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“… the cornerstone of Chinese marine pollution law system”
Effective 1 January 2012
Oil Pollution Regulation in China: A Practical Guide to the New Marine
Pollution Legislation
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Background
• Deepwater Horizon Response
• Encouragement from OPA-90 clients
• Joint Venture Formed
• Depot Established
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China Background
• March 1, 2010 notice of January 1, 2011 start• July 2010 Dalian spill• Postponed implementation one year• Uncertain poorly equipped government-led
response• Increase in shipping calls & tonnages
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Dalian Oil Spill 2010
• Two crude pipelines were ruptured and released a reported 1500 tons of oil
• True nature of the incident not clear to the public
• Equivalent to Exxon Valdez spill
• Catalyst for more stringent safety standards
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The Regulations
• All tankers transporting pollutants in bulk• Any other ships > 10,000grt• All PRC coastal ports (not Hong Kong)• Maritime Safety Administration (MSA) - the
authority• SPRO Certifications• SPRO Contracts
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The RegulationsShip type Tankers Non tankers
(Hazardous cargoes)Non tankers
Service area
Class type
within port limits
entering & leaving
port
loading, unloading, bunkering
outside port limits
entering & leaving
port
loading, unloading, bunkering
outside port limits
entering & leaving
port
loading, unloading, bunkering
outside port limits
Class 1 > 10,000 gt outside 20 nm
> 10,000 gt outside 20 nm
> 50,000 gt outside 20 nm
Class 2 2000 to 10,000 gt
< 10,000 gt within 20 nm
< 10,000 gt within 20 nm
30,000 to 50,000 gt
within 20 nm
Class 3 600 to 2000 gt
20,000 to 30,000 gt
Class4 < 600 gt 10,000 to 20,000 gt
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Class 1: All Waters; Oil and Hazardous
Class 2: All Waters Within 20 nm; Oil and Hazardous
Class 3: Port Waters
Class 4
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Operational Procedure
Spill Response Plan
SMS
Pollutant Disposal
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• System, Procedures and Software– Safety Management System– Spill Response Plan– Operational Procedure– Pollutant Disposal – Monitoring software
• Response Vessels, Equipment, Materials and Storage• Management and Field Staff • Bases & Response time• Major Exercise
Class 1 OSRO
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The Early Days – January 2012
• MSA vetting of SPRO’s – last minute• Nearly all SPRO’s receive certification!• Numerous SPRO options in some ports / other
ports are monopoly’s– Ningbo / Zhoushan
• Pricing– Varies depending on port– Some ports have set pricing
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Early Days continued..
• Practical Realization –– There was ‘no one stop’ solution for owners– Owners/operators/SPRO’s/IG/MSA all remained
uncertain– Agencies (e.g. CMS) seemed to want to hold the
industry to ransom– Pricing was (and remains) inconsistent –
depending on each ports monopolistic stance!
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Early Days Continued…
• Limited Coverage Area for SPRO’s• Agent domiciled in China must sign SPRO
agreement• Last minute MSA changes– Consortiums develop– Contract changes
• Inconsistency among local MSA’s
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Key Players
• International Group of P&I’s– Initially in the dark– Develop a prominent role– SPRO insurance?
• ITOPF– Hired by IG– Evaluate response tariffs– Painstaking process!
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Current Issues
• Some local MSA’s require original copies of agreements( i.e. Zhanjiang, Xiamen)
• Companies with branch offices in China may need to sign directly with SPROs
• Ports controlled by single SPRO (Ningbo, Zhoushan) may require operators to sign long term agreement– Contract not approved by IG
• Sludge disposal• Involvement of ship agent’s• Agreements not recognized by local MSA (Caofeidian)
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Daniel Dettor+1 954 303 5331