Project Title: Creating a Unified Legal Framework To Govern Maritime Liabilities and Compensation

Description:

The oil spill currently plaguing the Gulf of Mexico due to British Petroleum’s leaking off-shore
facility has attracted international attention due to the debilitating effects it has wreaked to the Gulf and
in the surrounding area. This oil spill has been characterized as the greatest environmental disaster in
United States history with estimates of leaking oil reaching 1,470,000 US gallons a day (see:
http://www.ifitwasmyhome.com/). While the leak has been capped last July 15, 2010, the impact on the
environment remains extensive and far-reaching.

As the incident peaked, the Department of Energy (DOE) decided to mount a review of its
policies governing drilling procedures. (see:http://www.gmanews.tv/story/194065/bp-oil-spill-prompts-
review-of-rp-drilling-procedure) Notably, the DOE’s review included a “stakeholders’ meeting”
inviting representatives from the private sector to solicit their input on the planned activity.

This project seeks to answer a question that cropped up as news about the oil spill reached our
shores: What will happen if an Oil Spill of similar magnitude occurred in the Philippines? Assessing
our legal regime’s preparedness to meet and address an event of this magnitude under this project will
not duplicate the DOE’s present efforts.

First, a legal regime governing Oil Spills would benefit from the study of not just what should
be done to avoid them, but what happens (or what should be done) after they occur.

In addition, there are opportunities to unify and synchronize the framework or legal strategy
surrounding the subject matter. The BP oil spill has generated sufficient interest to cause revisions in
international policies that may have to be reconciled with domestic concerns. For instance, the
Department of Transportation and Communications (DOTC) through then Undersecretary Elena
Bautista has sought guidance from the Department of Justice (DOJ) on the applicability of Republic
Act 9483 or the Oil Pollution Management Act in the context of other international policies. (see:
http://www.portcalls.com/news-archive/2008/news20080319.php which reports that the DOTC is
unsure if “the collection of a levy from the local tanker industry under RA 9483 duplicates coverage
under the Civil Liability Convention (CLC) of 1992 and the International Oil Pollution Convention
(IOPC)”.) On the flipside, considering the amount it takes to fix its effects - for instance, BP is
estimated to have spent upwards of $3 billion (see:
http://newsinfo.inquirer.net/breakingnews/world/view/20100706-279439/BP-oil-spill-costs-soar-above-
3B) - the legal regime on oil spills become more than just matters of conscience and responsibility, they
turn into compelling business considerations. There is thus sufficient corporate stakeholder interest in
clarifying “gray areas”.

The project will also target input from specific Local Government Units (LGUs) that have already
experienced oil spills. The purpose being not simply as a way of “update”, rather it is to solicit their
views on the government responses whether to the oil spills that affected them directly, or to those that
have been undertaken since.

Key Participants:

• Interested Faculty/Researchers – UP Law, UP Visayas (M/T Solar 1 Spill Team)

• LGUs – those who have experienced oil spills in the past, as well as other coastal areas
• Regulators – i.e. Department of Energy Philippine Coast Guard, Department of Environment
and Natural Resources
• Private stakeholders – pertinent corporations (oil and coal); servicing companies, insurance

Deliverables:

1. Three (3) Initial “Think Pieces” - to be drafted by selected faculty members, and resource
person/s to be assigned by the director. Each Think Piece will be circulated to the expected participants
prior to the main activity to serve as springboards for discussion.
2. Two (2) Fora/Symposiums – primary venue for participants to converge and exchange ideas on
the subject with the end view of identifying what the gaps and the conflicts that must be addressed are.
3. Three (3) to Five (5) Papers – selected writers from the: (a) regulators, (b) private sector, and (c)
faculty will be asked to discuss specific topics identified by participants based on data gathered from
components 1 and 2.
4. Final Policy Paper & PCG Draft Circular or Administrative Order – the edited compilation of
output from all Three (3) previous components packaged as an “Action Plan” will supplement the
primary output which is a proposed Philippine Coast Guard administrative issuance.

Duration and Timeline:

Project Set-up, Initial Planning - Two (2) to Three (3) Weeks

Component 1 - One (1) Month (Thinkpieces)
Component 2 - One (1) Month (Forum)
Component 3 - Three (3) Months (Paper Writing)
Component 4 - One (1) Month (Editing of Final Output)
Component 5 - Forum/Symposium on Proposed PCG Issuance

Budget:

The project is expected to incur a minimal budget expense no different from the Institute’s past and
ongoing projects of the same nature. Costs can be mitigated further by leveraging on existing resources,
and networks.