The Legal Implications of Oil Spillage: What You Need To Know

Paper Details 

Paper Code: RP-VBCL-13-2025

Category: Research Paper

Date of Publication: April 20, 2025

Citation: Dr. N. Vani Shree & Ms. Rajeswari H, “The Legal Implications of Oil Spillage: What You Need To Know", 2, AIJVBCL, 174, 174-181(2025).

Author Details: Dr. N. Vani Shree, Principal, JSS Law College, Mysuru, Karnataka, INDIA

Ms. Rajeswari H, Student of Final Year Year BBA.LL.B (Hons.) JSS Law College, Mysuru, Karnataka, INDIA

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ABSTRACT

This brief article delves into the significant issue of oil spillage, discussing the environmental, economic, and social impacts caused by such incidents. Furthermore, it explores the complex legal implications and liabilities associated with oil spills, shedding light on the regulations and responsibilities that companies and individuals must abide by in the event of a spill. By examining the far-reaching consequences of oil spillage, from damage to aquatic ecosystems to financial ramifications and public backlash, this article provides a comprehensive overview of the multifaceted challenges that arise from oil spills. The primary issue with oil pollution is that, as a result of the massive volumes of oil dropped, it is currently one of the biggest contributors to harm to the marine environment. Oil spills are typically caused by shipping mishaps, fatalities, and vessel cleaning procedures. In addition to highlighting the need for stringent preventive measures and rapid response strategies, it underscores the importance of holding accountable those responsible for oil spillage to ensure transparency and justice in addressing such environmental disasters.

Keywords : Oil Spills, Oil pollution, Legal implications, Environmental effects, International Conventions

INTRODUCTION

We use oil, a fossil fuel that has been around for a long time, to power many aspects of our economy, including heating our homes and producing electricity. However, big issues can arise when oil spills into the ocean by accident. In addition to ruining a beach day, oil spills can kill marine life and contaminate seafood. Cleaning up the oil, quantifying the effects of pollution, and assisting in the ocean's recovery all require good science[1]. Crude oils are made from the remains of the dead plants and animals a million years ago. This crude oil is drilled from the ocean beds by large vessels and it is sent worldwide for human consumption. Now, when such extraction takes place, there might be any mishaps or chaos human made or natural disaster.

This shall lead to a huge spillage in the ocean polluting the mighty waters and the ecosystem living within it. There are other ways of oil spillage also, one such instance is dripping of oil due to an accident or collision of the vessel which carries the oil. This paper studies the liability of oil spillage due to ship accidents. Further in this article, there is a mention about the conventions on oil pollution and effects of this oil pollution.

OIL SPILLAGE AND ITS EFFECTS

Oil spills happen anywhere, either where the oil is drilled, transported, or used. It happens in the ocean, in the Great Lakes, on the shore, or in rivers that flow into these coastal waters. The "pores" or holes in the rock known as reservoirs are where oil is found underground or beneath the ocean floor. The crude oil is transported to refineries,processing facilities, by pipes, ships, trucks, or trains after it has been drilled out and pumped out. In this process, the crude oil is broken down to create various petroleum products, such as paints, asphalt, plastics, soaps, and gasoline and other fuels. Accidents can occasionally occur when extracting crude oil from underground storage or when shipping or pipelining it to a refinery. Oil may leak into the environment as a result of these accidents. Big oil spills are dangerous, serious catastrophes. These typically occur when drilling operations go wrong, large oil tanker ships sink, or pipelines burst[2].

MAJOR EFFECTS OF OIL SPILLS

Sea plants: Sea plant life is infeasible without oxygen and the entry of oxygen is trapped because of Oil spills making it impracticable for the plants in the sea which is a significant life source for the marine ecosystem. The sea plants will die as a result of lack of oxygen. The process of photosynthesis cannot be performed by the plants because of the absence of sunlight[3]. 

Sea animals: The most affected ones would be the aquatic species, fishes and other animals in the sea. These organisms will also pass away because of lack of oxygen and sunlight. They are also likely to hunger in addition to dying. Seabirds, for example, rely on scent to identify their young, and when an oil spill occurs, the infants are unable to discover their parents, and as a result, they starve to death.

Human health: Petroleum products, including benzene, polyaromatic hydrocarbons, polycyclic aromatic hydrocarbons, and toluene, contain toxic chemicals common in spills will harmfully affect the humans as well as aquatic species. If humans inhale these compounds, they are at risk of developing health problems. This is especially true of the lungs, which are a vital organ for respiration in the body[4].

Coral reefs: In addition to providing a home for marine life, coral reefs often cease to thrive when exposed to oil. When this happens, marine invertebrates—which rely on corals for survival—are most negatively impacted.

Lack of clean drinking water: Human life cannot exist without access to clean drinking water. A lack of safe drinking water can lead to fatal water-borne illnesses. This once occurred in Malaysia when the water supply was tainted by an oil leak[5].

There are more ecological and financial repercussions from oil spills that occur near beaches and populated areas. For decades, the quality of the air, water, and land has been negatively impacted by oil spills and pollutants associated with them, endangering the existence of all living things. Oil pollution, gas flaring, and oil spills are the main causes of environmental hazards in the nation's oil region. Common causes include operational releases of petroleum hydrocarbons into the environment, theft, human error, and accidents. Environmental risks prevent plants and animals from functioning to their full potential, creating conditions that are unsuitable for a healthy existence.

INTERNATIONAL CONVENTIONS

Oil spillage is a disastrous catastrophe, and the liability for mitigating the affected will be huge. For such purposes there shall be an effective legal regime. Internationally, IMO is responsible for any of the affairs relating to the ship industry.

The International Maritime Organization[6] 

It is the United Nations specialized agency with responsibility for the safety and security of shipping and the prevention of marine and atmospheric pollution by ships. The IMO is the international standard-setting body for the environmental performance, safety, and security of international shipping. It is a specialized agency of the United Nations. Developing a fair and efficient regulatory framework for the shipping industry that is widely accepted and applied is its primary responsibility. To put it another way, its purpose is to level the playing field so that ship operators cannot easily take shortcuts and sacrifice environmental, safety, and security performance in order to make ends meet. This strategy also promotes creativity and effectiveness. IMO is the Secretariat for the International Oil Pollution Preparedness, Response and Cooperation Convention (OPRC 90), and has assisted the NOWPAP Marine Environmental Emergency Preparedness and Response Regional Activity Centre (MERRAC) and NOWPAP Member States in the development of a NOWPAP Regional Oil Spill Contingency Plan and an associated regional MoU as well as other activities which belong to the scope of MERRAC.

International Oil Pollution Preparedness, Response and Cooperation Convention (OPRC 90) 13 May 1995[7]. In July 1989, a conference of prominent industrial nations held in Paris urged the International Maritime Organization (IMO) to enhance measures aimed at preventing pollution from vessels. This appeal was supported by the IMO Assembly in November of the same year, leading to the initiation of a draft convention designed to establish a global framework for international collaboration in addressing significant incidents or threats of marine pollution. Signatories to the International Convention on Oil Pollution Preparedness, Response and Co-operation (OPRC) are mandated to implement strategies for managing pollution incidents, either independently or in collaboration with other nations. Vessels are obligated to maintain a shipboard oil pollution emergency plan. Additionally, operators of offshore units under the jurisdiction of the signatory Parties must also possess oil pollution emergency plans or equivalent arrangements, which should be integrated with national systems to ensure a prompt and effective response to oil pollution incidents.

1. The International Convention of Civil Liability for Oil Pollution Damage, 1969 (‘1969 CLC’)[8] 

2. The international Convention on the Establishment of an International Fund for Oil Pollution Damage, 1971 ( ‘1971 Fund Convention’)[9] 

These two provide for a two step compensation regime for those who suffered loss as a result of oil spillage within the jurisdictions of member-states. Both the conventions were revised by protocols adopted in 1992. The conventions were reconstituted and are now referred to as the 1992 Liability Convention (‘1992 CLC’) and the 1992 Fund Convention respectively. The IMO's Legal Committee has approved changes that would increase the maximum amount of compensation that victims of tanker oil pollution can receive by 50%. Through a new protocol, the IMO established a Supplementary (or "third tier") Fund in 2003, raising the compensation amount in ratifying states to approximately US$1.2 million. Bunker oil spills from ships other than tankers are not covered by the IMO's current oil spill regulations. In order to establish a system of liability and compensation for oil spills that occur when fuel is transported in ship bunkers, the IMO adopted a new International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001 in March 2001[10].

LIABILITY BECAUSE OF OIL SPILLAGE DUE TO SHIP COLLISION

In the event of an accident, the polluter is usually held liable. Normally, the polluter pays principle is applied. Therefore, the vessel that is at fault will generally be held liable if an oil spill or pollution is caused by ship collusion.

The principle of strict liability is the governing principle construing the liability in these oil spillage cases. The principle evolved through Rylands v Fletcher[11], where there is a dangerous thing and escape of such a dangerous thing is because of negligence on the part of the occupier. Similarly, oil is a dangerous thing and escaping of that would create a catastrophe. So, it is the responsibility of the occupier to take due care of it.           In incidents of damage to natural resources, collective interests are primarily infringed. Such damage is difficult to recover under tort law because it is traditionally focused on individual material interests and no as such personal interests are said to be infringed and so no one has standing to sue. However, in existence of special laws or doctrines, standing and cause of action to claim compensation for such damage can be specifically provided to government entities[12].

International Liability and Compensation Regime :The prevention of marine pollution is governed, among other regulations, by the OILPOL and MARPOL Conventions. The matter of civil liability and compensation for oil pollution is primarily addressed by international conventions established under the auspices of the International Maritime Organization (IMO), specifically the CLC and Fund Convention. In addition to the conventions overseen by the IMO, the leading tanker owners globally have consented to a voluntary liability scheme known as TOVALOP 73, which was later enhanced in 1971 by the CRYSTAL initiative.These conventions also impose civil liability on the party[13].

CONCLUSION

Oil spills represent a significant environmental hazard, posing threats not only to marine life but also to coastal communities and economies. The devastating impact of oil spills can linger for years, affecting ecosystems, wildlife, and human health. When handling oil in vast bodies of water, it is imperative to exercise caution and implement robust safety measures to prevent spills from occurring in the first place. Adhering to the principle that "prevention is always better than cure" is essential in this context, as the costs associated with cleanup and restoration efforts can be astronomical, both financially and environmentally. The coastguard plays a crucial role in safeguarding the coastal ecosystem, acting as the first line of defense against maritime disasters. Their effectiveness in responding to emergencies is contingent upon their training, resources, and preparedness. It is vital to ensure that coast guard personnel are adequately trained in spill response techniques and equipped with the necessary tools and technology to manage such crises effectively. This includes not only immediate response capabilities but also long-term strategies for monitoring and protecting vulnerable marine environments. To mitigate the risk of maritime accidents and enhance accountability, the country's liability framework must be reinforced. This can be achieved by imposing criminal responsibility on the owners and associated parties involved in oil spills. By holding these entities accountable for their actions, it creates a stronger deterrent against negligence and encourages adherence to safety protocols.

In India, the legal framework governing oil pollution damages operates under a civil liability model. The Merchant Shipping Act, particularly through Parts XB and XC, incorporates the provisions of the Civil Liability Convention (CLC) and the Fund Convention. These international agreements hold the owner accountable for oil pollution damages while also establishing a limitation fund to provide compensation for affected parties. However, it is crucial to evaluate whether the Merchant Shipping Act effectively embodies the principles of these international conventions or if it falls short in its implementation regarding oil pollution incidents. A significant shortcoming of the Merchant Shipping Act is the absence of specified liability caps, which can lead to ambiguity in accountability and compensation. Without clear limits on liability, there is a risk that responsible parties may not take the necessary precautions to prevent spills, knowing that their financial exposure is uncertain. To avert environmental disasters and ensure that victims of oil spills receive fair compensation, there is an urgent need for new legislation that addresses these gaps, supported by international agreements that reinforce the importance of accountability and environmental protection. In conclusion, addressing the challenges posed by oil spills requires a multifaceted approach that includes enhancing the capabilities of the coastguard, reinforcing the liability framework, and ensuring that legislation aligns with international standards.

* Principal, JSS Law College, Mysuru, Karnataka, INDIA

** Student of Final Year Year BBA.LL.B (Hons.)  JSS Law College, Mysuru, Karnataka, INDIA

[1] https://www.noaa.gov/education/resource-collections/ocean-coasts/oil-spills accesed on 1 march 2025

[2]  https://oceanservice.noaa.gov/education/tutorial-coastal/oil-spills/os01.html accesed on 1 march 2025

[3]https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://unacademy.com/content/upsc/disaster-management-notes/oil-spill-and-its-impacts/&ved=2ahUKEwju1- G9yeuLAxV5yqACHYNpMHgQFnoECDQQAQ&usg=AOvVaw0eNmyhd6lnxMFP_kCihNeA accesed on 1 march 2025  

[4]Laffon, B., Pásaro, E., & Valdeiglesias, V. (2016). Effects of exposure to oil spills on human health: Updated review. Journal of Toxicology and Environmental Health, Part B, 19(3-4), 105-128.

[5] .Che Ishak, I., Md Arof, A., Zoolfakar, M. R., Rozali, M. F., Salleh, H. S., Isha, A. S. N., & Mohd Sabri, N. A. (2023). The Effect of Oil Spill from Current Oil Spill Incidents in Malaysia. Materials and Technologies for Future Advancement, 233-241.

[6] https://www.imo.org/en/About/Pages/Default.aspx Accessed on 2 March, 2025

[7]https://www.imo.org/en/About/Conventions/Pages/International-Convention-on-Oil-Pollution-Preparedness,-Response-and-Co-operation-(OPRC).aspx

[8]https://www.google.com/urlsa=t&source=web&rct=j&opi=89978449&url=https://www.imo.org/en/About/Conventions/Pages/International-Convention-on-Civil-Liability-for-Oil-Pollution-Damage-(CLC).aspx&ved=2ahUKEwjik6u4se2LAxWmTmwGHQvFA1QQFnoECBMQAQ&usg=AOvVaw2_DZbeX7Qkihcn-KWRSJcM accessed on 2 March 2025

[9]https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://www.imo.org/en/About/Conventions/Pages/International-Convention-on-the-Establishment-of-an-International-Fund-for-Compensation-for-Oil-Pollution-Damage (FUND).aspx&ved=2ahUKEwiinNinsu2LAxW5S2cHHV4sK1cQFnoECAsQAQ&usg=AOvVaw1KOMxYhc_VQgfTGPmNfTEy

[10]https://www.imo.org/en/About/Conventions/Pages/International-Convention-on-Civil-Liability-for-Bunker-Oil-Pollution-Damage-(BUNKER).aspx

[11] (1868), L.R. 3 H.L. 330.

[12] Edward H.P. brans, Liability for Damage to Public Natural Resource Standing Damage and Damage Assessment, (Kluwer Law International 2001) available at www.dundee.ac.uk/cepmlp/journal/html/vol10/article10-1.pdf

[13] Oil Spills: Law on Liability with Special Reference to the Indian Regime * 4BJL 2011(1) 48