intertanko athens tanker event the regulatory environment
DESCRIPTION
INTERTANKO ATHENS TANKER EVENT THE REGULATORY ENVIRONMENT. Jonathan Hare Skuld Colin de la Rue Ince & Co April 2005. OIL POLLUTION FROM TANKERS - COMPENSATION. INTERNATIONAL CONVENTIONS. Civil Liability and Fund Conventions 1992 – 86 states. INTERNATIONAL CONVENTIONS. - PowerPoint PPT PresentationTRANSCRIPT
INTERTANKOATHENS TANKER EVENT
THE REGULATORY ENVIRONMENT
Jonathan HareSkuld
Colin de la RueInce & CoApril 2005
OIL POLLUTION FROM TANKERS - COMPENSATION
INTERNATIONAL CONVENTIONS
Civil Liability and Fund Conventions 1992 – 86 states
INTERNATIONAL CONVENTIONS
Civil Liability and Fund Conventions 1992 – 86 states
CLC 92 alone – 9 states
INTERNATIONAL CONVENTIONS
Civil Liability and Fund Conventions 1992 – 86 states
CLC 92 alone – 9 states CLC 69 – 45 states
INTERNATIONAL CONVENTIONS
Civil Liability and Fund Conventions 1992 – 86 states
CLC 92 alone – 9 states CLC 69 – 45 states
Total 140 states
COMPENSATION LIMITS UNDER CLC 92 AND FC 92
Fund limit now 203m SDR (approx US$300m)
COMPENSATION LIMITS UNDER CLC 92 AND FC 92
Fund limit now 203m SDR (approx US$300m)
Owner’s limit - Max limit nearly 90m SDR (approx
US$130m) Min limit for small ships
0 5,000 140,000
FC Nov 2003
3m
135m
FC
CLC Nov 2003
CLC
GT
203m
135m
90m
60m
Stage One 50% INCREASE IN CONVENTION LIMITS
4.5m
203m
SDR
Stage two - SUPPLEMENTARY FUND
Raises total compensation to 750m SDR
Optional third tier – only in Protocol states
Funded by levies on oil receipts
REVIEW OF REGIME
IOPC Fund Working Group Apportionment of
compensation Substandard ships
REVIEW OF REGIME
P&I Clubs & apportionment STOPIA
minimum contribution SDR 20 m. in force from 3 March 2005 a binding agreement TOPIA as an alternative
REVIEW OF REGIME
P&I Clubs & substandard ships
OECD Report International Group
response
REVIEW OF REGIMEProposals by International Group include: a common checklist to be completed by
underwriters harmonised criteria for targeting ships to
be surveyed the establishment of a database a double retention for a Club which
insures a ship which another Group Club has declined to insure on the grounds of the unfit condition of the ship.
REVIEW OF REGIME
Proposal - IMO Working Group
consolidation of surveys improved sharing of information collaboration by all interested parties
” chain of responsibility”
REVIEW OF REGIME 9th Meeting of IOPC Fund Working
Group in March - inconclusive
Fund Assembly in October 2005
The danger of fragmentation
REVIEW OF REGIME“The success of the current regime has been due in part to a satisfactory balance being struck between political and technical factors, and this balance needs to be kept if the regime is to maintain its widespread appeal.…A marginal decision to proceed with a revision is a recipe for fragmenting the system”
REVIEW OF REGIME
Compensation not punishment
DESIRING to adopt uniform international rules and procedures for determining questions of liability and providing adequate compensation in such cases…….
PREVENTION OF POLLUTION AND
CRIMINAL LIABILITY
PROPOSALS POST-ERIKA and PRESTIGE
MARPOL amendments Accelerated phase-out of
single hull tankers EU laws
Criminal liability
CRIMINAL LIABILITYMARPOL
Operational discharges and accidental pollution
CRIMINAL LIABILITYOperational Discharges
Lack of reception facilities Deliberate discharges permissible
within strict controls Distance from land Rate of discharge and degree of
dilution Special areas
CRIMINAL LIABILITYAccidental Discharges
Casualties: spills resulting from damage to ship or equipment
Other pollution: Accidents in handling cargo or
bunkers Leakages (e.g. due to wear and tear)
CRIMINAL LIABILITYAccidental Discharges
P&I Cover: ”the accidental escape or
discharge of oil or any other polluting substance”
CRIMINAL LIABILITYNon-accidental Discharges discretionary cover proviso that the member took all
reasonable steps to prevent the infringement giving rise to the fine
insurability
CRIMINAL LIABILITYMARPOL
Strict liability for: Operational discharges in breach of
controls (even if breach accidental) Accidental spills other than
casualties
CRIMINAL LIABILITYMARPOL
No liability for pollution resulting from damage to ship
Unless caused by i) lack of response to incident, or ii) deliberate or reckless
misconduct
CRIMINAL LIABILITYEU Directive
Illegal discharges Test of serious negligence Relationship with MARPOL
effect within and beyond territorial seas
EU DIRECTIVELegal and industry concerns
Test of liability for accidental spills is subjective and unsuitable
PRESTIGE
Master detained 2 years (83 days in jail)
PRESTIGEBMA Report
No clear cause of damage No evidence of wrongdoing Ship ordered to sea without
regard to her condition Treatment of master
criticised
Tasman Spirit
EU DIRECTIVELegal and industry concerns
Test of liability for accidental spills is subjective and unsuitable contrary to accepted global
regime
THE FUTURE
Global or regional laws? Effective in preventing
pollution? Balance of political and
technical factors?