Shoreline Mutual of Bermuda has announced the completion of a reinsurance programme to meet liability requirements in new US oil pollution regulations.

Shoreline's arrangements will enable it to meet federal and state liabilities up to $300 million for each accident or "occurrence''.

The P&I club said it believes it will have the only scheme providing financial guarantees by December 28, the deadline set for start of the new regulations.

The reinsurance programme was placed by Willis Faber North American in New York and Willis Faber and Dumas in London with assistance in Bermuda by Park International Ltd.

Shoreline's programme represents a financial strength of $35 billion. Mr.

George Reeth of Willis Faber in New York said: "Shoreline now has $35 billion of policy holders' surplus funds from an extensive list of leading companies in all the major reinsurance markets behind it.'' Shoreline was set up to cover exclusively guarantees created by new regulations under the 1990 US Oil Pollution Act (OPA).

The Act, which comes into effect on December 28, requires tankers entering US waters to have increased proof of insurance or bond to cover liabilities for oil spills.

The US Coast Guard is charged with enforcing the Act's regulations. A Shoreline spokesman yesterday said the company had already submitted its programme to the Coast Guard's National Pollution Funds Centre.

"We're hoping to have that approval in the next day or two,'' he said.

OPA requires coverage of $1,200/gross tons with a $10 million minimum. An additional $300/grt with a $5 million minimum is required by the Comprehensive Environmental Response Compensation and Liability Act (CERCLA) which is for non-oil pollution incidents. It too comes into effect on December 28.

Shoreline's arrangements also cover CERCLA liabilities and state requirements, which in some cases is unlimited.

Exxon Corp. last week became the first oil company to charter a tanker that meets the new US requirements for pollution-insurance coverage.

But the contract doesn't mean the new requirements will have smooth sailing.

Already, two shippers have said they won't ply US waters when the December deadline arrives.

The requirements will increase the cost of charters and, analysts predict, the cost of gas at the pump. Some believe the new costs of insuring tankers could price many vessels out of the market.

If shippers can't obtain the coverage, analysts say US imports could fall short this winter.

There are plans afoot among ship owners to create insurance facilities. One is Opaque, a new US mutual insurer, and International Sureties, a surety pool to provide tankers with coverage.

Shoreline is the first insurance programme to secure sufficient backing.

Another scheme called First Line is under development.