Maritime Legislation on Oil Pollution Prevention and liability/Compensation

1. Maritime Legislation on Oil Pollution Prevention and liability/Compensation Presented by Capt. Deepak Kapoor – Nautical Surveyor , Directorate General of Shipping, Mumbai

2. 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%

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. Part III Where do we stand now?

15. 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

16. Compensation Regime (Oil Tankers)

17. 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 < 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+

18. 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

19. Part IV– Ways of Improving By Bridging the Gap

20. 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

21. 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

22. Tiered Response Concept

23. 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

24. 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

25. 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

26. 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

27. Thank You for paying attention