Marine Liability Act (S.C. 2001, c. 6)

Ship-source Oil Pollution Fund

Marginal note:Ship-source Oil Pollution Fund continued

• 92 (1) The account known as the Ship-source Oil Pollution Fund in the accounts of Canada is continued.

• Marginal note:Credits

  (2) The following shall be credited to the Ship-source Oil Pollution Fund:

  • (a) all payments received under sections 114.1 and 114.2 and amounts recovered under section 115;

  • (b) interest computed in accordance with section 93;

  • (b.1) the amount of every sum credited to that Fund under section 93.1 or subsection 111(1) or 111.1(1), (2) or (3);

  • (c) any amounts recovered by the Administrator under paragraph 106(3)(c) or 106.3(5)(b);

  • (c.1) any amounts received by the Administrator further to the notice given under subsection 106.02(3) or paragraph 106.04(1)(b) or recovered under section 106.05;

  • (d) any amounts received by the Administrator further to the notice given under subsection 106.4(3) or paragraph 106.6(1)(b) or recovered under section 106.7; and

  • (e) interest computed in accordance with section 111.2.

• Marginal note:Charges

  (3) The following shall be charged to the Ship-source Oil Pollution Fund:

  • (a) an amount equal to every amount required to repay, in accordance with any terms and conditions specified by the Minister of Finance, an amount charged to the Consolidated Revenue Fund under section 93.1;

  • (a.1) all amounts that are directed to be paid under paragraph 106(3)(a) or 106.04(1)(c), subsection 106.3(4) or section 117 or under a settlement;

  • (a.2) all amounts that are charged to the Ship-source Oil Pollution Fund under subsection 110(1) or (2);

  • (b) all amounts for which the Administrator is liable under subsection 117.2(4);

  • (c) all interest to be paid under section 116;

  • (d) every amount paid out of the Consolidated Revenue Fund under subsection 98(1.2); and

  • (e) [Repealed, 2023, c. 26, s. 332]

  • (f) the amount of any judgment and any costs awarded against the Ship-source Oil Pollution Fund in litigation.

Marginal note:Interest to be credited to Fund

93 The Minister of Finance shall, at the times that the Governor in Council directs, credit to the Ship-source Oil Pollution Fund interest at a rate fixed by the Governor in Council on the balance from time to time of that Fund.

Marginal note:Consolidated Revenue Fund

93.1 If the amount to the credit of the Ship-source Oil Pollution Fund is insufficient to pay any amount that is charged to that Fund under any of paragraphs 92(3)(a) to (f), the Minister of Finance may, subject to any terms and conditions that he or she considers appropriate, direct that a sum equal to the amount required to be paid be charged to the Consolidated Revenue Fund and credited to the Ship-source Oil Pollution Fund.

Administrator and Deputy Administrator

Marginal note:Appointment of Administrator

• 94 (1) The Governor in Council may appoint an Administrator of the Ship-source Oil Pollution Fund to hold office during good behaviour for a term, not exceeding five years, that is fixed by the Governor in Council, subject to removal by the Governor in Council for cause.

• Marginal note:Reappointment of Administrator

  (2) The Administrator is eligible for reappointment on the expiry of his or her term of office.

• Marginal note:Continuation in office

  (3) If an Administrator is not appointed to take office on the expiry of the incumbent Administrator’s term, the incumbent continues to hold office until the earlier of the date fixed by the Governor in Council and the day on which a successor is appointed.

Marginal note:Deputy Administrator

• 95 (1) The Governor in Council may appoint a Deputy Administrator of the Ship-source Oil Pollution Fund to hold office during good behaviour for a term, not exceeding five years, that is fixed by the Governor in Council, subject to removal by the Governor in Council for cause.

• Marginal note:Reappointment of Deputy Administrator

  (2) The Deputy Administrator is eligible for reappointment on the expiry of his or her term of office.

Marginal note:Resignation

96 The resignation of an Administrator or Deputy Administrator becomes effective at the time that the Minister receives a written resignation from him or her or at the time specified in the resignation, whichever is later.

Marginal note:Conflict of interest

• 97 (1) The Administrator or Deputy Administrator shall not accept or hold any office or employment, or carry on any activity, that is inconsistent with his or her powers, duties and functions under this Part.

• Marginal note:Effect of contravention

  (2) If the Administrator or Deputy Administrator contravenes subsection (1), his or her appointment is terminated on a date fixed by the Governor in Council that is not later than 30 days after the day on which the notice of the contravention is received by the Minister, but the contravention does not affect the validity of any act performed by the Administrator or Deputy Administrator, as the case may be, under this Part between the date of the contravention and the date that the appointment is terminated.

Marginal note:Remuneration

• 98 (1) The Administrator and the Deputy Administrator are to be paid, for the exercise of their powers and the performance of their duties and functions, the remuneration fixed by the Governor in Council.

• Marginal note:Travelling, living and other expenses

  (1.1) The Administrator and the Deputy Administrator are to be paid, in accordance with Treasury Board directives, reasonable travel, living and other expenses incurred in exercising their powers or performing their duties and functions under this Part while absent from their ordinary place of work.

• Marginal note:Payment out of Consolidated Revenue Fund

  (1.2) On the direction of the Minister of Finance, the remuneration and expenses referred to in subsections (1) and (1.1) and all other costs and expenses incurred by the Administrator and the Deputy Administrator in exercising their powers and performing their duties and functions under this Part are to be paid out of the Consolidated Revenue Fund and charged to the Ship-source Oil Pollution Fund as provided for by paragraph 92(3)(d).

• Marginal note:Taxation

  (2) The Admiralty Court’s assessment officers may, at the Minister of Justice’s request, tax any account for costs and expenses, other than expenses referred to in subsection (1.1), incurred by the Administrator and the Deputy Administrator in exercising their powers or performing their duties and functions as if they were acting for Her Majesty in proceedings in that Court.

Marginal note:Deputy Administrator’s duties and functions

• 99 (1) The Deputy Administrator shall perform the duties and functions consistent with this Part that are assigned to him or her by the Administrator.

• Marginal note:Administrator’s absence or incapacity

  (2) If the Administrator is absent or incapac-itated or the office of Administrator is vacant, the Deputy Administrator has all the powers and duties of the Administrator.

Marginal note:Professional and technical assistance

100 The Administrator may, for the purpose of fulfilling his or her functions, including performing his or her duties under this Part, obtain the professional, technical and other advice and assistance that he or she considers necessary.

Liability of Ship-source Oil Pollution Fund

Process for Claims

Marginal note:Liability of Ship-source Oil Pollution Fund

• 101 (1) Subject to the other provisions of this Part, the Ship-source Oil Pollution Fund is liable in relation to oil for the matters referred to in sections 51, 71 and 77, Article III of the Civil Liability Convention and Article 3 of the Bunkers Convention in respect of any kind of loss, damage, costs or expenses — including economic loss caused by oil pollution suffered by persons whose property has not been polluted — if

  • (a) all reasonable steps have been taken to recover payment of compensation from the owner of the ship or, in the case of a ship within the meaning of Article I of the Civil Liability Convention, from the International Fund and the Supplementary Fund, and those steps have been unsuccessful;

  • (b) the owner of a ship is not liable by reason of any of the defences described in subsection 77(3), Article III of the Civil Liability Convention or Article 3 of the Bunkers Convention and neither the International Fund nor the Supplementary Fund are liable;

  • (c) the claim exceeds

    • (i) in the case of a ship within the meaning of Article I of the Civil Liability Convention, the owner’s maximum liability under that Convention to the extent that the excess is not recoverable from the International Fund or the Supplementary Fund, and

    • (ii) in the case of any other ship, the owner’s maximum liability under Part 3;

  • (d) the owner is financially incapable of meeting their obligations under section 51 and Article III of the Civil Liability Convention, to the extent that the obligation is not recoverable from the International Fund or the Supplementary Fund;

  • (e) the owner is financially incapable of meeting their obligations under section 71 and Article 3 of the Bunkers Convention;

  • (f) the owner is financially incapable of meeting their obligations under section 77;

  • (g) the cause of the oil pollution damage is unknown and the Administrator has been unable to establish that the occurrence that gave rise to the damage was not caused by a ship; or

  • (h) the Administrator is a party to a settlement under section 109.

• Marginal note:Additional liability of Ship-source Oil Pollution Fund

  (1.1) Subject to the other provisions of this Part, the Ship-source Oil Pollution Fund is liable for the costs and expenses incurred by the Minister of Fisheries and Oceans or any other person in respect of measures taken under subsection 180(1) of the Canada Shipping Act, 2001 with respect to oil, or for loss or damage caused by those measures, for which neither the owner of a ship, the International Fund nor the Supplementary Fund is liable by reason of the fact that the occurrence or series of occurrences for which those costs and expenses were incurred did not create a grave and imminent threat of causing oil pollution damage.

• Marginal note:Exception — drilling activities

  (2) This Part does not apply to a drilling ship that is on location and engaged in the exploration or exploitation of the seabed or its subsoil in so far as an escape or discharge of oil emanates from those activities.

• Marginal note:Exception — floating storage units

  (3) This Part does not apply to a floating storage unit or floating production, storage and off­loading unit unless it is carrying oil as a cargo on a voyage to or from a port or terminal outside an offshore oil field.

Marginal note:Action by Administrator

• 102 (1) If there is an occurrence that gives rise to the liability of an owner of a ship under section 51, 71 or 77, Article III of the Civil Liability Convention or Article 3 of the Bunkers Convention,

  • (a) the Administrator may, either before or after receiving a claim under section 103 or 106.1, commence an action in rem against the ship that is the subject of the claim, or against any proceeds of sale of the ship that have been paid into court; and

  • (b) subject to subsection (3), the Administrator is entitled in any such action to claim security in an amount not less than the owner’s maximum aggregate liability determined in accordance with section 71 or 77, or Article V of the Civil Liability Convention.

• Marginal note:Subrogation

  (2) The Administrator may continue the action only if he or she has become subrogated to the rights of the claimant under paragraph 106(3)(c) or 106.3(5)(b).

• Marginal note:Entitlement to claim security

  (3) The Administrator is not entitled to claim security under subsection (1) if

  • (a) in the case of a ship within the meaning of Article I of the Civil Liability Convention, a fund has been constituted under subsection 52(2); and

  • (b) in the case of any other ship, a fund has been constituted under Article 11 of the Convention as defined in section 24.