Maritime Legislation on Oil Pollution Prevention and liabilityCompensation

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Maritime Legislation on Oil Pollution Prevention
and liability/Compensation

• Presented by Capt. Deepak Kapoor
• Nautical Surveyor ,
• Directorate General of Shipping, Mumbai

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TREND IN MAJOR OIL SPILLS
3
Collision in South Korea
4
Consequential action and claims
5
Part II

• International Obligations
• of
• Indian Administration

6
Status of conventions

• Instruments Entry States
  Age W. Tonnage
• UNCLOS 23.11.94 94 15 y
  ------
• IMO 17.03.58 168 51y
  97.22
• Prevention
• MARPOL 02.10.83 149 55( 26)y
  99.01
• Intervention 06.05.75 86 34y
  74.40
• Response
• OPRC 13.05.95 97 14y
  67.03
• Salvage 14.07.96 57 13y
  47.16
• OPRC HNS 14.06.07 23 02y
  30.88
• Liability
• CLC 30.05.96 121
  40(13) y 96.39
• FUND 30.05.96 103 38(13)
  y 94.12
• HNS - 13
  ----- 13.64
• Bunkers 21.11.08 37 05M
  75.25
• Legal
• FAL 05.03.67 114
  42y 90.31
• LLMC 01.12.86 52 23y
  49.08

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Administrative Aspect of Oil Pollution in
International Law

• Umbrella Convention
• UNCLOS Article 207/208/209/210/211/212- adoption
  of laws for pollution from land based/sea bed
  activities/activities from area/dumping/vessels/fr
  om air
• UNCLOS Article 221 -Measures to avoid pollution
  arising from maritime casualties- beyond TW
• Prevention
• MARPOL 73/78- Parties to give full effect to the
  provisions of the convention
• High Seas Intervention Article 1 - Measures to
  prevent, mitigate or eliminate grave imminent
  danger to its coastline and other provisions
• Response
• OPRC Article 1 individual or jointly to take
  measures
• Article 9 of Salvage Convention- Rights of the
  Coastal States to protect its coastline
• Liability

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MARPOL 73/78(Prevention)

• Application- Types of Vessels
• Construction- Tanks for residues
• SBT/CBT/SLOP Tanks
• Double Hull and Double Bottom
• Pump room bottom protection
• Limitation of size
• COW arrangements
• Pumping and discharge arrangement
• OWF Equipment
• Oil/water interface detector
• Control of operational discharge
• SOPEP
• Oil Record Book
• Reception Facilities
• Sub division and damage stability
• Survey and certification

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High Sea Intervention (Prevention)

• Consultation with other states and experts
• Interim measures to protect lives and
  repatriation
• Set up list of experts
• Measures should be reasonable
• Liability on the coastal state in case of damage
  to others
• Conciliation
• Arbitration
• List of substances

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OPRC (Response)

• Oil pollution emergency plans
• Oil pollution reporting procedures
• Action on receiving an oil pollution report
• National and regional systems for preparedness
  and response
• International co-operation in pollution response
• RD Promotion
• Technical Co-operation
• Promotion of Bilateral/Multilateral Co-operation
  in Preparedness and response
• Reimbursement of costs and assistance
• Establishment of oil pollution combating
  equipment stockpiles
• Development of training programme
• Improving salvage services
• Co-operation between states and insurers

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Salvage Convention (Response)

• Application judicial or arbitral proceedings
• Platform/state owned vessels
• Rights and remedies for public authorities
• Duties of salvor ,owner and master
• Rights of coastal states
• Conditions for reward
• Criteria for fixing reward (No cure and No Pay)
• Special compensation (SCOPIC)
• Salvage of persons
• Claims and actions( 2years)
• Common understanding on Article 13/14
• Amendment to York Antwerp Rules
• Transmittal of text of laws to IMO

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CLC/Bunker/HNS (Liability)

• Applicability- up to EEZ
• In case of ships carrying cargo as oil in bulk
• Compulsory insurance by ships
• Liability up to limit as per GRT
• Constitution of FUND
• Acceptance of certificates issued outside India
• Ban on entry and leaving
• Jurisdiction of courts

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Reference Documents on Pollution Response and
Claims (All 4)

• Manual on Oil Pollution Edition-
• Section I - Prevention
• Section II - Contingency Planning
• Section III - Salvage
• Section IV - Combating Oil Spills
• Section V - Administrative Aspects of Oil
  pollution Response
• Section VI - IMO guidelines on samplings
  identification of oil spills
• Comprehensive manual on Port Reception facilities
• Guidelines to ensure the adequacy of port waste
  reception facilities
• 2.Chemical Pollution
• Problem Assessment and Response Arrangements
• Search and Recovery of Packaged goods at Sea
• Claims settlement
• IOPC claims Manual Edition

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Part III

• Where do we stand now?

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National Laws (All 4)

• Merchant Shipping Act 1958
• Section 356 C Provisions of Prevention of
  Pollution
• Section 356 I Oil reception Facilities at ports
• Provisions for Containment for accidental
  pollution
• Section 356 J - Power to give Notice to
  polluting ship
• Section 356K Power to take measures for
  preventing or containing oil pollution
• Section 356L Power to give directions to
  certain ships
• Section 356M - Oil Pollution Cess
• Part XA- Limitation Liability
• Part XB-Civil Liability for oil pollution damage
• Part XC International Oil pollution Compensation
  Fund
• Indian Coast Guard Act any notifications
• Indian Ports Act 1917 as amended

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Compensation Regime (Oil Tankers)
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LIMITS OF LIABILITY (Non Tankers/Tankers)

• Legal
• Main Convention
• LLMC 1976 PERSONAL CLAIMS 333 000/- SDR 499
  500/- USD.
• Above 70,000 GT above 21million SDR
• PROPERTY CLAIMS 167 000 SDR 250 500 USD.
• Above 70,000GT above 10.9million SDR
• Protocol
• LLMC 1996 PERSONAL CLAIMS - 2000 lt 2 Million
  SDR 3.17 Million USD.
• Above 70,000GT above 48.4million SDR
• PROPERTY CLAIMS up to 2000GT-2million SDR.
• Above 70,000GT above 24.2million SDR

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LIMITS OF LIABILITY FOR ships carrying oil as
Cargo in bulk (01st November 2003)

• Tier I
• CLC 1969 3 Million TO 14 Million SDR (22
  Million USD)
• CLC 1992 59.7 (88 Million USD) TO 89.77
  Million SDR 89 142 Million USD
• Tier II
• Fund 1971 60 Million SDR (95 Million USD)
• Fund 1992 135 Million SDR (240 Million USD)
  203 Million SDR (321 Million USD).
• Tier III
• S- Fund 750 Million SDR (1186 Million USD).
• STOPIA 2006 20 Million SDR (32 Million USD for
  tankers up to 2954 GRT)
• TOPIA 2006 indemnification 50.
• Review Between 2006 to 2016

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Part IV Ways of Improving

• By Bridging the Gap

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OBSERVATIONS MADE AT CABINET SECRETARY MEETING ON
08TH DECEMBER 2003 ON SUBJECT ISSUE

• No indigenous facilities for TIER III, Oil Spills
• Operational Functional Responsibilities rest
  with Coast Guard
• Legal Administrative responsibilities rest with
  DG Shipping
• Risk exposure to Oil Spill likely to increase
• Oil Spill Management requires operational
  functional agency mandated to handle spills under
  overall supervision of Maritime Authority i.e. DG
  Shipping
• A separate entity was not necessary

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Decisions taken during the Meeting

• Indigenous Tier III should be developed within
  coast guard
• Coast Guard to function under the Ministry of
  Defence
• RD activities requisite Science Technology
  to be given by Oil Industry Safety Directorate
• Legal Administrative matters, the
  responsibility of Maritime Authority under DG
  Shipping
• DG Shipping to function under the direction of
  Ministry of Shipping
• Compressive Oil Spill Management Policy for India
  to be finalized at earliest

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Tiered Response Concept
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Threat to Indian Sub continent

• Call by Region and Vessel Type
• Container 27228 8
• Dry Bulk 16734 9(16000)
• Gas 3695 9
  (3000)
• GC 20036 4
  (18,000)
• Passenger 1812 1
• Ro Ro 7953 6
• Miscellaneous 4494 4
• Tanker 32923 11(18000)
• 501 13 Live VLCC and ULCC
• 2.2billion oil trade/year(89 of total volume of
  global trade
• ,231miilion by pipeline and 17million by road
  /rail tankers

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New Instruments

• Review of rules for INTERVENTION HIGH SEAS
  Convention
• Review of rules for OPRC Convention
• Enact Bunker Convention and frame rules
• Consider Ratification of Supplementary Fund
  2003
• Consider Ratification of LLMC 1996

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Fill up Gaps

• Between various applicable Acts
• Power of port to prohibit certain vessels
• Rules for arrival/departures of vessels
• Procedures for loading, discharge, ballast and
  wastes
• Provisions for reception facilities
• Contingency plans
• Procedures for dealing with oil spills
• Provisions for place of refuge
• Right to seek compensation
• Relationship between orts and others
• Competent of port to deal with incident outside
  port
• Power of port to detain
• Audit of ports
• Insurance against oil pollution and wreck removal
• Provisions of cooperation between various
  authorities
• Provisions for salvage services
• Penalty provisions
• Delegation of powers to CG

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Summary

• Legal framework for Oil Pollution Liability to
  strengthen for facilitatation of foreign trade
  and achieving economic goals
• Lays down and implements basic objectives of
  State (Preamble)
• Good Rules or procedure for detention, denial of
  entry, banning departure or arrest with deterrent
  measures
• Legal framework to regulate relationship with all
  parties

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Thank You for paying attention