Norway mops up

THE Norwegian coast has become something of a resting ground for an increasing number of sunken or grounded vessels. For example, since 1999 alone, the Bahamian vessel Hedlo grounded off Karmøy, the Norwegian Green Ålesund grounded off Haugesund, the Cypriot cargoship John R grounded off Karlsøy and an Icelandic fishing vessel grounded and sank in Lofoten, to name but a few.

According to Trond Eilertsen, partner at Oslo-based Wikborg Rein & Co, which acted on behalf of the owners and/or insurers in all the above cases, a growing number of high-profile incidents over the last few years has served to focus attention on environmental and financial issues. "Both cargo and bunkers on board these stranded or sunken vessels constitute serious threats to the environment, with costly and extensive clean-up actions as a result," says Eilertsen. And with traffic - particularly oil tankers to and from Russia along the Norwegian coast - expected to increase in the future, the Norwegian government has been prompted to take action.

The Norwegian Committee of Maritime Law is a government-appointed standing committee made up of maritime lawyers and representatives from related industries and public bodies. The committee is charged with reviewing maritime law developments in Norway. And, in light of the number of serious casualties along the Norwegian coast, the Norwegian government approached the committee for a possible solution.

One of the concerns of the Norwegian government was the high cost of wreck removal and clean-up in the aftermath of pollution. "On several occasions recently, the clean-up and wreck removal costs have been higher than the limitation of the vessel involved. As a result, the Norwegian government has had to contribute financially," explains Eilertsen.

In a bid to address this particular issue, in August 2002 the Norwegian Committee of Maritime Law issued a white paper entitled Liability for Cleaning Up Action Following Maritime Casualties which suggested an amendment to the Norwegian Maritime Act which, while allowing shipowners still to limit their liability for wreck removal and clean-up costs, increases the limits considerably. "It is hoped that this will enable the Norwegian government to ensure that polluters can perform a full clean-up operation and cover all the necessary removal costs," says Eilertsen. This special limitation amount will be applied to cover only wreck removal and clean-up costs.

The white paper suggestion is based on Article 18 No 1 of the Convention on Limitation of Liability for Maritime Claims 1976, as it reads following the amendment by the 1996 Protocol. The article states that governments can make reservations as to the rights of shipowners to limit their liability when it comes to removing ships that have sunk, been stranded or wrecked, including any claims regarding the removal and destruction of the cargo on board. On May 24, 2002, the Norwegian government decided to make such reservation, but left it to the committee to propose further legislation.

"Of significant concern to the Norwegian government is the anticipated increase in the transportation of oil in bulk from northern Russia along the Norwegian coast,not to mention the movement of nuclear waste to Russia," says Eilertsen. Keeping the waters off Norway clear of pollution has, therefore, become an even greater priority than ever.

This latest white paper from the Norwegian committee, which follows similar measures adopted in Belgium, Holland and Germany, will now be circulated for comment to various parties including maritime organisations, insurance companies and legal committees.