MARINE SAFETY SAFETY AND INTERVENTION RELATED TO PETROLEUM PRODUCT TRANSPORT

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SAFETY AND INTERVENTION RELATED TO PETROLEUM PRODUCT TRANSPORT Marine safety is one of the marine industry s key concerns in order to protect life, health, the marine environment and the goods transported. Number of spills exceeding 7 tonnes, 1970-2017 Source : The internatrional tanker owners pollution federation limited, Oil tanker spill statistics, 2017 Oil spilled by decade (as a percentage), 1970-2017 Source : The internatrional tanker owners pollution federation limited, Oil tanker spill statistics, 2017

Overall comparison of the relative risk of transporting petroleum products by pipelines, rail or marine tanker, 2004-2015 *Mboe = Million barrels of oil equivalent Source : Fraser Institute, Safety first Intermodal safety for oil and gas transportation, 2017 MARINE TANKER SAFETY Tanker shipping is governed by regulations and a very strict, thorough inspection regime. To transport petroleum products, oil tankers must meet Transport Canada requirements, including use of double-hull vessels, which means that the ship s bottom and sides consist of two parallel, airtight hulls. Ship operators must also comply with their clients rules and those of the Oil Companies International Marine Forum (OCIMF), wich requires: A tanker inspection program, carried out every 6 months and covering 750 checkpoints (SIRE) A thorough vetting process before assigning a voyage to a ship A vessel structural review program Review of past accidents and incidents, of the crew qualifications and experience grid and the authorities inspection reports (PSC) Double hull tanker Photo credit: Desgagnés Performance evaluation of the company s terminals.

The ship operator must also have: A security management and pollution prevention system (ISM Code required by insurance companies) Procedures for carrying out safe operations and pollution prevention Emergency plans for petroleum product pollution Environmental response equipment Agreements with Transport Canada-certified response organizations. Requirements for tanker navigating personnel: Officers certificate of competency with the mention oil tanker (specific qualification) Additional experience-related requirements for officers of oil companies Mandatory use of licenced pilots on the St. Lawrence River (Les Escoumins-Montréal sector) and on the Saguenay River Voluntary use, in perilous areas, of active tanker escorts by tugs adapted and designed for this type of maneuver. RESPONSE LIABILITY AND RESTITUTION IN CASE OF A SPILL In Canada, the polluter-pays principle applies. The Marine Liabilities Act determines the financial and legal responsibilities and incorporates international compensation conventions into Canadian law. The Act governs the entire system, be it pollution caused by an oil tanker s petroleum product cargo or the fuels used for vessel propulsion, regardless of the ship type. Polluters are liable for paying for spills from their vessels. Vessel operators must have oil pollution emergency plans on board. Vessels travelling south of 60 degrees north latitude must also have a contract with an oil spill response company (response organization) certified by Transport Canada. A response organization contracted by the vessel operator usually does the cleanup. The oil transport industry funds these private businesses that have spill-cleanup equipment placed in key areas along Canada s coasts. The Canadian Coast Guard (CCG) takes over the spill response if the polluter is unknown, or unable or unwilling to respond. The CCG has environmental response barges to transport personnel and equipment to respond to spills. The CCG can also directly hire a private response organization to do the cleanup. Source: Transport Canada

ROLES AND RESPONSIBILITIES IN CASE OF A SPILL TRANSPORT CANADA ENVIRONMENT CANADA FISHERIES AND OCEANS ENVIRONMENT QUÉBEC PUBLIC SECURITY COAST GUARD OTHER AUTHORITIES DRINKING WATER SUPPLY SAFETY MAINTAIN NAVIGATION SAFETY SAFETY OF PUBLIC AND SURROUNDING AREAS MUNICIPALITIES AND LOCAL ELECTED OFFICIALS SHIP OPERATOR Safety of responders/workers * Stop spill * * Extinguish fire* * Contain product spilled* * Secure ship or facility * PORTS COAST GUARD VESSEL TRAFFIC SERVICE PILOTS AND TUGS MANAGE TRAFFIC IN PORT ZONE MANEUVER SHIPS IN DISTRESS TO MINIMIZE IMPACTS SAFETY AND CONTROL OF AREAS AFFECTED BY SPILL ON ITS TERRITORY ECRC Eastern Canada Response Corporation PRIORITIZE RESOURCE ASSIGNMENT PROTECT INFRASTRUCTURES, PLANT LIFE & WILDLIFE, AS PER PRIORITIES RECOVER SPILLED PRODUCT CONFINE SPILLED PRODUCT LIMIT IMPACT ON THE COMMUNITY & THE ENVIRONMENT

OIL SPILL-RELATED COMPENSATION In cases involving ship-source oil spills, the polluter-pays principle applies under the Marine Liabilities Act. The following are the three (3) compensation levels: The ship operator s insurance Shipowners are primarily liable for oil pollution damage caused by their ships up to a limit of liability based on the tonnage of the ship. If damages exceed the liability, international and Canadian funds (IOPC Funds) provide more compensation. International Oil Pollution Compensation Funds (IOPC Funds) The IOPC Funds are two intergovernmental organisations (the 1992 Fund and the Supplementary Fund) which provide compensation for oil pollution damage resulting from spills of persistent oil from tankers. These funds are made from levies collected from the oil cargo companies. Combined with the shipowner s liability coverage, these funds provide about $1.3 billion in compensation for a tanker spill of persistent oil. The Ship-Source Oil Pollution Fund (SOPF) The SOPF is a Canadian fund created from levies collected from oil cargo companies. It provides compensation for damages caused by spills of any type of oil from any type of ship. It also applies to mystery spills in which the identity of the ship causing the leak cannot be established. Any person in Canada, including private corporations or the Crown, may file a claim for losses or expenses caused by oil spills from ships. Since the Parliament of Canada passed Bill C-86, on December 13, 2018, there is no longer a compensation maximum per event. Sources: Transport Canada The International Oil Pollution Compensation Funds

CREATION IN QUÉBEC OF THE CENTRE D EXPERTISE EN GESTION DES RISQUES D INCIDENTS MARITIMES (CENTRE OF EXPERTISE IN MARINE INCIDENT RISK MANAGEMENT) FOR BETTER RESPONSE PLANNING AND COORDINATION IN CASE OF AN OIL SPILL In the context of the Maritime Strategy, Québec has created a Centre d expertise en gestion des risques d incidents maritimes (centre of expertise in marine incident risk management - CEGRIM). Reporting to the Ministère de la Sécurité publique, CEGRIM groups experts from six (6) government departments with complementary marine incident risk management mandates: Ministère des Affaires municipales et de l Habitation (Municipal Affairs and Housing Québec) Ministère de l Agriculture, des Pêcheries et de l Alimentation du Québec (Agriculture, Fisheries and Food Québec) Ministère de l Environnement et de la Lutte aux Changements climatiques (Environment Québec) Ministère de l Énergie et des Ressources naturelles (Energy and Natural Resources Québec) Ministère de la Faune, des Forêts et des Parcs (Wildlife, Forests and Parks Québec) Ministère des Transports du Québec (Transport Québec) CEGRIM s mandate consists in implementing tools and best practices for prevention, planning, response and recovery to deal with potential hazardous materials spills in the St. Lawrence River. The Centre supports and advises local and regional authorities in planning for marine emergency measures.