Foreign vessels loophole their way around Jones Act in Gulf of Mexico

Jones Act waivers can be granted if speciallized vessels are needed and there are not enough U.S. flagged vessels to fill the void.

According to Ken Wells of the Offshore marine Service Association (OMSA), companies are "outright cheating" to skirt the Jones Act by pushing "the limits of what is legal."

Over 30 foreign vessels are said to be operating in the Gulf with foreign crews. These crews operate at substantially lower wages than American crews.

According to the Coast Guard, 23 foreign exemptions were issued for the Gulf in 2008 and 15 in 2009.

The OMSA has filed protests with the Coast Guard and Maritime Administration to block waiver requests.

In 2005, Hurricane Katrina unleashed a storm surge which overpowered the levees of Lake Pontchartrain.

It also opened up the floodgates for foreign operators to gain a toehold in the offshore oil and gas sector.

Both the Jones Act and the Outer Continental Shelf Lands Act (OCSLA) were enacted to protect the American maritime industry by requiring goods being moved between U.S. ports and offshore sites to be shipped on American built and flagged vessels.

However, both laws allow for waivers or exemptions to be granted in case of national emergency or necessity.

After Hurricane Katrina damaged the Gulf of Mexico's refineries and movement of oil, then Homeland Security Michael Chertoff granted a 19 day waiver to allow foreign vessels to transport oil and gas.

But those 19 days have essentially turned into four years as the presence of foreign vessels has continued-and even increased-to the present day.