Opol Agreement

[3] Offshore Pollution Liability Association Limited, Offshore Pollution Liability Agreement, 1 May 1975, preamble, www.opol.org.uk/agreement.htm (last visited 17 June 2010). [2] Offshore Pollution Liability Association Limited, Home, www.opol.org.uk/ (last visited 17 June 2010); E-mail from Craig Bunyan, see note 1. Under the OPOL agreement, member operators assume no-fault liability for pollution damage and remedial measures, up to $120 million per incident and $240 million per year. [7] This money is shared equally by $60 million for environmental damage and $60 million for remedies, but when one fund runs out, excess money can be withdrawn from the other. [8] Operators must prove financial responsibility for this amount, either by insurance, self-insurance or other means. [9] The amount of this agreement is currently being reviewed by the Department of Energy and Climate Control (DECC) in preparation for the 2010 BP oil spill. [10] Although the agreement limits liability to $120 million, it does not preclude additional claims from being brought before the courts. The OPOL agreement only guarantees the payment of receivables up to a maximum amount of $120 million in the event of a delay by the operator. [11] This amount also does not cover costs related to measures to protect, repair or replace installations damaged by pollution. [12] [7] Offshore Pollution Liability Association Limited, Offshore Pollution Liability Agreement, 1 May 1975, clause IV, www.opol.org.uk/agreement.htm (recent visit 17 May 1975).

June 2010; see also The National Contingency Plan for Marine Pollution From Shipping and Offshore Installations (hereinafter the National Contingency Plan), App.M, www.mcga.gov.uk/c4mca/mcga-contin.pdf (the last visit was on 15 June 2010). The parties of OPOL are operators of offshore installations operating in the course of oil exploration or production and gas exploration or evaluation, or those who intend to become operators of offshore installations. It was decided that only operators should be parties, as they are more directly involved and are better placed than non-operators to assume the obligations imposed by OPOL. For example, facilities such as piping systems could serve a number of participants, but would have only one operator, whose responsibility is usually defined by a company agreement. Specific rules were established for pollution caused by an offshore installation by the 1975 Agreement on Pollution at Sea. The OPOL Agreement was introduced as a transitional measure during the negotiation phase of the Convention on Civil Liability for Oil Pollution Damage Resulting from the Exploration and Exploitation of Marine Mineral Resources. Negotiations with this convention were ultimately unsuccessful and it was never ratified. However, the United Kingdom considered that the OPOL Agreement was a satisfactory means of providing for a no-fault liability regime in the event of an operator not being covered by the remediation costs related to an incident. [2] The OPOL agreement will therefore enter into force when an operator is in arrears in the payment of cleaning costs, with a current ceiling of $120 million. (a) authorities defined in such a way as to include governments and public authorities, as well as local and local authorities, may assert their rights to remediation with a view to preventing, reducing or repairing damage caused by pollution or removing or neutralising oil after a leak or discharge. . .

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