1992 Fund Convention.docx
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1992FundConvention
INTERNATIONALCONVENTIONONTHE
ESTABLISHMENTOFANINTERNATIONALFUNDFOR
COMPENSATIONFOROILPOLLUTIONDAMAGE,1992
TheStatesPartiestothepresentConvention,
BEINGPARTIEStotheInternationalConventiononCivilLiabilityforOilPollutionDamage,adoptedatBrusselson29November1969,
CONSCIOUSofthedangersofpollutionposedbytheworld-widemaritimecarriageofoilinbulk,
CONVINCEDoftheneedtoensurethatadequatecompensationisavailabletopersonswhosufferdamagecausedbypollutionresultingfromtheescapeordischargeofoilfromships,
CONSIDERINGthattheInternationalConventionof29November1969,onCivilLiabilityforOilPollutionDamage,byprovidingarégimeforcompensationforpollutiondamageinContractingStatesandforthecostsofmeasures,wherevertaken,topreventorminimizesuchdamage,representsaconsiderableprogresstowardstheachievementofthisaim,
CONSIDERINGHOWEVERthatthisrégimedoesnotaffordfullcompensationforvictimsofoilpollutiondamageinallcaseswhileitimposesanadditionalfinancialburdenonshipowners,
CONSIDERINGFURTHERthattheeconomicconsequencesofoilpollutiondamageresultingfromtheescapeordischargeofoilcarriedinbulkatseabyshipsshouldnotexclusivelybebornebytheshippingindustrybutshouldinpartbebornebytheoilcargointerests,
CONVINCEDoftheneedtoelaborateacompensationandindemnificationsystemsupplementarytotheInternationalConventiononCivilLiabilityforOilPollutionDamagewithaviewtoensuringthatfullcompensationwillbeavailabletovictimsofoilpollutionincidentsandthattheshipownersareatthesametimegivenreliefinrespectoftheadditionalfinancialburdensimposedonthembythesaidConvention,
TAKINGNOTEoftheResolutionontheEstablishmentofanInternationalCompensationFundforOilPollutionDamagewhichwasadoptedon29November1969bytheInternationalLegalConferenceonMarinePollutionDamage,
HAVEAGREEDasfollows:
GeneralProvisions
Article1
ForthepurposesofthisConvention:
1.“1992LiabilityConvention”meanstheInternationalConventiononCivilLiabilityforOilPollutionDamage,1992.
1bis.“1971FundConvention”meanstheInternationalConventionontheEstablishmentofanInternationalFundforCompensationforOilPollutionDamage,1971.ForStatesPartiestotheProtocolof1976tothatConvention,thetermshallbedeemedtoincludethe1971FundConventionasamendedbythatProtocol.
2.“Ship”,“Person”,“Owner”,“Oil”,“PollutionDamage”,“PreventiveMeasures”,“Incident”,and“Organization”havethesamemeaningasinArticleIofthe1992LiabilityConvention.
3.“ContributingOil”meanscrudeoilandfueloilasdefinedinsub-paragraphs(a)and(b)below:
(a)“CrudeOil”meansanyliquidhydrocarbonmixtureoccurringnaturallyintheearthwhetherornottreatedtorenderitsuitablefortransportation.Italsoincludescrudeoilsfromwhichcertaindistillatefractionshavebeenremoved(sometimesreferredtoas“toppedcrudes”)ortowhichcertaindistillatefractionshavebeenadded(sometimesreferredtoas“spiked”or“reconstituted”crudes).
(b)“FuelOil”meansheavydistillatesorresiduesfromcrudeoilorblendsofsuchmaterialsintendedforuseasafuelfortheproductionofheatorpowerofaqualityequivalenttothe“AmericanSocietyforTestingandMaterials’SpecificationforNumberFourFuelOil(DesignationD396-69)”,orheavier.
4.“Unitofaccount”hasthesamemeaningasinArticleV,paragraph9,ofthe1992LiabilityConvention.
5.“Ship’stonnage”hasthesamemeaningasinArticleV,paragraph10,ofthe1992LiabilityConvention.
6.“Ton”,inrelationtooil,meansametricton.
7.“Guarantor”meansanypersonprovidinginsuranceorotherfinancialsecuritytocoveran
owner’sliabilityinpursuanceofArticleVII,paragraph1,ofthe1992LiabilityConvention.
8.“Terminalinstallation”meansanysiteforthestorageofoilinbulkwhichiscapableofreceivingoilfromwaterbornetransportation,includinganyfacilitysituatedoff-shoreandlinkedtosuchsite.
9.Whereanincidentconsistsofaseriesofoccurrences,itshallbetreatedashavingoccurredonthedateofthefirstsuchoccurrence.
Article2
1.AnInternationalFundforcompensationforpollutiondamage,tobenamed“TheInternationalOilPollutionCompensationFund1992”andhereinafterreferredtoas“theFund”,isherebyestablishedwiththefollowingaims:
(a)toprovidecompensationforpollutiondamagetotheextentthattheprotectionaffordedbythe1992LiabilityConventionisinadequate;
(b)togiveeffecttotherelatedpurposessetoutinthisConvention.
2.TheFundshallineachContractingStateberecognizedasalegalpersoncapableunderthelawsofthatStateofassumingrightsandobligationsandofbeingapartyinlegalproceedingsbeforethecourtsofthatState.EachContractingStateshallrecognizetheDirectoroftheFund(hereinafterreferredtoas“TheDirector”)asthelegalrepresentativeoftheFund.
Article3
ThisConventionshallapplyexclusively:
(a)topollutiondamagecaused:
(i)intheterritory,includingtheterritorialsea,ofaContractingState,and
(ii)intheexclusiveeconomiczoneofaContractingState,establishedinaccordancewithinternationallaw,or,ifaContractingStatehasnotestablishedsuchazone,inanareabeyondandadjacenttotheterritorialseaofthatStatedeterminedbythatStateinaccordancewithinternationallawandextendingnotmorethan200nauticalmilesfromthebaselinesfromwhichthebreadthofitsterritorialseaismeasured;
(b)topreventivemeasures,wherevertaken,topreventorminimizesuchdamage.
Compensation
Article4
1.ForthepurposeoffulfillingitsfunctionunderArticle2,paragraph1(a),theFundshallpaycompensationtoanypersonsufferingpollutiondamageifsuchpersonhasbeenunabletoobtainfullandadequatecompensationforthedamageunderthetermsofthe1992LiabilityConvention,
(a)becausenoliabilityforthedamagearisesunderthe1992LiabilityConvention;
(b)becausetheownerliableforthedamageunderthe1992LiabilityConventionisfinanciallyincapableofmeetinghisobligationsinfullandanyfinancialsecuritythatmaybeprovidedunderArticleVIIofthatConventiondoesnotcoverorisinsufficienttosatisfytheclaimsforcompensationforthedamage;anownerbeingtreatedasfinanciallyincapableofmeetinghisobligationsandafinancialsecuritybeingtreatedasinsufficientifthepersonsufferingthedamagehasbeenunabletoobtainfullsatisfactionoftheamountofcompensationdueunderthe1992LiabilityConventionafterhavingtakenallreasonablestepstopursuethelegalremediesavailabletohim;
(c)becausethedamageexceedstheowner’sliabilityunderthe1992LiabilityConventionaslimitedpursuanttoArticleV,paragraph1,ofthatConventionorunderthetermsofanyotherinternationalConventioninforceoropenforsignature,ratificationoraccessionatthedateofthisConvention.ExpensesreasonablyincurredorsacrificesreasonablymadebytheownervoluntarilytopreventorminimizepollutiondamageshallbetreatedaspollutiondamageforthepurposesofthisArticle.
2.TheFundshallincurnoobligationundertheprecedingparagraphif:
(a)itprovesthatthepollutiondamageresultedfromanactofwar,hostilities,civilwarorinsurrectionorwascausedbyoilwhichhasescapedorbeendischargedfromawarshiporothershipownedoroperatedbyaStateandused,atthetimeoftheincident,only
onGovernmentnon-commercialservice;or
(b)theclaimantcannotprovethatthedamageresultedfromanincidentinvolvingoneormoreships.
3.IftheFundprovesthatthepollutiondamageresultedwhollyorpartiallyeitherfromanactoromissiondonewiththeintenttocausedamagebythepersonwhosufferedthedamageorfromthenegligenceofthatperson,theFundmaybeexoneratedwhollyorpartiallyfromitsobligationtopaycompensationtosuchperson.TheFundshallinanyeventbeexoneratedtotheextentthattheshipownermayhavebeenexoneratedunderArticleIII,paragraph3,ofthe1992LiabilityConvention.However,thereshallbenosuchexonerationoftheFundwithregardtopreventivemeasures.
4.(a)Exceptasotherwiseprovidedinsub-paragraphs(b)and(c)ofthisparagraph,theaggregateamountofcompensationpayablebytheFundunderthisArticleshallinrespectofanyoneincidentbelimited,sothatthetotalsumofthatamountandtheamountofcompensationactuallypaidunderthe1992LiabilityConventionforpollutiondamagewithinthescopeofapplicationofthisConventionasdefinedinArticle3shallnotexceed135millionunitsofaccount.
(b)Exceptasotherwiseprovidedinsub-paragraph(c),theaggregateamountofcompensationpayablebytheFundunderthisArticleforpollutiondamageresultingfromanaturalphenomenonofanexceptional,inevitableandirresistiblecharactershallnotexceed135millionunitsofaccount.
(c)Themaximumamountofcompensationreferredtoinsub-paragraphs(a)and(b)shallbe200millionunitsofaccount6withrespecttoanyincidentoccurringduringanyperiodwhentherearethreePartiestothisConventioninrespectofwhichthecombinedrelevantquantityofcontributingoilreceivedbypersonsintheterritoriesofsuchParties,duringtheprecedingcalendaryear,equalledorexceeded600milliontons.
(d)InterestaccruedonafundconstitutedinaccordancewithArticleV,paragraph3,ofthe1992LiabilityConvention,ifany,shallnotbetakenintoaccountforthecomputationofthemaximumcompensationpayablebytheFundunderthisArticle.
(e)Theamountsmentionedinthis