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こちら Japan flag を選択して頂くと、言語設定が日本語に切り替わります。設定変更後は以下の機能が利用可能です。

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By selecting Japan flag, you have now set your language to Japanese. This has several benefits, including:

  • Providing quick access to our Japan page, which collates all our Japanese content in one place.

  • Ensures that content is presented to you in Japanese first, if we have an article, publication or webpage available in Japanese. Look out for the Japan flag indicators across the site.

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点击选择 China flag,可将网站语言设置为中文。这能帮助您:

  • 快速访问我们的中国区页面,该页面将有网站内容的中文汇总。

  • 在我们的文章、出版物或者网页有中文版本提供的情况下,确保首先向您展示的是中文版本的内容。您可关注站点上的 China flag 按键。

关闭 点击任意其他国旗,可切换您的语言偏好。

By selecting China flag, you have now set your language to Chinese. This has several benefits, including:

  • Providing quick access to our China page, which collates all our Chinese content in one place.

  • Ensures that content is presented to you in Chinese first, if we have an article, publication or webpage available in Chinese. Look out for the China flag indicators across the site.

Close If you’d like to change your language preferences again, simply click on one of the other flags.

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Find out more about NorthStandard here or continue on this site to access information and resources.

US Oil Pollution California - Increased Criminal Penalties for Oil Spill Related Offences

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Background

Members are referred to Circular 2020/031 advising of the new fines that will be applicable in California from 1st January 2021 for ship sourced oil pollution damage in Californian State waters.

Oil Pollution Damage cover

Members are informed that the International Group (IG) Clubs have considered the potential impact on cover for pollution risks of this new legislation. Whilst having in mind the potential for substantial fines to be issued against a polluter, the IG Clubs did not believe that it would be appropriate to seek to amend the existing limit of cover to respond to this significant but nonetheless isolated new piece of legislation. Any such amendment would in any event be impossible to achieve within the current confines of the global reinsurance markets if sufficient cover were to be required to respond in full to the maximum level of fines that might potentially be levied by the Californian courts for accidental pollution. Members are however reminded that there is already cover of US$1 billion per ship per incident for oil pollution damage, which covers response costs and third party claims as well as fines where they fall under Club Rules, and all limits of liability under OPA `90 regardless of ship type remain capable of cover well within this capacity.

The California Courts have substantial discretion to consider relevant aggravating and mitigating circumstances relating to a pollution incident when determining the amount of fines. These considerations include, among others, (1) the degree of culpability including the events leading up to the incident (2) prompt and accurate reporting (3) effective response and clean-up efforts (4) prompt and fair compensation to damaged parties (5) remedial efforts towards natural resources, and finally, (6) the spilling party’s financial ability to pay. Further to the latter, the legal advice received by the IG is that a Court cannot impose a punishment, even if authorized by statute, that is so excessive as to be beyond the defendant’s ability to pay.

The IG is also continuing to take active steps in conjunction with coalition partners to explore the possibility of addressing industry’s concerns arising from this new law, although it remains clear that any such steps will not affect the entry into force date of the new law in California.

All clubs in the International Group have issued a similar circular.

SACHIN SHANBHAG
DIRECTOR (CLAIMS)
The North of England P&I Association Limited / North of England P&I DAC

CIRCULAR REF: 2020/038



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