Liability, awards and settlements

22.1, oil spill, charges

South Korea: prosecutors charged five people, including the master of crude oil tanker Hebei Spirit , following the country’s worst oil spill last month. Scores of marine farms and miles of beaches along the Yellow Sea coast were fouled when a drifting barge (crane barge Samsung No.1 ) smashed into Hebei Spirit on Dec 7, holing it in three places and spilling 10,900 tonnes of crude oil. Three people have committed suicide following delays by local officials in paying compensation. The barge owned by Samsung Heavy Industries had snapped its towline to two tugs in rough seas. The masters of the barge and of one of the tugs were arrested and charged with negligence and violating anti-pollution laws. They were both detained. The second tug master was not detained but was indicted on similar charges. Hebei Spirit was anchored at the time. Under an agreement with South Korea’s maritime ministry on Jan 8, Hebei Spirit ’s insurer, Skuld, will pay up to Won12bn ($12.6mn) towards the cost of cleaning up the shoreline. Skuld has said in a statement that payments would be made by Feb 4. Hebei Spirit has been impounded until clean-up costs are paid. Residents in Taean County, the west coast area worst hit by the slick, staged protests demanding quick and full compensation. The central government sent about Won60bn from state coffers and private donations to the region, but regional authorities have been at odds as to how to divide the money. The Hebei Spirit officers are charged with failing to follow safety orders from navigation authorities. The owners and insurers of the tanker, along with the International Oil Pollution Compensation Fund, have set up a centre to handle damages claims. Under an agreement with South Korea’s maritime ministry, the insurer will pay up to Won12bn towards the cost of cleaning up the shoreline.