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THIRTEENTH CONGRESS OF THE 
1 
First Regular Session 
1 
REPUBLIC OF THE PHILIPPINES 
) 
3 FEE 24 P 1  :49 
Introduced by SENATOR JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
The goveriment is tasked by the fundamental law of the land to be the 
guardian and custodian of our countq's natural resources. This iiicludes care of 
our marine resources. 
Tlus legislative measure therefore institutes a mechanism for the 
prevention, abatement, mitigation and control of oil pollution within the 
territorial bouitdaries of the country. 
hi view of the foregoing, immediate passage of this bill is earnestly 
sought. 
&F- 
NGG Y EJERCITO ESTRAD y 


THIRTEENTH CONGRESS OF THE 
1 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
1 
SENATE 
1932 
S. No. - 
INTRODUCED BY SENATOR JINGGOY EJERCITO ESTRADA 
AN ACT 
CFUCATING THE OIL SPILL LIABILITY FUND 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Title. 
This Act shall be known as the “Oil Spill Liability Fund 
Act of 2005.” 
a 
SECTION 2. Statement of Policy. It is hereby declared the policy of the State 
to prevent, abate, mitigate and control the pollution by oil and oily mixture of the seas 
within the territorial jurisdiction of the Philippines. 
SECTION 3. Definition of Terms. As used in this Act: 
a. 
b. 
“ D E W  means the Department of Environment and Natural Resources; 
“Discharge” in relation to oil or to an oily mixture means any discharge or 
escape or spillage, however caused; 
“Fund” means the Oil Spill Liability Fund; 
“LGU” means Local Government Unit; 
“MARINA” means Maritime Industry Authority; 
“Oil” means oil of any kind or in any form including hut not limited to 
crude oil, fuel oil, heavy diesel oil and lubricating oil, oil refuse and 
sludge; 
“Seas” means the waters surrounding, between and around the islands 
comprising the Philippine Archipelago; 
C. 
d. 
e. 
f. 
g. 


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means every description of watercraft, or other artificial 
:e used, or capable of being used, as means of transportation on 
ept; 
i. 
j. 
ships which are, or for the time being used as naval auxiliaries; and 
ships of under 500 tons gross tonnage; 
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P 
SECTION 4 Creation 0' the Oil Spill Liability Fund; Manner of Constitution. 
There is hereby created an Oil S ill Liability Fund to be managed and administered as a 
Trust Fhnd by the Department of nvironment and Natural Resources (DENR). The Fund 
shall be sourced from contributions of owners and operators of tankers and barges 
hauling oil and/or petroleum products in Philippine waterways and coast wise shipping 
routes. During its first year of existence, the Fund shall be constituted by an impost of ten 
centavos per liter for every delivery of transshipment of :oil made by tanker barges and 
tanker haulers. For the succeeding fiscal years, the amount of contribution shall be jointly 
determined by the D E W  other concerned government agencies, and representatives 
from the owners of tanker haulers, and ships hauling oil and/or petroleum products. In 
determining the amount of contribution, the purpose for which the Fund was set up shall 
always be closely considered. 
SECTION 5. Purpose of the Fund 
Amounts in the Oil Spill Liability Fund 
shall be available for purposes of making expenditures for the payment of clean-up 
and/or removal costs and natural resources damage assessments and claims as determined 
by the Department of Environment and Natural Resources (DENR) and administrative 
expenses related to such costs, assessments and claims caused or occasioned by any ship, 
tanker vessel, tanker barge or any other watercrafl as understood in this Act which 
accidentally or otherwise discharges oil or oily mixture on waters subject to the 
jurisdiction of the Philippines; Provided, however, that the assessment or claim made by 
the DENR of the natural resource damage caused by an oil spill shall be payable, without 
need of demand, to the Local Government Unit &GV> within whose territorial 
jurisdiction are situation waters affected by the oil spill; Provided, finally, that, the Fund 
shall also be used to enable the Philippine Coast Guard to develop an adequate capability 
for containment, recovery and removal or clean-up of spilled oil or oily mixture in waters 
within the territorial jurisdiction of the Philippines. 
SECTION 6. Limitations OH Expenditures. The maxinium amount which may 
be paid fiom the Oil Spill Liability Fund with respect to - 
1. 
removal costs resulting from a single incident shall not exceed 


I 
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P5,000,000.0d; and 
natural resoJce damage assessments and claims in connection with any 
single incident shall not exceed P2,500,000.00. 
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11. 
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SECTION I. Liabilik of Owners of Ships, Tanker Burges and Tanker Haulers 
for Oil Spill Limited to Co4tribution in the Fund 
The liability of owners of tanker 
barges and tanker haulers 0; of ships or watercraft as understood in this Act for any oil 
spill or natural resource dan!age 
however caused or occasioned shall be limited to their 
contribution to the Fund. 
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SECTION 8. Respobsibility for Physical Removal and/or clean-up of oil spills. 
Witbout prejudice to the right of the DENR to engage the services of a private contractor, 
the Philippine Coast Guard, bsing available hnds from the Oil Spill Liability Fund, shall 
be the agency primarily resijonsible for the physical removal and/or clean-up operations 
of oil spills. 
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SECTION 9. Repe$ling Clause. 
All laws, rules and regulations inconsistent 
with this Act are hereby repealed or modified accordingly. 
SECTION 10. Effectivity Clause. 
This Act shall take effect fifteen (15) days 
from the date of its publication in at least two (2) newspapers of general circulation 
1 
Approved,