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Marine Liability Act (S.C. 2001, c. 6)

Full Document:  

Act current to 2024-02-06 and last amended on 2023-06-22. Previous Versions

PART 7Ship-source Oil Pollution Fund (continued)

Liability of Ship-source Oil Pollution Fund (continued)

Expedited Process for Small Claims (continued)

Marginal note:Post-payment investigation and reassessment

  •  (1) The Administrator may, within three years after the day of the occurrence in respect of which the claim was made, investigate and reassess any claim for which a payment was made under subsection 106.3(4).

  • Marginal note:Administrator’s powers

    (2) For the purpose of investigating and reassessing a claim, the Administrator has the powers of a commissioner under Part I of the Inquiries Act.

  • Marginal note:Factors to be considered

    (3) When investigating and reassessing a claim, the Administrator may consider only whether the claim meets the conditions set out in subsection 106.1(1).

  • 2018, c. 27, s. 725

Marginal note:Result of investigation and reassessment

  •  (1) As soon as feasible after completing the investigation and reassessment, the Administrator shall give the claimant notice that

    • (a) the Administrator will take no further action in respect of the claimant’s claim; or

    • (b) the claimant is required to pay to the Administrator the overpayment set out in the notice, in the manner and within the period set out in the notice.

  • Marginal note:Overpayments

    (2) The following amounts paid under subsection 106.3(4) constitute an overpayment to the claimant:

    • (a) an amount paid in respect of a claim that the Administrator is satisfied was not for loss, damage, costs or expenses referred to in paragraph 106.1(1)(a);

    • (b) an amount that was paid in respect of a claim that the Administrator is satisfied was not the first one that the claimant has filed in respect of a given occurrence for loss, damage, costs or expenses referred to in that paragraph;

    • (c) an amount that was paid in respect of a claim that the Administrator is satisfied resulted from an act done or omitted to be done by the claimant with intent to cause damage or from the claimant’s negligence; and

    • (d) an amount that was paid in respect of a claim, if the Administrator is satisfied on the evidence that the occurrence that gave rise to the claim was not caused by a ship.

  • Marginal note:Overpayments — limitation or prescription period exceeded

    (3) The Administrator may, in his or her discretion, determine that an amount paid under subsection 106.3(4) constitutes an overpayment to the claimant if the Administrator is satisfied that the amount was paid in respect of a claim that was not filed within the period set out in subsection 106.1(4).

  • Marginal note:Appeal to Admiralty Court

    (4) A claimant may, within 60 days after receiving a notice under paragraph (1)(b), appeal to the Admiralty Court the requirement to pay the overpayment set out in the notice referred to in that paragraph.

  • 2018, c. 27, s. 725

Marginal note:Debts due to Her Majesty

 Unless the claimant under subsection 106.1(1) is a minister of the Crown in right of Canada, all amounts and overpayments payable under subsection 106.4(3) or paragraph 106.6(1)(b), respectively, constitute debts due to Her Majesty in right of Canada that may be recovered in a court of competent jurisdiction from the person who is required to pay them.

  • 2018, c. 27, s. 725

Marginal note:Regulations

 The Governor in Council may make regulations

  • (a) respecting claims filed under subsection 106.1(1);

  • (b) fixing an amount for the purposes of paragraph 106.1(1)(b);

  • (c) prescribing information for the purposes of subparagraph 106.1(2)(c)(iv) or paragraph 106.1(2)(d); and

  • (d) fixing an amount for the purposes of subsection 106.1(3).

  • 2018, c. 27, s. 725

Marginal note:Definitions

 In sections 106.1 to 106.6, incident and occurrence have the meaning assigned by the definition incident in Article I of the Civil Liability Convention.

  • 2018, c. 27, s. 725

 [Repealed, 2023, c. 26, s. 338]

 [Repealed, 2023, c. 26, s. 338]

Proceedings Against the Owner of a Ship

Marginal note:Proceedings against owner of ship

  •  (1) If a claimant commences proceedings against the owner of a ship or the owner’s guarantor in respect of a matter referred to in section 51, 71 or 77, Article III of the Civil Liability Convention or Article 3 of the Bunkers Convention, except in the case of proceedings based on paragraph 77(1)(c) commenced by the Minister of Fisheries and Oceans in respect of a pollutant other than oil,

    • (a) the document commencing the proceedings shall be served on the Administrator by delivering a copy of it personally to him or her, or by leaving a copy at his or her last known address, and the Administrator is then a party to the proceedings; and

    • (b) the Administrator shall appear and take any action, including being a party to a settlement either before or after judgment, that he or she considers appropriate for the proper administration of the Ship-source Oil Pollution Fund.

  • Marginal note:If Administrator party to settlement

    (2) If the Administrator is a party to a settlement under paragraph (1)(b), he or she shall direct payment to be made to the claimant of the amount that the Administrator has agreed to pay under the settlement.

  • 2001, c. 6, s. 109
  • 2009, c. 21, s. 11

Emergency Funds

Marginal note:Request by Minister of Fisheries and Oceans for funds — $10 million

  •  (1) If, in the opinion of the Minister of Fisheries and Oceans, emergency funds are necessary to respond to a significant incident involving the discharge of oil from a ship, the Minister of Transport may, after consultation with the Administrator, direct the amount of funds requested by the Minister of Fisheries and Oceans, or a lesser amount, to be charged to the Ship-source Oil Pollution Fund to enable the Minister of Fisheries and Oceans to respond to the significant incident, to a maximum of $10 million per fiscal year.

  • Marginal note:Additional funds — $50 million

    (2) If the maximum amount has been charged to the Ship-source Oil Pollution Fund under subsection (1) and, in the opinion of the Minister of Fisheries and Oceans, additional emergency funds are necessary to respond to a significant incident in that fiscal year involving the discharge of oil from a ship, the Governor in Council may, on the recommendation of the Minister of Transport made after consultation with the Administrator, issue an order in council directing the additional funds requested by the Minister of Fisheries and Oceans, or a lesser amount, to be charged to the Ship-source Oil Pollution Fund to enable the Minister of Fisheries and Oceans to respond to the significant incident, to a maximum of $50 million per fiscal year.

  • Marginal note:Exclusions

    (3) For greater certainty, the Minister of Fisheries and Oceans may not request emergency funds under subsection (1) or (2) for

    • (a) measures taken or to be taken under paragraph 180(1)(a) of the Canada Shipping Act, 2001 in respect only of a discharge of oil by a small vessel that is dilapidated or abandoned; or

    • (b) the carrying out by that Minister of only minor monitoring of measures under paragraph 180(1)(b) of that Act.

  • Marginal note:Use of emergency funds

    (4) The Minister of Fisheries and Oceans may use emergency funds only to respond to a significant incident involving the discharge of oil from a ship, including paying third parties. For greater certainty, that Minister may not use such funds for any

    • (a) measures taken or to be taken under paragraph 180(1)(a) of the Canada Shipping Act, 2001 in respect only of a discharge of oil by a small vessel that is dilapidated or abandoned; or

    • (b) measures referred to in subsection 101(1.1).

  • 2001, c. 6, s. 110
  • 2009, c. 21, s. 11
  • 2018, c. 27, s. 727

Marginal note:Reimbursement of amount of emergency funds

  •  (1) If emergency funds are charged to the Ship-source Oil Pollution Fund under subsection 110(1) or (2), the amount of the emergency funds shall be credited to the Ship-source Oil Pollution Fund, out of appropriations for the Department of Fisheries and Oceans under an appropriation Act, within two years after the day on which the oil pollution damage resulting from the significant incident occurs or within any longer period agreed to by the Administrator and the Minister of Fisheries and Oceans.

  • Marginal note:Rights unaffected

    (2) Nothing in subsection (1) affects the rights of the Minister of Fisheries and Oceans under sections 51, 71, 77 and 101, Article III of the Civil Liability Convention and Article 3 of the Bunkers Convention with respect to loss and damage suffered, and costs and expenses incurred, in respect of the significant incident.

  • 2001, c. 6, s. 111
  • 2009, c. 21, s. 11
  • 2018, c. 27, s. 727

Marginal note:Claim under section 103

  •  (1) If the Minister of Fisheries and Oceans files a claim with the Administrator under section 103 for loss and damage suffered, and costs and expenses incurred, in respect of the significant incident for which emergency funds were charged to the Ship-source Oil Pollution Fund under subsection 110(1) or (2), then, despite subsection 111(1), it is only any portion of the emergency funds that is unused at the time of the filing of the claim that is to be credited to the Ship-source Oil Pollution Fund within two years after the day on which the oil pollution damage resulting from the significant incident occurs or within any longer period agreed to by the Administrator and the Minister of Fisheries and Oceans.

  • Marginal note:Offer of compensation less than zero

    (2) If the offer of compensation made by the Administrator to the Minister of Fisheries and Oceans under paragraph 105(1)(a) is less than zero, then, unless that Minister appeals the offer under subsection 106(2), an amount equal to the amount of the offer is to be credited to the Ship-source Oil Pollution Fund, out of appropriations for the Department of Fisheries and Oceans under an appropriation Act, within six months after the day on which that Minister receives the offer or within any longer period agreed to by the Administrator and that Minister.

  • Marginal note:Offer of compensation refused

    (3) If the Minister of Fisheries and Oceans refuses the offer of compensation made under paragraph 105(1)(a), then, as soon as feasible after that Minister refuses the offer, an amount equal to the amount of the emergency funds charged to the Ship-source Oil Pollution Fund under subsection 110(1) or (2) is to be credited to the Ship-source Oil Pollution Fund, out of appropriations for the Department of Fisheries and Oceans under an appropriation Act, less any unused portion of the emergency funds credited to the Ship-source Oil Pollution Fund under subsection (1).

  • Marginal note:Definition of offer of compensation

    (4) If emergency funds are charged to the Ship-source Oil Pollution Fund under subsection 110(1) or (2), then, for the purposes of sections 105, 106 and this section, offer of compensation means, with respect to the Minister of Fisheries and Oceans, the amount determined in accordance with the formula

    A – (B – C)

    where

    A
    is the portion of the claim that the Administrator finds to be established under subsection 105(1);
    B
    is the amount of emergency funds charged to the Ship-source Oil Pollution Fund under subsection 110(1) or (2); and
    C
    is the amount of any unused portion of emergency funds credited to the Ship-source Oil Pollution Fund under subsection (1).

Marginal note:Interest

 Interest accrues, at a rate determined in accordance with regulations made under paragraph 155.1(6)(a) of the Financial Administration Act, beginning on the day on which the emergency funds were charged to the Ship-source Oil Pollution Fund under subsection 110(1) or (2), on any portion of those funds that are required to be credited to the Ship-source Oil Pollution Fund under subsection 111(1) or 111.1(1) or (2) and have not been so credited within the time within which they are required to be so credited under that subsection.

  • 2018, c. 27, s. 727

Marginal note:Reports

 On request by the Minister of Transport, the Minister of Fisheries and Oceans shall provide the Minister of Transport and the Administrator with information about costs and expenses incurred with emergency funds charged to the Ship-source Oil Pollution Fund under subsection 110(1) or (2).

  • 2018, c. 27, s. 727

Levies To Be Paid to the Ship-source Oil Pollution Fund, the International Fund and the Supplementary Fund

Marginal note:Definitions

 The definitions in this section apply in sections 113, 114.1, 117.1 and 117.3.

contributing oil

contributing oil has the same meaning as in paragraph 3 of Article 1 of the Fund Convention. (hydrocarbures donnant lieu à contribution)

non-persistent oil

non-persistent oil means the oils that are referred to in paragraph 1(a)(ii) of Article 19 of the Hazardous and Noxious Substances Convention. (hydrocarbures non persistants)

  • 2001, c. 6, s. 112
  • 2009, c. 21, s. 11
  • 2018, c. 27, s. 728

Marginal note:Amount of levy

  •  (1) The levy is 52.38 cents in the year ending on March 31, 2019 in respect of each metric ton of contributing oil or non-persistent oil received or exported, as the case may be, in bulk as cargo.

  • Marginal note:Annual adjustment of levy

    (2) The levy referred to in subsection (1) shall be adjusted annually so that the levy in any following year is an amount equal to the product obtained by multiplying

    • (a) the levy that would have been payable in that following year if no adjustment had been made under this section with respect to that following year

    by

    • (b) the ratio that the Consumer Price Index, excluding the food and energy components, for the 12-month period ending on December 31 next before that following year bears to the Consumer Price Index, excluding the food and energy components, for the 12-month period next before that 12-month period.

  • Marginal note:Consumer Price Index

    (3) For the purpose of this section,

    • (a) a reference to the “Consumer Price Index, excluding the food and energy components,” for any 12-month period means the average of the Consumer Price Index for Canada, excluding the food and energy components, as published by Statistics Canada under the authority of the Statistics Act, for each month in that 12-month period;

    • (b) the Governor in Council may, on the recommendation of the Minister, make regulations prescribing the manner in which the average of the Consumer Price Index, excluding the food and energy components, for any 12-month period is to be determined and the manner of expressing any such average that is determined to be a fraction of a whole number;

    • (c) if at any time the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, is adjusted to reflect a new time basis, a corresponding adjustment shall be made in the Consumer Price Index, excluding the food and energy components, for any 12-month period that is used for the purpose of calculating the levy under this section; and

    • (d) if at any time the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, is modified to reflect a new content basis, that modification does not affect the operation of this section.

  • Marginal note:Adjusted levy to be published annually

    (4) The Minister shall cause the levy referred to in subsection (1) to be published in the Canada Gazette each year as soon as it is adjusted in accordance with this section, and the levy so published is admissible in any proceeding under this Act as conclusive proof of the levy for the year in question.

  • 2001, c. 6, s. 113
  • 2009, c. 21, s. 11
  • 2018, c. 27, s. 729
 

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