IOPC Funds Clarify Coverage Limit in Vessels Collision Off UK Coast

The International Oil Pollution Compensation Funds (IOPC Funds) recently commented on the collision between the Solong and Stena Immaculate off the north-east coast of the UK on March 10. The IOPC Funds stated that the incident involving the tanker carrying jet fuel, which is classified as non-persistent oil, would not be covered by the 1992 Conventions. As a result, the IOPC Funds are unable to intervene in this case. The Stena Immaculate, chartered to the US military, was at anchor when the collision with the container ship Solong occurred, resulting in both vessels catching fire and an unclear size of the fuel spill.

The IOPC Funds primarily provide financial compensation for oil pollution damage caused by spills of persistent oil from tankers in Member States. The incident involving the Solong and Stena Immaculate would have been covered by the pending 2010 HNS Convention if it had been in force. The HNS Convention covers a wider range of incidents, including personal injury claims, fire and explosion, and hazardous and noxious substances like jet fuel and sodium cyanide, which was reportedly on board the Solong.

The history of the IOPC Funds dates back to the 1967 Torrey Canyon oil spill, which highlighted the need for an international agreement on liability and compensation for oil pollution incidents. This led to the establishment of a regime under the auspices of the IMO, starting with the 1969 Civil Liability Convention and the 1971 Fund Convention. Subsequent incidents like the Erika and Prestige led to the development of the 1992 Civil Liability and Fund Conventions, as well as the Supplementary Fund Protocol in 2003 to provide additional compensation for pollution damage. The IOPC Funds are funded by contributions from entities that receive oil by sea transport, based on the amount of oil received and covering expected claims and administrative costs.

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