Section 12

Pollution risks

The liabilities, losses, damages, costs and expenses set out in paragraphs [A] to [E] below when and to the extent that they are caused by or incurred in consequence of the discharge or escape from an entered ship of oil or any other substance, or the threat of such discharge or escape:

PROVIDED ALWAYS that

a. There shall be no recovery in respect of any liability, loss, damage, cost or expense arising as a consequence of the presence in, or the escape or discharge or threat of escape or discharge from, any land-based dump, storage or disposal facility, of any substance previously carried on the entered ship, whether or not as cargo, fuel, stores or waste, except to the extent that the Directors in their discretion, and without having to give any reasons for their decision, otherwise determine.

b. Unless and to the extent that special cover has been agreed in writing by the Managers, the Association shall not reimburse any liability, loss, cost or expense which would have been recoverable in general average if the cargo of the entered ship had been carried on terms no less favourable to the Member than those of the York-Antwerp Rules 1994.

c. Unless the Managers otherwise agree in writing, the Member of an entered ship which is a “relevant ship”as defined in the Small Tanker Oil Pollution Indemnification Agreement 2006 (STOPIA 2006) shall during the currency of that Agreement be a party to STOPIA 2006 for the period of entry of such ship in the Association and, unless the Directors otherwise determine, shall not be entitled to any recovery under this Section 12 of Rule 3, in respect of such ship in relation to any casualty, event or matter occurring during a period when the Member is not a party to STOPIA 2006.

d. Unless the Managers otherwise agree in writing, the Member of an entered ship  which  is  a  “ relevant  ship ”  as  defined  in  the  Tanker Oil Pollution Indemnification Agreement  ( TOPIA )  shall  during  the  currency of  that Agreement be a party to TOPIA for the period of entry of such ship in the Association  and ,  unless  the  Directors  otherwise  determine, shall not be entitled to any recovery under this Section 12 of Rule 3, in respect of such ship in relation to any casualty,event or matter occurring during a period when the Member is not a party to TOPIA.

A. Liability for loss, damage or contamination.

B. Any loss, damage or expense which the Member incurs, or for which he is liable, as a party to any agreement approved by the Directors, including the costs and expenses incurred by the Member in performing his obligations under such agreements.

C. The costs of any measures reasonably taken for the purpose of avoiding or minimizing pollution or any resulting loss or damage together with any liability for loss of or damage to property caused by measures so taken.

D. The costs of any measures reasonable taken to prevent an imminent danger  of  the  discharge  or  escape  from  the  entered  ship  of oil or any substance which may cause pollution.

E. The costs or liabilities incurred as a result of compliance with any order or direction given by any government or authority, for the purpose of preventing or reducing pollution or the risk of pollution, provided always that:

a. such compliance is not a requirement for the normal operation or salvage or repair of the entered ship; and

b. such costs or liabilities are not recoverable under the Hull Policies or the Hull Certificates of the entered ship.

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