International Environmental Regulation of the Shipping Industry

1
International Environmental Regulation of the
Shipping Industry

• Alexandra R. Harrington
• Doctor of Civil Law Candidate, McGill University
• Senior Manager Associate Fellow, CISDL

2
Introduction

• Course outline
• I. International Regulations
• International Maritime Organisation
• Associated Treaties, Conventions Regulations
• II. Case Examples and Discussion
• III. Conclusion

3
Section I International Regulations
4
International Maritime Organization

• Pollution
• Liability/Compensation Fund
• Safety of Life at Sea
• Ship Recycling Wreck Removal
• Other Issues Anti-fouling Ballast Water
  Sediment

5
IMO Pollution Regulations

• International Convention for the Prevention of
  Pollution of the Sea by Oil 1958
• Primary focus is on oil pollution from tankers
  arising through their standard operations.
• Created zones off coast lines where tankers are
  prohibited from discharging oil and associated
  wastes.
• State Parties agreed to establish facilities to
  assist in the collection of machine-based oil
  waste from ships rather than have this waste
  dumped into the sea.
• Later amendments made these terms applicable to
  ships beyond tankers.

6
International Convention for the Prevention of
Pollution from Ships

• Adopted first in 1973, although only became
  operative after 1978 Protocol amending and
  amplifying the Convention.
• Key definitions
• Harmful substance any substance that poses a
  threat to human life, marine life, and the marine
  environment, as well as uses of the sea.
• Discharge includes all methods of release,
  intentional and unintentional. The term is
  limited, however, and is not applicable to
  discharges made during exploration or
  exploitation of sea-bed resources, or associated
  off-shore processing.

7
International Convention for the Prevention of
Pollution from Ships

• Applies to flag ships of State Parties and ships
  that operate under the authority of a State
  Party. Does NOT apply to war ships.
• State Parties agree to establish internal
  sanctions for violations of the Convention.
• Establishes a system for State Party issuance of
  a certificate of compliance with the terms of the
  Convention for each ship under that State Partys
  control.
• Where a ship does not have such a certificate,
  State Parties are able to stop the ship from
  returning to sea until an adequate inspection and
  attestation of seaworthiness has been performed.

8
International Convention for the Prevention of
Pollution from Ships

• Provides for the creation of an Administration
  to enforce the terms of the Convention and
  investigates alleged violations.
• In Protocols added in 1973, there are specific
  requirements for the technical aspects of
  reporting incidents, as well as for arbitration
  in disputes between the parties.
• Annex I - regulations for the prevention of
  pollution by oil
• Provides extensive definitions of what oil,
  ships, and associated entities for the purpose of
  coverage under the Convention.
• Also provides for in-depth certificate issuing
  system.

9
International Convention for the Prevention of
Pollution from Ships

• Annex II - Regulations for the control of
  pollution by noxious liquid substances in bulk
• Creates standards for ships created before and
  after 2007 in terms of storage and technological
  abilities related to noxious liquids, and sets
  out a comprehensive list of noxious liquid
  substances covered by the terms of the Annex.
• Annex III Prevention of pollution from harmful
  substances in packaged form (Optional Annex)
• Packaging and labeling requirements for harmful
  substances in packaged form that are to be
  shipped.

10
International Convention for the Prevention of
Pollution from Ships

• Annex IV Prevention of pollution by sewage from
  ships (Optional Annex)
• Contains specific size requirements for a ship to
  be subject to the Annexs provisions geared
  toward preventing sewage-based pollution.
• Annex V Prevention of pollution by garbage from
  ships
• Bans dumping of plastics into the sea.
• Also sets the standards for where and how garbage
  can be disposed of from ships, particularly in
  relationship to land.

11
International Convention for the Prevention of
Pollution from Ships

• Annex VI Prevention of Air Pollution from Ships
• Sets emission rate limits for sulphur oxide and
  nitrogen oxide from ships.
• Subsequent amendments to the Convention
  Protocol increased the specificity of their
  application in specific geographical locations,
  and types of vessels to which they are
  applicable.

12
Convention on the Prevention of Marine Pollution
by Dumping of Wastes and Other Matter Protocol

• Original Convention adopted in 1972.
• State Parties agree to take steps individually to
  control and prevent maritime pollution and
  dumping within their jurisdiction.
• Key definitions
• Dumping is defined as including a deliberate
  intent.
• Waste means any substance that is dumped,
  regardless of its identity or composition.
  However, the exact scope of prohibited substances
  is contained in an Annex.

13
Convention on the Prevention of Marine Pollution
by Dumping of Wastes and Other Matter Protocol

• Where a permit process is already required for
  dumping of wastes, the State Party does not have
  to apply the Convention, although it is still
  required to take its terms into account.
• The Convention also does not apply in situations
  of force majeure, where dumping appears to be the
  only way to protect human life or
  vessels/aircraft. Requires an assessment of
  risks.
• State Parties are required to apply the terms of
  the Convention to flag ships/vessels and
  ships/vessels within its territory.

14
Convention on the Prevention of Marine Pollution
by Dumping of Wastes and Other Matter Protocol

• Annex I sets out substances that are covered by
  Convention.
• Annex II III sets out permitting
  considerations and requirements.

15
Convention on the Prevention of Marine Pollution
by Dumping of Wastes and Other Matter Protocol

• Protocol, 1976
• Incorporated the precautionary principle, and the
  polluter pays principle, into the terms of the
  Convention.
• Includes a prohibition on the incineration of
  wastes at sea.
• Further, State Parties are prohibited from
  allowing the exportation of wastes for dumping or
  incineration at sea.
• Revises and updates the provisions of the
  Annexes.

16
International Convention on Oil Pollution
Preparedness, Response and Co-operation

• Adopted in 1990.
• Key definitions
• Oil pollution incident an occurrence or series
  of occurrences having the same origin, which
  results or may result in a discharge of oil and
  which poses or may pose a threat to the marine
  environment, or to the coastline or related
  interests of one or more States, and which
  requires emergency action or other immediate
  response.
• Off-shore unit any fixed or floating offshore
  installation or structure engaged in gas or oil
  exploration, exploitation or production
  activities, or loading or unloading of oil.

17
International Convention on Oil Pollution
Preparedness, Response and Co-operation

• Key definitions continued
• Sea ports and oil handling facilities those
  facilities which present a risk of an oil
  pollution incident and includes, inter alia, sea
  ports, oil terminals, pipelines and other oil
  handling facilities.

18
International Convention on Oil Pollution
Preparedness, Response and Co-operation

• State Parties are required to ensure that their
  flag ships have appropriate oil pollution
  emergency plans.
• State Parties must require offshore unit
  operators to have oil pollution emergency plans
  that are adequate and that are in accordance with
  national legislation on the issue. The same is
  required of oil handling facilities and offshore
  sea port operators.
• Flag ships and offshore unit operators are
  required to report an event involving discharge
  or probable discharge to the nearest State Party
  for ships and the coastal State having
  jurisdiction over the offshore unit.

19
International Convention on Oil Pollution
Preparedness, Response and Co-operation

• Maritime inspection vessels (ie. Coast Guard) are
  required to report events or potential events
  that are observed.
• When a State Party receives a report of discharge
  or potential discharge, it is required to
• (a) assess the event to determine whether it is
  an oil pollution incident
• (b) assess the nature, extent and possible
  consequences of the oil pollution incident and
• (c) then, without delay, inform all States whose
  interests are affected or likely to be affected
  by such oil pollution incident, together with
• (i) details of its assessments and any action it
  has taken, or intends to take, to deal with the
  incident, and
• (ii) further information as appropriate

20
International Convention on Oil Pollution
Preparedness, Response and Co-operation

• If the discharge is severe, the State Party must
  inform the IMO, and other states that might be
  affected by the discharge.
• State Parties are required to establish a
  national system for responding to an oil
  discharge event, including, at a minimum

21
International Convention on Oil Pollution
Preparedness, Response and Co-operation

• (a) the designation of
• (i) the competent national authority or
  authorities with responsibility for oil pollution
  preparedness and response
• (ii) the national operational contact point or
  points, which shall be responsible for the
  receipt and transmission of oil pollution reports
  as referred to in article 4 and
• (iii) an authority which is entitled to act on
  behalf of the State to request assistance or to
  decide to render the assistance requested
• (b) a national contingency plan for preparedness
  and response which includes the organizational
  relationship of the various bodies involved,
  whether public or private, taking into account
  guidelines developed by the Organization.

22
International Convention on Oil Pollution
Preparedness, Response and Co-operation

• In conjunction with the shipping industry, State
  Parties are also required to establish
• (a) a minimum level of pre-positioned oil spill
  combating equipment, commensurate with the risk
  involved, and programmes for its use
• (b) a programme of exercises for oil pollution
  response organizations and training of relevant
  personnel
• (c) detailed plans and communication capabilities
  for responding to an oil pollution incident. Such
  capabilities should be continuously available
  and
• (d) a mechanism or arrangement to co-ordinate the
  response to an oil pollution incident with, if
  appropriate, the capabilities to mobilize the
  necessary resources.

23
International Convention on Oil Pollution
Preparedness, Response and Co-operation

• State Parties agree to assist and allow
• (a) the arrival and utilization in and departure
  from its territory of ships, aircraft and other
  modes of transport engaged in responding to an
  oil pollution incident or transporting personnel,
  cargoes, materials and equipment required to deal
  with such an incident and
• (b) the expeditious movement into, through, and
  out of its territory of personnel, cargoes,
  materials and equipment referred to in
  subparagraph (a).

24
International Convention on Oil Pollution
Preparedness, Response and Co-operation

• State Parties agree to further research and
  development in oil pollution preparedness and
  response.
• Annex contains provisions regarding the
  reimbursement of costs of assistance. Only
  between States, does not address or bar civil
  liability.
• Barring a bilateral or multilateral agreement,
  the general principles of cost allocation are
• (i) If the action was taken by one Party at the
  express request of another Party, the requesting
  Party shall reimburse to the assisting Party the
  cost of its action. The requesting Party may
  cancel its request at any time, but in that case
  it shall bear the costs already incurred or
  committed by the assisting Party.
• (ii) If the action was taken by a Party on its
  own initiative, this Party shall bear the costs
  of its action.

25
International Convention on Civil Liability for
Oil Pollution Damage

• Adopted in 1969.
• Key definitions
• Person includes natural and corporate persons,
  as well as the state.
• Pollution damage loss or damage caused outside
  the ship carrying oil by contamination resulting
  from the escape or discharge of oil from the
  ship, wherever such escape or discharge may
  occur, and includes the costs of preventive
  measures and further loss or damage caused by
  preventive measures.

26
International Convention on Civil Liability for
Oil Pollution Damage

• Key definitions continued
• Preventive measures any reasonable measures
  taken by any person after an incident had
  occurred to prevent or minimize pollution
  damage.

27
International Convention on Civil Liability for
Oil Pollution Damage

• Liability is generally imputed to the ship owner,
  except
• Force majeure
• The damage resulted from acts by a third party
• The damage was the result of negligence or other
  wrongful acts by a governmental/related authority
• Where the damage was caused by the person who
  suffered from it
• Warships
• Joint and several liability applies.

28
International Convention on Civil Liability for
Oil Pollution Damage

• Creates liability calculation formulas.
• Creates a fund into which ship owners pay their
  assessed rates of liability the fund then makes
  distributions as appropriate.
• Compulsory insurance requirement.
• Creates a statute of limitations at 3 years from
  the year of damage for claims against the fund.
• Limits the venue of suits against the fund to the
  location of the damage.

29
International Convention on Civil Liability for
Oil Pollution Damage

• Subsequent protocols expanded the definitions of
  ships and damages. These Protocols also exempt
  crew members, ship pilots, those assisting the
  crew or acting as good Samaritans from liability.
  Liability has also been extended to the exclusive
  economic zones of State Parties.

30
International Convention on the Establishment of
an International Fund for Compensation for Oil
Pollution Damage (FUND)

• Adopted in 1971 but replaced by new terms in
  1991.
• Convention and Fund created under it applies
• (a) to pollution damage caused
• (i) in the territory, including the territorial
  sea, of a Contracting State, and
• (ii) in the exclusive economic zone of a
  Contracting State, established in accordance with
  international law, or, if a Contracting State has
  not established such a zone, in an area beyond
  and adjacent to the territorial sea of that State
  determined by that State in accordance with
  international law and extending not more than 200
  nautical miles from the baselines from which the
  breadth of its territorial sea is measured
• (b) to preventive measures, wherever taken, to
  prevent or minimize such damage.

31
FUND

• The Fund does not have liability where the ship
  owner is exonerated from liability or the damage
  was the result of an intentional act by the
  person claiming damages.
• Sets out requirements for liability and payments,
  relying heavily on working in tandem with the
  Liability Convention.
• Overall, FUND is given rights to assert claims
  through subrogation, where the claims can be made
  under terms of Liability Convention, and also
  serves to assist in the implementation of the
  Liability Convention, particularly in regards to
  collection of funds and payments to appropriate
  parties.

32
International Convention on Liability and
Compensation for Damage in Connection with the
Carriage of Hazardous and Noxious Substances by
Sea (HNS), 1996

• Key definitions
• Person includes natural persons or
  corporations, as well as States.
• Hazardous and noxious substances oil carried in
  bulk, noxious liquids carried in bulk, dangerous
  liquid substances, dangerous, hazardous and
  harmful substances, materials and articles in
  packaged form covered by the International
  Maritime Dangerous Goods Code, liquefied gases,
  solid bulk materials possessing chemical hazards,
  as set out in the Conventions Annexes.

33
HNS

• Key definitions continued
• Damage
• (a) loss of life or personal injury on board or
  outside the ship carrying the hazardous and
  noxious substances caused by those substances
• (b) loss of or damage to property outside the
  ship carrying the hazardous and noxious
  substances caused by those substances
• (c) loss or damage by contamination of the
  environment caused by the hazardous and noxious
  substances, provided that compensation for
  impairment of the environment other than loss of
  profit from such impairment shall be limited to
  costs of reasonable measures of reinstatement
  actually undertaken or to be undertaken and
• (d) the costs of preventive measures and further
  loss or damage caused by preventive measures.

34
HNS

• This Convention shall apply exclusively
• (a) to any damage caused in the territory,
  including the territorial sea, of a State Party
• (b) to damage by contamination of the environment
  caused in the exclusive economic zone of a State
  Party, established in accordance with
  international law, or, if a State Party has not
  established such a zone, in an area beyond and
  adjacent to the territorial sea of that State
  determined by that State in accordance with
  international law and extending not more than 200
  nautical miles from the baselines from which the
  breadth of its territorial sea is measured
• (c) to damage, other than damage by contamination
  of the environment, caused outside the territory,
  including the territorial sea, of any State, if
  this damage has been caused by a substance
  carried on board a ship registered in a State
  Party or, in the case of an unregistered ship, on
  board a ship entitled to fly the flag of a State
  Party and
• (d) to preventive measures, wherever taken.

35
HNS

• Imputes liability to the ship owner at the time
  of the accident in connection with the carriage
  of hazardous noxious substances by sea.
• There is no liability for the ship owner when
• The damage is the result of force majeure.
• The damage is caused by a third party.
• The damage is caused by the negligence or other
  fault of a governmental/related entity that is
  charged with maintaining navigational assistance
• The shipper failed to inform the owner of the
  dangerous content of shipment.

36
HNS

• Claims for compensation cannot be brought
  against
• Servants, agents, members of the crew.
• Pilot or non-crew member who performs services
  for the ship.
• The charterer, manager, or operator of the ship.
• Persons performing salvage operations with
  owners consent or at request of a governmental
  authority.
• Any person taking preventative measures.

37
HNS

• Establishes joint and several liability where 2
  ships carrying HNS are involved in an accident.
• Compulsory insurance requirement established
  based on tonnage.
• Provides for the creation of a fund for use in
  the event of an HNS accident.

38
Hong Kong International Convention for the Safe
and Environmentally Sound Recycling of Ships

• Adopted in 2009.
• Addresses the need to regulate the recycling of
  ships, including issues related to converting
  ships to other scrap metal due to concerns over
  the content of ship materials and potential
  exposure of hazardous materials.
• Requires that there be a recycling plan in effect
  for the physical act of recycling a ship.

39
IMO Guidelines on Ship Recycling

• In 2003, the IMO promulgated guidelines for the
  recycling of ships, including provisions on
  future ship design to ensure that materials used
  can be recycled without posing an environmental
  threat in the process.

40
Nairobi International Convention on the Removal
of Wrecks, 2007

• Allows States to remove shipwrecks when they are
  able to establish that they pose a threat to the
  marine environment, among other threats.
• Applies when the shipwrecks at issue are located
  outside of the States territorial waters, and
  not within its jurisdiction as a matter of law.
• Other provisions apportion liability for the
  costs of shipwrecks to ship owners and create a
  reporting requirement for ship wrecks.

41
International Convention on the Control of
Harmful Anti-fouling Systems on Ships

• Applies to the flag ships of State Parties, ships
  operating under authority of a State Party, and
  ships which are under the jurisdiction of a State
  Party.
• Does NOT apply to warships or ships operated by a
  government, unless used for a commercial purpose.
• Requires that State Parties prohibit the use of
  harmful anti-fouling systems (ie. certain forms
  of paint).
• Requires State Parties to ensure that
  anti-fouling systems and their waste are
  collected and disposed of in an environmentally
  sound manner.

42
International Convention on the Control of
Harmful Anti-fouling Systems on Ships

• Allows State Parties to inspect ships in order to
  determine whether they are in compliance with the
  Convention.
• A State Party may detain a ship which it has
  reason to believe is in violation of the
  Convention, or it may bar the ship from entering
  its waters/ports.
• Requires State Parties to enact national
  legislation in order to codify the sanctions set
  out in the Convention.
• The Annex sets out the technical requirements.

43
International Convention on Civil Liability for
Bunker Oil Pollution Damage

• Key definitions
• Bunker oil hydrocarbon mineral oil, including
  lubricating oil, used or intended to be used for
  the operation or propulsion of the ship, and any
  residues of such oil.
• Pollution damage
• (a) loss or damage caused outside the ship by
  contamination resulting from the escape or
  discharge of bunker oil from the ship, wherever
  such escape or discharge may occur, provided that
  compensation for impairment of the environment
  other than loss of profit from such impairment
  shall be limited to costs of reasonable measures
  of reinstatement actually undertaken or to be
  undertaken and
• (b) the costs of preventive measures and further
  loss or damage caused by preventive measures.

44
International Convention on Civil Liability for
Bunker Oil Pollution Damage

• Creates liability for the ship owner as follows
• shall be liable for pollution damage caused by
  any bunker oil on board or originating from the
  ship, provided that, if an incident consists of a
  series of occurrences having the same origin, the
  liability shall attach to the ship owner at the
  time of the first of such occurrences.
• Establishes joint and several liability where
  appropriate.
• Warships or ships used by the government for
  non-commercial purposes.

45
International Convention on Civil Liability for
Bunker Oil Pollution Damage

• Limitations on ship owner liability
• Force majeure
• The damage was the result of third party actions
• The damage was the result of negligence or other
  wrongful conduct by a governmental/related
  authority.
• Where it is established that the person damaged
  actually intended to cause the damage.

46
International Convention on Civil Liability for
Bunker Oil Pollution Damage

• Compulsory insurance is made a requirement.
• Jurisdiction and pollution damage
• 1. Where an incident has caused pollution damage
  in the territory, including the territorial sea,
  or in an area referred to in article 2(a)(ii) of
  one or more States Parties, or preventive
  measures have been taken to prevent or minimise
  pollution damage in such territory, including the
  territorial sea, or in such area, actions for
  compensation against the shipowner, insurer or
  other person providing security for the
  shipowner's liability may be brought only in the
  courts of any such States Parties.
• 2. Reasonable notice of any action taken under
  paragraph 1 shall be given to each defendant.
• 3. Each State Party shall ensure that its courts
  have jurisdiction to entertain actions for
  compensation under this Convention.

47
International Convention for the Control and
Management of Ships' Ballast Water and Sediments

• Adopted in 2004.
• Key definitions
• Ballast Water water with its suspended matter
  taken on board a ship to control trim, list,
  draught, stability or stresses of the ship.
• Ballast Water Management mechanical, physical,
  chemical, and biological processes, either
  singularly or in combination, to remove, render
  harmless, or avoid the uptake or discharge of
  Harmful Aquatic Organisms and Pathogens within
  Ballast Water and Sediments.

48
International Convention for the Control and
Management of Ships' Ballast Water and Sediments

• Key definitions continued
• Harmful Aquatic Organisms and Pathogens
  aquatic organisms or pathogens which, if
  introduced into the sea including estuaries, or
  into fresh water courses, may create hazards to
  the environment, human health, property or
  resources, impair biological diversity or
  interfere with other legitimate uses of such
  areas.

49
International Convention for the Control and
Management of Ships' Ballast Water and Sediments

• Requires State Parties to enact domestic laws
  that codify the terms of the Convention.
• Requires State Parties to ensure that facilities
  designated to receive and clean/repair ballast
  tanks are up to environmental standards and are
  environmentally sound.
• Allows State Parties to inspect ships within
  their jurisdiction in order to verify their
  compliance with the terms of the Convention.

50
International Convention for the Control and
Management of Ships' Ballast Water and Sediments

• Where a threat is detected, the State Party with
  jurisdiction over the ship is required to
  prohibit the ship from discharging ballast water
  until the issue is fixed.
• Annex - sets out specific regulations for the
  control and management of ships ballast water
  and sediments.

51
Section II Case Examples and Discussion
52
Torrey Canyon - 1967

• In 1967, the Torrey Canyon, an oil tanker, ran
  aground on the English coast near Cornwall.

53
Torrey Canyon - 1967

• The Torrey Canyon was chartered by BP but it was
  owned by a subsidiary of a California entity. It
  was registered in Liberia.
• The accident occurred while crew members, some of
  whom were not adequately qualified, tried to
  decide on the correct method of steering the
  Torrey Canyon through the area.

54
Torrey Canyon - 1967

• In response to the oil spilling from the Torrey
  Canyon, the British government first deployed
  detergents to clean the area. Later, it was
  decided to set fire to the oil, first directly
  and then through the use of napalm due to weather
  conditions.
• Eventually, the Torrey Canyon sank, although its
  impact continued to be felt.
• The oil spill from the Torrey Canyon spread to
  the beaches of Normandy.

55
Torrey Canyon - 1967

• Marine birds and wildlife were severely impacted,
  and many fatalities occurred as a result of the
  oil spill.
• The economy of the area, dependent on fishing and
  tourism, suffered as well.
• Both the British and French governments sought
  payments from the Torrey Canyons owner.
  Ultimately, this resulted in the largest
  marine-based settlement in history.
• The Civil Liability Convention and the
  International Convention for the Prevention of
  Pollution from Ships were outgrowths of the
  Torrey Canyon oil spill.

56
The Erika - 1999
57
The Erika - 1999

• In 1999, the Erika, and nearly 10,000 tonnes of
  oil, sank off the coast of Brittany during a
  storm at sea.
• As might be imagined, the oil spill caused the
  deaths of marine life, damaged the environment,
  and caused damage to the local economy.

58
The Erika - 1999

• Following the Erika, the EU adopted 3 sets of
  packages of legislation related to maritime
  transportation and safety.

59
The Erika - 1999

• Erika I
• Phasing out of single hulled tankers in EU flag
  state tankers and tankers entering the
  jurisdiction of an EU member.
• Creating the Committee on Safe Seas and the
  Prevention of Pollution from Ships.
• Creating the Community vessel traffic monitoring
  and information system.
• Creating the European Maritime Safety Agency

60
The Erika - 1999

• Erika II
• Common rules and standards for ship inspection
  and survey organizations.
• Enforcing of international standards at community
  ports, and sailing in community waters.
• Creating a harmonised safety regime for fishing
  vessels.
• Revising safety standards and rules for passenger
  ships.
• Creating new standards for port reception
  facilities for ship-generated waste.
• Establishing a minimum of training for seafarers.

61
The Erika - 1999

• Erika III
• Ship inspection standards.
• Port state control.
• Traffic monitoring.
• Fundamental principles of accident investigation.
• Ship owners insurance requirements.
• Liability for passenger ship accidents.

62
The Prestige - 2002
63
The Prestige - 2002

• The Prestige was a Liberian owned, Greek operated
  tanker. It was carrying nearly 80,000 tonnes of
  oil during its 2002 voyage when a tank holding
  some of the oil burst during a storm off the
  coast of Spain. It was a single-hulled tanker.
• After the tank burst, the captain attempted to
  put into port in Spain and then in France, but
  was not allowed into either. The Prestige then
  attempted to put into port in Portugal, but the
  Portuguese Navy stopped this.

64
The Prestige - 2002

• Eventually the ship sank near the coast of
  Galicia. Both at the time of sinking and
  afterward, oil leaked from the Prestige.
• The area in which thePrestigereleased oil
  contained a coral reef, which suffered damage
  along with the general environment and marine
  life.
• Additionally, fishing in the area was temporarily
  suspended due to pollution.
• The cleanup of the area was largely conducted by
  volunteers

65
The Prestige - 2002

• Ultimately, the Spanish government pumped the
  remaining oil from the sunken Prestige several
  years after the sinking, making the cleanup costs
  several billion dollars.
• In the aftermath of the Prestiges sinking, the
  French and Spanish coastlines are off limits to
  single-hulled tankers.

66
The Exxon Valdez - 1989
67
The Exxon Valdez - 1989

• In 1989, as a result of operator error, the Exxon
  Valdez spilled between 10 and 30 million gallons
  of crude oil into Prince William Sound in Alaska.
  
• Initial cleanup methods used included
  dispersants, explosives and fires, however the
  inclement weather in the area made these efforts
  only mildly successful.
• The cleanup efforts were spearheaded by Exxon and
  local residents at the beginning.

68
The Exxon Valdez - 1989

• The oil spill, and some of the cleanup efforts,
  resulted in severe environmental damage, damage
  to marine life, and economic damage to the
  surrounding areas.
• There was protracted litigation regarding Exxons
  culpability and financial responsibility, which
  has reached the US Supreme Court regarding
  excessive punitive damage awards.

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The Exxon Valdez - 1989

• In the aftermath of the Exxon Valdez accident,
  the US Congress enacted the Oil Pollution Act of
  1990
• Established the parameters for ship owner
  liability in the event of an oil spill or spill
  from an oil facility.
• Included in damages are damages to natural
  resources, removal costs, damage to real and
  personal property, loss of subsistence use of
  resources, loss of revenues as the result of
  damage to real or personal property, and loss of
  profits and earning capacity.
• Allows for third party liability.

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The Exxon Valdez - 1989

• Oil Pollution Act of 1990 continued
• Defines a facility as any structure, group of
  structures, equipment, or device (other than a
  vessel) which is used for one or more of the
  following purposes exploring for, drilling for,
  producing, storing, handling, transferring,
  processing, or transporting oil. This term
  includes any motor vehicle, rolling stock, or
  pipeline used for one or more of these purposes.

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The Exxon Valdez - 1989

• Oil Pollution Act of 1990
• Provides protections for the Prince William Sound
  area.

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Deepwater Horizon
73
Deepwater Horizon
74
Deepwater Horizon

• Unlike the other oil spills discusses, the
  Deepwater Horizon is an oil rig and not a tanker.
  It was leased by BP from Transocean, with a place
  of registration in the Marshall Islands. At the
  time of the explosion, a majority of those on the
  rig were employees of Transocean.
• The rigs technology allowed for both deepwater
  exploration and oil production.
• In early 2010, the Deepwater Horizon was placed
  over 40 miles off the coast of Louisiana in order
  to explore potential oil fields.

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Deepwater Horizon

• On April 20, 2010, an explosion resulted in the
  destruction of the oil rig, at the cost of 11
  lives. The oil spill from the Deepwater Horizon
  continues to the present day.
• In the aftermath of the explosion, ships tried
  for days to put out the resulting fire with
  little success and, ultimately, the Deepwater
  Horizon sank.
• There are allegations that the US regulatory
  entity charged with monitoring the safety of oil
  rigs and ensuring that they have proper
  prevention plans in place did not act in a
  thorough manner with regards to inspecting the
  Deepwater Horizon.

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Deepwater Horizon

• A wide variety of methods have been employed to
  stop the oil spilling into the Gulf of Mexico,
  however to date none have been overly successful.
  It is thought that the spill will not be
  contained for potentially several months.
• The extent to damage to the environment of the
  Gulf, marine life, and the economic livelihoods
  of those in surrounding states primarily
  Louisiana, Mississippi and Florida is unknown.
• However, fishing and tourism are already in
  decline in many of these areas, and marine life
  is visibly effected.

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Deepwater Horizon

• As the Deepwater Horizon spill is located in the
  Gulf of Mexico, there is a real possibility that
  the area of the spill could be in the path of a
  hurricane.
• Additionally, some scientists have estimated a
  worst case scenario in which the currents from
  the Gulf bring the spilled oil up the Eastern US
  coastline.

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Deepwater Horizon

• Under the Oil Pollution Act of 1990, BPs damages
  are capped at 75 billion, provided that there
  was no gross negligence.
• BP has said that it will pay for the cleanup
  regardless of the cap.
• There are some in the US Congress seeking to pass
  legislation that would require the full cleanup
  costs to be paid by BP.

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Deepwater Horizon
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III. Conculsion