New markets may be on the horizon for Bermuda-based backers of US Coast Guard certificates of financial responsibility (COFRs).

According to US National Pollution Funds Centre director Mr. Dan Sheehan, several jurisdictions have expressed interest in the US Oil Pollution Act 1990 (OPA 90), likely with a view to considering similar unilateral legislation.

Mr. Sheehan spoke yesterday at the inaugural BISA shipping conference, "1995 Bermuda Charting the Course'' being held at the Sonesta Beach Hotel. Though he declined to say which countries has made the inquiries, he said some of the jurisdictions were "significant''.

Appointed as pollution funds centre director in June 1992, Mr. Sheehan is responsible for managing the $1 billion oil spill liability trust fund established by OPA 90 to provide money for pollution response and damage compensation.

The funds centre also issues COFRs for vessels operating in US waters. Under OPA 90, the Coast Guard requires ships traveling in US waters to have COFRs to prove they can pay for clean-up costs after causing an environmental disaster.

Shoreline Mutual Management (Bermuda) Ltd., a mutual insurer which acts as guarantor on behalf of its members, and First Line, backed by Bermuda-based Stockton Reinsurance Ltd., are currently major COFR guarantors.

If new jurisdictions were to require their own COFRs, this "would be good news for Shoreline and First Line,'' BISA member Mr. John O'Kelly-Lynch said.

Other entities which provide COFR guarantees could also be set up to met the demand, he said.

And premiums would be paid on a world-wide basis, not just to entities guaranteeing ships traveling in US waters, he said.

Mr. O'Kelly-Lynch, moderator for day-one of the BISA shipping conference, is also the president of Bermuda-based Atlantic Corporate Management Ltd.

Overall, OPA 90 has improved the quality of shipping and increased the level of marine safety, added Mr. Sheehan.

Post-OPA 90, there are ships that no longer trade in the US market while oil price and oil supply has not been significantly impacted, he said.

"Even though it (the development of OPA 90) was adversarial, there clearly were changes that were needed.

"Through our US body politic, the US will continue to subject itself to continued pressure for improvement,'' he said.

But future changes to OPA 90 could be "reactive'', he said.

Against a backdrop of international shipping legislation which is far from harmonious, and despite the unilateral OPA 90 move, Mr. Sheehan said he believes it is possible for the US to become party to an international scheme.

"We support and international regime (for liability and compensation) but it has to be at least as good as ours,'' he said.

OPA 90 may have resulted in a subtle weakening of the US position in the International Marine Organisation (IMO), US Coast Guard office of marine safety standards director Mr. Joseph Angelo said yesterday.

By taking the unilateral action, there could be repercussions in negotiations in other areas, he said.

The conference continues tomorrow at 9 a.m.