The Offshore Pollution Liability Association Ltd


Information for Prospective Members

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How is OPOL made to apply to offshore facilities?

A party makes OPOL applicable to the offshore facilities for which it is the operator by giving written notice to the Association of the licence under which the offshore facilities are or will be operated. This is referred to as designating the licence, and OPOL will then be applicable to all present or future facilities installed or operated under that licence. Forms C and D are provided for this purpose. Details of the licence and the participants are given on Form C. This form may be submitted at the time of application to become a party, even if operations have not yet commenced, and should in any event be submitted before operations are started. Form D is used to notify details of the facilities and should be sent with Form C if operations have already commenced, or may be sent later. It is also used to advise the Association of any change in the facilities. The facilities involved are referred to as "Designated Offshore Facilities."

 

What are the obligations assumed under OPOL by making it applicable to offshore facilities?

As a result of designating the licence, if a spill occurs from any of the facilities installed or operated under that licence, the operator agrees to meet claims for clean up and pollution damage in accordance with the liability provisions set out in Clause IV of OPOL. The liability is strict, with certain exceptions, and has an overall limit of U.S $120,000,000 per incident. This acceptance of strict liability cannot supplant legal liability, but it does provide a means of dealing with claims that is simpler and more satisfactory both to the claimant and to the operator.

A party to OPOL must also provide evidence of financial responsibility to meet claims, and additionally agrees to contribute, in proportion to the number of relevant facilities operated by it on the date of the incident in question, towards payment of claims due from a party that fails to meet its obligations. The party also agrees to pay its share of the administration costs of the Association.

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