Friday, Aug 22, 2003
Texaco is suing the Milford Haven Port Authority for Dollars 16m (Pounds 9.5m) over the loss of its cargo carried by the Sea Empress, the oil tanker that ran aground seven years ago.
The claim, revealed in the port authority's 2002 annual report, concerns 72,000 tonnes of crude oil that was spilt at the entrance to Milford Haven estuary in Wales in February 1996. The incident contaminated 120 miles of coastline, killed sea birds, damaged tourism and shut the local fishing industry for six months.
The port authority is also facing a claim for Pounds 38m from the International Oil Pollution Compensation Fund, which is seeking to regain the money it paid to local fishing and tourism operators and councils.
Ted Sangster, general manager of the port authority, said it was "stoutly resisting" both claims. In both cases, it was arguing that the human error, which led to the accident, could not be attributed to negligence by the authority.
In 1999, the authority was fined a record Pounds 4m for the disaster, which the judge said was due to the "careless" navigation by a port authority pilot who had never before attempted to take such a large ship into the harbour close to low tide. But in 2000, the fine was reduced on appeal to Pounds 750,000 on the grounds it was excessive in relation to the financial position of the authority.
Mr Sangster said the authority's decision to plead guilty to the criminal charges brought against it by the Environment Agency did not amount to an admission of negligence, as the offence involved strict liability. The case did not set a precedent, making the auth-ority an "easy target" for civil damages, he said.
Texaco declined to discuss the details of the claim, on the grounds it might prejudice any legal proceedings. But it was "keen to reach the most satisfactory conclusion to the matter for all its stakeholders involved, including local community, business partners and shareholders".
Mr Sangster said there was "a slight feeling of embarrassment" at being sued by Texaco, which is the authority's largest customer, although the working relationship with the refinery had not been affected.
The case brought by the IOPC is due to come to court next June, although it will go to legal mediation this autumn. Mr Sangster said Texaco had agreed to delay its case pending the outcome of the IOPC case, which is likely to clarify the legal arguments.
He said that, although the authority had a good defence against the two claims, there was "concern at the inevitable increase in management time and attention" that would be required in addressing them.
By VANESSA HOULDER
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