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 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.
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.
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.
China's first comprehensive system of marine pollution regulations take effect from 1st March 2010. The Maritime Safety Administration (MSA) is the enforcing agency for the Regulations supervising and administering prevention and control of marine pollution by ship operations. Before entering Chinese ports, ships carrying polluting hazardous cargo and all other ships over 10,000 gross tons must pre-contract with approved pollution response companies. Compulsory insurance is required to meet Chinese Maritime Code or 1992 CLC and Bunkers Convention where applicable.
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
