The Offshore Pollution Liability Association Ltd

OFFSHORE POLLUTION LIABILITY AGREEMENT ("OPOL") as at 1st August, 1996

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CLAUSE IV - REMEDIAL MEASURES AND POLLUTION DAMAGE -REIMBURSEMENT AND COMPENSATION OF CLAIMS THEREFOR

A.	If a Discharge of Oil occurs from one or more Designated Offshore Facilities, and if, as a result, any Public Authority or Public Authorities take Remedial Measures and/or any Person sustains Pollution Damage, then the Party who was the Operator of said Designated Offshore Facility or Facilities at the time of the Discharge of Oil shall reimburse the cost of said Remedial Measures and pay compensation for said Pollution Damage up to an overall maximum of U.S. $120,000,000 per Incident, to the extent and subject to the provisions set forth below.
	1.	The maximum amount of said costs of Remedial Measures for which any Public Authority or Public Authorities shall be so reimbursed shall be U.S.$60,000,000 per Incident, plus that portion, if any, of the maximum amount referred to in sub-paragraph 2 which, under the circumstances of the Incident, is not in fact due hereunder, less the costs of any Remedial Measures taken by the aforesaid Party. If the aggregate cost of Remedial Measures taken by two or more Public Authorities exceeds the maximum so calculated, it shall be pro-rated among them.
	2.	The maximum compensation payable hereunder for Pollution Damage shall be U.S.$60,000,000 per Incident, plus that portion, if any, of the maximum amount referred to in sub-paragraph 1 hereof which, under the circumstances of the Incident, is not in fact due hereunder. If the aggregate of Claims for Pollution Damage exceeds the maximum so calculated, it shall be pro-rated among the Claimants.
B.	No obligation shall arise hereunder with respect to Remedial Measures and/or Pollution Damage arising from an Incident if the Incident:
	1.	resulted from an act of war, whether there be a declaration of war or not, hostilities, civil war, insurrection, or a natural phenomenon of an exceptional, inevitable, and irresistible character;
	2.	was wholly caused by an act or omission done with intent to cause damage by a third Person;
	3.	was wholly caused by the negligence or other wrongful act of any Government or other authority or resulted from compliance with conditions imposed or instructions given by the Government of the State which issued the Licence as to the Designated Offshore Facility involved; or
	4.	resulted wholly or partially, either from an act or omission done with intent to cause damage by a Claimant, or from the negligence of that Claimant, in which case any Party hereto which would otherwise be liable hereunder shall be exonerated wholly or partially from its obligations to said Claimant.

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