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These Regulations amend Chapter 3 of Part 6 of the Merchant Shipping Act 1995 in order to implement Council Decision 2002/762/EC authorising the Member States, in the interests of the Community, to sign, ratify or accede to the International Convention on Civil Liability for Bunker Oil Pollution Damage 2001 (the Bunkers Convention) (OJ L 256, 25.9.2002, p.7).
Regulation 3 amends section 152 by inserting definitions of “the Bunkers Convention” and related expressions.
Regulation 5 inserts section 153A. Section 153A provides that where, as a result of any occurrence, any bunker oil is discharged or escapes from a ship, the owner of the ship shall be liable for any damage caused outside the ship in the territory of the United Kingdom by contamination resulting from the discharge or escape. The owner is also liable for the cost of any measures reasonably taken for the purpose of preventing or minimising the damage and for any damage caused by the measures taken. Furthermore, where there is a grave and imminent threat of contamination by bunker oil, the owner is liable for the cost of measures taken to prevent or minimise damage and for damage caused by those measures.
The “owner” of a ship is defined, in relation to liability for bunker oil contamination, as including the registered owner of the ship, the bareboat charterer, the manager and the operator of the ship (section 153A(7)). Regulations 10 to 16 make consequential amendments.
“Bunker oil” is defined as any hydrocarbon mineral oil which is carried by a ship used or intended to be used for the operation or propulsion of that ship and any residues of such oil (section 170(1) as amended by regulation 23(2)(a)).
Regulation 6 amends section 154 (Liability for pollution in case of other ships) of the 1995 Act so that where, as a result of any occurrence, any oil is discharged or escapes from a vessel which is not sea-going the owner is liable for any damage caused outside the ship in the territory of the United Kingdom by resulting contamination, for the cost of measures to minimise or prevent damage and for damage caused by any such measures taken. Liability also arises where there is a relevant threat of contamination.
Regulation 7 amends section 155 to create exceptions from liability under new section 153A. Regulation 8 amends section 156 in order to create certain restrictions on the liability of the owner, salvors and others in the case of bunker oil spills. Regulation 9 inserts new section 156A which makes supplementary provision in respect of liability under sections 154, 153A and 154.
Regulation 17 inserts new section 163A which makes provision for compulsory insurance in respect of bunker oil contamination for ships having a gross tonnage greater than 1,000 tons. Section 163A(7) creates a power of detention exercisable where a ship leaves a port in the UK in contravention of section 163A(2). Section 284 (enforcing detention of a ship) of the 1995 Act makes it an offence to fail to comply with a notice of detention. Regulation 18 amends section 164 to make provision for the issue by the Secretary of State of a certificate where there is in force insurance or other security satisfying Article 7 of the Bunkers Convention.
Regulation 19 amends section 165 (Rights of third parties against insurers) to make provision in respect of the rights of third parties against insurers where it is alleged that the owner of a ship has incurred a liability under section 153A.
Regulation 20 amends section 166 (Jurisdiction of United Kingdom courts and registration of foreign judgments) to make provision in respect of the jurisdiction of United Kingdom courts and the registration of foreign judgments and regulation 21 amends section 167 (Government ships) to make provision in respect of Government ships.
Regulation 22 amends section 168 (Limitation of liability under section 154) so that, for the purposes of section 185 (Limitation of liability for maritime claims) of the Act, any liability incurred under section 153A shall be deemed to be a liability to damages in respect of such damage to property as is mentioned in paragraph 1(a) of Article 2 of the Convention on Limitation of Liability for Maritime Claims 1976.
A full regulatory impact assessment of the effect that this instrument will have on the costs of business is available from the Department for Transport (SP), Zone 2/28, Great Minster House, 76 Marsham Street London SW1P 4DR. A copy has been placed in the Library of each House of Parliament and it may also be accessed on the HMSO website (www.opsi.gov.uk).
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