NCL AGREES TO FINE FOR PAST ENVIRONMENTAL
VIOLATION
NCL's Environmental Audit Led to Voluntary
Reporting of Violation, Institution of Comprehensive Environmental
Compliance Program Fleet-Wide
Miami, FL July 31, 2002 - As a result of its voluntary reporting
of irregularities, Norwegian Cruise Line Limited (NCL) has
reached an agreement with the U.S. Attorney's Office for the
Southern District of Florida and the US Department of Justice
to plead guilty to a single count of violation of Title 33,
U.S.C., Section 1908, for the knowing failure to maintain
an accurate Oil Record Book aboard the S.S. Norway prior to
May 2000. Under the plea agreement, NCL has agreed to pay
a fine of $1 million, be placed on probation, and maintain
a comprehensive environmental compliance plan.
NCL discovered reporting irregularities and improper use
of on board oil/water separators during a fleet-wide independent
environmental audit as part of a new management review shortly
after Star Cruises gained control of the company in February
2000. NCL immediately reported these problems to the US government
in May 2000, and took steps to stop further violations and
to correct the underlying problems. The plea agreement represents
the culmination of two years of cooperation between NCL and
the U. S government agencies involved.
"Our company is committed to protecting the environment,"
said Colin Veitch, President and Chief Executive Officer of
NCL since its purchase by Star Cruises Plc in February 2000.
"We deeply regret the past actions we found upon our
purchase of NCL. Along with the government, we deplore that
the standards of this reputable company were allowed to drop
in this way in the years leading up to its acquisition, but
I am personally proud of the way our company has stepped up
to its responsibilities for environmental protection during
the past two and a half years."
The plea agreement cites the knowing failure to log and report
as required the incorrect operation of the oil/water separators
on the SS Norway and the overboard discharge of oily bilge
water over the legal limit of 15 parts per million between
1997 and May 2000, when NCL reported its internal findings.
"We took responsibility and fixed the problem, at a
very substantial cost," Veitch said. "Instead of
stalling or stonewalling, we cooperated fully with the government
throughout this period."
Remedial actions taken by NCL include terminating or accepting
resignations of executive and management employees in the
shore side operational group responsible for the running of
its ships, putting in place across its fleet an entirely new
environmental compliance program including upgraded equipment,
comprehensive waste management and reporting systems, annual
audits, Environmental Officers on all ships, and a new department
shore side headed by a senior executive responsible for environmental
and regulatory compliance.
"This agreement is a concrete example of NCL's commitment
to full compliance with all environmental laws and regulations,
and to operational practices of the highest standard,"
Veitch said. "We are pleased to have the investigation
and correction of this regrettable violation behind us. We
are a stronger and healthier company now."
The plea agreement reflects the government's recognition
of the extent of NCL's cooperation, including substantial
assistance in the investigation, waiver of privilege, institution
of prompt remedial action, and installation of a compliance
program to prevent future violations.
In addition to the agreed fine, NCL has agreed to make community
service payments in the total amount of $500,000 to two Florida-based
environmental organizations as a condition of its probation.
For further information on NCL, contact a travel agent or
NCL in the US and Canada at (800) 327-7030; in Miami-Dade
County, Fla., (305) 436-0866. To download high resolution
photography visit www.ncl.com/hires.
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