What is the scope of the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage?

The International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage (1992) (Fund Convention) is an international agreement designed to provide compensation for damage caused by oil pollution resulting from maritime incidents. The Fund Convention applies to all oil pollution damage caused by incidents occurring on the high seas (outside of territorial waters), or in waters subject to the sovereignty, jurisdiction, or control of a State party to the Fund Convention. The Fund Convention provides for a two-tier system of financial responsibility for damages caused by oil pollution. First, the owner and operator of the ship responsible for the incident are liable for the damage. However, if the owner and operator do not have sufficient resources to cover the damages, the Fund Convention provides for an additional layer of liability through an international fund to which States parties have contributed financially. Under the Fund Convention, the international fund is used to pay compensation for damages caused by oil pollution in three categories: damages to the environment, economic losses, and further loss or damage caused by preventive measures. The amount of compensation that can be awarded varies depending on the damage caused, but it is generally up to a limit set by the Fund Convention. The Fund Convention applies in California since California is a party to the Fund Convention. That means that any damage caused by an incident of oil pollution which originates from within California’s territorial waters falls under the scope of the Fund Convention and can be compensated for under the Fund Convention.

What is the scope of the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage?

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