§ Lord Kennetasked Her Majesty's Government:
What is the upper limit on the liability of an oil company operating in the North Sea in respect of the discharge of toxic and hazardous materials.
§ The Parliamentary Under-Secretary of State, Department of Energy (Baroness Hooper)The limit of liability of an oil company is dependent on the type of material discharged and its source. For oil from offshore installations, the Offshore Pollution Liability Agreement allows for compensation of $60 million. For other hazardous materials discharged from platforms, there is no specific regime setting liability limitation figures. Any redress would be sought through the civil courts.
In liability cases involving oil-related shipping incidents, the International Oil Pollution Compensation Fund provides compensation up to £49 million per incident. For other hazardous materials discharged from ships, liability is related to tonnage. Under the 1976 Convention on Limitation of Liability for Maritime Claims the maximum compensation is £10 million per incident.