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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
A DAY IN THE LIFEHEBEI SPIRIT INCIDENT/“WE WANT TOGET CLAIMSMADE ANDPAYMENTSSETTLEDSWIFTLY”be allowed to make payment tovictims. It then might take severalyears before the courts are in aposition to distribute the funds– an obviously undesirable situation.STATUS – THE MASTER & CREWSkuld’s support for the Masterand crew has been greatly appreciatedby the owners and managersof the Hebei Spirit. All the crewexcept the Master and ChiefOfficer have been released. InJuly this year the Master andChief Officer were found innocentof all charges of violating thenation’s ocean pollution lawfollowing the oil spill.However, despite their acquittal,the Korean courts have still beendetermined to detain them – foras long as a year – depending onfurther hearings. Organisationsfrom across the world’s shippingindustry issued a vigorous jointprotest to what they have calledthe continuing unjust and unreasonabledetention of the twomerchant ships’ officers. Skuldcontinues to work for the officers’release.THE HEBEI SPIRIT CENTRE“We in Skuld feel a real admirationfor the Korean people, includingthe many volunteers cleaning thebeaches who have dealt with thistragedy in such an honourableand courageous manner,” saysSebastian Walldén, a ClaimsExecutive with the Oslo officeand – along with Sandro Vuylsteke– part of the team running theHebei Spirit Centre and managingclaims payments.“We feel sympathy for all thosewhose livelihoods were affectedby the tragic event, and are alsosaddened by the environmentaldamage that resulted,” he added.“It’s still encouraging to see theprogress that is being made withthe clean-up efforts. Our motivationis to get claims settled and paymentsmade as swiftly as humanlypossible.”As of last month, the clean-upoperations were completed onthe shorelines polluted by theHebei Spirit incident. “We’d alsolike to express our appreciationto our correspondents and surveyorsin South Korea,” saysSebastian. “They have done animpressive job in difficult anddemanding circumstances.”Today, about 50 people areinvolved in processing claimsestimated to reach more than100,000 claimants and totalmore than USD 550 million.READ MOREwww.iopcfund.orgwww.itopf.orgwww.wikipedia.orgwww.youtube.com (search Hebei Spirit)/ THE KOREAN SPIRITTHE KOREAN PEOPLE JOINED IN A HUGEMANUAL CLEAN-UP EFFORT10,000Up to10,000 localvillagersand fishermena daywereinvolved50,000More than50,000volunteersworked perday, withvolunteerstopping the1-millionmark in early20,000The cleanup utilisedover 20,000vesselsdays350Morethan 350helicopterflights andnearly30,000heavymachineryunit-days1,000’sThe Koreanmilitarycontributedthousandsof mandaysoverthe courseof sixweeksJanuarywere used/FACT FILEINTERNATIONAL COMPENSATIONFUNDS & PAYMENT TO VICTIMS140P&I COVERAGE10ADDITIONAL INTERESTPROVISION180IOPC FUND330TOTAL P&I PAYMENTS& FUNDS450-500+ESTIMATED TOTAL COSTOF THE INCIDENT/ITOPFMILLION USDUnder International Conventions, Skuld– backed by the International Group ofP&I clubs – funds 100% of all claims upto a limitation of USD 140 millionSkuld has also allocated additional funds asnecessary for interest on claims that coversthe period between the incident date ofDecember 7 last year and the payment dateThe International Oil Pollution Compensation(IOPC) Fund then compensates 35% of theclaims up to their limit of approximatelyUSD 180 millionSo the total funds available for compensationreach around USD 330 million. The KoreanGovernment is not a signatory to a conventionthat would have provided even morecompensation coverageAs the cost for compensating victims ofthe incident will go over USD 330 million,the Korean Government, under the SecondCooperation Agreement with Skuld, hasagreed to guarantee payment of allcompensation above that amountINTERNATIONAL TANKER OWNERS POLLUTION FEDERATIONJULY 4, 2008The landmark Second CooperationAgreement between Skuld and theSouth Korean Government is signed.Its unique approach makes it possibleto pay compensation to the victims ofthe Hebei Spirit incident quickly whileworking under the framework of internationalconventions and local law.Skuld and the Korean Government representativesshake hands following theunique Second Cooperation Agreement./ LONDON-BASED ITOPF is arespected non-profit organisationinvolved in all aspects of handlingspills of oil and chemicals in themarine environment./ ITOPF was originally establishedin 1968 following Torrey Canyonincident to administer the voluntarycompensation agreementcovering those affected by oil spills./ NOW HAS OVER 5,000 tankerowner-members who operate8,800 vessels with a total grosstonnage in excess of 252 million gt.Other types of ships with a tonnageof more than 405 million gt areassociate members./ DEVOTES CONSIDERABLEeffort to a wide range of technicalservices – the most importantis responding to spills of oil andchemicals – its response teamis at constant readiness to assistat marine spills anywhere in theworld./ ALSO PROVIDES damageassessment, claims analysis,contingency planning, trainingand database information.BEACON / DECEMBER 20089
Page 1 and 2: SKULD.COMSKULDMAGAZINEDECEMBER 2008
Page 3 and 4: CONTENTSA DAY IN THE LIFE OF SKULD4
Page 5 and 6: A DAY IN THE LIFEHEBEI SPIRIT INCID
Page 10 and 11: CURRENTORGANISING FOR MAJOR INCIDEN
Page 12 and 13: CURRENTBy Eric JacobsEVP Marketing
Page 14 and 15: LEGALISSUESBy Nicola MasonVice Pres
Page 16 and 17: LEGALISSUESBy Jonathan HareSenior V
Page 18 and 19: PERSONNELNEWSNEW EMPLOYEES & PROMOT
Page 20: SKULDMAGAZINENEXT ISSUEOUT MARCH 20

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