Bulletin 5/2000August 2000TO THE MEMBERS OF ASSURANCEFORENINGEN GARD – gjensidig-Dear SirsRevisions to the LOF clause and the SCOPIC clauseSince the Lloyd`s Open Working Party, made up of representatives from all branches, is working on a new version of Lloyd`s Open Form (LOF) to create a simpler and more prevalent document. The intention was to create a new version of LOF, called LOF 2000, which contains only the provisions relating to the services themselves and the rights and obligations of the parties. The procedural and administrative provisions are included in a number of standard clauses to be included in the reference treaty. As such, the amendments to the final draft of the LOF-2000, which is limited to a single sheet, to a two-page document, have been developed, the subordinate provisions contained in lloyd`s Standard Salvage and Arbitration (LSSA) clauses and under Lloyd`s Procedural Rules. Copies of all these documents are attached for this purpose. In light of the aforementioned amendments to the LOF contract, it was decided to revise the Special Compensation P-I Club (“SCOPIC2”) clause when less than half of the two-year trial period expired. The main reason for this was that the scopic clause specifically referred to LOF 95 and therefore had to be amended to reflect LOF 2000. The amended SCOPIC clause is referred to as “SCOPIC 2000” and the most significant changes have been made: Lloyd`s Standard Form of Salvage Agreement has existed for more than 100 years in various iterations, the first version having been published in 1892. The form has been modified and simplified over the years to keep pace with industry developments, but the principles behind the contract have remained the same: to create a simple and flexible legal framework for a contractor to provide risky real estate recovery services. Subsection 1 has been amended to clarify that when a rescue operation is conducted on the basis of an LOF agreement including the SCOPIC clause, the traditional section 14 “safety net” is not applicable, even if the provisions of the SCOPIC clause have not been used; the termination provisions set out in item 9 have been amended to make it clear that Salvor has the right to terminate its services in certain circumstances, both under the SCOPIC clause and the main salvage contract; Subsection 1 has been amended so that the scopic clause can now be more applicable to any LOF agreement containing the provisions of Article 14 of the 1989 International Rescue Convention. It can now be used in combination with LOF90, LOF95 or LOF2000; In the 1960s and 1970s, there were a series of aging single-moulded tankers that were bereaved and released huge amounts of oil.  While passing ships were forced to provide adequate assistance to save lives, they were reluctant to offer salvage services on a seemingly ruthless adventure to save a low hulk value, where the risk of third-party liability could be enormous. Instead, the salvors preferred to work where there were richer crops and less danger.
This situation has alarmed coastal states (whose beaches were threatened by oil pollution) and the P-I clubs (which could be responsible for “taking the helm” and compensating for these third-party risks).  The following documents can be found in Adobe Acrobat.