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<P align="center"><font color="#660000"><b><font face="Arial, Helvetica, sans-serif" size="4" color="#990000">Frequent
Legal Issues for Contractors on <br>
Sakhalin Oil and Gas Projects<br>
</font></b></font><font size="2" face="Arial, Helvetica, sans-serif">(Appearing soon in the Russian Energy Law Journal)</font></p>
<p align="center"><font color="#990033" size="2" face="Arial, Helvetica, sans-serif"><strong>XIII.
Maritime Considerations: Oil Spill Prevention </strong></font></p>
<p align="left"><font size="2" face="Arial, Helvetica, sans-serif"><em>Presented
by <a href="../subpage/attorneys.html#rpg_vlad">Natalia Prisekina</a>, senior associate attorney and Director of the
Vladivostok branch office of Russin & Vecchi</em>.</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">The Russian Federation is a party to several multilateral international
conventions related to oil pollution issues. These include: 1) The International
Convention Relating to Intervention on the High Seas in Cases of Oil
Pollution Casualties (Brussels, November 29, 1969)(recognizing the right
of states to intervene in the open sea in the event of accidents or threatened
accidents that could result in oil contamination of their coastlines,
and incorporating a test for the adequacy of measures taken); 2) The
International Convention For the Prevention of Pollution from Ships (November
2, 1973, as modified by the Protocol of 1978 relating thereto (except
for Protocol of 1997)) (introducing strict rules for the prevention of
oil contamination of the sea in Appendix I to the Convention); 3) The
International Convention On Civil Liability for Oil Pollution Damage
(Brussels, September 29, 1969, as amended by the protocol of 1992)(dealing
with civil liability for oil pollution, establishing, inter alia, instances
where liability is excluded and limited); and 4) The International Convention
On the Establishment of an International Fund for Compensation for Oil
Pollution Damage (Brussels, December 18, 1971, as amended by the protocol
of 1992)(supplementing the International Convention On Civil Liability
for Oil Pollution Damage (Brussels, September 29, 1969) and discussing
the procedure and organization of the International Fund for compensating
oil pollution damage within certain limits).</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">U.S. Secretary of Energy Spencer Abraham and Russian Energy Minister
Igor Yusufov met in September 2003 to discuss energy issues of interest
to both countries and to implement the oil spill prevention and response
agreement the two countries developed over the past year. They signed
the oil spill response protocol at the second U.S.-Russia Commercial
Energy Summit. </font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">The original proposal,
signed in March 2003, recommended extensive mutual assistance from
both countries in the areas of technology, logistics,
training, regulatory issues and exchange programs. It also recognized
their common commitment to environmentally sustainable development and
transportation of oil. </font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">The Russian Federation has already developed oil spill contingency plans
for each of its regions, and has worked closely with local government
officials on plans applicable to marine bodies from the Black and Caspian
Seas to the Barents and Pacific coast. The U.S. has meanwhile developed
similar response plans, employing cutting-edge technologies to clean
up oil spills, and constantly updated and improved technologies to prevent
oil spills. Under the auspices of the protocol, the U.S. and Russia will
share ideas, information, technologies and methods in order to assist
both countries in increasing the effectiveness of their oil spill regulation,
prevention and response.</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">Russian legislation<font size="1"> (148) </font>requires
organizations that have production facilities that are considered to
be hazardous to have a plan with respect to the
prevention and elimination of oil and petroleum products spills <font size="1"> (149)</font>.
As part of such a plan, the organization must estimate the amount of
resources
necessary to clean up spills that may occur. <font size="1"> (150)</font></font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">Various ministries
of the Government must develop and approve lists of organizations responsible
for the preparation of Oil Spill Response
Plans (“OSRP”) <font size="1"> (151)</font>. Such lists,
according to their sectoral affiliation, are approved by a federal executive
body
in agreement with
the Ministry
of the Russian Federation for Civil Defense Affairs, Emergency Situations
and the Elimination of the Aftermath of Natural Disasters, the Ministry
of Natural Resources of the Russian Federation, and with the Federal
Mining and Industrial Inspectorate of Russia.</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">Organizations responsible
for preparing OSRPs must form their own units for oil and petroleum
products spills elimination, perform attestation
procedures for these units in compliance with the legislation of the
Russian Federation, equip them with special technical facilities and
conclude contracts with professional emergency rescue services companies
performing oil and petroleum products spills elimination works, and which
hold relevant licenses and/or which have been attested in the established
manner. They must immediately notify relevant governmental bodies and
local governments regarding the facts of oil and petroleum products spills,
organize their localization and elimination, and maintain financial and
logistical resource reserves for the purpose of oil and petroleum products
spills localization and elimination. They must train employees in protective
techniques and operations in emergency situations relating to oil and
petroleum products spills, maintain technological equipment in operable
condition, conduct engineering/technical measures in advance aimed at
prevention of potential oil and petroleum products spills and/or reduction
of the scope of danger from their aftermath. They must also take measures
to protect the life and health of employees in the case of an oil and
petroleum products spill, declare the industrial safety of hazardous
production objects, monitor production and observe industrial safety
requirements at hazardous production objects, adjust plans in the event
of changes in initial data, allow only qualified operators at hazardous
production objects, without medical contra-indications for such work.
In addition, they must hold a hazardous industrial object operation license
as required by Russian legislation, and form and maintain in operable
condition oil and petroleum products spills detection systems as well
as communications and warning systems. <font size="1"> (152)</font></font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">OSRP measures are
deemed complete after compulsory performance of the following: 1) stopping
the dumping of oil and petroleum products; 2)
collecting spilled oil and petroleum products to the maximum possible
level corresponding to the technical characteristics of the special technical
facilities used; and 3) storage of collected oil and petroleum products
for their later utilization excluding secondary pollution of production
objects and the environment. <font size="1"> (153)</font></font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">In the event of an
oil and petroleum products spill, the term of spill localization may
not exceed four hours for spills in the area of water,
and six hours for spills on the ground, timed from spill detection or
receipt of information. <font size="1"> (154)</font><br>
<br>
Oil spill response plans must be capable of implementation on a 24-hour
basis in all weather conditions (in the sea – when navigation
and hydro meteorological conditions are admissible). <font size="1"> (155)</font><br>
<br>
Where oil and petroleum products spills take on regional and federal
significance, the Minister of the Russian Federation for Civil Defense
Affairs, Emergency Situations and the Elimination of the Aftermath
of Natural Disasters, has the right to convene an Inter-Departmental
Commission for Emergency Situation Prevention and Elimination. <font size="1"> (156)</font><br>
<br>
</font></p>
<p> <font size="2" face="Arial, Helvetica, sans-serif"><font size="1"> (148) </font></font><font size="1" face="Arial, Helvetica, sans-serif">Russian
Federation Government Decree No. 613 “Concerning
Urgent Measures on Prevention and Liquidation of Oil and Petroleum Products
Emergency Spills,” August 21, 2000 (modified by RF Government Decree
No. 240, “On the Procedure for Organizing Measures for Oil and
Petroleum Products Spills Prevention and Elimination within the Territory
of the Russian Federation,” April 15, 2002); and “Rules for
Organizing Measures for Oil and Petroleum Products Spills Prevention
and Elimination within the Territory of the Russian Federation.”<br>
</font><font size="2" face="Arial, Helvetica, sans-serif"><font size="1"> (149)</font></font> <font size="1" face="Arial, Helvetica, sans-serif">Such
plan must include the following:<br>
a) forecast of potential oil and petroleum products spills;<br>
b) estimate of resources required for liquidation of emergency situations connected
with an oil and petroleum products spills and an assessment of the site capabilities
in liquidation tasks and the need to employ professional emergency rescue units;<br>
c) resource organization scheme;<br>
d) description and location of resources;<br>
e) organization of control, communications and notification;<br>
f) procedure for resource preparedness with indication of the organizations responsible
for keeping them at an established level of readiness;<br>
g) communication system linking spill liquidation participants;<br>
h) priority actions for emergency situation alert;<br>
i) technical aspects (geographic, navigation-hydrographic, hydrometeorology and
other) of spill area that must be taken into account in organizing and conducting
liquidation operations;<br>
j) assurances of safety of the population and the provision of medical aid;<br>
k) timetable for oil and petroleum products spills liquidation operations;<br>
l) organization of logistic, engineering and financial support of oil and petroleum
products spills liquidation operations.<br>
</font><font size="2" face="Arial, Helvetica, sans-serif"><font size="1"> (150)</font></font> <font size="1" face="Arial, Helvetica, sans-serif">The
following factors must be considered in arriving at such an estimate: <br>
a) maximum potential spill volume;<br>
b) area covered by the spill;<br>
c) year the object (source) was placed in service and the year of its most recent
major repairs;<br>
d) maximum spill volume at the object;<br>
e) physical-chemical properties of the spill;<br>
f) effect of the location of the object on the rate of spread of oil and petroleum
products to determine the possibility of their ingress into seas, rivers and
inland ponds; <br>
g) technical conditions (hydro meteorological, hydro geological and other) at
the object’s location;<br>
h) capabilities of the object's available resources and also professional emergency
rescue units stationed in the region (with an agreement in writing to participate
in liquidation of oil and petroleum products spills);<br>
i) availability of oil waste trans-shipment, storage and processing ranges;<br>
j) transportation infrastructure in the area of a potential oil and petroleum
products spill;<br>
k) time of delivery of resources to the scene of the emergency situation;<br>
l) time of localization of oil and petroleum products spill, which must not be
more than 4 hours in the event of a water spill and 6 hours in the event of a
land spill.<br>
</font><font size="2" face="Arial, Helvetica, sans-serif"><font size="1"> (151)</font></font> <font size="1" face="Arial, Helvetica, sans-serif">RF
Government Decree No. 240 “On the Procedure for Organizing Measures
for Oil and Petroleum Products Spills Prevention and Elimination within the Territory
of the Russian Federation,” April 15, 2002, (“Decree 240”),
Item 3.<br>
</font><font size="2" face="Arial, Helvetica, sans-serif"><font size="1"> (152)</font></font> <font size="1" face="Arial, Helvetica, sans-serif">Decree
No. 240, Item 4.<br>
</font><font size="2" face="Arial, Helvetica, sans-serif"><font size="1"> (153)</font></font> <font size="1" face="Arial, Helvetica, sans-serif">Decree
No. 240, Item 8.<br>
</font><font size="2" face="Arial, Helvetica, sans-serif"><font size="1"> (154)</font></font> <font size="1" face="Arial, Helvetica, sans-serif">Decree
No. 240, Item 7.<br>
</font><font size="2" face="Arial, Helvetica, sans-serif"><font size="1"> (155)</font></font> <font size="1" face="Arial, Helvetica, sans-serif">Decree
No. 240, Item 7.<br>
</font><font size="2" face="Arial, Helvetica, sans-serif"><font size="1"> (156)</font></font> <font size="1" face="Arial, Helvetica, sans-serif">Decree
No. 240, Item 7.</font></p>
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