The federal court has ruled against the sale of a former navy vessel that has been causing a major headache for the Town of Bridgewater.
HMCS Cormorant, a former diving support vessel for the Canadian Forces that was decommissioned in 1997, has been tied up at the Port of Bridgewater for almost two decades. But the former warship has been essentially abandoned since 2013.
In 2015 the Cormorant sank, which caused pollution and posed safety concerns. It was raised and cleaned up through the efforts of the port and the Canadian Coast Guard.
The Ship-Source Oil Pollution fund, an arm’s-length government body funded by oil import levies, paid about $500,000 and as per its mandate is going after the owner to recoup the cost.
The problem? No one knows who the owner is. According to court documents, in 2009 the ship was sold to Cormorant Marine Services Corporation, a Nevada-based corporation. The Cormorant remained at the Port of Bridgewater while its owner carried out work to return it to service. But in 2013 the owner discontinued attempts to recommission the vessel, and sold the vessel for $10 to the owner of the port. A bill of sale was executed but the sale was never registered, the documents say. The port alleges that the sale was not effective because Cormorant Marine Services Corporation’s corporate status had lapsed, while Cormorant Marine Services Corporation argues the vessel was sold to the port.
Amid court proceedings to determine the legal owner of the vessel, and litigation by the Ship-Source Oil Pollution fund to recoup the costs of cleanup, the Port of Bridgewater sought permission from the Federal Court sell the Cormorant in order to expedite the process of removing the vessel.
The application was dismissed earlier this week. In the decision, the court says the port has no evidence as to the existence of an interested buyer, let alone a buyer having the capacity to assume the cost of safely moving and disposing of the vessel.
Complicating matters is the fact that the federal government also recently announced plans to start the process of remediating and removing the vessel under its new, yet-to-be put into effect Wrecked, Abandoned or Hazardous Vessels Act, which increases owner liability for vessels and enables Ottawa to remove problem ships.
The Ship-Source Oil Pollution fund and Cormorant Marine Services Corporation argued that the port’s real purpose in selling the vessel is to avoid and deflect to the new owner any future liability that results as a part of the removal of the vessel under the Wrecked, Abandoned or Hazardous Vessels Act, should they be deemed the owners of the vessel.
Speaking with The Chronicle Herald, Ship-Source Oil Pollution fund counsel Ryan Gauvin said his organization is satisfied with the decision.
“Given the mandate, we want to make the polluter pay and we’re in the course of trying to determine who the owner of the vessel is, that issue has still yet to be determined and that party or parties would be the liable party here,” Gauvin said
“We’re looking at a vessel that has inherently next to no value left, we’re not clear there is a potential buyer, and if there were a potential buyer the vessel remains a liability and a hazard to the environment. Our position was that keeping it where it’s located is the safest course forward.”
Bridgewater Mayor David Mitchell says he just wants the vessel gone. He was concerned the sale of the vessel could impact the federal remediation and removal process.
“It’s abandoned and derelict when there was no ownership or when ownership is in dispute. ... I’m concerned if there was a (new) owner is it still deemed abandoned and does that derail the plan to move this boat?” Michell said.
“I’m an optimist so I hope that what that means is that everything stays the course and they’re able to proceed with moving this.”
Mitchell said the town is desperate for the vessel to be gone. Aside from being an eyesore that’s affecting property values, he’s concerned about public safety and environmental impact.
“It’s literally rotting away in the water,” he said. “We talk about plastic in the water, well let’s talk about the metal sitting on top of it.”
The Chronicle Herald was unable to reach a representative of The Port of Bridgwater for comment.
