Complete PDF version - Skuld

A DAY IN THE LIFEHEBEI SPIRIT INCIDENTMore than 50,000 volunteers worked perday – with this number passing the 1 millionmark in early January. No detail wasoverlooked in the massive clean up effort.PHOTO: ITOPF“THIS NOVELAPPROACHWAS A WIN-WINAGREEMENTFOR ALLPARTIES”was released, leaving for international waters and repairs in China.Both the owners and the managers of the Hebei Spirit expressed theirappreciation for Skuld’s proactive approach to the negotiations withthe Korean Government.Korea is a party to the international system of compensation for oilpollution by tankers established by the Civil Liability Convention (CLC)1992 and the Fund Convention 1992. Under these conventions, paymentof proper claims is guaranteed by the insurer of the ship and by theIOPC Fund.PRESSURE ON THE CREWOne aspect of the situation was disappointing. Even though clear compensationprocedures are recognised under international conventions,the Korean Government moved to arrest the Hebei Spirit and beganauction procedures on the vessel – undoubtedly responding to heavypolitical pressure.“Skuld took immediate action, suggesting a high level meeting inKorea with the Government, the IOPC Fund, ITOPF and Skuld whereit launched the idea of entering into a cooperation agreement with theGovernment,” says Nicola Mason. “This move recognised the intensepressure the government was under to secure funds for environmentalcleanup and hardship payments for all those whose livelihoods wereaffected by the spill.”SECOND COOPERATION AGREEMENTA landmark Second Cooperation agreement was signed with the KoreanGovernment on July 4, 2008. Thisagreement ensures that Skuld isable to pay compensation to thevictims of the Hebei Spirit incidentquickly, while working within theframework of relevant internationalconventions and local law.Such an unprecedented agreementavoided a payment problem.Skuld’s proactive assistance tothe Korean Government enabledall parties to find a way aroundcompensation difficulties in anextremely complex case. Underthe agreement, Skuld complieswith its obligations under theCLC Convention and Korean law– and is able to make swift andefficient payments to the victimsrather than having to tie upcompensation funds in the court.“The natural tendency is to wishto pay full compensation as soonas possible,” Nicola observes,“although there were a numberof hurdles to overcome.”She explains that due to nationallegal requirements and the internationalconventions regardingthe overall limit of payments,ordinarily only a percentage ofthe total compensation could bemade available immediately.This is to avoid the risk that earlyclaimants get full payment, whilethose coming later receive littleor no compensation because thereare no more funds – a situationthat would be patently unfair.The risk was that Skuld couldhave been required to make apayment equal to the Civil LiabilityConvention (CLC) into court. Thiswould mean that Skuld would notMONTH BYMONTHTHE HEBEI SPIRIT ACCIDENT»Many different oyster rack structureswere oiled in the spill – with many fisheriesand marine culture farms losing theirstocks. PHOTO: ITOPF8 BEACON / DECEMBER 2008JANUARY 14, 2008The Hebei Spirit Centre is established,facilitating the first hardship paymentsin the case. As of today, about 50 peopleare involved in processing claimsestimated to reach more than 100,000claimants and total more than USD550 million. The Centre can be inoperation for up to four years.FEBRUARY 5, 2008USD 12 million is dispursed to over150,000 people in payments in supportof the clean-up effort and also hardshipcases. Many of the local fishermenwho were victims of the spill wereutilised and paid to take part in theclean-up operation.The first step on the road to recovery is awell conducted clean-up operation. Manylocal fishermen were paid to take part.PHOTO: ITOPF