Presentation Jacobsson WG IMP 5th meeting 11 03 24

Slide 1:The International Regime for Compensation for Tanker Oil Spills Working Group on Integrated Maritime Policy 24 March 2011Måns JacobssonFormer Director, International Oil Pollution Compensation FundsSlide 2:International Compensation Regimes1969 Civil Liability Convention 1971 Fund Convention1971 Fund1Old Regime1992 Civil Liability Convention 1992 Fund Convention1992 Fund2003 Supplementary Fund ProtocolSupplementary FundNew RegimeSlide 3:International Treaties1992 Civil Liability Convention 123 States Parties1992 Fund Convention 105 States Parties2003 Protocol to 1992 Fund Convention 27 States Parties1971 Fund Convention ceased to be in force on 24 may 20022Slide 4:1992 Conventions Apply toPollution damage caused bySpills of persistent oil from laden tankersBunker spills from unladen tankers with oil residues from previous voyage on board3Slide 5:The Three Tier System43Supplementary Fund ProtocolSupplementary FundOil receivers after sea transport21992 Fund Convention1992 FundOil receivers after sea transport11992 Civil Liability ConventionShipownersInsurersSlide 6:Main Features under Civil Liability ConventionStrict liability of registered ownerLimitation of liabilityCompulsory insurance5Slide 7:1992 Civil Liability Convention Limits of Shipowner’s Liability6GT | SDR | US $ 5000 | 4 510 000 | 7 114 164Per additional GT up to 140 000 | 631 | 995GT 140 000 | 89 770 000 | 141 604 993Slide 8:The Fund ConventionsApplies:Shipowner exemptShipowner financially incapable of meeting his obligationsDamage exceeds the shipowner’s liability limit7Slide 9:Shipowner exempt:Damage resulted from an act of war, hostilities, civil war, insurrection or a natural phenomenon of an exceptional, inevitable and irresistible character, orDamage was wholly caused intentionally by a third party, orDamage was wholly caused by negligence of public authorities in maintaining navigational aids.Fund exempt:Damage resulted from an act of war, hostilities, civil war or insurrection8ExemptionsSlide 10:Jurisdiction and Enforcement of JudgementsCourts in the State where damage occurred have exclusive jurisdictionJudgements rendered by courts competent under the 1992 Conventions or Supplementary Fund Protocol to be recognised and enforced in all States PartiesSlide 11:Maximum Amount of Compensation1992 CLC/Fund Conventions 203 million SDR (US$ 320 million)2003 Supplementary Fund Protocol 750 million SDR (US$ 1 170 million)10Slide 12:Limits Laid Down in the Conventions11Slide 13:Structure of 1992 Fund12AssemblyExecutive CommitteeSecretariatSlide 14:Who Contributes to the Fund?Persons receiving >150 000 tonnes of contributing oil/year after sea transportContributing oil = crude oil and heavy fuel oilContributions decided by Fund AssemblyOil receivers pay, not governments13Slide 15:1992 Fund: General Fund Contributions14Slide 16:Supplementary FundSupplementary Fund established in March 2005Maximum compensation 750 million SDR (US$ 1 180 million), including amounts payable under 1992 ConventionsContributions to Supplementary Fund payable by oil receivers in Member States of that Fund15Slide 17:Main Types of DamageProperty damageCosts of clean-up operations and preventive measuresLosses in fishery, mariculture and tourism:Environmental damage16Slide 18:Property DamageCleaning costs including costs of material and manpowerReplacementDiminution of valueLoss / damage caused by clean–up operations17Slide 19:Common Problems as Regards at Sea ResponseExcessive use of aircraft for surveillanceExcessive use of oil recovery vesselsFailure to recognise limitations of response techniquesFailure to monitor/control operations18Hebei Spirit, December 2007Slide 20:Common Problems as Regards Shoreline Clean-up19Excessive use of manpower & equipmentExcessive volumes of oil waste collectedFailure to monitor/control operationsFailure to consider net environmental and economic benefits of actionsHebei Spirit, December 2007Slide 21:Admissibility Criteria for Costs of Clean-up and Preventive MeasuresExpense must actually be incurredExpense must be linked directly to the contaminationResponse measures should be reasonable and justifiableThe costs incurred, and the relationship between these costs and the benefits derived or expected must also be reasonableReasonableness is an objective technical criterion, not a political one20Slide 22:Impact on Fishing and MaricultureDamage to fishing gear and consequential economic lossesContamination of mariculture facilities (fish cages, shellfish rafts, onshore tanks and ponds)Contamination of captive stocks (tainting, mortality)Fishing and harvesting bansSupply shortages may affect related industriesMarket effects21Slide 23:Economic LossTo qualify for compensation there must be a sufficiently close link of causation between the contamination and the loss22Slide 24:Environmental Damage23Admissible claims:Economic losses which can be quantified in monetary termsCosts of reasonable measures to reinstate contaminated environmentNo compensation paid for claims based on an abstract quantification of damage using theoretical modelsNo punitive damagesSlide 25:Reinstatement of the environmentClean-upSand replacement following clean-upReplanting of mangrove saplingsReplanting of marsh vegetationIn order to qualify for compensation:Measures should accelerate natural recovery processMeasures should not cause further damageMeasures should not degrade other habitats or adversely effect other natural economic resourcesMeasures should be technically feasibleCosts should not be disproportionate to extent and duration of damage and the likely benefits24Environmental DamageSlide 26:Uniform Application of the ConventionsEssential for the functioning of the regimeEqual treatment of claimantsDevelopment of international lawUnited Nations Convention on the Law of the Sea Article 23525Slide 27:ConclusionsThe international compensation regime under 1992 Conventions has in general worked wellContinuous increase in Member States140 incidents in 32 yearsUS$ 950 million paid to victimsUsed as model in other fieldsReviewed to ensure it meets the needs of society in the 21st century26