Act on the Liability for Oil Pollution from Ships (No. 401 of 1980)

No. 401 ACT ON LIABILITY FOR OIL POLLUTION FROM SHIPS May 30, 1980 Section I For !he purposes of this Act: oil means crude oil, all oil products derived therefrom, as well as vegetable oil and whale oils; permrment oil means crude oil, beavy fuel and diesel oil, l11bric11ting oil, whale oils and other oils of comparable permanence; oil pollution means environmental damage caused by oil released from a ship, and the damage caused and expenses incurred by combating measures; combating measures means all the necessary response procedures taken after the pollution incident has occurred in order to prevent or reduce the pollution damage or to restore the natural state of the environment; · pollution incident means an event or interrelated series of events causing oil pollution; shipowner means the registered owner of a vessel or, if the ship is not registered, its owner; if a Government-owned vessel has a company registered as its user, said company shall be considered the owner; SDR means Special Drawing Rights define<.1 by the International Monetary Fund (IMF); ship mca,ns any waterbome vessel or other floating craft moving under its own power or towed by another vess~l; ship capacity means the net tonnage of a vessel plus the tonnage altributable to machine space (deducted from the gross tonnage in defining the net tonnage); or, for vessels to which normal measurement regulations do not apply, 40% of the load-carrying capacity of the vessel; or, for vessels not interuled for cargo transpon, 30% of the displacement of the vessel in tonnes; Convention means the Convention Relating to Civil Liability for Oil Pollution Damage concluded in Brussels on November 29, l 969 and the Protocol relating-rhereto con cluded in Loridon on November 19, 1976: and member state means a coumry that has ratified the Convention. Section 2 This Act shall apply 10 oil pollution caused in Finland or in any other member statc by the discharge ofpennanent oil from a ship carrying a bulk cargo of oil. Oil pollution shall also include damage caused and expenses incurred by combating measures in response to oil pollution threatening the territory of a member state. The app\icabi\ity of this Act to oil pollution caused by a warship or other solely non-commercial Government-owned vessel, or a ship not carrying a bulk cargo of pennanent oil, or to oil pollution caused by other than permanent oil shall be defined below in section 23. This Act shall apply notwithstanding the provisions concerning the applicability of foreign law in Finnish courts. The provisions of this Act shall not be applied if such application would conflict with obligations that Finland has under international agreements. Section 3 The shipowner shall be liable for compensating oil pollution of the kind referred to in Section 2 paragraphs 1 and 2, even ifhe or any other party causing pollution for which he is liable did not cause said pollution deliberately or through negligence. If a pollution incident consists of several inter related events, the party liable for said pollution shall be the party who was shipowner at the time of the first event. However, the shipowner shall be exempt from liability if he is able to show that the pollution was caused: 1) by war, hostilities, civil war or insurrection, or an exceptional, unavoidable and insurmountable natural phenomenon; or 2) solely by action or negligence on the part of a third party for the purpose of sabotage; or 3) solely by error or negligence on the part of the authority responsible for the maintenance of lighthouses or other navigation safeguards while on such duty. Under this Act, compensation shall also be paid to a party responsible under a provision or regulation based on law to undertake oil pollution combating measures. If the party suffering damage has contributed towards causing the pollution, compensation may be negotiated as reasonable. Section 4 A claim may be pursued against the shipowner for compensation of oil pollution as referred to in section 2, paragraphs l and 2, only on the basis of this Act. Compensation for oil pollution as referred to in section 2, paragraphs l and 2, cannot be demanded of a shipowner who does not own the ship in question, nor of the carrier or other party operating the ship in lieu of the shipown er, nor of the consigner, receiver of the cargo, owner of the cargo, pilot or any person otherwise performing or causing to be performed duties on board the ship or for the benefit of same. If pollution occurs in connection with salvage work concerning the ship or its cargo or in connection with combat ing measures, compensatfon cannot be demanded of any party undertaking said salvage or combating measures, unless said party has deliberately breached a prohibition issued by the authorities, or if such measures have been taken by some party other than the authorities in a case in which the shipowner or cargo owner has specifically and with reason prohibited them. The compensation referred to above in paragraph 2 cannot be demanded of any person employed by the shipowner or by the persons referred to in paragraph 2. Compensation paid under this Act for pollution caused by a pilot, a party performing salvage or combating measures or any person referred to in paragraph 3 can be claimed from the party causing the damage only if said party has caused said damage deliberately or through gross negligence. However, the compensation liability of an employee or civil servant shall follow the provisions of the Damage Compensation Act ( 412/ 74) and the Employment Contracts Act (320fi0) concerning the compensation liability of employees and civil servants. Section 5 The shipowner shall be entitled to limit bis liability under this Act for each pollution incident to SOR 133 per tonne of the ship's capacity. However, his liability shall never be greater than SOR 14 million. This limitation is exclusive of interest and legal expenses. If the imllution was caused by a specific error or negligence on part of the shipowner, he shall not be entitled to limit his liability. If the shipowner is in a position to appeal to Finland's obligations towards a state that is not a member state of the Convention but is a member state of the International Conven tion relating to the Limitation of Liability of Owners of Seagoing Ships concluded in Brussels on October 10, 1957 (Finnish Treaty Series 4/68), the provisions of sections 10 to 23, inclusive, of the Maritime Act concerning the right of a shipowner to limit his liability shall apply. Section 6 The shipowner shall be emitted to limit his liability in the manner described in section 5, paragraph I, only if he, his insurer or any third party on his behalf sets up a limitation fund under the provisions of this Act or corresponding legislation in effect in another member state, the amount contained in the fund being equivalent to the shipowner's liability. The liability amount shall be converted from SDR to Finnish currency at the rate of exchange quoted on the date of establishment of said fund. In converting, the value of the Finnish mark shall be calculated according to the method of calculation employed by the IMF on said date in its own operations. In Finland, a limitation fund may be set up at the court in which the claim for compensation has been filed. In setting up a limitation fund, a deposit of money or an acceptable guarantee for same, corresponding to the liability amount, shall be deposited with the executor-in-chief of the local authority in which the court is located. More detailed provisions for the setting up and adminis tration of a limitation fund will be issued by decree. Section 7 If the 1 iabili1y amount defined in section 5, paragraph I, is insufficient compensation for the parties entitled to compen sation, the assets of the limitation fund shall be distributed among them in proportion to their claims. If a limitation fund is set up in Finland and if there is reason to assume that the liability amount will be insufficient compensation for the parties entitled to compensation, the court can rule that, for the time being, only a certain portion of the compensation be paid. Section 8 If a party has paid compensation for oil pollution as referred to in section 2, paragraphs l and 2, before the distribution of the limitation fund, he shall be considered to have suffered damage up to the amount of compensation already paid under this Act or under comparable legislation valid in another member state. If the shipowner or any other party is able to show that he will, in the future, be liable for compensation which he could have required to be paid from the limitation fund as per paragraph l, provided that said compensation would have been paid before the distribution of the limitation fund, the court can rule that a sum sufficient to cover such compensation be set aside so that the claim can be presented to the limitation fund at a later date. If the shipowner has voluntarily met any expenses or suffered damage from combating measures, he shall be the same right to compensation from the limitation fund as all other parties that have suffered damage. Section 9 If a limitation fund is set up under section 6 and not in the case referred to in section 5, paragraph 2, the shipowner shall not be held liable to cover with his other assets compen sation which can be required to be paid from the limitation fund. However, this provision shall not apply to interest or legal expenses. If any of the shipowner's assets have been confiscated or if any other measures have been directed against them in order to ensure payment on claims which can be required to be paid solely out of the limitation fund, said confiscation or other executive assistance shall be revoked upon the setting up of the limitation fund. If the shipowner has deposited a security to avoid such measures, said security shall be returned to him. If the limitation fund is set up in another member state, the provisions of paragraphs I and 2 shall apply only if rhe party suffering damage has the right to pursue a claim in the court or authority with whom the limitation fund resides, and if it is possible for the share of the compensation due to him to be paid out of the assets of the fund. Section 10 Any claim filed under the provisions of this Act for compensation for oil pollution shall be filed within three years of the occurrence of the incident However, in no case may such a claim be filed if six years have elapsed from the date on which the pollution incident occurred or, if the pollution was caused by a series of interrelated events, from the date on which the first event occurred. Section 11 Separate provisions concerning the right to receive compensation from the International Fund for Compensation for Oil Pollution Damage have been enacted. Section 12 For any Finnish ship transporting a bulk cargo of more than 2,000 tonnes of permanent oil, the shipowner must take out and maintain insurance or establish some other security covering the shipowner's liability under this Aet or under corresponding legislation in another member state up to the amount referred to in section 5, paragraph I. However, the Government shall not be required to do so. The insurance or securi1y referred to above in para graph I must be approved by the appropriate authority as provided by decree. When the shipowner has fulfilled the duty providerl in paragraph l, he is entitlerl to receive a certificate· from the authority approving the insurance or security in question to the effect that the duty has been fulfilled. In case of a Government-owned ship, the authority shall issue a certificate to the effect that the ship in question is owned by the Finnish • Government and that its liability is covered up to the amount referred to in section 5, paragraph I. This certificate must be kept aboard the ship, and a copy of it must be submitted to the National Board of Navigation. More specific provisions concerning the certificate referred to in paragraph 3 will be issued by decree. Section 13 Any foreign vessel visiting a Finnish port or using harbour facilities within Finnish territorial waters and at such a time carrying a bulk cargo of more than 2,000 tonnes of permanent oil must have insurance or other security covering the shipowner's liability for damages under this Act up to the amount provided in section 5. However, this provision shall not apply to a ship owned by another Government. Such a ship must have on board a certificate to the effect that the insurance or security referred to in paragraph 1 is in force. A ship owned by another Government must have on board a certificate to the effect that the Government in question owns said ship and that its liability is covered up to the amount provided in section 5. More detailed provisions concerning the certificate referred to in paragraph 2 shall be issued by decree. Section 14 Any party entitled to compensation may present any claim based on insurance as referred to in sections 12 and 13 directly to the insurer in question. However, the insurer in question shall be exempt from liability in the cases mentioned in section 3, paragraph 2, and also when the s.hipowner himself has wilfully caused the damage. The insurer's liability shall in no case exceed the amounts referred co in section 5, paragraphs I and 3. To release himself from liability 10 parties other than the shipowner, the insurer may invoke only the cases referred to in paragraph 2. Section lS If no condition to the contrary is imposed by the insurer, the insurance shall also be valid for the shipowner's benefit in case of a liability under this Act and any corresponding legislation in other member states. Section 16 The provisions of sections 14 and 15 concerning insurance shall apply to the other security referred to in sections 12 and 13, mutalis mutandis. Section 17 A claim for compensation under this Act may be filed in a Finnish court only if the oil pollution in question has occurred in Finland or if combating measures to prevent or limit such pollution have been undertaken in Finland. If a claim is eligible for filing in a Finnish court as per paragraph I, claims for other oil pollution caused by the same incident may also be filed in the same court. Section 18 Any compensation claim for oil pollution eligible for filing in a Finnish court under section 17 shall be heard at the Helsinki City Court. If a limitation fund as defined in section 6 is set up in Finland and if the shipowner or insurer against whom a compensation claim is being pursued in Finland or another member state is entitled to limit his liability, the court referred to in paragraph l shall consider matters concerning distribution of the limitation fund among the parties entitled to compensa tion. Section 19 If a decision concerning compensation for oil pollution is issued in another member state and is legally valid and enforceable there, it shall also be enforced in Finland with no further hearing, unless the provisions of section 9 or section 18, paragraph 2, otherwise dictate, if said decision is within the jurisdiction of the courts of the member state in question according to the Convention. However, such enforce ment is not mandatory if by doing so the shipowner's liability amount would be exceeded. Enforcement must be applied for al the Helsinki Court of Appeal, when the following must be appended to the application: I) the original decision or a copy thereof, certified correct by the relevant authority; 2) a statement by the appropriate authority in the state where the decision has been taken to the effect that said decision concerns a compensation as per the Conven tion, and that said decision is legally valid and enforce able in the state in question; and, 3) if the documents listed above are in some language other than Finnish or Swedish, translations thereof into Finnish or Swedish certified correct ex officio. The documents referred to in paragraph 2, subparagraphs I and 2, shall bear an affirmation to the effect that the document was issued by a party authorized to issue such documents. Such affirmation shall be given by the Finnish embassy or consulate or the highest judicial adminis tration authority of the state where the decision was taken, An application for enforcement shall not be approved without granting the other party an opportunity to reply. If the application is approved, the decision shall be enforced as if it had been taken by a Finnish court, unless the Supreme Court d~rees otherwise on the basis of the applica tion. Section 20 If a limitation fund as defined in the Convention is set up in another member state under applicable legislation and if the shipowner or insurer against whom a claim is being pursued in a Finnish court is entitled to limit his liability, the court shall decree that the decision shall be enforceable only after issues regarding distribution of the limitation fund have been resolved in the member state in question. Section 21 Supervision of the observance of sections 12 and 13 shall be provided by decree. Any supervisory authority prescribed by decree shall have the power 10 prohibit a ship from sailing and to interrupt its voyage if the ship docs not carry on board the certificate specified in section 12 or 13. Section 22 Any party neglecting the duty to lake out insurance or provide comparable sect1rity shall be sentenced to a fine or tn not more than six months imprisonment for failing to insure an oil cargo ship. Any shipowner allowing his ship to be used in naviga tion even though he knows or should know that no insurance or security exists shall be guilty as above, likewise the ship's master or any party supervising the use of the ship in lieu of the shipowner. If a ship fails to carry the certificate specified in section 12 or 13, the ship's master shall be sentenced to a fine for failing to carry an insurance certificate aboard an oil cargo ship. Section23 This Act shall not apply to warships or any other vessel used solely for non-commercial Government purposes at the time of the pollution incident. If such a ship has caused oil pollution in Finland or if combating measures to prevent or limit such pollution have been undertaken in Finland, the provisions of sections I, 3, 4, 5, 10 and 18 shall apply. If any ship other than those referred to io paragraph I not carrying a bulk cargo of pennanent oil at the time of the pollution incident causes oil damage in Finland or if combating measures to prevent or limit such pollution have been Linder taken in Finland, the provisions of section I, section 2, paragraph 4, and sections 3, 10 and 18 shall apply. These provisions shall also apply if the oil pollt1tion is cat1sed by other than permanent oil. Sections 12 to 23, inclusive, of the Maritime Act shall apply to the shipowner's right to limit his liability in these cases. Sectlon 24 This Act comes into force on a date to be provided by decree. No. 378 ACT ON COMB A TING OIL POLLUTION ON LAND December 12, 1974 Section 1 Oil may not be spilled onto land or into water and it may not be stored, kept or handled so as to pose an obvious threat of oil pol!t1tion. Section la (90/83) To combat the threat of oil pollt1tion, it may be stipu lated by decree, as referred to in the Act on materials posing an explosion hazard (263/53), 1hat oil tanks be st1bject to periodic inspection or, similarly, that use of a tank causing a threat of oil pollution be banned or sllch a tank be repaired or taken out of service. Local authorities mnst publish a notice on the duty to have tanks inspected, in accordance with the procedure laid down for public notices. · Section 2 For the purposes of this Act, oil means crude oil and products derived from it, such as liquid fuels and lubricating oils, and oily mixlllres, waste oil and oily wastes. For the purpose~ of this Act, oil pollution means the damage or hann that oil spilled on land or in water causes to man and nature by fouling, polluting and spoiling soil, water, plant and animal life, equipment or constructions. Separate provisions will be enacted on combating oil pollution from ships. Section 3 Whosoever discovers or learns that an oil spill has occurred is obliged to notify the police or the fire brigade thereof without delay and, if possible, also to notify the party i11 whose possession or under whose management 1he oil is. Section 4 The party in whose possession or under whose manage. ment oil has caused pollt1tion or threat of pollution is required. to take such response action to combat the pollution as can be 1easonab\y expected of him in the circumstances and to 11otify the police or the fire brigade of the pollution or threat of pollution without delay. Anyone who keeps or stores 100,000 litres or more of oil at one and the same storage si1e is required to acquire equipment and materials to combat oil pollution, as prescribed in more detail by decree, and to see to it that he has competent personnel available to operate said eqt1ipment. Section 5 The Ministry of the Environment is responsible for the supreme management and supervision of combating measures to prevent oil pollution as referred to in this Act. The National Board of Waters and the Environment shall regulate and supervise the general establishment and development of oil pollution preparedness and response. The regional water and environment district shall regulate and supervise organization of the oil combating laid down as the charge of the local authority and the oil storage owner and, as necessary, partici pate in the actual combating work. (205/87) Local authorities shall take the necessary measures to combat oil pollution within their areas. Local authorities shall have an oil-combating plan approved by the local council, and shall appoint an official body to be responsible for organizing and managing the oil-combating measures referred to in this Act within the local authority's area. After approval by the local council, the oil-combating plan must be submitted to the water and environment district office for ratification. The water and environment district office must especially ensure that the oil-combating equipment is necessary and appropriate and that training of personnel has been arranged to meet the requirements of the circumstances, while avoiding unnecessary costs. After gaining the consent of the water and environment district office, a local authority may agree on fulfilment of the duty referred to above in paragraph 2 in cooperation with neighbouring municipalities or with the storers of oil referred to in section 4, paragraph 2. Local authorities shall be entilled to compensation from the Oil Pollution Compensation Fund for costs incurred in acquiring equipment specified in the ratified oil-combating plan, for maintaining the necessary combat readiness and for training combat personnel, as provided in the Act on the Oil Pollution Compensa1ion Fund (379/74). The local authority may be granted full compensation for the acquisition of oil-combating equipment totalling over FIM 500,000 only if the Oil Pollution Compensation Fund board of management has approved the acquisition in advance. (1289/89) Section 6 The competent oil pollution comba1ing authorities, as referred to in this Act, comprise the State and the local authorities referred to above in section 5, the person leading the local oil-combating personnel in response operations and the operational commander designated by the water and environment district office. · Other authorities are required to provide the oil pollution combating authorities with executive assistance in the matters referred to in this Act. The Council of State may issue more detailed instructions on the procedures to be observed in requesting and providing executive assistance. Section 7 When an oil spill has occurred or is impending, the oil pollution combating authorities must immediately instigate the necessary oil-combating measures, unless the costs or damage caused by these measures are obviously disproportionate to the financial and other values jeopardized by the oil spill. Oil-combating measures must be carried out so as not to make it unnecessarily difficult to restore nature and the environment to the state that prevailed before the oil spill. Those participating in oil-combating work are entided to receive compensation from the Oil Pollution Compensation Fund for the costs they incur as a result of the oil-combating measures referred to above in paragraph I, as provided in the Act on the Oil Pollmion Compensation Fund. (740/85) Sedion 8 If the oil pollution or the threat of its spreading is so great that the personnel or equipment at the disposal of the oil pollution combating authorities are not sufficient to prevent or check the pollution effectively, the local oil pollution combaF ing authorities, or, when the oil-combating equipment or personnel of another local authority are used, the relevant water and environment district office, have the right to order anyone who has oil-combating equipment or materials, or personnel familiar with their use, to place these at the disposal of the authorities. When necessary, the water and environment district office can also assume direction of the oil-combating measures and appoint an operational commander. To prevent oil pollution, the competent authorities have the right to requisition the necessary communications and transportation units and machinery and equipment. The competent authorities may order other parties to dig earth, lift gravel, sand or soil, block ditches and take any other measures necessary. Anyone who has given assistance or suffered damage because of the measures referred to in paragraph 2 is entitled to receive compensation from the Oil Pollution Compensation Fund, as provided in the Act on the Oil Pollution Compensa tion Fund. (740/85) Section 9 Anyone who deliberately or through gross negligence causes an oil spill shall be sentenced to a fine or to not more 1han two years imprisonment, unless more severe punishment is provided for elsewhere in law. Anyone who otherwise violates this Act or the regula tions issued under it or defaults on the duties set forth for hirn in or under this Act shall be sentenced to a fine if the violation or default is not a minor one.