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What is a ship? The Policy of the International Fund for Compensation for Oil Pollution Damage: the effect of the Greek Supreme Court judgment in the Slops case

Remarks to the Areios Pagos (Greek Supreme Court-Full Session), case number: 23/2006 (the “Slops” case)

  • Case Note
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Aegean Review of the Law of the Sea and Maritime Law

Abstract

The international compensation regime for oil pollution damage established by the CLC 1992 and the 1992 Fund Convention covers damages caused by discharge of oil from a ship. The definition of a ship under the Conventions has been interpreted by the 1992 Fund as to include floating storage units (FSUs) and floating production storage and offloading units (FPSOs) only when they carry oil as cargo on a voyage to or from a port or a terminal, outside the oil field in which they normally operate. Accordingly, the 1992 Fund rejected claims arising from Slops incident, a spill from a waste oil reception facility, formerly a tanker, which remained permanently anchored with its engine being deactivated. However, the Greek Supreme Court in its decision from June 2006 held that Slops falls within the definition of a ‘ship’ under 1992 CLC/Fund Convention. The judgment raises important issues for the functioning of the international compensation system.

Résumé

Le régime international d’indemnisation pour les dommages dus à la pollution par les hydrocarbures établi par la Convention de 1992 sur la responsabilité civile (1992 CRC) et la Convention sur le FIPOL de 1992 s'applique aux dommages dus à la pollution par les hydrocarbures résultant de déversements d'hydrocarbures persistants provenant de navires. La définition du terme ‘navire’ a été interprétée par le FIPOL 1992 comme portante sur les unités flottantes de stockage (FSU) et les unités flottantes de production, stockage et de déchargement (FPSO) uniquement lors qu’ils transportent des hydrocarbures en tant que cargaison à l’occasion d’un voyage à destination ou en provenance d’un port ou d’un terminal situé en dehors du gisement pétrolier dans lequel ils sont normalement exploités. Par conséquent, le FIPOL 1992 a rejeté les demandes d'indemnisation dus aux Slops incident, uninstallation de réception de déchets mazoutés immatriculée avec sa moteur mis hors service et officiellement plombé. Cepndant, la Cour suprême grecque a rendu a son jugement en juin 2006 que Slops devrait être considéré comme un 'navire' aux termes des Conventions de 1992. Ce judgement est à l’origine de problèmes difficiles pour le fonctionnement du régime international d’indemnisation.

Zusammenfassung

Das Kompensationsregime für Ölverschmutzungsschaden, eingeführt durch das 1992 Haftungsübereinkommen und das 1992 Fondsübereinkommen, deckt Schäden, die durch Ölauslauf aus einem Schiff verursacht sind. Der Begriff „Schiff“ unter den Konventionen laut Interpretation des 1992 Fonds umfasst FSUs und FPSOs nur wenn sie Öl als Bulkladung befördern während einer Fahrt zu oder von einem Hafen oder Anlegebrücke, außer dem Ölfeld in dem sie normalerweise funktionieren. Dementsprechend lehnte der 1992 Fonds Ansprüche ab, die aus Slops Ereignis – ein Ölspill aus einer Altölentsorgungsanlage, früher ein Tankschiff, der ständig vor Anker lag mit dem Motor deaktiviert – stammten. Der Griechische Oberste Gerichtshof stellte allerdings in seiner Entscheidung von Juni 2006 fest, dass Slops unter den Begriff „Schiff“ nach 1992 CLC/Fondsübereinkommen fällt. Diese Entscheidung bringt wichtige Fragen auf für das Funktionieren des Entschädigungssystems.

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Notes

  1. International Convention on Civil Liability for Oil Pollution Damage (1992 CLC), adopted on 27 November 1992, came into force on 30 May 1996.

  2. International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage (1992 Fund Convention), adopted on 27 November 1992, came into force on 30 May 1996.

  3. Applicability of the 1992 Conventions to offshore craft, note by the Director, 31 March 1999, 92FUND/WGR.2/2.

  4. 1992 CLC, art. III. 1, art. V. 1.

  5. 1992 CLC, art. VII. 1, art. VIII. 8.

  6. 1992 Fund Convention, art. IV. 1.

  7. Case number: 23/2006.

  8. Applicability of the 1992 Civil Liability Convention and the 1992 Fund Convention to floating storage units (FSUs) and floating production storage and offloading units (FPSOs), note by the UK delegation, 25 September 1998, 92FUND/A.3/18.

  9. Applicability…, op.cit. n. 4.

  10. Report of the second intersessional Working Group, note by the Director, 26 July 1999, 92FUND/A.4/21.

  11. The Preamble of 1992 CLC.

  12. Consideration of the definition of ‘ship’, note by the Director, 30 September 2009, IOPC/OCT09/4/3.

  13. 1992 CLC, art. VII. 1.

  14. Consideration…, op.cit.

  15. Annual Report 2008, Report on the activities of the International Oil Pollution Compensation Funds in 2008, p 92, http://www.iopcfund.org.

  16. Consideration…, op.cit.

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Correspondence to Zuzanna Peplowska.

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Z. Peplowska is an assistant professor and Ph.D. candidate at Nicolaus Copernicus University, Poland. She wishes to thank the Aegean Institute of the Law of the Sea for the scholarship which enabled her to participate in the 2009 Summer Sessions Courses on Maritime Law on Rhodes.

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Peplowska, Z. What is a ship? The Policy of the International Fund for Compensation for Oil Pollution Damage: the effect of the Greek Supreme Court judgment in the Slops case. Aegean Rev Law Sea 1, 157–164 (2010). https://doi.org/10.1007/s12180-009-0008-0

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