When must a power-driven vessel show two masthead lights?
At 50 metres in length or more. Rule 23(a)(ii) requires the second masthead light, abaft of and higher than the forward one, and excuses only a vessel of less than 50 metres, which 'shall not be obliged to exhibit such light but may do so'.
So, once she is close enough for both to be in view, one masthead light points to a vessel under 50 metres; but two masthead lights do not prove she is 50 metres or more — a smaller vessel may choose to show both. At long range the higher, after light may be the only one you see at first.
How far apart are the two masthead lights?
Annex I sets it. On a power-driven vessel of 20 metres or more, when two masthead lights are carried the after one must be at least 4.5 metres vertically higher than the forward one (section 2(a)(ii); section 13 lets high-speed craft of 50 metres or more use a smaller separation, set by a formula). When two are prescribed, the horizontal distance between them must be not less than half the vessel's length but need not be more than 100 metres, and the forward light must be not more than a quarter of the length from the stem (section 3(a)).
How do I read a power-driven vessel's lights?
The arcs in Rule 21 tell you where you are relative to her. A green sidelight means you are on her starboard side; a red one, her port side. Only her sternlight, and neither sidelight, means you are more than 22.5 degrees abaft her beam — and if you are coming up with her, Rule 13(b) makes you the overtaking vessel.
If you see her ahead or nearly ahead with her masthead lights in a line or nearly in a line, and/or both sidelights, Rule 14(b) treats it as a head-on situation; for two power-driven vessels meeting so as to involve risk of collision, Rule 14(a) requires each to alter course to starboard.
In practice the two masthead lights also work as a pair of range lights: when they open out, the lower, forward light is on the side she is heading towards, and a change in their spacing is often the first sign of an alteration.
What does a masthead light with a red sidelight on my starboard bow mean?
You are on her port side and she is on your starboard side. If you are both power-driven vessels crossing so as to involve risk of collision — and under Rule 7 risk is deemed to exist if her compass bearing does not appreciably change, and may exist even when it does — Rule 15 makes you the vessel that keeps out of the way, and if the circumstances of the case admit you must avoid crossing ahead of her.