Oil Pollution

In most jurisdictions, strict liability for the consequences of an oil pollution incident (subject to limited exceptions) is imposed on the owners of the vessel which has spilled the oil under the terms of the Civil Liability Convention [C.L.C.] The International Oil Pollution Compensation Fund Convention [The Fund Convention] provides a further tranche of compensation payable by cargo interests through government levies. Under the terms of the Conventions the ship owner's liability is normally limited to a specific amount, depending on the size of the vessel. With effect from 3rd March 2005 a new Protocol to the Fund Convention came into force, increasing the compensation available for oil pollution claims. At the same time the International Group Clubs put in place a mechanism to increase the minimum limit of ship owners' liability under CLC, the Small Tanker Oil Pollution Indemnification Agreement [STOPIA]. Subsequently, and in order to provide a mechanism for sharing the financial obligations imposed by the the third tier of compensation introduced by the Protocol referred to above between the oil and shuipping industries, the Tanker Oil Pollution Indemnification Agreement [TOPIA] was introduced, and the STOPIA agreement up-dated. More detailed information on the pollution legislation prevailing in particular jurisdictions can be found in the following link: www.admiraltylawguide.com/interconv.html.

Under the International Convention for the Prevention of Pollution from Ships [MARPOL] - which applies in most maritime nations, all vessels over 400 gross tons and all tankers over 150 gross tons must have on board a shipboard oil pollution emergency plan – [SOPEP] - as approved by the vessel’s flag state administration.

In the United States, under OPA 1990, all tankers must have on board a vessel response plan [VRP], approved by the USCG, whilst non-tankers only require a MARPOL SOPEP, mentioned above. However, it must be remembered that some U.S. states have more stringent pollution planning requirements for non-tankers and a Federal non-tank vessel pollution planning requirement is expected in the near future.

Both the MARPOL SOPEP and the OPA VRP are similar in content and both forms of plan must contain: 

However, there is a basic difference in outlook between the USA and most of the rest of the world as to how spill response should be organised.

In most countries throughout the world, it is recognised that it is impractical for the vessel to respond to a spill emanating from it (except in the case of very minor spills). Governmental/local authorities in the area in which the spill has occurred normally assume control for the spill response and then seek to recover their costs from the vessel afterwards. This leaves the vessel only to attempt to stop or minimise such discharge. However, in the U.S.A., although a large number of both federal and state agencies will immediately become involved in the event of a spill, the vessel remains responsible for the initiation and the control of the spill response measures.

Accordingly, whilst the vessel will have a plan for responding to the oil pollution incident with a view to ensuring that the spill is cleaned up as quickly as possible, it should also have a plan for dealing with the totality of the incident.

It is not unusual for a vessel to be wrongly identified by the authorities as being responsible for a pollution. To prove that this is not the case it is important to ensure that proper entries are made in deck and engine logs and the vessels oil record book including: 

• a record of all procedures and personnel involved in the transfer of pollutants within the vessel, including the use of anti pollution procedures and equipment such as scupper plugs and drip trays when required;
• the results of inspection of equipment used in cargo handling and bunkering operations;
• bunker ullages before and after bunkering operations;
• details of any pollution observed from other vessels in the vicinity, including photographs and video where possible;
• failure to make correct and full entries and the vessel’s Oil Record Book can result in a vessel being detained and fined.

The Club has provided all Members with a complimentary copy of “A Guide for Correct Entries in the Oil Record Book” published by the International Association of Independent Tanker Owners [INTERTANKO] in May 2004. Further copies may be obtained from London@intertanko.com.

In the event of a spill the Club and its local correspondent should be contacted immediately.

Given the high potential costs associated with even the smallest of spills, a lawyer and surveyor will normally be instructed to attend to ascertain the circumstances of the incident, to establish the extent of the spill, to monitor the containment and clean-up efforts and to investigate any third party claims arising as a result of the spill.

In the event of a serious spill, the Club will often request the assistance of the International Tanker Owners Pollution Federation [ITOPF] whose experts are able to advise local authorities on the best methods of containment and clean-up and to ensure that any unnecessary expenditure is avoided. All the Club’s Members are also members of ITOPF and the services of their experts can be provided on a “costs only” basis. Further information about oil pollution legislation and claims generally can be found on the IOPC Fund and ITOPF websites at www.iopcfund.org and www.itopf.com.

Given that it may take some time for independent experts to travel to the site, particularly in remote areas, it is important that a report is produced by the master as quickly as possible describing the circumstances and severity of the incident.

In addition, notes to form the basis of factual reports should be prepared by the Master, duty officers, helmsman and any other material witnesses as soon as possible after the incident and before memories begin to fade.[For more on statements see the section on Documentary Evidence]

Take care to ensure that the following information is recorded in log entries and notes made, in addition to a factual account of the incident itself: 

• the exact date, time and location of the incident;
• details of the weather and tidal conditions;
• details of those on the bridge/in the engine-room/at mooring or anchor stations prior to/at the time of the incident;
• the identity of any pilots or tugs assisting the vessel at the time of the incident;
• the identity of any witnesses ashore or on other vessels;
• details of any manoeuvres which took place leading up to the incident;
• details of any communication between the vessel/pilot/tugs leading up to the incident;
• details of the vessel’s draughts;
• details of the vessel’s condition immediately following the incident, with particular regard to the condition of cargo on board and leakage of any pollutant;
• details of the type and quantity of pollutant spilled;
• details of the area and property, if any, affected by the spill;
• actions taken to contain and clean up the spill;
• actions taken to advise the authorities about the spill;
• the identity and location of any other vessels in the area.  

The following additional evidence should be collected and retained on board the vessel in order to facilitate the handling of the claim:

• the original working chart (from which nothing should be erased);
• deck and engine room movement books;
• rough and fair deck and engine-room log books;
• any navigational equipment logs;
• course recorder print-out;
• telegraph and engine data logger print-out;
• echo sounder print-out;
• photographs/video recordings of the spill (and the damage, or lack of damage to the vessel);
• any reports produced by pilots, tugs or independent witnesses;
• particularly when there is any doubt as to whether the pollution emanated from the vessel, samples should be taken from the oil spill and from the vessel’s cargo, bunkers, bilges, stern gland etc. for subsequent analysis to ascertain the origin of the spill.