FIFE COUNCIL Environment and Development Committee 2nd February, 2006 Agenda Item No. PROPOSAL FOR SHIP TO SHIP TRANSFER OF OIL IN THE FIRTH OF FORTH 1.0 Introduction 1.1 The previous report presented to Committee in March, 2005 (2005.E.D.C.163 Para. 310 refers) detailed Fife Council’s initial response to the proposal by Melbourne Marine Services to conduct ship to ship (STS) transfer of crude oil and other hydrocarbons in the Firth of Forth and put forward how the Council’s detailed response to the proposal might be formulated. On consideration of the report the Committee expressed its total opposition to the proposals. 1.2 Following that report and discussions which took place between the Head of Transportation, Officers from Law and Administration Service and the Chair and Opposition Spokesperson, it was agreed that, amongst other measures to be taken to express the Council’s opposition, the Opinion of Counsel should be obtained to establish the legality of the proposals being taken forward, particularly in view of a recent European Court decision. 1.3 This report seeks to summarise the implications of the Opinion which has now been received, and which is annexed. Copies of the original Memorial and supporting papers are available in the Members’ Lounge. 1.4 Members should note that the obtaining of legal opinion is part of a broader approach on marine environmental matters. The Council have been consulted by DEFRA on the European Commission’s Marine Strategy Package. This was the subject of a report to External Affairs Sub-Committee on 25th January. It is recommended that this Committee nominate a senior official to co-ordinate the Council’s response on the Marine Strategy Package, and the draft Directive attached to it. The report to the External Affairs Sub-Committee also confirmed that, at the General Assembly of the Conference of Peripheral Maritime Regions in September, 2005, Fife Council’s resolution calling for a more co-ordinated approach to the issue at the North Sea Regional level was approved. 2.0/ -2- 2.0 Opinion of Counsel 2.1 The Opinion, by leading environmental advocate R. Douglas Armstrong QC, confirms that both the Marine and Coastguard Agency, in deciding whether or not to approve the amendments to the Clearwater Forth Oilspill Contingency Plan that would allow STS to go ahead, and the Forth Ports Authority, for their decision making purposes, face legal difficulties. 2.2 Counsel advises that, in coming to a decision as to whether STS should go ahead in the Firth of Forth, both the MCA and Forth Ports require to have regard not just to a narrow set of provisions under 1998 Regulations and a section of the Harbours Act 1964 respectively. Both the MCA and Forth Ports will also have to have regard to the 1994 Regulations which sought to import into UK law EU Directive 92/43/EEC of 21st May, 1992 on the Conservation of the Natural Habitats and of Wild Fauna and Flora (“the Habitats Directive”). 2.3 The fact that the European Commission was successful in its recent court action against the United Kingdom for failing to transpose the Habitats Directive correctly into UK Law makes it all the more vital that public authorities, in approving plans or projects of the nature of STS, must ensure that the terms of the Habitats Directive are complied with. This says (Article 6(3)): “Any plan or project not directly connected with or necessary to the management of the [protected site, i.e. in this case, the Firth of Forth] but likely to have a significant effect thereon… shall be subject to appropriate assessment of its implications for the site in view of the site’s conservation objectives. In the light of the conclusions of the assessment… the competent national authorities shall agree to the plan or project only after having ascertained that it will not adversely affect the integrity of the site concerned and, if appropriate, after having obtained the opinion of the general public.” 3.0 Discussion 3.1 Mr. Armstrong’s opinion confirms that both the MCA and the Forth Ports Authority face a very high legal test of compliance with the Habitats Directive if they decide to go ahead with STS in the Firth of Forth. It is difficult to see how either authority could justify agreeing to a planned operation the consequences of which in the event of an oil spill, would be disastrous for the marine environment in the Firth of Forth. There is further European case law that supports this view. 3.2 Mr. Armstrong’s Opinion also makes it clear that, in the event of a decision being taken by the MCA which conflicts with the Habitats Directive, then such a decision would be challengeable in court. Counsel suggests that Forth Ports Authority should be approached to clarify under what legislative provision they are likely to take a decision on this matter. 3.3/ -33.3 It may also be that, should Forth Ports Authority proceed without satisfying the legal requirements set out in this report, issues of liability for any subsequent oil spill would potentially include liability on their part. 4.0 Conclusions and Recommendations 4.1 Mr. Armstrong’s Opinion is useful in outlining the difficulties that the regulatory authorities face in coming to a decision which would be lawful, particularly given the recent European Case Law. Clearly until a decision is taken it is not known whether it will be legally challengeable. However, it would seem to be reasonable to advise both MCA and Forth Ports of Mr. Armstrong’s findings and to ask for their comments. 4.2 It is accordingly recommended that: Members note the contents of the report and attached Opinion; Agree that the Head of Law and Administration in consultation with the Head of Transportation, write to the Marine and Coastguard Agency and the Forth Ports Authority with a copy of the Memorial and Opinion, asking them to confirm their position in the light of the apparent legal difficulties they face in relation to STS in the Firth of Forth. Agree that the Strategic Manager (Environment and Development) coordinates a response on all marine environmental matters, including the Marine Strategy Package referred to at 1.4. H.B. Tait, Head of Law and Administration. Dr. Bob McLellan, Head of Transportation Services. Author: Andrew Ferguson, Solicitor, Team Leader (Administration), Fife Council, Fife House, North Street, GLENROTHES. KY7 5LT Contact: (01592) 416316 andrew.ferguson@fife.gov.uk 16th January, 2006. FISH/ENVIRONMENT&DEVELOPMENTCOMMITTEE/020206/REPORTS/PROPOSALFORSHIPTOSHIPTRANSFEROFOILINTHEFIRTHOFFORTH/LL