{"id":2,"date":"2025-03-12T19:46:54","date_gmt":"2025-03-12T19:46:54","guid":{"rendered":"https:\/\/clearseas.org\/who-pays-for-an-oil-spill-new\/?page_id=2"},"modified":"2025-08-18T13:46:20","modified_gmt":"2025-08-18T20:46:20","slug":"sample-page","status":"publish","type":"page","link":"https:\/\/clearseas.org\/who-pays-for-an-oil-spill\/","title":{"rendered":"Home"},"content":{"rendered":"\n
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Who Pays for
an Oil Spill<\/h1>\n\n\n\n

#clearfacts #whopays #oilspill<\/strong><\/p>\n<\/div><\/div>\n\n\n\n

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Surrounded by busy waterways, Canadians inevitably have questions about who pays for the costs associated with a ship-source oil spill into water.<\/p>\n\n\n\n

For example, if a spill were to happen tomorrow \u2013 would Canadians have to pay for it?<\/p>\n\n\n\n

How much money is available to clean up a spill?<\/p>\n\n\n\n

This site\u2019s purpose is to share objective information about who pays for the costs of cleaning up a ship-source oil spill in Canadian waters and to encourage informed conversations about marine shipping in Canada.<\/p>\n\n\n\n

This site was created by Clear Seas<\/a>, an independent research centre that supports safe and sustainable marine shipping in Canada.<\/p>\n<\/div>\n\n\n\n

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The Law in Canada<\/h2>\n\n\n\n
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In Canada, the polluter pays \u2013 whether the oil pollution came from tanker cargo or fuel (called bunker) from vessels of any size.<\/p>\n\n\n\n

The Marine Liability Act (MLA)<\/a> establishes responsibilities and liabilities and incorporates international compensation conventions into Canadian law. The Marine Liability Act also establishes the requirements of Ship and Rail Compensation Canada – Ship Fund<\/a>.<\/p>\n\n\n\n

Under the Marine Liability Act, the shipowner pays, usually through mandatory liability insurance.<\/p>\n\n\n\n

The amount a shipowner pays depends on the source of the oil (cargo or fuel) and on the size of the ship.<\/p>\n\n\n\n

If the costs associated with a tanker cargo spill exceed a tanker owner\u2019s liability limits then additional compensation is available from other sources funded by industry, including the International Oil Pollution Compensation Funds (IOPC Funds<\/a>) and Ship Fund<\/a>. Both of these funds are incorporated into the Marine Liability Act. If the costs associated with a fuel (bunker) spill exceed a shipowner\u2019s liability limits then additional compensation may be sought from the Ship Fund.<\/p>\n<\/div>\n\n\n\n

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Learn more about the Marine Liability Act and international conventions<\/a><\/strong><\/p>\n<\/div>\n\n\n\n

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Tanker Cargo Spills in Canadian Waters<\/h2>\n\n\n\n

While some risk is inherent in the transportation of oil, thanks to increased preventive measures such as mandatory double hulls for ships carrying oil as cargo and local marine pilots to guide ships in Canadian coastal waters, the volume and frequency of oil spills has been decreasing in Canada and globally since the 1970s[1]<\/a><\/sup>.<\/strong><\/p>\n\n\n\n

Although a spill is unlikely to occur, in order to operate in Canadian waters, tankers must always[2]<\/a><\/sup>:<\/p>\n\n\n\n