Ship Strong for America Denounces Jones Act Violation

Ship Strong for America (shipstrong.org), an organization dedicated to preserving the strength of our nation’s maritime industry and homeland security, today announced its first ‘call for action’ against Escopeta Oil and Gas for its current Jones Act violation.

“We ask that United States lawmakers, the Department of Homeland Security and President Obama take steps to prevent this current violation of U.S. maritime law, a violation that has significant economic and national security implications,” said Tony Munoz, Director, Ship Strong for America.

Here are the facts:

- The State of Alaska demanded that Escopeta must have a rig on its way to the Cook Inlet by March 30, 2011, with drilling to commence by October 31, 2011, or the Company faces a second default on its oil & gas lease and millions of dollars in deposit.

- On March 17, 2011, Escopeta loaded the Spartan 151 jack-up rig on the M/V KANG SHENG KOU, a Chinese bulker, which is currently in transit to the Cook Inlet, Alaska, transporting the rig pursuant to the 2006 waiver issued by the Department of Homeland Security (DHS).

- On September 1, 2010, the Company’s chairman, Danny Davis, wrote a letter to the Department of Homeland Security (DHS) Secretary Janet Napolitano, pleading for ratification and reconfirmation of the 2006 ruling. His letter states there are “no U.S.-flagged heavy-lift vessels in the world able to transport the rig.”

- On November 5, 2010, Davis emailed U.S. Customs and Border Protection (CBP) asking for its reconfirmation. And, on November 8, CPB made it clear that the 2006 Jones Act waiver was “neither open-ended nor transferable” and advised Davis to get a new waiver.

“It seems clear that in a race against time and money, Escopeta disregarded the Jones Act and decided that rolling the dice with the Department of Homeland Security rather than face default on their oil & gas leases in the Cook Inlet,” Mr. Munoz continued. “If this violation is allowed to pass without repercussions, what’s to stop the next guy? American harbors will be filled with foreign vessels – is that something we really want?”

The Homer Tribune in Alaska yesterday reported that Escopeta has obtained a “one-time port landing approval from DHS” Monday of this week. If this is true, the Jones Act violation has federal approval, which has also been supported by the state of Alaska. There was neither a national emergency nor energy crisis basis for DHS to approve the one-time port landing.

For more information or to become a member, please log on to: http://www.shipstrong.org.