Republic Act No. 9483
AN ACT
PROVIDING FOR THE IMPLEMENTATION OF THE PROVISIONS OF THE 1992 INTERNATIONAL
CONVENTION ON CIVIL LIABILITY
FOR OIL POLLUTION DAMAGE AND THE
1992 INTERNATIONAL CONVENTION ON THE ESTABLISHMENT OF AN INTERNATIONAL FUND FOR
COMPENSATION FOR OIL POLLUTION DAMAGE, PROVIDING PENALTIES FOR VIOLATlONS
THEREOF, AND FOR OTHER PURPOSES
CHAPTER I
GENERAL PROVISIONS
SECTION
1. Short Title. – This Act shall be known as the “Oil Pollution Compensation Act of 2007”.
SEC.
2. Declaration of Policy. – The State, in the protection of its
marine wealth in its archipelagic waters, territorial sea and exclusive
economic zone, adopts internationally accepted measures which impose strict
liability for Oil Pollution
Damage and ensure prompt and adequate compensation for persons who suffer such
damage. This Act adopts and implements
the provisions of the
1992 International Convention on Civil Liability for Oil
Pollution Damage and the
1992 International
Convention on the Establishment of an International Fund for Compensation for
Oil Pollution Damage.
SEC. 3. Definition
of Terms. – For the purpose of this Act:
(a) “1992
Civil Liability Convention” means the
1992 International Convention on Civil
Liability for Oil Pollution
Damage;
(b) “1992
Fund Convention” means the
1992 International Convention on the Establishment
of an International Fund for Compensation for Oil Pollution Damage;
(c) “MARINA” means
Maritime Industry Authority;
(d) “PCG” means
Philippine
Coast Guard;
(e) “PPA” means
Philippine
Ports Authority;
(f) “Affiliate
Corporation” means a corporation that is
owned or subject to common corporate control by another corporation
and operated as part of the latter’s business;
(g) “Contributing
Oil” means crude Oil and fuel Oil as “Crude Oil” means any liquid hydrocarbon mixture
occurring naturally in the earth whether or not treated to render it suitable
for transportation. It also includes
crude Oils from which certain distillate fractions have been removed (which
sometimes referred to as “topped crudes”) or to which certain distillate
fractions have been added (sometimes referred to as “spiked” or “reconstituted“
crudes); and herein defined:
(1) “Crude
Oil” means any liquid hydrocarbon mixture occurring naturally in the earth
whether or not treated to render it suitable for transportation. It also includes crude Oils from which
certain distillate fractions have been removed (which sometimes referred to as
“topped crudes”) or to which certain distillate fractions have been added (sometimes
referred to as “spiked” or “reconstituted“ crudes); and
(2) “Fuel
Oil” means heavy distillates or residues from crude Oil or blends of such
materials intended for use as fuel for the production of heat or power of a
quality equivalent to the “American Society for
Testing and Materials Specification for Number Four Fuel Oil (Designation D
396-69)” or heavier;
(h) “Incident”
means any occurrence or series of occurrences having the same origin which
causes Pollution Damage or creates a grave and imminent threat of causing such
damage: Provided That a series of
occurrences shall be treated as having occurred on the date of the first such
occurrence;
(i) “Oil”
means any persistent hydrocarbon mineral Oil such as crude Oil, fuel Oil, heavy
diesel Oil and lubricating Oil, whether carried on board a Ship as cargo or in
bunkers of such a Ship;
(j) “Owner”
means the person registered as the Owner of the Ship or, in the absence of
registration, the person or persons owning the Ship. However, in case of a Ship owned by a State
and operated by a company which in that State is registered as the Ship’s
operator, “Owner” shall mean such company;
(k) “Person”
means any individual or partnership or any public or private body, whether
corporate or not, including a State or Government or its constituent
subdivisions;
(l) “Pollution
Damage” means:
(1) Loss
or damage caused outside the Ship by contamination resulting from the escape or
discharge of Oil from the Ship,
wherever such escape or discharge may occur:
Provided, That compensation for impairment of the environment
other than loss of profit from such impairment shall be limited to costs of
reasonable measures of reinstatement actually undertaken or to be undertaken;
and
(2) The
costs of preventive measures and further loss or damage caused by preventive
measure;
(m) “Preventive
Measures” means any reasonable measures taken by any person after an Incident
has occurred to prevent or minimize Pollution Damage;
(n) “Ship”
means any sea-going vessel and sea-home craft of any type whatsoever
constructed or adapted for the carriage of Oil in bulk as cargo: Provided, That a Ship capable of carrying Oil and other cargoes
shall be regarded as a Ship only when it is actually carrying Oil in bulk as
cargo and during any voyage following such carriage unless it is proved that it
has no residues of such carriage of Oil in bulk aboard;
(o) “State
of the Ship’s registry” means in relation to registered Ships, the State of
registration of the Ship and in relation to unregistered Ships, the State whose
flag the Ship is flying; and
(p) “Subsidiary
Corporation” means a corporation in which control, in the form of ownership of
majority shares, is in another corporation, called the parent corporation.
SEC. 4. Incorporation
of the
1992 Civil Liability
Convention and
1992 Fund Convention. – Subject
to the provisions of this Act,
the
1992 Civil Liability Convention and
1992 Fund Convention and their
subsequent amendments shall form part of the law of the Republic of the
SEC. 5. Scope of Application. – This
law shall apply exclusively to Pollution Damage caused in Philippine territory,
including its territorial sea and its exclusive economic zone, and to
preventive measures, wherever taken, to prevent or minimize such damage.
CHAPTER II
STRICT LIABILITY FOR OIL POLLUTION
DAMAGE
SEC.
6. Liability
on Pollution Damage. – The Owner of the Ship at the
time of an Incident, or where the Incident consists of a series of occurrences,
at the time of the first such occurrence, shall be liable for any Pollution
Damage caused by the Ship as a result of the Incident. Such damages shall include, but not limited
to:
(a) Reasonable
expenses actually incurred in clean-up operations at sea or on shore;
(b) Reasonable
expenses of Preventive Measures and further loss or damage caused by preventive
measures;
(c) Consequential
loss or loss of earnings suffered by Owners or users of property contaminated
or damaged as a direct result of an Incident;
(d) Pure
economic loss or loss of earnings sustained by persons although the property
contaminated or damaged as a direct result of an Incident does not belong to
them;
(e) Damage
to human health or loss of life as a direct result of the Incident, including
expenses for rehabilitation and recuperation:
Provided, That costs of studies or diagnoses to determine the
long-term damage shall also be included; and
(f) Environmental
damages and other reasonable measures of environmental restoration.
SEC. 7. Exempting
Circumstances. – No liability as
stated in the immediately preceding section shall attach to the Owner or his insurer if he
proves that the damage:
(a) Resulted
from an act of war, hostilities, civil war, insurrection or a natural
phenomenon of an exceptional, inevitable and irresistible character;
(b) Was
wholly caused by an act or omission done with intent to cause damage by third
party; and
(c) Was
wholly caused by the negligence or other wrongful act of the government or
other enforcement agencies responsible for the maintenance of lights or other
navigational aids in the exercise of that function. If the Owner proves that the Pollution damage
resulted wholly or partially either from an act or omission done with intent to
cause damage by the person who suffered the damage or from the negligence of
that person, the Owner may be exonerated wholly or partially from his liability
to such person.
SEC. 8.
Persons Exempted from Claim
for Compensation for Pollution Damage. –
No claim for compensation for Pollution Damage under this Act may be
made against:
(a) The
servants or agents of the Owner or the members of the crew;
(b) The
pilot or any other person who, without being a member of the crew, performs
services for the Ship;
(c) Any
charterer, howsoever described, including a bareboat charterer, manager or
operator of the Ship;
(d) Any
person performing salvage operations with the consent of the Owner or on the
instructions of a competent public authority;
(e) Any
person taking Preventive Measures; and
(f) All
servants or agents of persons mentioned in paragraphs (c), (d) and (e) hereof,
unless the damage resulted from their personal act or omission, committed with
the intent to cause such damage, or committed recklessly and with knowledge
that such damage would probably result: Provided,
That nothing in this Act shall prejudice any right of recourse of the Owner
against third parties.
SEC.
9. Joint and Several Liability. – When an Incident involving two or more
Ships occurs and Pollution Damage results therefrom, the Owners of all the
Ships concerned, unless exonerated under Section 7 hereof, shall be jointly and severally liable for all
such damage which is not reasonably separable, without prejudice, however, to
the right of recourse of any of such Owners to proceed against each other or
third parties.
CHAPTER III
SYSTEM OF LIMITATION OF LIABILITY
SEC.
10. Limitation of Liability. – The Owner shall be entitled to limit
his liability under this Act with respect to a particular Incident to a total
amount calculated as follows:
(a) Three
million (3,000,000) units of account for a Ship not exceeding five thousand
(5,000) units of tonnage;
(b) For
a Ship with a tonnage in excess thereof, for each unit of tonnage, four hundred
twenty (420) units of
account for each unit in addition to the amount mentioned in paragraph
(a): Provided, however, That this
aggregate amount shall not, in any event, exceeds 59.7 million units of
account:
Provided, further, That the limit of liability of the
Owner as aforementioned shall be subject to adjustment according to subsequent
amendments to the
1992 Civil
Liability Convention.
The limited
liability under this Section may not be availed of by the Owner if it has been established that such
Pollution Damage resulted from his personal act or omission, committed with intent
to cause such damage, or committed recklessly and with knowledge that such
damage would probably result.
The “unit
of account” referred to in this Section is the Special Drawing Right (SDR) as
defined by the
International Monetary Fund as
set forth in the
1992 Civil Liability Convention. The said amount shall be converted into
national currency on the basis of the value of the currency by reference to the
SDR on the date that the fund is constituted under Section 11 of this Act.
The SDR is
an international reserve asset, created by the
IMF
in 1969 to supplement the existing official reserves of member countries. SDRs are allocated to member countries
in proportion to their
IMF quotas. The SDR also serves as the unit of account of
the
IMF and some other international
organizations. Its value is based on a
basket of key international currencies.
SEC. 11. Constitution of a Fund. – For the purpose of availing himself of the
benefit of limitation provided for under Section 10 of this Act following the
occurrence of a particular Incident, the Owner shall be required to constitute
a fund for the total sum representing the limit of his liability with the
Maritime Industry Authority (MARINA) to
cover Incidents causing Pollution Damage:
Provided, That
any claim for compensation from Pollution Damage shall be brought directly to
the Regional Trial Courts (RTC). The
fund can be constituted by depositing the sum or by producing a bank guarantee
or other financial guarantee acceptable under existing laws and considered to
be adequate by the
Department of
Transportation and Communications (DOTC).
CHAPTER IV
SYSTEM OF COMPULSORY INSURANCE
AND CERTIFICATION
SEC. 12. Maintenance of Compulsory Insurance or
Other Financial Security. – All Owners shall be required annually by
the
MARINA to maintain insurance or
other financial security for Pollution Damage in the sums fixed by applying the
limits of liability under Section 10 of this Act.
SEC. 13. Issuance of a Certificate. – A certificate
attesting that an insurance or any other financial security is in force in
accordance with the provisions of this Act shall be issued to each Ship
carrying more than two thousand (2,000) tons of Oil in bulk as cargo by the
MARINA.
With respect to a
Ship not registered in a
(a)
Name
of Ship and port of registration;
(b) Name
and principal place of business of the Owner;
(c) Type
of security;
(d) Name
and principal place of business of the insurer or other person giving security
and, where appropriate, place of business where the insurance or security is
established; and
(e) Validity
period of the certificate which shall not be longer than the period of validity
of the insurance or other financial security.
SEC. 14. Enforcement. – Ship carrying more than two thousand
(2,000) tons of Oil in bulk as cargo shall not be allowed entry into Philippine territory or
its exclusive economic zone without a valid certificate of insurance or
financial security for Pollution Damage required by this Act.
For this
purpose, the
PPA or any other port
authorities shall deny port services to said Ship without such certificate.
If any such
Ship is found within the said territory or zone without such certificate, said
Ship shall be prevented from loading or unloading its cargo until it is able to
produce the appropriate insurance or financial security duly certified by the
State of its registry if such country is a convention member State, otherwise,
issued or certified by the
MARINA or
any convention-member State.
The Owner
and master of the Ship referred to in the immediately preceding paragraph shall
be jointly and severally liable to the fines set forth in this Act. Such Ship shall be prevented from leaving
unless the appropriate fines shall have been paid to the full satisfaction of
the
MARINA.
The
PCG shall conduct inspections of certificates
of Ships entering the territory of the Philippines, or, in the case of Ships
registered in the Philippines voyaging within the said territory: Provided That such inspections shall
not cause undue delay to the Ships.
CHAPTER V
CONTRIBUTION TO THE
INTERNATIONAL
OIL POLLUTION COMPENSATION FUND
SEC.
15. Contributions to the
International Oil Pollution Compensation (IOPC) Fund.
– Any person who has received more than one hundred fifty thousand
(150,000) tons of contributing Oil in a calendar year in all ports or terminal
installations in the Philippines through carriage by sea, shall pay
contributions to the
International Oil
Pollution Compensation (IOPC) Fund in accordance with the provisions of the
1992 Fund Convention.
A person
shall be deemed to have received contributing Oil, for contribution purposes,
if he received the same:
(a) From
another country; or
(b) From
another port or terminal installation within the
Where the
quantity of contributing Oil received by any person in the Philippines in a
calendar year, when aggregated with the quantity of contributing Oil received
in the Philippines in that year by its subsidiary or affiliate corporation,
exceeds one hundred fifty thousand (150,000) tons, said person, including its
subsidiaries, shall pay contributions in respect of the actual quantity
received by each, notwithstanding that the actual quantity received by each did
not exceed one hundred fifty thousand (150,000) tons.
SEC.
16. Reporting of Contributing Oil – Any person who, in a calendar
year, has received in the territory of the
CHAPTER VI
ACTION FOR COMPENSATION
SEC.
17. Action for Compensation. – An action for compensation on account of
Pollution Damage resulting from the Incident which occurred in the territory
may be brought before the RTC against the following persons:
(a) Owner
of the polluting Ship; or
(b) Insurer
or other person providing financial security of the said Owner’s liability for
pollution.
For this
purpose, foreign corporation, partnership, association or individual, whether
or not licensed to transact business in the
Such action
shall be filed within three years of the date on which the damage occurred, but
not later than six years of the date of the Incident.
The
PCG shall investigate, motu proprio or
through written undertaking of a complainant, any Incident, claim for compensation
or violation of this Act, and shall forthwith file appropriate action with the
RTC.
It shall
likewise provide the complainant necessary technical evidence or any
assistance, whether or not testimonial or documentary, insofar as the claim for
compensation or violation of this Act is concerned.
Filing of
the action under this section shall only require payment of filing fees
equivalent to ten percentum (10%) of the regular rates established
therefor by the
Supreme Court of the
Philippines. However, indigent
plaintiffs shall be exempt from payment of docket and other lawful fees, and of
transcripts of stenographic notes which the court may order to be furnished
him. The amount of the docket and other
lawful fees which the indigent was exempted from paying shall be a lien on any
judgment rendered in the case favorable to the indigent, unless the court
otherwise provides.
SEC. 18.
Adjudication or Settlement of Claims. – The RTC shall decide claims for
compensation or certify the compromise agreement by the parties within a
reasonable period.
Where
compensation was not obtained or satisfied under the
1992 Civil Liability
Convention, the claimant may seek compensation under the
1992 Fund Convention. The RTC shall furnish the
IOPC Fund with its certified decision,
together with pertinent documents, on a claim for Pollution Damages.
Where the
fund under the
1992 Civil Liability Convention is insufficient to satisfy the
claims of those who are entitled to compensation, the amount of compensation of
each claimant shall be distributed pro rata.
SEC.
19. Intervention by the
IOPC Fund.
– The
IOPC Fund may intervene
as a party to any legal proceedings instituted against the Owner of a Ship or
his guarantor under Article IX of the
1992 Civil Liability Convention.
CHAPTER VII
PENALTY PROVISIONS
SEC. 20. Violation of the Act. – The following acts shall be considered
violations of the Act and the persons responsible shall suffer the
corresponding fines:
(a) Any
person who fails to institute or maintain insurance or other financial security
required under Section 12 of this Act;
(1) Ships
of 500 gross tons (GRT) and below – not less than One hundred thousand pesos (P
100,000.00) but not more than Two hundred-fifty thousand pesos (P 250,000.00);
(2) Ships
of above 500 to 1,000 GRT – not less than Two hundred fifty thousand pesos (P
250,000.00) but not more than Five hundred thousand pesos (P 500,000.00);
(3) Ships
of above 1,000 to 5,000 GRT – not less than Five hundred thousand pesos (P
500,000.00) but not more than One million pesos (P l,000,000.00);
(4) Ships
of above 5,000 to 10,000 GRT – not less than One million pesos (P 1,000,000.00)
hut not more than Five million pesos (P 5,000,000.00);
(5) Ships
of above 10,000 to 20,000 GRT – not less than Five million pesos (P
5,000,000.00) but not more than Ten million pesos (P 10,000,000.00); and
(6) Ships
of above 20,000 GRT – not less than Ten million pesos (P 10,000,000.00) but not
more than Fifteen million pesos (P 15,000,000.00).
(b)
The
Owner and the master of a Ship who operate a Ship without maintaining on board a
certificate of insurance required under Section 13 of this Act:
(1) First
violation – Five hundred thousand pesos (P 500,000.00);
(2) Second
violation – One million pesos (P 1,000,000.00); and
(3) Third
violation – One million five hundred thousand pesos (P 1,500,000.00).
(c)
Any person
required under Section 15 of this Act to contribute to the IOPC Fund but
nevertheless fails to comply therewith after due notice by the
MARINA:
(1) First
violation – Three million pesos (P 3,000,000.00);
(2) Second
violation – Four million pesos (P 4,000,000.00); and
(3) Third
violation – Five million pesos (P 5,000,000.00).
(d) Failure
to Submit Report of Contributing Oil. –
Any person required under Section 16 of this Act to submit report of contributing
Oil and notwithstanding 10-day notice thereto, fails to comply therewith:
(1) First
violation – Five hundred thousand pesos (P 500,000.00);
(2) Second
violation – One million pesos (P 1,000,000.00); and
(3) Third
violation – One million five hundred thousand pesos (P 1,500,000.00).
(e) Any
person who shall refuse, obstruct, or hamper the entry of the duly authorized
representatives of the
Department or any
person authorized under this Act aboard any Ship or establishment pursuant to
this Act shall be liable to pay a fine not exceeding One hundred thousand
pesos (P 100,000.00); and
(f) Any
Ship apprehended for violation of this Act may be subjected to detention.
The fines
prescribed in this Section and other sections of this Chapter shall be
increased by at least ten percent (10%) every three years to compensate for
inflation and to maintain the deterrent function of such fines.
SEC.
21. Institutional Mechanism. – The
DOTC
shall be the lead implementing agency unless otherwise provided in this Act.
CHAPTER VIII
FINAL PROVISIONS
SEC. 22.
Oil Pollution Management Fund. – An
Oil Pollution Management Fund (OPMF) to be administered by the
MARINA is hereby established. Said Fund shall be constituted from:
(a) Contributions
of Owners and operators of tankers and barges hauling Oil and/or petroleum products in Philippine waterways and coast
wise shipping routes. During its first
year of existence, the Fund shall be constituted by an impost of ten centavos
(10 c) per liter for every delivery or transshipment of Oil made by tanker
barges and tanker haulers. For the
succeeding fiscal years, the amount of contribution shall be jointly determined
by
MARINA, other concerned government
agencies, and representatives from the Owners of tankers barges, tankers
haulers, and Ship hauling Oil and/or petroleum products. In determining the amount of contribution,
the purposes for which the fund was set up shall always be considered; and
(b) Fines
imposed pursuant to this Act, grants, donations, endowment from various
sources, domestic or foreign, and amounts specifically appropriated for OPMF
under the annual General Appropriations Act.
The Fund
shall be used to finance the following activities:
(a) Immediate
containment, removal and clean-up operations of the
PCG in all Oil pollution cases, whether
covered by this Act or not; and
(b) Research,
enforcement and monitoring activities of relevant agencies such as the
PCG,
MARINA
and
PPA, and other ports authority of the
DOTC,
Environmental
Management Bureau of the
DENR, and
the
DOE:
Provided, That ninety percent (90%) of the Fund shall be
maintained annually for the activities set forth under item (a) of this
paragraph: Provided, further, That
any amounts specifically appropriated for said Fund under the General
Appropriations Act shall be used exclusively for the activities set forth under
item (a) of this paragraph.
In no case,
however, shall the Fund be used for personal services expenditures except for
the compensation of those involved in clean-up operations.
Provided,
That amounts advanced
to a responding entity or claimant shall be considered as advances in case of
final adjudication/award by the RTC
under Section 18 and shall be reimbursed to the Fund.
SEC. 23.
Appropriations. – The
Secretary of the DOTC shall include in the
Department’s program the implementation of
this Act, the funding of which shall be included in the annual General
Appropriations Act.
SEC. 24.
Implementing Rules and Regulations. – The
DOTC, in
coordination with other concerned agencies and sectors, shall, within three
months after the effectivity of this Act, promulgate rules and regulations for
the effective implementation of this Act.
A manual providing for the procedures concerning the enforcement of
claims under this Act shall, likewise, be developed within the said
period. The said rules and regulations
and manual shall be published in a newspaper of general circulation also within
the said period.
SEC.
25. Separability Clause. – In the event that any provision of this
Act is declared unconstitutional, the validity of the remainder shall not be
affected thereby.
SEC. 26. Repealing
Clause. – All laws, decrees, rules and regulations and executive
orders contrary to or inconsistent with this Act are hereby
repealed or modified accordingly.
SEC. 27. Effectivity Clause. – This Act shall take effect after
the completion of its publication made once a week for three consecutive
weeks in at least two newspapers of general circulation.
Approved,
June 2, 2007
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