Maritime Legislation on Oil Pollution Prevention and

liability/Compensation

Presented by Capt. Deepak Kapoor – Nautical Surveyor ,

Directorate General of Shipping, Mumbai

TREND IN MAJOR OIL SPILLS

Collision in South Korea

Consequential action and claims

Part II

International Obligations

of

Indian Administration

Status of conventionsInstruments 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%

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/from 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

CLC/FUND 92 conventions- State party has agreed to uniform international rules for determining liability and providing adequate compensation.

Bunker convention 2001- State party has agreed to uniform international rules for determining liability and providing adequate compensation for damage by bunker oil

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

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

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 R&D 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

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

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

Reference Documents on Pollution Response and Claims (All 4)

1. 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

3. IOPC claims Manual Edition

Part III

Where do we stand now?

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

Inland Vessels Act 1917 as amended

Compensation Regime (Oil Tankers)

LIMITS OF LIABILITY (Non Tankers/Tankers)

LegalMain 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 < 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+

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

Part IV– Ways of Improving

By Bridging the Gap

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

Decisions taken during the Meeting

Indigenous Tier III should be developed within coast guard

Coast Guard to function under the Ministry of Defence R&D 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

Tiered Response Concept

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 ULCC2.2billion oil trade/year(89% of total volume of global trade,231miilion by pipeline and 17million by road /rail tankers

New Instruments

Review of rules for INTERVENTION HIGH SEAS Convention

Review of rules for OPRC ConventionEnact Bunker Convention and frame

rulesConsider Ratification of Supplementary

Fund – 2003Consider Ratification of LLMC 1996

Fill up GapsBetween 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

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

Thank You for paying attention