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Circular to all tanker owner members Although the TOVALOP Agreement came to an end in 1997, charterparty clauses remain in circulation which seek to maintain some features of the Agreement.  In December 1996 and May 1997 we issued Circulars notifying members of the termination of the TOVALOP Agreement and of the consequent unacceptability of the TOVALOP charterparty clause with effect from 20th February 1997.   Under the old TOVALOP clause recommended by the Clubs, owners gave charterers the right in certain circumstances to take measures at the owners’ expense in response to an oil spill from the tanker or threat thereof.  The granting of this right was consistent with the voluntary compensation system set up by the TOVALOP and CRISTAL agreements.  On the termination of the TOVALOP agreement it was no longer appropriate for charterers to have such an express right, since it was unnecessary and also incompatible with the Civil Liability Convention (CLC) and Fund Convention.  Some oil majors have recently attempted to reintroduce clauses based on the wording of the old TOVALOP charterparty clause.  These clauses authorise charterers to take steps to prevent or minimise pollution from the tanker on behalf of owners and at owners’ expense, and may expose owners to pay clean-up or threat removal expenses which may not be recoverable from the Association.   These clauses could allow charterers to seek to circumvent the provisions of CLC.  Under CLC claimants, including charterers, have a right of recovery against the shipowner for pollution claims including the cost of preventive or clean-up measures, subject to certain constraints.  If the total of acceptable claims exceeds the CLC limitation amount, the compensation received by claimants will be reduced proportionately. However, these clauses may enable charterers to obtain a full and immediate reimbursement of expenses no matter what the total of all CLC claims ma
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pi_circular Skuld ·2007-01-04

Tanker charterparties - Oil pollution clauses

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