INTERNATIONAL CONVENTION ON THE ESTABLISHMENT OF AN INTERNATIONAL FUND FOR COMPENSATION FOR OIL
POLLUTION DAMAGE 1971 AS AMENDED (RATIFICATION AND ENFORCEMENT) ACT, 2006
EXPLANATORY MEMORANDUM
This Act provides for an Act to enable effect to be given in the Federal Republic of Nigeria to the establishment of an International Fund for Compensation for Oil Pollution Damage 1971, as amended.
INTERNATIONAL CONVENTION ON THE ESTABLISHMENT OF AN INTERNATIONAL FUND FOR COMPENSATION FOR OIL
POLLUTION DAMAGE 1971 AS AMENDED (RATIFICATION AND ENFORCEMENT) ACT, 2006
ARANGEMENT OF SECTIONS
Section:
1. Enforcement of an International Convention on the establishment of an International Fund for Compensation for Oil Pollution Damage.
3. Citation.
Schedule
INTERNATIONAL CONVENTION ON THE ESTABLISHMENT OF AN INTERNATIONAL FUND FOR COMPENSATION FOR OIL POLLUTION DAMAGE 1971 AS AMENDED (RATIFICATION AND ENFORCEMENT)
ACT, 2006
ABILL FOR
AN ACT TO ENABLE EFFECT TO BE GIVEN IN THE FEDERAL REPUBLIC OF NIGERIA TO THE INTERNATIONAL CONVENTION ON THE ESTABLISHMENT OF AN INTERNATIONAL FUND FOR COMPENSATION FOR Oil POllUTION DAMAGE 1971 AS AMENDED; AND FOR RELATED MATTERS.
Commencement
WHEREAS a Convention entitled "the International Convention on tile Establishment of an International Fund for Compensation for Oil Pollution Damage 1971 as thereafter amended in 1976, 1992 and 2000 (in this Act referred to as "the Fund Convention") has been duly adopted by divers countries;
AND WHEREAS the Federal Republic of Nigeria has acceded and ratified the Fund Convention;
AND WHEREAS it is necessary and expedient t() make legislative provisions for the enforcement ii, the Federal Republic of Nigeria of the said Fund Convention;
NOW THEREFORE IT IS:
ENACTED by the National Assembly of the Federal Republic of Nigeria'
1. As from the commencement of this Act, the provisions of the International Convention on the Establishment of an lnternational Fund for Compensation for Oil Pollution Damage 1971 as amended set out in the Schedule to this Act, shall subject as thereunder provided have the force of law in the Federal Republic of Nigeria and shall be given full recognition and effect and be applied by all authorities and persons exercising legislative, executive or judicial powers in Nigeria.
Enforcement of International Convention on tile Establishment of an International Fund for Compensation for Oil Pollution Damage: Schedule
2. This Act may be cited as the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage 1971 as amended (Ratification and Enforcement) Act, 2006.
Citation
SClIEDULE Sectiun I
The States Parties to the present Convention,
BEINGPARTIESto the International Convenuon on Civil Liability for Oil Pollution Damage, adopted at Brussels on 29 November 1969,
CONSCIOUSof tile dangers of pollution posed by the world-wide maritime carriage of oil in bulk,
CONVINCEDof the need to ensure tnat adequate compensation is available to persons who suffer damage caused by pollution resulting from the escape or discharge of oil from ships,
CONSIDEF\INGthat the International Convention of 29 November 1969, on Civil liability for Oil Pollution Damage, by providing a regime for compensation for pollution damage in Contracting States and for the costs of measures, wherever taken, to prevent or minimize such damage, represents a considerable progress towards the achievement of this aim,
CONSIDERINGHOWEVERthat this regime does not afford full compensation for victims of oil pollution damage in all cases while it imposes an additional financial burden on ship-owners,
CONSIDERINGFURTHERthat the economic consequences of oil pollution damage resulting from the escape or discharge of oil carried in bulk at sea by ships should not exclusively be borne by the shipping industry but should in part be borne by the oil cargo interests,
CONVINCEDof the need to elaborate a compensation and indemnification system supplementary to the International Convention on Civil Liability for Oil Pollution Damage with a view to ensuring that full compensation will be available to victims of oil pollution incidents and that the Ship-owners are at the same time given relief in respect of the additional financial burdens imposed on them by the said Convention,
TAKINGNOTEof the Resolution on the Establishment of an International Compensation Fund for Oil Pollution Damage which was adopted on 29 November 1969 by the International Legal Conference on Marine Pollution Damage,
HAVEAGREEDas (allows:
ARTICLE 1 - (;ENERAL I'IWVISIONS
For the purposes of this Convention:
1. "1992 Liability Convention" means the International Convention on Civil Liability for Oil Pollution Damage, 1992
Ibis. "1971 Fund Convention" means the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage, 1971. For States Parties to the Protocol of 1976 to that Convention, the term shall be deemed to include the 1971 Fund Convention as amended by that Protocol
2. "Ship", "Person", "Owner", "Oil", "Pollution Damage", "Preventive Measures", "Incident", and "Organization" have the same meaning as in Article I of the 1992 Liability Convention.
3. "Contributing 011" means crude oil and fuel oil as defined in sub-paragraphs (a) and (b) below:
(a) "Crude Oil" means any liquid hydrocarbon mixture occurring naturally in tile earth
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whether or not treated to render it suitable for transportation. It also includes crude oils from which certain distillate fractions have been removed (sometimes referred to as "topped crudes") or to which certain distillate fractions have been added (sometimes referred to as "spiked" or "reconstituted" crudes).
(b) "Fuel Oil" means heavy distillates or residues from crude oil or blends of such materials intended for use as a fuel for the production of heat or power of a quality equivalent to the "American Society for Testing and Materials' Specification for Number Four Fuel Oil (Designation 0 396-69)", or heavier
4. "Unit of account" has the same meaning as in Article V, paragraph 9, of the 1992 Liability Convention
5. "Ship's tcnnage" has the same meaning as in Article V, paragraph 10, of the 1992 Liability Convention
6. "Ton", in relation to oil, means a metric ton.
7. "Guarantor" means any person providing insurance or other financial security to cover an owner's liability in pursuance of Article VII, paragraph 1, of the 1992 Liability Convention.
8. "Terminal installation" means any site for the storage of oil in bulk which is capable of receiving oil from waterborne transportation, including any facility situated off-shore and linked to such site
9. Where an incident consists of a series of occurrences, it shall be treated as having occurred on the date of the first such occurrence.
AIUICLE 2
1. An International Fund for compensation for pollution damage, to be named "The International Oil Pollution Compensation Fund 1992" and hereinafter referred to as "the Fund", is hereby established with the following aims
(a) to provide compensation for pollution damage to the extent that the protection afforded by the 1992 Liability Convention is inadequate;
(b) to give effect to the related purposes set out in this Convention.
2. Tile Fund shall in each Contracting Slale be recognized as a legat person capable under the laws of that State of assuming rights and obligations and of being a party in legal proceedings before the courts of that State. Each Contracting State shall recognize the Director of the Fund (hereinafter referred to as "The Director") as the tegal representative of the Fund
ARTICLE 3
This Convention shall apply exclusively:
(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 Item the baselines Item which the breadth of its
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territorial sea is measured;
(b) to preventive measures, wherever taken, to prevent or minimize such damage.
ARTICLE.t - COM I'ENSATION
1. For the purpose of fulfilling its function under Article 2, paragraph I(a), the Fund shall pay compensation to any person suffering pollution damage if such person has been unable to obtain full and adequate compensation for the damage under the terms of the 1992 Liability Convention,
(a) because no liability for the damage arises under the 1992 Liability Convention;
(b) because the owner liable for the damage under the 1992 liability Convention is financially incapable of meeting his obligations in full and any financial security that may be provided under Article VII of that Convention does not cover or is insufficient to satisfy tile claims for compensation for the damage; an owner being treated as financially incapable of meeting his obligations and a financial security being treated as insufficient If the person suffering the damage has been unable to obtain full satisfaction of the amount of compensation due under the 1992 Liability Convention after having taken all reasonable steps to pursue the legal remedies available to him;
(c) because the damage exceeds the owner's liability under the 1992 Liability Convention as limited pursuant to Article V. paragraph 1, of that Convention or under the terms of any other international Convention in force or open for signature, ratification or accession at the date of this Convention.
Expenses reasonably incurred or sacrif.ccs reasonably made by the owner voluntarily to prevent or minimize pollution damage shall be treated as pollution damage for the purposes of this Article.
2. The Fund shall incur no obligation under the preceding paragraph if:
(a) it proves that the pollution damage resulted from an act of war, hostilities, civil war or insurrection or was caused by oil which has escaped or been discharged from a warship or other ship owned or operated by a State and used, at the time of the incident, only on Government non-commercial service; or
(b) the claimant cannot prove that the damage resulted from an Incident involving one or more ships.
3. If the Fund proves that the pollution damage resulted wholly or partially either from an act or omission done with the intent to cause damage by the person who suffered the damage or from the negligence of that person, the Fund may be exonerated wholly or partially from its obligation to pay compensation to such person The Fund shall in any event be exonerated to the extent that the shipowner may have been exonerated under Article III, paragraph 3, of the 1992 Liability Convention However, there shall be no such exoneration of the Fund with regard to preventive measures.
4 (a) Except as otherwise provided in sub-paragraphs (b) and (c) of this paragraph, the aggregate amount of compensation payable by the Fund under this Article shall in respect of anyone incident be limited, so that the total sum of that amount and tile amount of compensation actually paid under the 1992 Liability Convention for pollution damage within the scope of application of this Convention as defined in AI ticle 3 shall not exceed 135 million units of account'.
(b) Except as otherwise provided in sub-paragraph (c), the aggregate amount of
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compensation payable by tile Fund under this Article for pollution damage resulting from a natural phenomenon of an exceptional, Inevitable and irresistible character shall not exceed 135 million units of account 5.
(c) The maximum amount of compensation referred to in sub-paraqraphs (a) and (b) shall be 200 million Units of account with respect to any incident occurring during any period when there are three Parties to this Convention in respect of which the combined relevant quantity of contributing oil received by persons in the territories of such Parties, during the preceding calendar year, equalled or exceeded 600 million tons.
(d) Interest accrued on a fund constituted in accordance with Article V paragraph 3, of the 1992 Liability Convenlion, if any, shall not be taken Into account for the computation of the maximum compensation payable by the Fund under this Article.
(e) The amounts mentioned in this Article shall be converted into national currency on the basis of the value of that currency by reference to the Special Drawing Right on the date of the decision of the Assembly of the Fund as to the first date of payment of compensation.
5. Where the amount of established claims against the Fund exceeds the aggregate amount of compensation payable under paragraph 4, the amount available shall be distributed in such a manner that tile proportion between any established claim and the amount of compensation actually recovered by the claimant under this Convention shall be the same for all claimants
6. Tile Assembly of the Fund may decide that, in exceptional cases, compensation ill accordance with trus Convention can be paid even if the owner of tile ship has not constituted