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Annual Report 2002 English Annual Report 2008 IOPC FUNDS ANNUAL REPORT 2008 INTERNATIONAL INTERNATIONAL OIL POLLUTION COMPENSATION FUNDS PORTLAND HOUSE Telephone: +44 (0)20 7592 7100 OIL POLLUTION BRESSENDEN PLACE Telefax: +44 (0)20 7592 7111 LONDON SW1E 5PN E-mail: [email protected] COMPENSATION UNITED KINGDOM Website: www.iopcfund.org FUNDS REPORT ON THE ACTIVITIES OF THE INTERNATIONAL OIL POLLUTION COMPENSATION FUNDS IN 2008 Photograph on front cover: Hebei Spirit: Volunteer clean-up workers assembling on the beach Acknowledgements No photograph, map or graphic in this Annual Report may be reproduced without prior permission in writing from the IOPC Funds. Photographs by: Captain S K Kim, KOMOS pages 55, 126, 131 Carlos G. Cuesta y Asociados, SL page 100 General Marine Surveyors & Co. Ltd page 115 Government of Monaco page 46 Government of the Russian Federation page 121 IOPC Funds front cover ITOPF pages 78, 106, 112, 133 Panoptica pages 3, 9, 14, 24, 25, 26, 28, 31, 45 Maps by: ITOPF/Impact pages 110, 117 Graphs by: IOPC Funds/Impact pages 16, 20, 37, 38, 41, 49 Designed and produced in Great Britain by: Impact PR & Design Limited, 125 Blean Common, Blean, Canterbury, Kent CT2 9JH Telephone: +44 (0)1227 450022 Web site: www.impactprdesign.co.uk FOREWORD FOREWORD As Director of the International Oil Pollution Compensation Funds (IOPC Funds), I am pleased to present the Annual Report for the year 2008. During 2008, the IOPC Funds celebrated their 30th anniversary, the 1971 Fund having been established in 1978. Since then the system has grown considerably: when the 1971 Fund was established it had just 14 Member States whilst 103 States had ratified the 1992 Fund Convention by the end of 2008. During these 30 years, the Funds have overcome many challenges and I am sure that many more lie ahead. One of the biggest challenges that the Funds’ Secretariat has had to face in recent years is the increasing complexity of incidents and the sheer number of individual claims that have to be Willem Oosterveen handled. Fortunately, there have been no new major incidents during 2008 but the Hebei Spirit incident in particular, which occurred in to consider the Protocol be held as soon as December 2007, is generating a huge number of possible in 2010 and I hope that, as a result, the claims. Whereas the Erika incident resulted in Convention will enter into force in the next few some seven thousand claims and the Solar 1 years. incident in some thirty-two thousand claims, the Hebei Spirit incident is expected to lead to more I would like to take this opportunity to thank than one hundred thousand. With such numbers, the Government of Monaco for its generosity in the use of modern technology is essential and the hosting the March 2008 meetings of the Funds Funds have therefore speeded up the and the Government of the United Kingdom for implementation of their new state-of-the-art web- its continued support as host government. based claims management system, which significantly facilitates the claims handling Last but not least, I would like to thank all my process. staff for their dedication to the Funds in 2008. The implementation of the HNS Convention I hope that readers will find this Report also moved a step forward during 2008 with the interesting and that it will help them understand successful development by the HNS Focus the role of the IOPC Funds within the Group of a draft Protocol designed to facilitate international oil pollution compensation regime. the rapid entry into force of the HNS Convention. The draft Protocol was approved by the 1992 Fund Assembly in June and was then considered by the Legal Committee of the International Maritime Organization (IMO) in October. In November, the IMO Council endorsed in principle the Committee's Willem Oosterveen recommendation that a Diplomatic Conference Director 3 CONTENTS Foreword by the Director 3 Contents 5 Preface by the Chairman of the 1992 Fund Assembly 9 PART 1 1 Introduction 13 2 The Legal Framework 15 3 Membership of the IOPC Funds 19 3.1 1992 Fund 19 3.2 1971 Fund 19 3.3 Supplementary Fund 20 3.4 Developments over the years 20 4 External Relations 21 4.1 Promotion of 1992 Fund membership and information on Fund activities 21 4.2 Relations with international organisations and interested bodies 21 4.3 Website 22 4.4 Document Server 22 4.5 Records of Decisions database 22 5 The Funds’ Governing Bodies 24 6 Winding up of the 1971 Fund 29 6.1 Termination of the 1971 Fund Convention 29 6.2 Incidents pending 29 6.3 Distribution of the 1971 Fund’s remaining assets 29 6.4 Contributors in arrears 29 6.5 Non-submission of oil reports 29 7 Working Group on non-technical measures to promote quality shipping 30 7.1 Establishment of the Working Group 30 7.2 Key issues discussed and conclusions reached over the five meetings of the Working Group 30 7.3 Report to the Assembly 32 8 Administration of the IOPC Funds 33 8.1 Secretariat 33 8.2 Risk Management 33 8.3 Financial statements for 2007 33 8.4 Financial statements for 2008 34 8.5 Investment of funds 35 8.6 Audit Body 35 9 Contributions 37 9.1 The contribution system 37 9.2 Contribution levies/reimbursements 39 9.3 Contributions over the years 39 5 10 STOPIA 2006 and TOPIA 2006 42 10.1 Consideration of a possible review of the 1992 Conventions 42 10.2 Development of voluntary industry agreements 42 10.3 Overview of the voluntary agreements 42 10.4 Number of ships covered by STOPIA 2006 and TOPIA 2006 43 10.5 Incidents to which STOPIA 2006 applies 44 11 Preparations for the entry into force of the HNS Convention 45 11.1 The HNS Convention 45 11.2 Status of the Convention 45 11.3 The HNS Focus Group 45 11.4 Consideration by IMO’s Legal Committee 47 12 Settlement of claims 48 12.1 General 48 12.2 Admissibility of claims for compensation 48 12.3 Incidents involving the 1971 Fund 50 12.4 Incidents involving the 1992 Fund 51 PART 2 13 Incidents dealt with by the 1971 and 1992 Funds during 2008 55 14 1971 Fund Incidents 56 14.1 Vistabella 56 14.2 Aegean Sea 57 14.3 Iliad 59 14.4 Kriti Sea 60 14.5 Nissos Amorgos 61 14.6 Plate Princess 66 14.7 Katja 70 14.8 Evoikos 70 14.9 Pontoon 300 71 14.10 Al Jaziah 1 72 14.11 Alambra 74 15 1992 Fund Incidents 77 15.1 Erika 77 15.2 Al Jaziah 1 90 15.3 Slops 90 15.4 Prestige 95 15.5 No7 Kwang Min 107 15.6 Solar 1 109 15.7 Shosei Maru 114 15.8 Volgoneft 139 116 15.9 Hebei Spirit 125 15.10 Incident in Argentina 132 6 ANNEXES I Structure of the IOPC Funds 139 II Note on IOPC Funds’ Published Financial Statements for 2007 142 III 1971 Fund: Report of the External Auditor 143 IV 1971 Fund: Opinion of the External Auditor 150 V 1971 Fund: Income and Expenditure Account - General Fund 151 VI 1971 Fund: Income and Expenditure Account - Major Claims Funds 152 VII 1971 Fund: Balance Sheet 154 VIII 1971 Fund: Cash Flow Statement 156 IX 1992 Fund: Report of the External Auditor 157 X 1992 Fund: Opinion of the External Auditor 167 XI 1992 Fund: Income and Expenditure Account - General Fund 168 XII 1992 Fund: Income and Expenditure Account - Major Claims Funds 169 XIII 1992 Fund: Balance Sheet 170 XIV 1992 Fund: Cash Flow Statement 172 XV Supplementary Fund: Opinion of the External Auditor 173 XVI Supplementary Fund: Income and Expenditure account - General Fund 174 XVII Supplementary Fund: Balance Sheet 175 XVIII Supplementary Fund: Cash Flow Statement 176 XIX 1971 Fund: Key financial figures for 2008 177 XX 1992 Fund: Key financial figures for 2008 178 XXI Supplementary Fund: Key financial figures for 2008 179 XXII 1992 Fund: Contributing oil received in the calendar year 2007 in the territories of States which were Members of the 1992 Fund on 31 December 2008 180 XXIII Supplementary Fund: Contributing oil received in the calendar year 2007 in the territories of States which were Members of the Supplementary Fund on 31 December 2008 181 XXIV 1971 Fund: Summary of incidents 182 XXV 1992 Fund: Summary of incidents 204 7 PREFACE PREFACE I would like to start by thanking the government of Monaco for its generosity in hosting the March meeting of the IOPC Funds: I am sure that the many delegates who attended the meeting will all remember it with great pleasure. The Monaco meeting included the first session of the HNS Focus Group, which was established by the 1992 Fund Assembly in 2007 in order to facilitate the rapid entry into force of the HNS Convention. The Focus Group worked very speedily, with the able support of the Secretariat, and I sincerely hope that the resulting Protocol will be ratified quickly by many States so that victims of spills of hazardous and noxious substances can benefit from an international compensation system in the same way as victims of oil spills from tankers. Jerry Rysanek 2008 was a year which contained a number of anniversaries, being sixty and forty years respectively since the establishment of both the International Maritime Organization (IMO) commended by the auditors for their proactive and the International Tanker Owners Pollution approach to good governance and this is a clear Federation Limited (ITOPF), the Funds’ example of the resulting benefits.
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