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Incidents Involving the IOPC Funds – 2010

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Incidents Involving the IOPC Funds – 2010 IOPC FUNDS – INCIDENTS 2010 Incidents Involving the IOPC Funds 2010 INTERNATIONAL OIL POLLUTION COMPENSATION FUNDS INTERNATIONAL OIL POLLUTION COMPENSATION FUNDS Portland House Telephone: + 44 (0)20 7592 7100 Bressenden Place Telefax: + 44 (0)20 7592 7111 London SW1E 5PN E-mail: [email protected] United Kingdom Website: www.iopcfund.org 110906_Cover 2010_e.indd 1 10/03/2011 10:00 INCIDENTS 2010 ACKNOWLEDGEMENTS Acknowledgements Photographs Cover Press Association Images Page 6 (Erika) Courtesy of International Tanker Owners Pollution Federation (ITOPF) Page 12 (Prestige) Press Association Images Page 20 (No7 Kwang Min) Courtesy of Korea Marine and Oil Pollution Surveyors (KOMOS) Page 23 (Solar 1) Courtesy of ITOPF Page 26 (Volgoneft 139) Press Association Images Page 32 (Hebei Spirit) Courtesy of KOMOS Page 40 (Incident in Argentina) Press Association Images Page 54 (Vistabella) Courtesy of Timothy J. Reilly, Lighthouse Technical Consultants, Inc. for the Puerto Rico Department of Natural and Environmental Resources (DNER) Page 55 (Aegean Sea) Press Association Images Page 61 (Nissos Amorgos) Courtesy of ITOPF Pages 68 (Evoikos) Press Association Images Page 69 (Al Jaziah 1) Courtesy of ITOPF Prepress by Flag Printed by Thanet Press Limited Incidents (in chronological order) 1 Vistabella, 07.03.1991 10 No7 Kwang Min, 24.11.2005 2 Aegean Sea, 03.12.1992 11 Solar 1, 11.08.2006 3 Iliad, 09.10.1993 12 Volgoneft 139, 11.11.2007 4 Nissos Amorgos, 28.02.1997 13 Hebei Spirit, 07.12.2007 5 Evoikos, 15.10.1997 14 Incident in Argentina, 26.12.2007 6 Plate Princess, 27.05.1997 15 King Darwin, 27.09.2008 7 Erika, 12.12.1999 1992 Fund Member States 8 Al Jaziah 1, 24.01.2000 Supplementary Fund Member States 9 Prestige, 13.11.2002 This report has been printed on recycled paper INTERNATIONAL OIL POLLUTION COMPENSATION FUNDS Incidents 2010 INTERNATIONAL OIL POLLUTION COMPENSATION FUNDS Incidents 2010 99 110906_Cover 2010_e.indd 2 10/03/2011 10:00 Incidentsinvolving theIOPCFunds– 2010 Contents Page Foreword 2 Introduction 3 1992 FUND Erika 6 Al Jaziah 1 see 1971 Fund 11 Prestige 12 No7 Kwang Min 20 Solar 1 22 Volgoneft 139 26 Hebei Spirit 32 Incident in Argentina 40 King Darwin 43 Summary of Incidents 44 1971 FUND Vistabella 54 Aegean Sea 55 Iliad 58 Nissos Amorgos 59 Plate Princess 63 Evoikos 68 Al Jaziah 1 69 Summary of Incidents 72 List of currencies 99 International Oil Pollution Compensation Funds Portland House Bressenden Place London SW1E 5PN United Kingdom Telephone: +44 (0)20 7592 7100 Fax: +44 (0)20 7592 7111 E-mail (for all enquiries): [email protected] Website: www.iopcfund.org Opposite: Current map of incidents involving the IOPC Funds as at October 2010. Cover: Copyright ©IOPC FUNDS 2011 Aerial view of the oil slicks following the Hebei Spirit incident reaching the beach near Mallipo, Republic of Korea INTERNATIONAL OIL POLLUTION COMPENSATION FUNDS Incidents 2010 1 110906_Incidents 2010_e.indd 1 25/03/2011 10:21 FOREWORD Foreword This Report provides information on incidents in which the Secretariat of the International Oil Pollution Compensation Funds (IOPC Funds) was involved in 2010. It sets out the developments in the various cases during the course of the year and the position taken by the governing bodies in respect of claims. The Report is not intended to reflect in full the discussions of the governing bodies. These discussions are reflected in the Records of Decisions of the meetings of these bodies, which are available on the IOPC Funds’ document server which can be accessed through the Fund’s website (www.iopcfund.org). The Supplementary Fund was not involved in any incidents during 2010. Disclaimer While the Secretariat of the IOPC Funds has used its discretion and best judgement, and made every reasonable effort in compiling the information and figures in the Report relating to claims, settlements and payments, it may not be held liable for the accuracy of the figures. The reader should note that the figures in the Report are given for the purpose of providing an overview of the situation for various incidents and may therefore not correspond exactly to the figures given in the IOPC Funds’ Financial Statements. Published by the INTERNATIONAL OIL POLLUTION COMPENSATION FUNDS Portland House Bressenden Place London SW1E 5PN United Kingdom Copyright ©IOPC FUNDS 2011 Permission is granted to reproduce for personal and educational use only but acknowledgement is requested. Commercial copying, hiring or lending is prohibited. All other rights are reserved. 2 INTERNATIONAL OIL POLLUTION COMPENSATION FUNDS Incidents 2010 110906_Incidents 2010_e.indd 2 25/03/2011 10:21 INTRODUCTION Introduction TheInternationalRegime However, the shipowner can normally limit his financial liability The IOPC Funds are three intergovernmental organisations to an amount that is determined by the tonnage of the ship. This (the 1992 Fund, the Supplementary Fund and the 1971 Fund) amount is guaranteed by the shipowner’s liability insurer. established by States for the purpose of providing compensation for victims of oil pollution damage resulting from spills of Normally, the Convention only applies to tankers carrying persistent oil from tankers. persistent oil as cargo. However, under certain circumstances, the Convention also applies to spills from unladen tankers. Thelegalframework The international regime of compensation for damage caused by oil TheroleoftheIOPC Funds pollution is currently based on two international conventions: the The 1992 Fund and, if applicable, the Supplementary Fund 1992 Civil Liability Convention and the 1992 Fund Convention. provide additional compensation when the amount payable by the These Conventions were adopted under the auspices of the shipowner and his insurer is insufficient to cover all the damage. International Maritime Organization (IMO), a specialised agency of the United Nations. Amount of compensation available The maximum amounts of compensation payable by the The 1992 Civil Liability Convention provides a first tier of shipowner’s insurer and the IOPC Funds were fixed by compensation which is paid by the owner of a ship which causes Governments at the Diplomatic Conferences that adopted the pollution damage. relevant international treaties. As at 2 December 2010, the maximum amount payable for each incident was 203 million The 1992 Fund Convention provides a second tier of compensation Special Drawing Rights (SDR) of the International Monetary Fund, which is financed by receivers of oil in States Parties to the equal to about US$310.6 million, for incidents covered by the Convention after sea transport. The 1992 Fund was set up in 1996 1992 Fund and 750 million SDR (about US$1 147.5 million) for when the 1992 Fund Convention entered into force. incidents which are also covered by the Supplementary Fund. An earlier Fund, the 1971 Fund, still exists but is in the process Since their establishment, the 1992 Fund and the preceding of being wound up and does not cover incidents occurring after 1971 Fund have been involved in some 140 incidents (including 24 May 2002. two joint incidents) of varying sizes all over the world. In the great majority of cases, all claims have been settled out of court. No A Protocol to the 1992 Fund Convention adopted in 2003, incidents have occurred so far which have involved or are likely to the Supplementary Fund Protocol, provides an extra layer of involve the Supplementary Fund. compensation via the Supplementary Fund, which was set up in March 2005. Membership of this Fund is open to any State that is Damage covered by the Conventions a Member of the 1992 Fund. Anyone in a Member State of the 1992 Fund who has suffered pollution damage caused by oil transported by a tanker can claim States which ratify these legal instruments must implement them compensation from the shipowner/insurer, the 1992 Fund and, if into their national law. applicable, the Supplementary Fund. This applies to individuals, businesses, local authorities and States. The great majority of maritime States are Members of the IOPC Funds To be entitled to compensation, the damage must result from As at 1 January 2011, the 1992 Fund had 104 Member States, oil pollution and have caused a quantifiable economic loss. The and one further State will become a Member in February 2011. claimant must be able to show the amount of his loss or damage In addition, 27 of these States are Members of the Supplementary by producing accounting records or other appropriate evidence. Fund. All Member States are shown in the table on page 5. The shipowner has strict liability Under the 1992 Civil Liability Convention, the shipowner has strict liability for any pollution damage caused by the oil, i.e. the owner is liable even if there was no fault on the part of the ship or its crew. INTERNATIONAL OIL POLLUTION COMPENSATION FUNDS Incidents 2010 3 110906_Incidents 2010_e.indd 3 25/03/2011 10:21 INTRODUCTION An oil pollution incident can generally give rise to claims for five FinancingoftheIOPC Funds types of damage: The IOPC Funds are financed by contributions levied on any entity that has received in the relevant calendar year more than • property damage; 150 000 tonnes of contributing oil (ie crude and/or heavy fuel • costs of clean-up operations at sea and on shore; oil) in ports or terminal installations in a Member State, after • economic losses by fishermen or those engaged in carriage by sea. mariculture; • economic losses in the tourism sector; and The levy of contributions depends on reports of the amounts of • costs for reinstatement of the environment. oil received by individual contributors, which the Governments of Member States are obliged to submit annually to the Secretariat. Claims against the 1992 Fund are assessed according to criteria These amounts are used as the basis of the levy, calculated to established by representatives of the Governments of Member provide sufficient monies to administer the Funds and to pay States.
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