This paper addresses the liability and financial responsibility for oil spills under the Oil Pollution Act 1990 and related statutes comments on the impact of the May 12th proposed legislative package in relation to the smaller US operators.
This paper proposes that OPA 90's current limits for ships are realistic, adequate, allow for necessary increases, and incorporate well-tested, proactive spill response mechanisms. The removal of the shipowner's right of limitation would cut across the 'polluter pays' principle, the bedrock of OPA 90, which preserves a balance between shipowner and cargo owner/receiver liability. A shipowner must be able to insure its liabilities otherwise he cannot trade and revising any part of this equation could prejudice the continuance of oil imports to the United States.
This paper emphasises that differences between vessels and offshore facilities under OPA are necessary and that unlimited or unreasonable liability requirements for vessels under OPA should be opposed.
This paper provides a useful review of OPA 90 and argues that the offshore drilling industry warrants a different liability regime from that applicable to ship operators. It also provides comment on limitation and insurability.
This paper reviews the role of the Oil Spill Liability Trust Fund and the National Pollution Funds Center. The liability limits and financial responsibility of the proposed May 12th legislative package are reviewed. The arrangements put in place by BP to meet the requirements of the OPA claims process are also reviewed.
Gas carrier ships are not required to carry Blue Cards in compliance with the 1992 International Convention on Civil Liability for Oil Pollution Damage (CLC). International Group clubs have discontinued issuing Blue Cards for gas carriers, both LNG & LPG, with immediate effect. Exceptionally, some older LPG vessels which were constructed or adapted to carry persistent oil in bulk as cargo remain entitled to obtain Blue Cards.
Club cover for passengers and seamen is limited to $3,000 million, with a sub-limit on passenger claims of $2,000 million. Decision to buy collective overspill reinsurance protection on behalf of each club in the Group for all categories of claim up to $1,000 million in excess of the limit of the Group's reinsurance programme of $2,050 million. Club retention raised to $7 million. No separate overspill protection purchased by the Club for 2007. Oil pollution claims remain subject to a special limit under Rule 5B(ii) of $1,000 million for owned ships and a combined single limit of $350 million for chartered entries. War Risks P&I and US voyage surcharge premiums reported separately in Club Circulars 3/07 & 4/07
