Prof. Avv. Lorenzo Schiano di Pepe Maritime Adriatic Conference (Portorož, 26-28 May 2016) Offshore Activities: International Legal Framework and the Work of the CMI Prof. Avv. Lorenzo Schiano di Pepe University of Genoa – Department of Law

Offshore Activities: General Overview and Scope of the Presentation Various kinds of “offshore activities” oil and gas reservoirs exploration and exploitation, wind energy production, deep seabed mining, research, … Focus will be on: offshore oil and gas activities Various (legal) implications environmental protection, safety, security, … Focus will be on: environmental implications

The Global Legal Framework (1) UN Convention on the Law of the Sea, 1982 Art. 194(1): States to prevent, reduce, control pollution of the marine environment “from any source” including “from installations and devices used in exploration or exploitation of the natural resources of the seabed and subsoil” [Art. 194(3)] Art. 208(1): States to “adopt laws and regulations to prevent, reduce and control pollution of the marine environment arising from or in connection with seabed activities subject to their jurisdiction” Art. 208(4): national laws to be “no less effective than international rules, standards and recommended practices and procedures” Art. 208(5): States, “acting through competent international organizations or diplomatic conference”, to “establish global and regional rules, standards and recommended practices and procedures” Art. 214: obligation to enforce the above rules

The Global Legal Framework (2) Mechanism similar to the one in place for ship-source pollution Have such obligations been fulfilled - and to what extent? Code for Construction and Equipment of Mobile Offshore Drilling Units (MODU Code) (2009), non-binding MARPOL Convention (1973/1978), see Art. 2(3) and (4) OPRC Convention (1990), Art. 2, focus on emergencies What is missing? a binding legal instrument, setting out technical standards aimed at the prevention of environmental accidents, with a global scope of application

The Regional Legal Framework (1) OSPAR Convention (1995), Art. 5 and Annex III – NE Atlantic Ocean Barcelona Convention “system” … … and the Protocol for the protection of the Mediterranean Sea against pollution resulting from exploration and exploitation of the continental shelf and the seabed and its subsoil (Madrid, 1994) Status of the Madrid Protocol: entry into force on 24 March 2011 six contracting States (Albania, Cyprus, Libya, Morocco, Syria, Tunisia) plus the European Union

The Regional Legal Framework (2) Main features of the Madrid Protocol objectives (prevention, control of marine pollution / use of best available techniques / envt’l effectiveness, economic sustainability) scope of application (material, personal) and key definitions authorisation system + emergency situations liability and insurance (to be developed) The future of the Madrid Protocol

The EU Legal Framework Directive 2013/30 on safety of offshore oil and gas operations background and travaux préparatoires objective and scope of application (minimum requirements for prevention and risk management of major accidents) prior licencing and response mechanisms liability Implementation progress Comment and follow-up (2015 Commission report)

The Work of the CMI (1) Establishment of an IWG on “Offshore Activities” Membership (16) – Chairman – Rapporteur Scope Output answers to questionnaire prepared by NMLAs (18) meetings (4 + NY), interim reports (3) Recent progress Istanbul meeting (2015) and New York meeting (2016)

The Work of the CMI (2) Lookout involvement in (IMO) Intersessional Working Group led by Denmark & Indonesia IMO background “guidance” document to be discussed at IMO Legal Committee (“Guidance for Bilateral/Regional Arrangement/Agreement on Liability and Compensation Issues Connected with Transboundary Oil Pollution Damage Resulting from Offshore Oil Exploration and Exploitation Activities”)

We all agree that the bottom line is to avoid … … but, to achieve that, legal inconsistencies and loopholes at int’l & EU level need to be addressed

Thank You Questions? Comments? Complaints? Prof. Avv. Lorenzo Schiano di Pepe lorenzo.schianodipepe@unige.it NEW! Summer School on European Union and the Law of the Sea (Bremen, Germany, 22 August-2 September 2016): www.eu-los.eu