THE International Oil Pollution Compensation Fund (IOPC) is set to finalize indemnification of all victims of the MT Solar 1, which sank off Guimaras in August 2006.

The IOPC said they needed to finalize the entire compensation for the parties, including fisherfolk, local communities and officials who responded to the incident as well as Petron Corp., the company that owned the spilled oil, since the fund only allowed them to complete indemnification within three years.

The three-year period lapsed in August since the vessel sank on the same month in 2006.  

A meeting, which is regularly conducted at least twice a year, is currently being done by top fund officials in London this week.  Their activities nclude their final recommendation on the sinking of MT Solar 1, owned by Sunshine Maritime Development Corp.

The IOPC said it will coordinate with local officials so that all the claims can either be paid for or formally rejected.

According to the IOPC’s recent report, a total of 32,447 claims were submitted since 2006 amounting to P996.13 million, mostly for cleanup operations made by Petron and the Philippine Coast Guard. So far, the fund has paid some P954.89 million from those claims. There is still a significant amount unpaid.  

The IOPC said it did not process 132,642 claims, mainly from fisherfolk and seaweed producers from Guimaras Island and Iloilo.

“The majority of the claim forms were incomplete and a significant number were from people under the age of 18 years, which is the minimum age at which people are allowed to engage in fishing in the Philippines,” it said in its report.

It added that some P190 million was paid to individual fishermen since they were not covered by a cooperative and P13.54 million to a Manila-based law firm that represented more than 1,000 fisherfolk in the area.

“The claims are based on the assumption that the effects of the spill would last 20 months,” the report said.   

Petron, the owner of the spilled oil, also got its share and was initially paid P128.88 million based on its claim of P224 million for its cleanup operation. It still has a pending claim for its other efforts.

The 998-gross-ton MT Solar 1 sank 10 nautical miles south of Guimaras Island on August 11, 2006, carrying 2,081 tons of industrial fuel oil owned by Petron. Most of the oil was spilled to the sea, becoming the country’s worst.

Solar 1, however, is covered by the Shipowners’ Mutual Protection and Indemnity Association Luxembourg or the ship owners’ club, and is also a party to the Small Tanker Owners Pollution Indemnification Agreement (Stopia) 2006.

This means that all liabilities arising from the sinking incident would be paid for by the club. The 1992 Civil Liability Convention has a limit of payment of £4.4 million ($6.93 million) while the Stopia has a further limit of £19.5 million ($30.75 million).