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ANNEX
Background to the agreements to be implemented by the proposed Bill
1992 Protocols
The Civil Liability Convention provides compensation for victims of oil pollution, placing the obligation for payment upon shipowners. Shipowners' liability is limited in order that they may insure against this liability. The Fund Convention provides additional compensation to victims where an accident results in pollution damage exceeding the compensation available under the Civil Liability Convention. Contributions to the Fund are paid by oil importers. The two Conventions together therefore share the burden of compensation between shipowners and cargo interests.
It was recognized early on that the financial limits set under the original regime, and in some respects its scope, were insufficient. Accordingly in 1984 Protocols were agreed which would have widened of geographical scope of the scheme and increased the limits on compensation. The Protocols' entry into force requirements were based on the assumption that the United States would join the improved scheme. However, in the wake of the Exxon Valdez disaster, Congress decided to instead unilaterally adopt the more onerous 1990 Oil Pollution Act, making the Protocols' entry into force requirements impossible to achieve.
The provisions of the 1992 Protocols mirror those agreed in 1984, but this time entry into force is likely (even without US participation).
British Indian Ocean Territory, British Virgin Islands, Cayman Islands, Falkland Islands, Gibraltar, Hong Kong, Montserrat, Pitcairn, St Helena, Turks and Caicos Islands and the UK Sovereign Base Areas in Cyprus are party to both Conventions.
Convention on Oil Pollution Preparedness Response and Cooperation
The Oil Pollution Preparedness, Response and Cooperation Convention stems from a United States proposal aimed at securing greater international cooperation in the provision of equipment and expertise following oil pollution incidents. The Convention requires the preparation of Oil Emergency Plans, following a pattern to be established by the IMO, for ships, offshore platforms and oil terminals; and sets out requirements for the reporting of oil pollution incidents. Contracting States are required to have a national system for combating oil pollution, meeting certain minimum standards. The Convention requires Contracting Parties to provide technical support and assistance to other Parties on request, and sets out the procedure for financial compensation. Finally, the Convention calls for cooperation - in particular in research and development and through the establishment of bilateral and multilateral agreements.