International Environmental
Regulation of the Shipping
Industry
Alexandra R. Harrington
Doctor of Civil Law Candidate, McGill University
Senior Manager & Associate Fellow, CISDL
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Introduction
S Course outline
S I. International Regulations
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International Maritime Organisation
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Associated Treaties, Conventions & Regulations
S II. Case Examples and Discussion
S III. Conclusion
Section I: International
Regulations
International Maritime
Organization
S Pollution
S Liability/Compensation Fund
S Safety of Life at Sea
S Ship Recycling & Wreck Removal
S Other Issues: Anti-fouling; Ballast Water & Sediment
IMO Pollution Regulations
S International Convention for the Prevention of
Pollution of the Sea by Oil – 1958
S Primary focus is on oil pollution from tankers arising through
their standard operations.
S Created zones off coast lines where tankers are prohibited from
discharging oil and associated wastes.
S State Parties agreed to establish facilities to assist in the
collection of machine-based oil waste from ships rather than
have this waste dumped into the sea.
S Later amendments made these terms applicable to ships
beyond tankers.
International Convention for the Prevention of
Pollution from Ships
S Adopted first in 1973, although only became operative after
1978 Protocol amending and amplifying the Convention.
S Key definitions:
S Harmful substance – any substance that poses a threat to
human life, marine life, and the marine environment, as well as
uses of the sea.
S Discharge – includes all methods of release, intentional and
unintentional. The term is limited, however, and is not
applicable to discharges made during exploration or
exploitation of sea-bed resources, or associated off-shore
processing.
International Convention for the Prevention of
Pollution from Ships
S Applies to flag ships of State Parties and ships that operate under
the authority of a State Party. Does NOT apply to war ships.
S State Parties agree to establish internal sanctions for violations of
the Convention.
S Establishes a system for State Party issuance of a certificate of
compliance with the terms of the Convention for each ship under
that State Party’s control.
S Where a ship does not have such a certificate, State Parties are
able to stop the ship from returning to sea until an adequate
inspection and attestation of seaworthiness has been performed.
International Convention for the Prevention of
Pollution from Ships
S Provides for the creation of an “Administration” to enforce
the terms of the Convention and investigates alleged
violations.
S In Protocols added in 1973, there are specific requirements
for the technical aspects of reporting incidents, as well as for
arbitration in disputes between the parties.
S Annex I - regulations for the prevention of pollution by oil
S Provides extensive definitions of what oil, ships, and
associated entities for the purpose of coverage under the
Convention.
S Also provides for in-depth certificate issuing system.
International Convention for the Prevention of
Pollution from Ships
S Annex II - Regulations for the control of pollution by
noxious liquid substances in bulk
S Creates standards for ships created before and after 2007 in
terms of storage and technological abilities related to noxious
liquids, and sets out a comprehensive list of noxious liquid
substances covered by the terms of the Annex.
S Annex III – Prevention of pollution from harmful
substances in packaged form (Optional Annex)
S Packaging and labeling requirements for harmful substances in
packaged form that are to be shipped.
International Convention for the Prevention of
Pollution from Ships
S Annex IV – Prevention of pollution by sewage from ships
(Optional Annex)
S Contains specific size requirements for a ship to be subject to
the Annex’s provisions geared toward preventing sewage-based
pollution.
S Annex V – Prevention of pollution by garbage from ships
S Bans dumping of plastics into the sea.
S Also sets the standards for where and how garbage can be
disposed of from ships, particularly in relationship to land.
International Convention for the Prevention of
Pollution from Ships
S Annex VI – Prevention of Air Pollution from Ships
S Sets emission rate limits for sulphur oxide and nitrogen oxide
from ships.
S Subsequent amendments to the Convention & Protocol
increased the specificity of their application in specific
geographical locations, and types of vessels to which they
are applicable.
Convention on the Prevention of Marine Pollution
by Dumping of Wastes and Other Matter & Protocol
S Original Convention adopted in 1972.
S State Parties agree to take steps individually to control and
prevent maritime pollution and dumping within their
jurisdiction.
S Key definitions:
S Dumping is defined as including a deliberate intent.
S Waste means any substance that is dumped, regardless of its
identity or composition. However, the exact scope of
prohibited substances is contained in an Annex.
Convention on the Prevention of Marine Pollution
by Dumping of Wastes and Other Matter & Protocol
S Where a permit process is already required for dumping of wastes,
the State Party does not have to apply the Convention, although it
is still required to take its terms into account.
S The Convention also does not apply in situations of force majeure,
where dumping appears to be the only way to protect human life
or vessels/aircraft. Requires an assessment of risks.
S State Parties are required to apply the terms of the Convention to
flag ships/vessels and ships/vessels within its territory.
Convention on the Prevention of Marine Pollution
by Dumping of Wastes and Other Matter & Protocol
S Annex I – sets out substances that are covered by
Convention.
S Annex II & III – sets out permitting considerations and
requirements.
Convention on the Prevention of Marine Pollution
by Dumping of Wastes and Other Matter & Protocol
S Protocol, 1976
S Incorporated the precautionary principle, and the polluter pays
principle, into the terms of the Convention.
S Includes a prohibition on the incineration of wastes at sea.
S Further, State Parties are prohibited from allowing the
exportation of wastes for dumping or incineration at sea.
S Revises and updates the provisions of the Annexes.
International Convention on Oil Pollution
Preparedness, Response and Co-operation
S Adopted in 1990.
S Key definitions
S Oil pollution incident – “an occurrence or series of
occurrences having the same origin, which results or may result
in a discharge of oil and which poses or may pose a threat to
the marine environment, or to the coastline or related interests
of one or more States, and which requires emergency action or
other immediate response.”
S Off-shore unit – “any fixed or floating offshore installation or
structure engaged in gas or oil exploration, exploitation or
production activities, or loading or unloading of oil.”
International Convention on Oil Pollution
Preparedness, Response and Co-operation
S Key definitions continued
S Sea ports and oil handling facilities – “those facilities which
present a risk of an oil pollution incident and includes, inter
alia, sea ports, oil terminals, pipelines and other oil handling
facilities.”
International Convention on Oil Pollution
Preparedness, Response and Co-operation
S State Parties are required to ensure that their flag ships have
appropriate oil pollution emergency plans.
S State Parties must require offshore unit operators to have oil
pollution emergency plans that are adequate and that are in
accordance with national legislation on the issue. The same is
required of oil handling facilities and offshore sea port operators.
S Flag ships and offshore unit operators are required to report an
event involving discharge or probable discharge to the nearest
State Party for ships and the coastal State having jurisdiction over
the offshore unit.
International Convention on Oil Pollution
Preparedness, Response and Co-operation
S Maritime inspection vessels (ie. Coast Guard) are required to
report events or potential events that are observed.
S When a State Party receives a report of discharge or potential
discharge, it is required to:
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(a) assess the event to determine whether it is an oil pollution incident;
(b) assess the nature, extent and possible consequences of the oil
pollution incident; and
(c) then, without delay, inform all States whose interests are affected or
likely to be affected by such oil pollution incident, together with
S (i) details of its assessments and any action it has taken, or intends
to take, to deal with the incident, and
S (ii) further information as appropriate
International Convention on Oil Pollution
Preparedness, Response and Co-operation
S If the discharge is severe, the State Party must inform the
IMO, and other states that might be affected by the
discharge.
S State Parties are required to establish a national system for
responding to an oil discharge event, including, at a
minimum:
International Convention on Oil Pollution
Preparedness, Response and Co-operation
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(a) the designation of:
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(i) the competent national authority or authorities with responsibility for oil pollution
preparedness and response;
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(ii) the national operational contact point or points, which shall be responsible for the
receipt and transmission of oil pollution reports as referred to in article 4; and
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(iii) an authority which is entitled to act on behalf of the State to request assistance or to
decide to render the assistance requested;
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(b) a national contingency plan for preparedness and response which includes the
organizational relationship of the various bodies involved, whether public or private,
taking into account guidelines developed by the Organization.
International Convention on Oil Pollution
Preparedness, Response and Co-operation
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In conjunction with the shipping industry, State Parties are also required to
establish:
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(a) a minimum level of pre-positioned oil spill combating equipment,
commensurate with the risk involved, and programmes for its use;
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(b) a programme of exercises for oil pollution response organizations and
training of relevant personnel;
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(c) detailed plans and communication capabilities for responding to an oil
pollution incident. Such capabilities should be continuously available; and
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(d) a mechanism or arrangement to co-ordinate the response to an oil
pollution incident with, if appropriate, the capabilities to mobilize the
necessary resources.
International Convention on Oil Pollution
Preparedness, Response and Co-operation
S State Parties agree to assist and allow:
S “(a) the arrival and utilization in and departure from its
territory of ships, aircraft and other modes of transport
engaged in responding to an oil pollution incident or
transporting personnel, cargoes, materials and equipment
required to deal with such an incident; and
S (b) the expeditious movement into, through, and out of its
territory of personnel, cargoes, materials and equipment
referred to in subparagraph (a).”
International Convention on Oil Pollution
Preparedness, Response and Co-operation
S State Parties agree to further research and development in oil
pollution preparedness and response.
S Annex – contains provisions regarding the reimbursement of costs
of assistance. Only between States, does not address or bar civil
liability.
S Barring a bilateral or multilateral agreement, the general principles
of cost allocation are:
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(i) If the action was taken by one Party at the express request of
another Party, the requesting Party shall reimburse to the assisting
Party the cost of its action. The requesting Party may cancel its
request at any time, but in that case it shall bear the costs already
incurred or committed by the assisting Party.
(ii) If the action was taken by a Party on its own initiative, this Party
shall bear the costs of its action.
International Convention on Civil Liability for Oil
Pollution Damage
S Adopted in 1969.
S Key definitions
S Person – includes natural and corporate persons, as well as the
state.
S Pollution damage – “loss or damage caused outside the ship
carrying oil by contamination resulting from the escape or
discharge of oil from the ship, wherever such escape or
discharge may occur, and includes the costs of preventive
measures and further loss or damage caused by preventive
measures.”
International Convention on Civil Liability for Oil
Pollution Damage
S Key definitions continued
S Preventive measures – “any reasonable measures taken by any
person after an incident had occurred to prevent or minimize
pollution damage.”
International Convention on Civil Liability for Oil
Pollution Damage
S Liability is generally imputed to the ship owner, except:
S Force majeure
S The damage resulted from acts by a third party
S The damage was the result of negligence or other wrongful acts
by a governmental/related authority
S Where the damage was caused by the person who suffered
from it
S Warships
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Joint and several liability applies.
International Convention on Civil Liability for Oil
Pollution Damage
S Creates liability calculation formulas.
S Creates a fund into which ship owners pay their assessed rates of
liability; the fund then makes distributions as appropriate.
S Compulsory insurance requirement.
S Creates a statute of limitations at 3 years from the year of damage
for claims against the fund.
S Limits the venue of suits against the fund to the location of the
damage.
International Convention on Civil Liability for Oil
Pollution Damage
S Subsequent protocols expanded the definitions of ships and
damages. These Protocols also exempt crew members, ship
pilots, those assisting the crew or acting as good Samaritans
from liability. Liability has also been extended to the
exclusive economic zones of State Parties.
International Convention on the Establishment of an
International Fund for Compensation for Oil
Pollution Damage (FUND)
S Adopted in 1971 but replaced by new terms in 1991.
S Convention and Fund created under it applies:
S (a) to pollution damage caused:
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(i) in the territory, including the territorial sea, of a Contracting State,
and
(ii) in the exclusive economic zone of a Contracting State, established
in accordance with international law, or, if a Contracting State has not
established such a zone, in an area beyond and adjacent to the
territorial sea of that State determined by that State in accordance
with international law and extending not more than 200 nautical miles
from the baselines from which the breadth of its territorial sea is
measured;
S (b) to preventive measures, wherever taken, to prevent or minimize
such damage.
FUND
S The Fund does not have liability where the ship owner is
exonerated from liability or the damage was the result of an
intentional act by the person claiming damages.
S Sets out requirements for liability and payments, relying heavily
on working in tandem with the Liability Convention.
S Overall, FUND is given rights to assert claims through
subrogation, where the claims can be made under terms of
Liability Convention, and also serves to assist in the
implementation of the Liability Convention, particularly in
regards to collection of funds and payments to appropriate parties.
International Convention on Liability and
Compensation for Damage in Connection with the
Carriage of Hazardous and Noxious Substances by
Sea (HNS), 1996
S Key definitions:
S Person – includes natural persons or corporations, as well as
States.
S Hazardous and noxious substances – oil carried in bulk,
noxious liquids carried in bulk, dangerous liquid substances,
“dangerous, hazardous and harmful substances, materials and
articles in packaged form covered by the International
Maritime Dangerous Goods Code,” liquefied gases, solid bulk
materials possessing chemical hazards, as set out in the
Convention’s Annexes.
HNS
S Key definitions continued
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Damage –
(a) loss of life or personal injury on board or outside the ship carrying the
hazardous and noxious substances caused by those substances;
S (b) loss of or damage to property outside the ship carrying the hazardous
and noxious substances caused by those substances;
S (c) loss or damage by contamination of the environment caused by the
hazardous and noxious substances, provided that compensation for
impairment of the environment other than loss of profit from such
impairment shall be limited to costs of reasonable measures of
reinstatement actually undertaken or to be undertaken; and
S (d) the costs of preventive measures and further loss or damage caused by
preventive measures.
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HNS
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This Convention shall apply exclusively:
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(a) to any damage caused in the territory, including the territorial sea, of a State Party;
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(b) to damage by contamination of the environment caused in the exclusive economic
zone of a State Party, established in accordance with international law, or, if a State
Party has not established such a zone, in an area beyond and adjacent to the territorial
sea of that State determined by that State in accordance with international law and
extending not more than 200 nautical miles from the baselines from which the breadth
of its territorial sea is measured;
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(c) to damage, other than damage by contamination of the environment, caused outside
the territory, including the territorial sea, of any State, if this damage has been caused by
a substance carried on board a ship registered in a State Party or, in the case of an
unregistered ship, on board a ship entitled to fly the flag of a State Party; and
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(d) to preventive measures, wherever taken.
HNS
S Imputes liability to the ship owner at the time of the
accident in connection with the carriage of hazardous &
noxious substances by sea.
S There is no liability for the ship owner when:
S The damage is the result of force majeure.
S The damage is caused by a third party.
S The damage is caused by the negligence or other fault of a
governmental/related entity that is charged with maintaining
navigational assistance
S The shipper failed to inform the owner of the dangerous
content of shipment.
HNS
S Claims for compensation cannot be brought against:
S Servants, agents, members of the crew.
S Pilot or non-crew member who performs services for the ship.
S The charterer, manager, or operator of the ship.
S Persons performing salvage operations with owners’ consent or
at request of a governmental authority.
S Any person taking preventative measures.
HNS
S Establishes joint and several liability where 2 ships carrying
HNS are involved in an accident.
S Compulsory insurance requirement established based on
tonnage.
S Provides for the creation of a fund for use in the event of an
HNS accident.
Hong Kong International Convention for the Safe
and Environmentally Sound Recycling of Ships
S Adopted in 2009.
S Addresses the need to regulate the recycling of ships,
including issues related to converting ships to other scrap
metal due to concerns over the content of ship materials and
potential exposure of hazardous materials.
S Requires that there be a recycling plan in effect for the
physical act of recycling a ship.
IMO Guidelines on Ship
Recycling
S In 2003, the IMO promulgated guidelines for the recycling
of ships, including provisions on future ship design to
ensure that materials used can be recycled without posing an
environmental threat in the process.
Nairobi International Convention on the Removal of
Wrecks, 2007
S Allows States to remove shipwrecks when they are able to
establish that they pose a threat to the marine environment,
among other threats.
S Applies when the shipwrecks at issue are located outside of the
State’s territorial waters, and not within its jurisdiction as a matter
of law.
S Other provisions apportion liability for the costs of shipwrecks to
ship owners and create a reporting requirement for ship wrecks.
International Convention on the Control of Harmful
Anti-fouling Systems on Ships
S Applies to the flag ships of State Parties, ships operating under
authority of a State Party, and ships which are under the
jurisdiction of a State Party.
S Does NOT apply to warships or ships operated by a
government, unless used for a commercial purpose.
S Requires that State Parties prohibit the use of harmful antifouling systems (ie. certain forms of paint).
S Requires State Parties to ensure that anti-fouling systems and
their waste are collected and disposed of in an environmentally
sound manner.
International Convention on the Control of Harmful
Anti-fouling Systems on Ships
S Allows State Parties to inspect ships in order to determine
whether they are in compliance with the Convention.
S A State Party may detain a ship which it has reason to
believe is in violation of the Convention, or it may bar the
ship from entering its waters/ports.
S Requires State Parties to enact national legislation in order
to codify the sanctions set out in the Convention.
S The Annex sets out the technical requirements.
International Convention on Civil Liability for
Bunker Oil Pollution Damage
S Key definitions
S Bunker oil – “hydrocarbon mineral oil, including lubricating oil,
used or intended to be used for the operation or propulsion of the
ship, and any residues of such oil.”
S Pollution damage –
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“(a) loss or damage caused outside the ship by contamination resulting
from the escape or discharge of bunker oil from the ship, wherever
such escape or discharge may occur, provided that compensation for
impairment of the environment other than loss of profit from such
impairment shall be limited to costs of reasonable measures of
reinstatement actually undertaken or to be undertaken; and
(b) the costs of preventive measures and further loss or damage caused
by preventive measures.”
International Convention on Civil Liability for
Bunker Oil Pollution Damage
S Creates liability for the ship owner as follows:
S “shall be liable for pollution damage caused by any bunker oil
on board or originating from the ship, provided that, if an
incident consists of a series of occurrences having the same
origin, the liability shall attach to the ship owner at the time of
the first of such occurrences.”
S Establishes joint and several liability where appropriate.
S Warships or ships used by the government for non-commercial
purposes.
International Convention on Civil Liability for
Bunker Oil Pollution Damage
S Limitations on ship owner liability:
S Force majeure
S The damage was the result of third party actions
S The damage was the result of negligence or other wrongful
conduct by a governmental/related authority.
S Where it is established that the person damaged actually
intended to cause the damage.
International Convention on Civil Liability for
Bunker Oil Pollution Damage
S Compulsory insurance is made a requirement.
S Jurisdiction and pollution damage
S “1. Where an incident has caused pollution damage in the
territory, including the territorial sea, or in an area referred to in
article 2(a)(ii) of one or more States Parties, or preventive
measures have been taken to prevent or minimise pollution
damage in such territory, including the territorial sea, or in such
area, actions for compensation against the shipowner, insurer or
other person providing security for the shipowner's liability may be
brought only in the courts of any such States Parties.
S 2. Reasonable notice of any action taken under paragraph 1 shall
be given to each defendant.
S 3. Each State Party shall ensure that its courts have jurisdiction to
entertain actions for compensation under this Convention.”
International Convention for the Control and
Management of Ships' Ballast Water and Sediments
S Adopted in 2004.
S Key definitions
S Ballast Water – water with its suspended matter taken on board
a ship to control trim, list, draught, stability or stresses of the
ship.
S Ballast Water Management – “mechanical, physical, chemical,
and biological processes, either singularly or in combination, to
remove, render harmless, or avoid the uptake or discharge of
Harmful Aquatic Organisms and Pathogens within Ballast
Water and Sediments.”
International Convention for the Control and
Management of Ships' Ballast Water and Sediments
S Key definitions continued
S Harmful Aquatic Organisms and Pathogens – “aquatic
organisms or pathogens which, if introduced into the sea
including estuaries, or into fresh water courses, may create
hazards to the environment, human health, property or
resources, impair biological diversity or interfere with other
legitimate uses of such areas.”
International Convention for the Control and
Management of Ships' Ballast Water and Sediments
S Requires State Parties to enact domestic laws that codify the
terms of the Convention.
S Requires State Parties to ensure that facilities designated to
receive and clean/repair ballast tanks are up to
environmental standards and are environmentally sound.
S Allows State Parties to inspect ships within their jurisdiction
in order to verify their compliance with the terms of the
Convention.
International Convention for the Control and
Management of Ships' Ballast Water and Sediments
S Where a threat is detected, the State Party with jurisdiction
over the ship is required to prohibit the ship from
discharging ballast water until the issue is fixed.
S Annex - sets out specific regulations for the control and
management of ships’ ballast water and sediments.
Section II: Case Examples and
Discussion
Torrey Canyon - 1967
S In 1967, the Torrey Canyon, an oil tanker, ran aground on
the English coast near Cornwall.
Torrey Canyon - 1967
S The Torrey Canyon was chartered by BP but it was owned
by a subsidiary of a California entity. It was registered in
Liberia.
S The accident occurred while crew members, some of whom
were not adequately qualified, tried to decide on the correct
method of steering the Torrey Canyon through the area.
Torrey Canyon - 1967
S In response to the oil spilling from the Torrey Canyon, the
British government first deployed “detergents” to clean the
area. Later, it was decided to set fire to the oil, first directly
and then through the use of napalm due to weather
conditions.
S Eventually, the Torrey Canyon sank, although its impact
continued to be felt.
S The oil spill from the Torrey Canyon spread to the beaches
of Normandy.
Torrey Canyon - 1967
S Marine birds and wildlife were severely impacted, and many
fatalities occurred as a result of the oil spill.
S The economy of the area, dependent on fishing and tourism,
suffered as well.
S Both the British and French governments sought payments from
the Torrey Canyon’s owner. Ultimately, this resulted in the largest
marine-based settlement in history.
S The Civil Liability Convention and the International Convention
for the Prevention of Pollution from Ships were outgrowths of the
Torrey Canyon oil spill.
The Erika - 1999
The Erika - 1999
S In 1999, the Erika, and nearly 10,000 tonnes of oil, sank off
the coast of Brittany during a storm at sea.
S As might be imagined, the oil spill caused the deaths of
marine life, damaged the environment, and caused damage
to the local economy.
The Erika - 1999
S Following the Erika, the EU adopted 3 sets of packages of
legislation related to maritime transportation and safety.
The Erika - 1999
S Erika I
S Phasing out of single hulled tankers in EU flag state tankers
and tankers entering the jurisdiction of an EU member.
S Creating the Committee on Safe Seas and the Prevention of
Pollution from Ships.
S Creating the Community vessel traffic monitoring and
information system.
S Creating the European Maritime Safety Agency
The Erika - 1999
S Erika II
S Common rules and standards for ship inspection and survey
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organizations.
Enforcing of international standards at community ports, and
sailing in community waters.
Creating a harmonised safety regime for fishing vessels.
Revising safety standards and rules for passenger ships.
Creating new standards for port reception facilities for shipgenerated waste.
Establishing a minimum of training for seafarers.
The Erika - 1999
S Erika III
S Ship inspection standards.
S Port state control.
S Traffic monitoring.
S Fundamental principles of accident investigation.
S Ship owner’s insurance requirements.
S Liability for passenger ship accidents.
The Prestige - 2002
The Prestige - 2002
S The Prestige was a Liberian owned, Greek operated tanker.
It was carrying nearly 80,000 tonnes of oil during its 2002
voyage when a tank holding some of the oil burst during a
storm off the coast of Spain. It was a single-hulled tanker.
S After the tank burst, the captain attempted to put into port
in Spain and then in France, but was not allowed into either.
The Prestige then attempted to put into port in Portugal, but
the Portuguese Navy stopped this.
The Prestige - 2002
S Eventually the ship sank near the coast of Galicia. Both at
the time of sinking and afterward, oil leaked from the
Prestige.
S The area in which thePrestigereleased oil contained a coral
reef, which suffered damage along with the general
environment and marine life.
S Additionally, fishing in the area was temporarily suspended
due to pollution.
S The cleanup of the area was largely conducted by volunteers
The Prestige - 2002
S Ultimately, the Spanish government pumped the remaining
oil from the sunken Prestige several years after the sinking,
making the cleanup costs several billion dollars.
S In the aftermath of the Prestige’s sinking, the French and
Spanish coastlines are off limits to single-hulled tankers.
The Exxon Valdez - 1989
The Exxon Valdez - 1989
S In 1989, as a result of operator error, the Exxon Valdez
spilled between 10 and 30 million gallons of crude oil into
Prince William Sound in Alaska.
S Initial cleanup methods used included dispersants,
explosives and fires, however the inclement weather in the
area made these efforts only mildly successful.
S The cleanup efforts were spearheaded by Exxon and local
residents at the beginning.
The Exxon Valdez - 1989
S The oil spill, and some of the cleanup efforts, resulted in
severe environmental damage, damage to marine life, and
economic damage to the surrounding areas.
S There was protracted litigation regarding Exxon’s culpability
and financial responsibility, which has reached the US
Supreme Court regarding excessive punitive damage awards.
The Exxon Valdez - 1989
S In the aftermath of the Exxon Valdez accident, the US
Congress enacted the Oil Pollution Act of 1990
S Established the parameters for ship owner liability in the event
of an oil spill or spill from an oil facility.
S Included in damages are damages to natural resources, removal
costs, damage to real and personal property, loss of subsistence
use of resources, loss of revenues as the result of damage to
real or personal property, and loss of profits and earning
capacity.
S Allows for third party liability.
The Exxon Valdez - 1989
S Oil Pollution Act of 1990 continued
S Defines a facility as “any structure, group of structures,
equipment, or device (other than a vessel) which is used for
one or more of the following purposes: exploring for, drilling
for, producing, storing, handling, transferring, processing, or
transporting oil. This term includes any motor vehicle, rolling
stock, or pipeline used for one or more of these purposes.”
The Exxon Valdez - 1989
S Oil Pollution Act of 1990
S Provides protections for the Prince William Sound area.
Deepwater Horizon
Deepwater Horizon
Deepwater Horizon
S Unlike the other oil spills discusses, the Deepwater Horizon
is an oil rig and not a tanker. It was leased by BP from
Transocean, with a place of registration in the Marshall
Islands. At the time of the explosion, a majority of those on
the rig were employees of Transocean.
S The rig’s technology allowed for both deepwater exploration
and oil production.
S In early 2010, the Deepwater Horizon was placed over 40
miles off the coast of Louisiana in order to explore potential
oil fields.
Deepwater Horizon
S On April 20, 2010, an explosion resulted in the destruction of the
oil rig, at the cost of 11 lives. The oil spill from the Deepwater
Horizon continues to the present day.
S In the aftermath of the explosion, ships tried for days to put out
the resulting fire with little success and, ultimately, the Deepwater
Horizon sank.
S There are allegations that the US regulatory entity charged with
monitoring the safety of oil rigs and ensuring that they have
proper prevention plans in place did not act in a thorough manner
with regards to inspecting the Deepwater Horizon.
Deepwater Horizon
S A wide variety of methods have been employed to stop the
oil spilling into the Gulf of Mexico, however to date none
have been overly successful. It is thought that the spill will
not be contained for potentially several months.
S The extent to damage to the environment of the Gulf,
marine life, and the economic livelihoods of those in
surrounding states – primarily Louisiana, Mississippi and
Florida – is unknown.
S However, fishing and tourism are already in decline in many
of these areas, and marine life is visibly effected.
Deepwater Horizon
S As the Deepwater Horizon spill is located in the Gulf of
Mexico, there is a real possibility that the area of the spill
could be in the path of a hurricane.
S Additionally, some scientists have estimated a worst case
scenario in which the currents from the Gulf bring the
spilled oil up the Eastern US coastline.
Deepwater Horizon
S Under the Oil Pollution Act of 1990, BP’s damages are
capped at $75 billion, provided that there was no gross
negligence.
S BP has said that it will pay for the cleanup regardless of the
cap.
S There are some in the US Congress seeking to pass
legislation that would require the full cleanup costs to be
paid by BP.
Deepwater Horizon
III. Conculsion