operation, make all final decisions as to what he thinks is best and remain responsible for the operation.
   
   
4. The SCR shall be entitled to be kept informed by or on behalf of the Salvage Master or (if none) the principal contractors’ representative on site (hereinafter called "the Salvage Master"). The Salvage Master shall consult with the SCR during the operation if circumstances allow and the SCR , once on site, shall be entitled to offer the Salvage Master advice.
   
   

1. Once the SCOPIC clause is invoked the Salvage Master shall send daily reports (hereinafter called the "Daily Salvage Reports") setting out:-

• the salvage plan (followed by any changes thereto as they arise)
  
  
• the condition of the casualty and the surrounding area (followed by any changes thereto as they arise)
  
  
• the progress of the operation
  
  
• the personnel, equipment, tugs and other craft used in the operation that day.

2. Pending the arrival of the SCR on site the Daily Salvage Reports shall be sent to Lloyd's and the owners of the vessel. Once the SCR has been appointed and is on site the Daily Salvage Reports shall be delivered to him.
   
   
3. The SCR shall upon receipt of each Daily Salvage Report:-

1. Transmit a copy of the Daily Salvage Report by the quickest method reasonably available to Lloyd's, the owners of the vessel, their liability insurers and (if any) to the Special Hull Representative and Special Cargo Representative (appointed under clause 12 of the SCOPIC clause and Appendix C) if they are on site; and if a Special Hull Representative is not on site the SCR shall likewise send copies of the Daily Salvage Reports direct to the leading Hull Underwriter or his agent (if known to the SCR) and if a Special Cargo Representative is not on site the SCR shall likewise send copies of the Daily Salvage Reports to such cargo underwriters or their agent or agents as are known to the SCR (hereinafter in this Appendix B such Hull and Cargo property underwriters shall be called "Known Property Underwriters").
   
   
2. If circumstances reasonably permit consult with the Salvage Master and, if satisfied, endorse his Daily Salvage Report, or
   
   
3. If not satisfied with the Daily Salvage Report, prepare a dissenting report setting out any objection or contrary view and deliver it to the Salvage Master and transmit it to Lloyd's, the owners of the vessel, their liability insurers and to any Special Representatives (appointed under clause 12 of the SCOPIC clause and Appendix C) or, if one or both Special Representatives has not been appointed, to the appropriate Known Property Underwriters.
   
   
4. lf the SCR gives a dissenting report to the Salvage Master in accordance with Appendix B(5)(c)(iii) to the SCOPIC clause, any initial payment due for SCOPIC remuneration shall be at the tariff rate applicable to what is in the SCR's view the appropriate equipment or procedure until any dispute is resolved by agreement or arbitration.

4. Upon receipt of the Daily Salvage Reports and any dissenting reports of the SCR, Lloyd's shall distribute upon request the said reports to any parties to this contract and any of their property insurers of whom they are notified (hereinafter called "the Interested Persons") and to the vessel’s liability insurers.
   
   
5. As soon as reasonably possible after the Salvage services terminate the SCR shall issue a report (hereinafter call the "SCR's Final Salvage Report") setting out:
   
   
   • - the facts and circumstances of the casualty and the salvage operation insofar as they are known to him.
     
     
   • the tugs, personnel and equipment employed by the Contractor in performing the operation.
     
     
   • A calculation of the SCOPIC remuneration to which the contractor may be entitled by virtue of this SCOPIC clause.

The SCR's Final Salvage Report shall be sent to the owners of the vessel and their liability insurers and to Lloyd's who shall forthwith distribute it to the Interested Persons.

6. The owners of the vessel shall be primarily responsible for paying the fees and expenses of the SCR. The Arbitrator shall have jurisdiction to apportion the fees and expenses of the SCR and include them in his award under the Main Agreement and, in doing so, shall have regard to the principles set out in any market agreement in force from time to time.