scholarly journals OIL SPILLS AND FINANCIAL RESPONSIBILITIES1

2001 ◽  
Vol 2001 (2) ◽  
pp. 1337-1340
Author(s):  
Chao Wu ◽  
Nigel Carden

ABSTRACT Under the international convention system for oil spill liability and compensation, shipowners and oil cargo owners are sharing the costs of oil pollution (cleanup and damages). While the industries find the burden of financial liability too heavy, the compensation provided through the Conventions (Civil Liability Conventions and Fund Conventions [CLCs/FCs]) has become increasingly insufficient to satisfy the total admissible claims. What has to be done? Increase the financial liability of the responsible parties? Let the victims of pollution shoulder part of their uncompensated claims alone? Neither can be fairly accepted. This paper will discuss a solution based on the theory of risk-profit, upon which the current Conventions (CLCs/FCs) are founded. In this regard, the paper also will compare the Conventions with a domestic regime—the U.S. Oil Pollution Act of 1990.

1991 ◽  
Vol 1991 (1) ◽  
pp. 61-64 ◽  
Author(s):  
J. A. Nichols ◽  
T. H. Moller

ABSTRACT Effective response to a major marine oil spill occasionally calls for specialized equipment, personnel, and expertise that is beyond the capability of the country or company concerned. In recognition of this fact, a new International Convention on International Cooperation in Oil Pollution Preparedness and Response has been developed under the auspices of the International Maritime Organization. There is already considerable potential for international cooperation through existing regional conventions and agreements, and other less formal arrangements. This cooperation involves governmental agencies, the oil and shipping industries, commercial companies, insurers, intergovernmental organizations, and international industry organizations. This will be illustrated by reference to two recent major oil spills in Europe where this international cooperation proved very successful. The first involved the cleanup of some 15,000 metric tons of heavy crude oil that impacted the holiday island of Porto Santo in the Madeiran archipelago. Cooperation among the Portuguese government, The International Tanker Owners Pollution Federation, the tanker's oil pollution insurer, the Commission of the European Communities, and the governments of France, Germany, the Netherlands, and the United Kingdom resulted in the rapid provision of specialized equipment and associated personnel to deal with the major shoreline contamination. The second incident, involving a spill of waste oil from a tanker in the Baltic Sea off the coast of Sweden, resulted in the rapid mobilization of cleanup resources from Sweden, Finland, Denmark, the Federal Republic of Germany, and the U.S.S.R. under the terms of the Helsinki Convention. During favorable weather conditions, the combined forces of the five countries were successful in recovering a high percentage of the oil at sea, with the result that the contamination of shorelines was minimal.


2008 ◽  
Vol 2008 (1) ◽  
pp. 1131-1139
Author(s):  
Roger C. Helm ◽  
R. Glenn Ford ◽  
Harry R. Carter

ABSTRACT Oil released into the marine environment killed millions of seabirds in the twentieth century and every year tens of thousands of sick, debilitated, moribund, and dead oiled seabirds are beached or sink at sea (Piatt et al. 1990a, Camphuysen & Heubeck 2001, Wiese & Ryan 2003). In the U.S., hundreds to thousands of birds are killed each year by oil released from pipelines, platforms, and vessels (Burger & Fry 1993, Carter 2003, USFWS 2005). Huge oil spills from tankers have killed tens to hundreds of thousands of seabirds in a single event (e.g., Exxon Valdez, Prestige) and even relatively small volumes of oil released from a vessel at sea can kill thousands of seabirds (Page et al. 1990, Piatt et al. 1990b, Burger 1993). Prior to the March 1989 Exxon Valdez oil spill in Alaska, little attention was paid to the loss of seabirds from oil spills and damage claims for injury to natural resources, such as seabirds, were rare. Since the Exxon Valdez spill, and the subsequent passage of the Oil Pollution Act of 1990 (OPA 90), the pursuit of damages for injury to natural resources has become an expected element of the overall cost of an oil spill. This paper discusses: (1) how the enactment of OPA 90 appears to have affected the oil and marine transportation industries in the U.S., especially along the west coast, (2) how, following the Exxon Valdez spill, natural resource damage (NRD) claims for injury to seabirds have become commonplace, but distinctly different when comparing U.S. west coast oil spills with those on the U.S. east and Gulf of Mexico (hereafter “gulf”) coasts, and (3) predictions on the future source of vessel spills and the changing nature of NRD claim resolution nationwide. An earlier version of this manuscript was provided in Helm et al. (2006); this updated version is similar but provides more details on certain points.


2001 ◽  
Vol 2001 (1) ◽  
pp. 263-266
Author(s):  
Jean R. Cameron

ABSTRACT An issue of increasing concern worldwide is that of oil spills from nontank vessels that carry large quantities of petroleum product as fuel or lubricants. The New Carissa incident in Oregon in 1999 is only one of several that have impacted the U.S. West Coast in the last few years. Others include the M/V Kuroshima, which grounded in Dutch Harbor, Alaska in 1997, and the M/V Kure, which spilled oil in Humbolt Bay also in 1997. The Tenyo Maru was cut in half in a collision and sank with the loss of one life and a spill of at least 100,000 gallons of heavy fuel oil and diesel in Washington State in 1991. Additional examples of both spills and threats of spills are sited, both in the United States and worldwide. This paper examines a number of actions that have been taken in response to this threat. One such model is the Canadian requirement that vessel owner/operators demonstrate a formal agreement with an approved response contractor, and list that contractor in their Shipboard Oil Pollution Emergency Plan (SOPEP). A more comprehensive approach would be to establish approved “umbrella” contingency plans for major port areas, supported by contracts with oil spill removal organizations (OSROs). This preferred model has been adopted by the U.S. West Coast states, and affords the opportunity for the contracted responders to drill with emergency response officials, thus improving the likelihood of an efficient, coordinated spill response. This paper also proposes spill prevention design elements for nontank vessels.


2017 ◽  
Vol 2017 (1) ◽  
pp. 2017108
Author(s):  
A J M Gunasekara

The total volume of oil spilled and the number of spills has declined significantly over the past forty years. However, oil spills are no longer considered as an unavoidable. The ship source oil pollution still remains a potentially important risk to the local economies and the marine environment which can cause major economic loss and severe damages to the coastal and marine environment. The international regulatory framework to deal with liability and compensation in the event of ship source oil pollution has evolved over the past three decades. The available international legal regime for oil pollution liability and compensation is playing a great role in governing a discharge of oil into the sea by ensuring liability for polluters and compensation for victims of pollution. Despite the fact that the total cost of the oil spill cannot be compensated through the available international civil liability regime and entire damages caused to the marine environment cannot be compensated or recovered. This paper examined the application and limitations of available liability and compensation mechanism for the protection marine pollution and compare the benefit of the establishment of a funding mechanism for the strengthening of the level of oil spill preparedness and the civil liability regime for the protection of the coastal and marine environment. In addition, this paper reviews the funding mechanism adopted by the countries to the strengthening the level of oil spill preparedness taken into account the polluter pays principle without a putting extra burden for the general taxpayers. The establishment of a system for the funding of oil spill preparedness using the polluter pay principle has immensely helped to improve the oil spill response capabilities and protection of the marine environment of coastal states which adopted a unique funding mechanism by applying the polluter pay principle. This paper recommends the among other thing review the available compensation and liability regime for the protection of the marine environment and recommend to adopt and apply a uniform funding mechanism for the strengthening of the level of oil spill preparedness taken into account the polluter pay principle for the protection of the marine environment and improve the status quo.


2021 ◽  
Vol 2021 (1) ◽  
pp. 684710
Author(s):  
Jim Elliott

Abstract The marine salvage industry plays a vital role in protecting the marine environment. Governments, industry and the public, worldwide, now place environmental protection as the driving objective, second only to the safety of life, during a marine casualty response operation. Recognizing over 20 years after the passage of the Oil Pollution Act of 1990 that the effectiveness of mechanical on-water oil recovery remains at only about 10 to 25 percent while the international salvage industry annually prevents over a million tons of pollutants from reaching the world's oceans, ten years ago the United States began implementing a series of comprehensive salvage and marine firefighting regulations in an effort to improve the nation's environmental protection regime. These regulations specify desired response timeframes for emergency salvage services, contractual requirements, and criteria for evaluating the adequacy of a salvage and marine firefighting service provider. In addition to this effort to prevent surface oil spills, in 2016, the U.S. Coast Guard also recognized the salvage industries advancements in removing oil from sunken ships and recovering submerged pollutants, issuing Oil Spill Removal Organization (OSRO) classification standards for companies that have the capabilities to effectively respond to non-floating oils. Ten years after the implementation of the U.S. salvage and marine firefighting regulatory framework, this paper will review the implementation of the U.S. salvage and marine firefighting regulations and non-floating oil detection and recovery requirements; analyze the impacts and effectiveness of these new policies; and present several case studies and recommendations to further enhance salvage and oil spill response effectiveness.


2016 ◽  
Vol 28 ◽  
pp. 66-108
Author(s):  
Jae Sundaram

A significant amount of marine oil pollution is vessel-source with another being non-vessel-source originating from offshore oil platform operations. The world has witnessed a number of oil spill disasters since the 1950s including the Deepwater Horizon incident in the United States, the Montara Wellhead Platform in Australia and the continuing oil spill incidents in the Niger Delta, Nigeria. Technological advances mean that offshore operators now venture further out from coastlines to explore for, and exploit hydrocarbon reserves, thus increasing the crude oil output, and also the possibility of oil pollution incidents from offshore platforms. The International Convention on Civil Liability for Oil Pollution 1969 and the International Convention on the Establishment of an International Fund for Oil Pollution Damage 1971 were developed under the leadership of the International Maritime Organization in response to the increasing incidents of vessel-source oil pollution of the marine environment. Since the entry into force of these Conventions the membership has increased and the incidents of vessel-source oil pollution reduced. Efforts made by the Comité Maritime International (CMI), as early as in 1977, to develop a uniform civil liability convention for claims arising from offshore operations did not come to fruition, and very little progress has been made in finding a solution. Currently, there is no uniform international civil liability regime in place for oil pollution compensation claims arising for damages caused by offshore operations. This article explores the reasons behind the lack of a coherent legal framework to process civil liability claims arising from offshore oil spill incidents, especially when a comprehensive international regulation exists to govern vessel-source and other related forms of marine oil pollution. It argues that the lack of leadership to find a solution is proving to be highly damaging and that there is a strong case and an urgent need to establish a uniform international offshore oil spill liability regime. The article looks at existing regimes, both regional and national, as a way forward to develop an international regime for oil pollution compensation for damages arising from offshore activities.


Author(s):  
A J M Gunasekara ◽  
W P J Sathyadith

• The total volume of oil spilled and the number of spills has declined significantly over the past forty years. However, oil spills are no longer considered as an unavoidable. The ship source oil pollution still remains a potentially important risk to the local economies and the marine environment which can cause major economic loss and severe damages to the coastal and marine environment. The international regulatory framework to deal with liability and compensation for ship source oil pollution has evolved over the past three decades. The available international legal regime for oil pollution liability and compensation is playing a great role in governing the discharge of oil into the sea by ensuring liability for polluters and compensation for victims of pollution. Despite the fact that the total cost of the oil spill cannot be compensated through the available international civil liability regime and entire damages caused to the marine environment cannot be compensated or recovered. This paper examined the application and limitations of available liability and compensation mechanisms for the protection of marine pollution and compares the benefit of the establishment of a funding mechanism for the strengthening of the level of oil spill preparedness and the civil liability regime for the protection of the coastal and marine environment. In addition, this paper reviews the funding mechanism adopted by the countries to strengthen a level of oil spill preparedness taken into account the polluter pays principle without putting the extra burden to general taxpayers. The establishment of a system for the funding of oil spill preparedness using the polluter pay principle has immensely helped to improve the oil spill response capabilities and protection of the marine environment of coastal states which adopted a unique funding mechanism by applying the polluter pay principle. This paper recommends among other things, review the available compensation and liability regime for the protection of the marine environment and recommend to adopt and apply a uniform funding mechanism for the strengthening of the level of oil spill preparedness taken into account the polluter pay principle for the protection of the marine environment and improve the status quo. • Liability, compensation, Preparedness, Polluters pay principle


2003 ◽  
Vol 2003 (1) ◽  
pp. 919-922 ◽  
Author(s):  
T.H. Moller ◽  
F.C. Molloy ◽  
H.M. Thomas

ABSTRACT The International Convention on Oil Pollution Preparedness, Response and Co-operation, 1990 (OPRC Convention) defines the basic elements for co-operation between government and industry in marine pollution response. Emphasis is given in the Convention to developing contingency plans, equipment stocks, research and development initiatives, training and exercise programmes, and appropriate spill notification procedures for shipping. This paper reviews the current status of the partnership between government and industry for dealing with spills arising from the transportation of oil by sea. Three areas are explored: the risk of spills, environmental sensitivity issues, and the capabilities for dealing with oil spills in different regions of the world The format for the study is based on the Regional Seas and Partner Seas Programme initiated by the United Nations Environment Programme (UNEP), and supported by the International Maritime Organization (IMO). For each region, the main factors contributing to the risk of oil spills are identified, analysed and discussed in relation to the current pattern of oil transportation by sea. Comparisons are made with data on major oil pollution incidents drawn from ITOPF's oil spill database. Priorities and activities in the different regions are considered and the implications for oil spill response are discussed. Finally, the commitment and capabilities for mounting effective spill response measures in the different regions are gauged, with particular reference to the tenets of the OPRC Convention.


2003 ◽  
Vol 2003 (1) ◽  
pp. 913-917
Author(s):  
Michael Adams

ABSTRACT As called for under the International Convention on Oil Pollution Preparedness, Response and Co-operation, 1990 (OPRC), “Parties to the OPRC convention are required to establish measures for dealing with pollution incidents, either nationally or in co-operation with other countries.” As a signatory to OPRC the U.S. Government (USG) has pledged to assist other countries in the development of their own oil spill response capabilities and while USG has many agreements that meet the guidelines of assisting other countries, there is no formal engagement strategy for developing further agreements, no agency championing this effort, and there are many still requiring assistance. However, the United States Coast Guard (USCG) is uniquely positioned to perform the role of drafting an engagement strategy and working with the global community to assist those countries that have yet to develop an adequate oil spill response system of their own due to the lack of resources, expertise or both. There are many hurdles to enabling USCG to assume the OPRC assistance banner that have been previously addressed (Adams, IOSC 2001), which this paper will not seek to readdress. However, if USG does decide to move forward with an integrated policy there remains the need to develop an adequate engagement strategy. This strategy is necessary to ensure the limited resources available for foreign assistance are expended in the most cost effective, ethical and responsible manner possible. There are three alternative strategies I will analyze in an effort to determine the best suited for implementation of this policy. These three strategies are based primarily on 1) environmental need, 2) geographical proximity, and 3) political/economic interests. The goal of this strategy is to effectively implement the oil spill assistance policy alluded to previously in support of the U.S.'s pledge under OPRC. This paper will analyze the success of each strategy making a recommendation on which one USG should pursue.


Author(s):  
Emilie Canova ◽  
Julien Favier ◽  
Nai Ming Lee ◽  
Peter Taylor

Abstract Governments and industry have been cooperating in the development of oil spill preparedness for more than 30 years. This has included support to the ratification and implementation of instruments such as the International Convention on Oil Pollution Preparedness, Response and Co-operation (OPRC 90), which provides the basis for collaborative efforts between governments and industry to prepare for and respond to marine oil pollutions. Joint activities implemented in this framework represent a major investment and it is important to measure and track the extent to which they have led to sustained improvements. This paper examines the challenges of measuring progress in oil spill preparedness that have emerged over time, leading to the development of different tools and systems to monitor long-term developments. It will first review the metrics and tools used to assess the key elements of preparedness, focused on regions where the International Maritime Organization (IMO) - industry Global Initiative has been active since 1996. The challenges of ascribing and assessing the indicators will be highlighted. Whilst a quantitative method, such as the IPIECA Global Risk Analysis, is useful regarding technical aspects and to compare progress in time and between different regions, it does have a number of caveats, including the verification of data and the need to ensure that preparedness frameworks described in national strategy are translated into credible response capability. There is thus a need for more refined metrics and a complementary qualitative approach. Moreover, the difficulty to catalyse lasting change without sustained efforts was recognized. This paper will discuss why the measures should apply both for evaluation and decision-making and explain why it is key to build more comprehensive (from legal basis to implementation processes and equipment) and sustainable national preparedness systems. The indicators cover a range of aspects of oil spill readiness and should enable a picture of both national and regional preparedness to be constructed, which inform decisions on future actions and activities. The benefits of a step based approach and the potential for tools such as the Readiness Evaluation Tool for Oil Spills (RETOSTM) to underpin broader evaluations will be highlighted. The need for an enhanced methodology to measure progress in preparedness and its consistency with the risk exposure is finally discussed.


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