Environmental Response

Cost Recovery

Ship-Source and Marine Pollution Response

Claims for the Crown's Costs

The Canadian Coast Guard, on behalf of the federal government, has lead agency responsibility for responding to ship-source spills, mystery spills, and any pollution incident that occurs as a result of loading or unloading oil to or from a ship at designated oil handling facilities in waters of Canadian interest. As well, the Canadian Coast Guard has a responsibility to monitor and augment private sector pollution responses and to act as a major resource by responding to spills when requested to do so by another lead agency.

The CCG Claims manual is a practical guide to presenting claims against the Polluter, the Ship-source Oil Pollution Fund (SOPF), and/or the 1992 International Oil Pollution Compensation Fund (1992 IOPC Fund).

Ship-source Oil Pollution Fund

The SOPF is part of a unique statutory scheme established by Canada in 1971, and built on since that time. Its purpose is to deal with oil spills from all classes of ships, including spills (bunkers, bilges, etc.) from non tankers.

The Marine Liability Act (MLA) provides that, in the first instance, a claimant can take action against the shipowner and join the SOPF as a party to the proceedings. In such cases, funding from the SOPF is available as a last resort, or pursuant to a settlement where the Administrator considers it appropriate. In addition, the SOPF, with one exception, can be a fund of first resort for all persons, including the Crown. The exception is that a Response Organization, established under the Canada Shipping Act (CSA), has no direct claim against the SOPF, but may have a claim for unsatisfied costs and expenses after exhausting the right of recovery against the shipowner, the insurer, or the 1992 IOPC Fund as the case may be.

When a claim is made against the SOPF as a first resort, the Administrator is required, under the MLA, to take reasonable measures to recover any compensation paid to claimants out of the SOPF, from the owner of the ship, or any other person liable, the 1992 IOPC Fund, and from a shipowner’s limitation fund.

Pursuant to section 76 of the MLA, all contributions to the 1992 IOPC Fund are paid out of the SOPF.

Additional information on the SOPF can be obtained by contacting the SOPF

Telephone: (613)991-1726

Facsimile: (613)990-5423

e-mail: info@ssopf.gc.ca

Internet: http://www.ssopfund.gc.ca/

International Oil Pollution Compensation Fund

The International Oil Pollution Compensation Fund (IOPC Fund) is an intergovernmental organization which provides compensation for pollution damage resulting from spills of persistent oil from tankers. Currently, there are two IOPC Funds operating simultaneously: the 1971 IOPC Fund and the 1992 IOPC Fund.

The 1971 IOPC Fund was established in 1978. It operates within the framework of two international conventions: the 1969 International Convention on Civil Liability for Oil Pollution Damage (1969 CLC) and the 1971 International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage (1971 Fund Convention).

The 1969 CLC establishes the liability of owners of laden tankers for oil pollution damage, defines who is entitled to receive compensation from the shipowner and sets out rules and conditions which determine, on a uniform basis, the extent of shipowner’s liability for pollution damage. The 1971 Fund Convention was adopted to provide supplementary compensation for pollution damage to the extent that the protection under the 1969 CLC is inadequate.

Canada acceded to the 1969 CLC and 1971 Fund Convention in 1989, becoming a participant in the international regime of liability and compensation for ship-source oil pollution damage. Until May 29, 1999 Canada was a member of the 1971 IOPC Fund.

The 1969 and 1971 Conventions were amended in 1992 by two Protocols, known as the 1992 CLC and the 1992 Fund Convention, which entered into force internationally on May 30, 1996. The 1992 IOPC Fund was set up under the 1992 Fund Convention. Under the 1992 Protocols, the maximum limit of the International Fund is $1.2 billion (CDN) per incident, inclusive of any amount payable by the shipowner.

Provisions of the 1992 CLC and 1992 Fund Convention came into force for Canada on May 29, 1999.

DFO/CCG is a member of the Canadian delegation because of the linkage to its activities in maintaining spills and related compensation claims arising from oil pollution incidents in Canadian waters.

Additional information on the IOPC can be found at http://www.iopcfund.org