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Oil Pollution Compensation Act of 2007

Republic Act No. 9483

Declaration of Policy Adopts the internationally accepted measures which impose strict liability for Oil Pollution Damage and ensure prompt and adequate compensation for persons who suffer such damage.

Scope of Application 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.

Liability on Pollution Damage

Ship Owners or Insurer Joint & Several Liability of Owners if the Incident involves two or more vessels

Expenses for Clean-Up Operations

Expenses of Preventive Measures and further loss or damage caused by preventive measures

Consequential loss or loss of earnings suffered by Owners or users of property contaminated or damaged

Pure economic loss or loss of earnings sustained by persons although the damaged property does not belong to them

Damage to human health or loss of life

Environmental damages and other reasonable measures of environmental restoration

Funds Under this Act

Funds from the deposit or bank guarantee or other
financial security of Ship Owners with MARINA (Sec. 11)
The Owner shall be required to deposit the sum representing the limit of his liability Not exceeding 5,000 tons - 3 million units of account In excess of 5,000 tons 3 million plus 420 units of account for each unit of excess

The Funds will be used to cover Incidents causing Pollution Damage, claims for compensation of which must be brought directly to the RTC

The MARINA will issue certificate to ship carrying more than 2,000 tons of Oil in bulk as cargo attesting that an insurance is in force in accordance with provisions of this Act Enforcement:

Philippine Ports Authority (PPA) shall deny port services to Ship carrying more than 2,000 tons of oil in bulk as cargo by preventing it from loading or unloading its cargo until it is able to produce the certificate from MARINA Philippine Coast Guard (PCG) shall conduct inspection of such certificates

Oil Pollution Management Fund - OPMF (Sec. 22)

Contributions of Owners through an impost of 10c/liter for every delivery or transhipment of Oil made by tanker barges and tanker haulers 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

Shall be used to finance the following activities: Immediate containment, removal and clean-up operations of the PCG in all Oil pollution cases, whether covered by this Act or not; and Research, enforcement and monitoring activities of relevant agencies like PCG, MARINA and PPA. In case of final adjudication/award by the RTC, the ship Owner shall reimbursed to the OPMF the amounts advanced to the corresponding entity or claimant.

International Oil Pollution Compensation Fund IOPC (Sec. 15)

Contributions from any person who has received more than 150,000 tons of contributing Oil in a calendar year in all ports or terminal installations in the Philippines through carriage by sea The Fund pays compensation when: the damage exceeds the limit of the shipowners liability under the 1992 CLC, or the shipowner is exempt from liability under the 1992 CLC, or the shipowner is financially incapable of meeting his obligations in full under the 1992 CLC and the insurance is insufficient to pay valid compensation claims.

Reporting of Contributing Oil

Mandatory reporting of the quantity of contributing oil received in the territory in a calendar year, to the Department of Energy (DOE), who shall communicate, through the Department of Foreign Affairs (DFA) the data and in the manner prescribed by the 1992 Fund Convention.

Action for Compensation

Such action shall be filed with the RTC within 3 years of the date on which the damage occurred, but not later than 6 years of the date of the Incident The PCG shall investigate, motu proprio or through compensation or violation of this Act, and shall forthwith file appropriate action with the RTC


PCG 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 fee is equivalent to 10% of the regular rates established by the Supreme Court

Indigent plaintiff is exempted from payment of filing fee

Punishable Acts

(a) Any person who fails to institute or maintain insurance or other financial security Minimum fine of P100,000.00 to P15,000,000.00 as maximum, depending on the ships gross tonnage (b) Owner or master of a Ship who operate a Ship without maintaining on board a certificate of insurance

Fines ranging from P500,000.00 to P1,500,000.00

(c) Any person who fails to contribute to the IOPC Fund after due notice by the MARINA Fines ranging from P500,000.00 to P1,500,000.00 (d) Failure to submit Report of Contributing Oil Fines ranging from P500,000.00 to P1,500,000.00

(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 Fine not exceeding P100,000.00 (f) Any Ship apprehended for violation of this Act may be subjected to detention. NOTE: 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.

Oil Pollution Compensation Act of 2007

Republic Act No. 9483