Civil liability for spills from oil rigs: the development of bilateral and regional principles

Abstract

Civil liability for spills from oil rigs: the development of bilateral and regional principles Alexandra Wawryk * and Katelijn Van Hende † The pollution caused by the blowout of the Macondo well and explosion of the Deepwater Horizon in the Gulf of Mexico in 2010, and the Montara blowout off the coast of northern Australia in 2009, exposed the lack of a uniform international civil liability regime for pollution caused by spills from offshore oil rigs. Despite calls to establish a global regime in this area, a multilateral treaty is not likely to materialise. Instead, the international community is cooperating on the development of principles addressing the civil liability for oil spills from offshore rigs to guide bilateral and regional arrangements. After a brief comparison of the principles that are already included in the national liability regimes of industrialised mature oil and gas nations, this article critiques recent efforts to develop statements of principles, concluding with recommendations. I. INTRODUCTION Oil exploration and production in the marine environment has led to many accidental spills. Accidental spills from offshore rigs do not respect the boundaries of a coastal state’s exclusive economic zone and territorial waters, and have the potential to inflict damage to 155.Senior Lecturer, Law School, University of Adelaide, Barrister and Solicitor of the Supreme Court of South Australia. 156.Lecturer, School of Energy and Resources, University College London, Australia. The following abbreviations are used: CLC: International Convention on Civil Liability for Oil Pollution Damage 1969 (renewed 1992); CLEE 1976: Convention on Civil Liability for Oil Pollution Damage Resulting from Exploration and Exploitation of Seabed Mineral Resources 1976; CMI: Comité Maritime International; Environmental Liability Directive (EU) (2004, amended 2013): see infra , fn.56; Fund Convention: International Convention on the Establishment of an International Fund for Compensation or Oil Pollution Damage 1969 (amended 1992); IMO: International Maritime Organization; IDDRI: Institute for Sustainable Development and International Relations; IDDRI Principles 2014: see infra , fn.137; Indonesian Proposed Principles 2013: see infra , fnn 15 and 124; IOGP: International Association of Oil and Gas Producers; OPA 90: (US) Oil Pollution Act 1990; OPOL: Offshore Pollution Liability Agreement 1974; SDR: Special Drawing Rights (International Monetary Fund). Civil liability for spills from oil rigs 217