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Transboundary Pollu.on from Offshore Ac.vi.es: a study of the Montara offshore oil spill Transboundary Pollu.on: Evolving Issues of Law and Policy Session 4 – Transboundary Pollu.on of the Marine Environment Singapore, 2728 February 2014 Youna Lyons Senior Research Fellow, Centre for Interna5onal Law

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Transboundary  Pollu.on  from  Offshore  Ac.vi.es:    a  study  of  the  Montara  offshore  oil  spill  

Transboundary  Pollu.on:  Evolving  Issues  of  Law  and  Policy  Session  4  –  Transboundary  Pollu.on  of  the  Marine  Environment  

Singapore,  27-­‐28  February  2014  Youna  Lyons    

Senior  Research  Fellow,  Centre  for  Interna5onal  Law  

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I.  The  Montara  Incident:  Geography    

Courtesy  of  Dylan  Mair  from  IHS,  prepared  specially  for  this  conference  

(1/5)  

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I.  The  Montara  Incident:  Geography    

Rela.ve  surface  oil  exposure  map  represen.ng  all  known  es.mated  occurrences  of  visible  surface  oil  associated  with  the  Montara  incident.  (Extract  from  the  Report  of  the  Commission  of  Inquiry)  

(2/5)  

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-­‐  21  Aug.-­‐  3rd  Nov.  2009:  74  days  -­‐  Main  Operator:  PTTEP-­‐AA,  an  Australian  

subsidiary  of  the  Thai  na.onal  oil  company  PTTEP  

-­‐  Suspension  of  the  well  was  authorized  by  the  NTDoNR  despite  doub_ul  integrity  

-­‐  Blowout  just  aber  opera.ons  resumed;  69  workers  evacuated  

-­‐  New  drilling  rig  needed  to  drill  a  relief  well  and  plug  the  leak;  it  came  from  Batam  (Indonesia)  

-­‐  Relief  opera.ons  started  on  14  September  

 

www.cil.nus.sg

(3/5)  I.  The  Montara  Incident:  Circumstances  

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-­‐  3rd  largest  spill  in  Australia  -­‐  4,750  to  10,000  tonnes  of  oil,  eq.  to  a  medium  to  small  size  shipping  spill    

-­‐  This  large  scale  and  transboundary  pollu.on  from  offshore  ac.vi.es  in  a  remote  loca.on  came  as  a  surprise  

-­‐  Extensive  review  by  the  Montara  Commission  of  Inquiry  of  the  causes  of  the  incident,  the  suitability  of  the  regulatory  framework  and  response  opera.ons  

-­‐  Reviews  and  submissions  are  on  the  internet  

www.cil.nus.sg

(4/5)  I.  The  Montara  Incident:  Circumstances  

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-­‐  PTEEP-­‐AA  recognized  its  responsibility  for  the  incident  before  an  Australian  Court  

-­‐  Through  its  re-­‐organiza.on  of  the  purview  of  offshore  ac.vi.es,  Australia  also  recognized  and  fixed  iden.fied  gaps  and  deficiencies  

In  the  mean.me,  -­‐  Indonesia  claims  US$2.4bi  as  damages  which  includes  damage  to  seaweed  farming,  the  pearl  industry,  to  fisheries,  as  well  as  ecological  damage  to  coral  reefs  

-­‐  PTTEP-­‐AA  and  Australia  respond  that  there  is  no  verifiable,  valid  scien.fic  evidence  to  Indonesia’s  claims  

-­‐  But  Australia  is  pursuing  research  with  Indonesia  to  document  the  prejudice  suffered  by  Indonesia  

  www.cil.nus.sg

(5/5)  I.  The  Montara  Incident:        current  situa.on  

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II.  Possible  paths  to  remedies:    Under  na.onal  law  before  na.onal  courts  

www.cil.nus.sg

-  Private  par.es  (marine  resource  users  vs.  PTTEP-­‐AA  under  Australian  law  

-  Private  par.es  vs.  Australia’s  Administra.ve  Agencies  in  charge  deemed  to  have  failed  under  Australian  law  

-  Ac.ons  against  PTTEP-­‐AA’s  employees  against  the  company  or  other  contractual  claims  

-  Australian  Administra.ve  Agencies  vs.  PTTEP-­‐AA  to  recover  the  costs  incurred  (MoU  under  nego.a.on)    

In  Australia  

In  Indonesia  

(1/2)  

-  Private  par.es  vs.  PTTEP-­‐AA,  assuming  that  jurisdic.on  can  be  established,  remedies  exist  under  Indonesia  law  and  enforcement  of  the  decision  is  possible    

-  Private  par.es  against  Indonesian  authori.es  for  corrup.on  

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II.  Possible  paths  to  remedies:      Under  interna.onal  law  

www.cil.nus.sg

- This  involves  respec.ve  rights  and  du.es  between  States  and  presupposes  a  breach  of  interna.onal  obliga.ons  

- Several  interna.onal  conven.ons  deals  with  accidental  pollu.on  from  oil  spill:  1990  OPRC  for  preparedness  and  response,  1969  CLC,    1992  Fund,  2001  Bunker  Conven.on      

- Only  OPRC  applies  to  accidental  pollu.on  from  offshore  pla_orms  - There  is  no  interna.onal  compensa.on  mechanism  in  place  for  pollu.on  from  offshore  pla_orms  

- So  no  regime  to  ensure  that  the  vic.ms  of  the  Montara  spill  are  compensated  

- Following  slides  look  at  the  applica.on  of  the  current  regime  to  the  Montara  Spill    

(2/2)  

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II.  Possible  paths  to  remedies:      Under  interna.onal  law  

www.cil.nus.sg

- There  is  no  interna.onal  compensa.on  mechanism  in  place  for  pollu.on  from  offshore  pla_orms  

 - So  no  regime  to  ensure  that  the  vic.ms  of  the  Montara  spill  are  compensated  

 - Following  slides  look  at  the  applica.on  of  the  current  regime,  namely  the  1990  Conven.on  on  Oil  Spill  Preparedness  and  Response  (OPRC)  to  the  Montara  Spill    

(2/2)  

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III.  Oil  Spill  Preparedness  under  Int’l  Law:      OPRC  

Applica.on  between  Australia  and  Indonesia    

(1/4)  

-  Indonesia  is  not  a  party  to  OPRC  -  So  pursuant  to  treaty  law,  Indonesia  should  be  barred  from  relying  on  it  against  Australia  

-  However  ar.cle  208  UNCLOS  requires  that  States  take  measures  to  prevent  and  control  pollu.on  from  seabed  ac.vi.es  that  are  less  effec.ve  than  interna.onal  rules,  standards  and  recommended  prac.ces  and  procedures  

-  If  OPRC  qualifies  -  Standards  set  by  OPRC  can  deemed  as  incorporated  by  reference  and  arguably  applicable  between  Indonesia  and  Australia  

-  Furthermore,  OPRC  is  common  sense  applica.on  of  general  principles  

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III.  Oil  Spill  Preparedness  under  Int’l  Law:    OPRC  

www.cil.nus.sg

1.    Operators  of  offshore  units  must  have  pollu.on  emergency  plans  2.    Na.onal  system  in  place  for  prompt  and  effec.ve  response  including  detailed  plans  and  communica.on  capabili.es  and  coordina.on  arrangements  

3.    Oil  combaing  equipment  available  :  minimum  level  of  pre-­‐posi.oned  equipment  commensurate  to  the  risk,  Programme  for  use,  exercise  and  training  

4.    Commitment  to  endeavour  to  conclude  bilateral  or  mul.lateral  agreements  for  oil  spill  preparedness  and  response  

(2/4)  

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www.cil.nus.sg

1.   The  pla_orm  West  Atlas  might  have  had  a  wriken  emergency  plan  but  they  seemed  to  have  no  func.oning  oil  combaing  equipment  on  board  

2.   The  Australia’s  Na.onal  Plan  for  oil  spill  response  was  in  place  

3.   Dispersants  and  other  resources  flown  from  Darwin,  Geelong  (Victoria),  Singapore  and  Batam  (Indonesia)    

 Immediate  availability  is  debatable  but  was  it  not    commensurate  to  the  risk  based  on  the  record  of  large  scale    remote  spills  from  offshore  pla_orms?  

 

 

 

 

III.  Oil  Spill  Preparedness  :        Applica.on  to  the  Montara  spill   (3/4)  

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www.cil.nus.sg

4.  1996  MoU  on  oil  pollu.on  preparedness  and  response  men.oned    in  many  official  documents  although  it  is  not  disclosed  and    implementa.on  is  not  detailed  

 NO  Specific  obliga.on  for  coopera.on  and  consulta.on  in  oil    spill  preparedness  where  there  is  a  risk  of  a  transboundary  spill.    

 The  Land  reclama.on  case  found  that  there  is  a  duty  to  cooperate    on  ac.vi.es  that  may  cause  transboundary  pollu.on.    

 Does  oil  produc.on  50nm  from  a  mari.me  boundary  creates    such  a  risk  of  transboundary  spill?    

 

 

 

 

 

III.  Oil  Spill  Preparedness  :        Applica.on  to  the  Montara  spill   (4/4)  

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IV.  Oil  Spill  Response  under  Int’l  Law:      OPRC  

www.cil.nus.sg

1.   Polluter  pays  principle  is  recalled  in  the  preamble  

2.   Par.es  must  adopt  oil  pollu.on  repor.ng  procedures  

3.   Pollu.ng  State  must  assess  the  nature,  extent  and  possible  consequences  of  oil  pollu.on  and  share  this  informa.on  and  the  ac.on  taken  

4.   Par.es  must  cooperate,  provide  advisory  services,  technical  support  and  equipment  

(1/3)  

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IV.  Oil  Spill  Response:          Applica.on  to  Montara  oil  spill  

www.cil.nus.sg

-  No.fica.on  of  transboundary  nature  of  the  spill  on  1  Sept.  2009.  

-  AMSA  as  Combat  Agency  under  the  Na.onal  Plan  organized  an  Incident  coordina.on  group  with    representa.ves  from  various  Australian  government  agencies  (not  Indonesia)  

-  Australia  says  that  Indonesian  officials  visited  Darwin  on  30  Sept  to  2  Oct.  to  observe  response  to  the  spill  but  Indonesia  says  Australia  failed  to  fulfill  its  interna.onal  obliga.ons  of  coopera.on.      

(2/3)  

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-­‐ Response  strategy  seems  to  have  been  based  primarily  on  Australia’s  resources:  were  suitable  coordina.on  and  consulta.on  mechanisms  in  place  to  make  the  consulta.on  of  Indonesia  possible?  

-­‐ Monitoring  of  environmental  impacts  started  mid-­‐October  due  to  late  agreement  on  the  scope  with  PTTEP  and  needed  funding  from  them  

-­‐ Negligence  in  the  start  of  this  monitoring  of  effect  compromises  the  ability  to  exactly  determine  the  impact  and  thus  poten.al  compensa.on  

-­‐ Monitoring  did  not  include  Indonesia  

(3/3)  IV.  Oil  Spill  Response:          Applica.on  to  Montara  oil  spill  

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Conclusion:  Lessons  learned      -  Australia  and  Indonesia  were  taken  by  surprise  and  were  unprepared  

for  a  transboundary  offshore  spill  -  Given  the  general  capacity  of  Australia  and  exis.ng  mechanisms  in  

place  for  oil  spill  response,  the  main  missing  piece  seems  to  have  been  the  prepara.on  for  transboundary  (rather  than  na.onal)  spills    

-  The  fact  that  there  is  no  compensa.on  regime  in  place  for  transboundary  spills  for  offshore  ac.vi.es  make  the  ra.fica.on  and  implementa.on  of  OPRC  even  more  important,  especially  where  offshore  ac.vi.es  are  close  to  mari.me  boundaries  such  as  in  the  South  China  Sea  

-  This  event  also  points  to  the  need  to  re-­‐ac.vate  proposals  for  a  liability  and  compensa.on  regime  for  offshore  ac.vi.es  as  there  is  for  shipping  

www.cil.nus.sg

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z  Thank  you  for  your  

aken.on  !