THE LAW OF GEORGIA
ON OBLIGATION TO COMPENSATE FOR HARM
CAUSED BY HAZARDOUS SUBSTANCES
Chapter I. General Provisions
Article 1. Aim of the Law
Aim of the Law is to provide compensation for damage and loss to personal life and
health, environmental and historical and cultural quality, property and economic interests
caused by the release of hazardous substances into the environment, without the existence
of fault of the responsible person.
Article 2. Definitions
Terms have the following definitions for purposes of the Law:
1. "Hazardous substance" means an element, compound, or mixture, including: oil;
natural gas and gases and substances extracted from it (excluding unprocessed or
unrefined naturally occurring radioactive materials); those substances that present
substantial danger to humans, environment and property, either directly or through
the accumulation of such substances in the environment or living creatures, as defined
in Chapter 200 of the Tax Code of Georgia and on the basis of the Tax Code and
Order #139, of the Minister of Environmental Protection of Georgia "On Approval of
Factors of Relative Danger of Hazardous Substances Released from Stationary
Sources in the Atmosphere or Water", dated November 25, 1997.
2. "Compensation of damage" means compensation of damage caused by hazardous
substances (hereinafter referred to as damage) according to the Georgian Legislation.
3. "Oil" means a liquid hydrocarbon or a derivative of a liquid hydrocarbon and includes
crude oil, lubricating oil, gasoline, diesel fuel, kerosene, sludge, oil refuse, or other
petroleum-related product or by-product.
4. "Pollution" means the discharge, escape, spilling, leaking, pumping, pouring, emitting,
emptying, discharging, injecting, escaping, leaching, dumping, or disposing into the
environment, including the abandonment or discarding of barrels, containers, and other
closed receptacles containing any hazardous substance, but excluding emissions from the
engine exhaust of a motor vehicle, rolling stock, aircraft, or vessel and release that results
in exposure to persons solely within a workplace, with respect to a claim that those
persons may assert against the persons' direct employer.
5. "Initial response," means all steps necessary to:
(a) stop the release of a hazardous substance and the further spreading
of a released hazardous substance;
(b) Provide adequate warning and notify the public authorities of the hazards or
potential hazard to personal health and the environment presented by the release
of the hazardous substance; and cooperate with the authorities in all further
measures taken in response to the release; provide evacuation, temporary shelter,
subsistence, and emergency medical care to persons exposed to or threatened by
the released hazardous substance; and
(c) Protect persons and the environment from potential harm caused by the
released hazardous substance.
6. "Responsible person" means: Any person who releases one or more hazardous
substances into the environment of Georgia as a result of the production, manufacture,
processing, refining, storage, transportation, use, or disposition of a hazardous substance
(either directly or in combination with other substances), including any person who owns,
or controls the hazardous substance; and Any person producing, manufacturing, refining,
storing, transporting, using, or disposing of a hazardous substance on behalf of another
person.
7. "Crude oil" means any untreated liquid hydrocarbon mixture occurring naturally in the
earth also treated crude oil, which is suitable for transportation. It also includes crude oils
from which certain distillate fractions have been removed or to which certain distillate
fractions have been added.
Article 3. Scope of the Law
1. Hazardous substances, used for consumer purposes, according to the rules established
by the Georgian Legislation are exempt from this law.
2. Compensation of damage to human health and environment by hazardous substances is
carried out according to the rules established by the Georgia Legislation.
Chapter II. Obligations for Compensation of Damage
Article 4. Compensation for damage by Responsible Person
1. Except as otherwise provided in this law, responsible persons shall be obligated to pay
compensation for harm caused by the exposure of any person or place to any hazardous
substance:
(a) In connection with the manufacture, processing, refining, storage, transportation, and
use of the hazardous substance; or
(b) By the release of the hazardous substance, whether intended, accidental, or caused by
the acts of third parties.
2. Responsible persons shall be obligated to pay for the following:
(1) Compensatory damages for personal injury or death;
(2) Compensatory damages for the costs of initial responding, including
containment, removal, remediation, and restoration performed by any person,
including the state or state enterprises;
(3) Compensatory damages for economic loss, including damage to water,
resources, land, buildings, crops, orchards and vines suffered by an owner,
occupant, or user thereof;
(4). Damages to the state for damage to natural or cultural resources.
3. Compensation for damages set out in above paragraph 2 is carried out according to the
Civil Code of Georgia.
Article 5. Joint Compensation for Damage by Responsible Persons
1. If a hazardous substance is released from two or more sources, the responsible persons
for each of the sources shall be jointly and severally obligated to pay compensation for
damages. However, if a responsible proves that only part of the damage was caused by
the release from the source owned or controlled by him, he shall be obligated to pay
compensation only for that part of the damage.
2. If a release occurs from the source which is owned or controlled by two or more
responsible persons, the responsible persons shall be jointly and severally obligated to
pay compensation.
3. All responsible persons owning or controlling hazardous substances released at the
time such substances are released shall be jointly and severally obligated to pay for
damages.
4. Responsible persons may assert any claims for recourse for obligations defined in
paragraphs 1, 2 and 3 of this Article, between and among themselves or against any other
person in the manner provided by the Georgian Legislation.
Article 6. Excuse from Obligation.
1. Responsible persons shall not be obligated to pay compensation for harm caused by:
(a) Acts of war, or insurrection.
(b) Compliance with a specific written or verbal order or compulsory measure of a
relevant public authority issued prior to the release of a hazardous substance by a public
authority. In the event the public authority, which has issued the order, shall be
responsible for compensating for such harm in the manner provided by the Georgian
Legislation.
(c) A release that does not exceed the amount permitted to be released from the location
at which the release occurred under a valid permit, allowance, license, or other authority
granted under the Georgian Legislation, liquidation of and compensation for the damage
shall be performed in accordance with the rules established by the Georgian Legislation.
2. Responsible persons may be excused, entirely or partially, from the obligation to pay
compensation for damages caused by the acts of third persons (excluding the responsible
person's officers, directors, agents, servants, or employees) and natural events of an
exceptional, inevitable, and irresistible character if:
(a) The responsible person with respect to availability of information and other relevant
circumstances would not have foreseen the act or event; or
(b) If the event was reasonably foreseeable, and the responsible person took all
precautions to prevent or reduce the effects of the event, including the use of the best
available design or technology in conformity with internationally accepted standards for
the relevant industry or activity; and
(c) The responsible person, within a reasonable period of time after the release occurred,
discovered the release of the hazardous substance and began initial response to the
release.
3. A responsible person may not be excused from the obligation to pay compensation
under this section if the damages are caused in whole or in part by the responsible party's
violation of the Laws of Georgia on health protection and safe production, processing,
storage, transportation, disposal and use of hazardous substances.
4. A responsible person shall not be excused under the provisions of paragraph 2 from the
obligation to pay for the costs of initial response to the release of hazardous substances
and any further response, including, containment, removal, remediation, and restoration
performed by any person.
5. A responsible person shall not be required to pay compensation for harm to the person
or property of a person if the harm resulted wholly or partially from an intentional act or
omission of that person done with intent to cause the release of hazardous substance or
damage to the property of the responsible person; or
6. A responsible person shall not be required to pay compensation for harm to the person
or property of a person who voluntarily exposed himself or his property to the risk of
harm with knowledge of the danger.
Article 7. Other Liabilities of Responsible Person
The payment of compensation or finding of obligation to pay compensation under this
law shall not relieve or excuse a responsible party from other liability under the Georgian
legislation
Article 8. Compulsory Insurance Against Potential Risk of Damage Caused by
Activities Connected with Hazardous Substances
Responsible persons are obliged to obtain insurance insuring against potential risk of
damage, which can be caused by his activities connected with hazardous substances, or
prior to performance of his activities, provide proof of the ability to pay, indicating the
minimum amounts of such required insurance.
Chapter III. Transitional Provisions.
Article 9. Normative Acts which shall be Issued for Entering into Force of the Law
1. Within 1 year after adoption of this law, the Minister of Environmental Protection and
Natural Resources shall issue the following orders:
a) "On Method for calculation of damage caused to the state by contamination of land
with hazardous substances";
b) "On method for calculation of damage caused to the state by radioactive impact to
the environment with hazardous substances";
c) On method for calculation of damage caused to the state by contamination of flora
with hazardous substances";
d) "On method for calculation of damage caused to the state by contamination of
fauna with hazardous substances";
e) "On method for calculation of damage caused to the state by contamination of the
ecosystems and landscape with hazardous substance";
2. Method for calculation of damage caused to the state by contamination of water and
pollution of atmosphere by hazardous substances is defined pursuant to normative acts
issued under paragraphs 33 a) and 3 b) of Article 1 of the Georgian Law "On water" and
paragraph 2, sub-paragraph 30) of Article 60 of the Georgian Law "On Protection of
Atmosphere".
Chapter IV. Final Provisions
Article 10. Entering into force of the law
This Law shall enter into force at the date of publication.
President of Georgia
Eduard Shevardnadze
Tbilisi
July 23, 1999