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2.4.4.1 Regime for Risk Allocation in Indonesia
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Chapters in this book
- Frontmatter i
- Contents v
- Acknowledgments xii
- Preface xiii
- Foreword xv
- Table of Cases xvii
- Table of Instruments xxi
- Abbreviations xxiii
-
Chapter 1 Risk Allocation in the Offshore Energy Industry: An Overview
- 1.0 General Introduction and Background 1
- 1.1 Understanding the Concepts of Risk and Risk Allocation 4
-
1.2 Risk and Related Concepts
- 1.2.1 Risk and Uncertainty 5
- 1.2.2 Risk and Probability 6
- 1.3 Risk Ca tegorisation 7
- 1.4 Scholastic Perspectives on Risk 10
-
1.5 Other Approaches to Risk
- 1.5.1 The Judicial Approach 12
- 1.5.2 The Legislative Approach 12
- 1.5.3 The Economic Approach 13
-
1.6 Essential Concepts in the Discussion about Risks
- 1.6.1 Risk Management 14
- 1.6.2 Risk Aversion 14
- 1.6.3 Risk Allocation 15
- 1.6.4 Risk Mitigation 16
- 1.6.5 Contractual Risk Allocation in the Oil Industry 16
-
1.7 Conceptual Understanding and Usage of Terms
- 1.7.1 Negligence and Gross Negligence 17
- 1.7.2 Human Rights and Environment 19
- 1.7.3 Sustainability 20
- 1.7.4 Distributive Justice 21
- 1.7.5 Freedom of Contract 22
- 1.7.6 Public Policy 23
-
1.8 Essential Terms in a Contract Matrix
- 1.8.1 Co-Venturers 23
- 1.8.2 Operator 25
- 1.8.3 Contractor 26
- 1.8.4 Subcontractor 27
- 1.9 Purpose and Objective of the Book 28
- 1.10 Me thodology and Structure of the Book 28
-
Chapter 2 The Context of Offshore Petroleum Drilling Operations and Risk Allocation
- 2.0 Introduction 31
- 2.1 O ffshore Petroleum Exploration 31
-
2.2 Drilling Contracts
- 2.2.1 Daywork/Day Rate Contract 35
- 2.2.2 Footage Contract 35
- 2.2.3 Turnkey Contract 36
- 2.3 Allocating Risks in the Oil and Gas Industry 36
-
2.4 Contractual Risk Allocation in Specific Jurisdictions
-
2.4.1 United Kingdom
- 2.4.1.1 United Kingdom Model Contracts 40
- 2.4.1.2 Analysis of the United Kingdom Mutual Indemnification Practice 44
-
2.4.2 United States of America
- 2.4.2.1 Model Contract for Risk Allocation in the United States 46
-
2.4.3 Nigeria
- 2.4.3.1 Standard Form Contracts for Drilling in Nigeria 53
- 2.4.3.2 Risk Allocation in Drilling Contracts in Nigeria 53
-
2.4.4 Indonesia
- 2.4.4.1 Regime for Risk Allocation in Indonesia 59
- 2.4.4.2 Risk Allocation in Indonesian Production Sharing Contract Forms 61
- 2.4.4.3 Risk Allocation in Operator and Contractor Private Drilling Contracts in Indonesia 62
- 2.5 Changing Perceptions of Risk Allocation 64
-
2.6 Risk Allocation Tools in Oil and Gas Contracts
- 2.6.1 Mutual Indemnity Agreements 66
- 2.6.2 Hold Harmless Clauses 68
- 2.6.3 Mutual Indemnity and Hold Harmless Provisions in Context 69
-
2.6.4 Exclusion and Limitation of Liability Clauses
- 2.6.4.1 Exclusion Clauses 70
- 2.6.4.2 Limitation of Liability Clauses 71
-
2.7 Rationales for Risk Allocation in Oil and Gas Contracts
- 2.7.1 Industry Practice Rationale 72
- 2.7.2 Doctrine of Tradition 72
- 2.7.3 Best Knowledge Doctrine 73
- 2.7.4 ‘Clay Feet’ Doctrine 73
- 2.7.5 Accountability Doctrine 74
- 2.7.6 Rationale Founded on Legal/Economic Considerations 74
- 2.7.7 The Party in the Best Position to Bear the Risk 74
- 2.7.8 Overall Efficiency Rationale 75
- 2.7.9 Economic Benefit Rationale 76
- 2.7.10 Foreseeability Rationale 76
- 2.7.11 Other Rationales 77
-
2.8 Regulatory Interventions in Risk Allocation
- 2.8.1 Anti-Indemnity Legislation 78
-
2.8.2 Indemnification in Texas
- 2.8.2.1 Texas Express Negligence Rule 79
- 2.8.2.2 Texas Anti-Indemnity Statute 80
- 2.8.3 Indemnification in Louisiana 81
- 2.8.4 Unfair Contracts Terms Act 1977 83
- 2.8.5 Contracts (Rights of Third Parties) Act 1999 85
- 2.9 Conclusion 86
-
Chapter 3 Conceptual Considerations in Risk Allocation in the Offshore Energy Industry
- 3.0 Introduction 87
- 3.1 Concept of Freedom of Contract 87
-
3.2 Limit of the Freedom of Contract
- 3.2.1 Commodification 90
- 3.2.2 Externalities 90
-
3.3 Public Policy and the Freedom of Contract in Risk Allocation
- 3.3.1 What Is Public Policy? 91
- 3.3.2 Public Policy – An Unruly Horse? 95
- 3.3.3 Public Policy and the Exercise of the Freedom of Contract 97
-
3.3.4 Public Policy and Risk Allocation behind the Veil of Ignorance
- 3.3.4.1 Conceptual Understanding of the Veil of Ignorance 100
- 3.3.4.2 Hypothetical Risk Allocation behind the Veil of Ignorance in the Hydrocarbon Industry 102
- 3.3.4.3 Assessing the Veil of Ignorance in Gross Negligence Cases 103
-
3.4 Sustainability Dimensions in Risk Allocation
- 3.4.1 Concept of Sustainability 105
-
3.4.2 Aspects of Sustainability
- 3.4.2.1 Environmental Aspect 107
- 3.4.2.2 Social Aspect 109
- 3.4.2.3 Economic Aspect 109
- 3.4.3 Sustainability Risks 110
-
3.4.4 Why Is Sustainability Essential to the Offshore Petroleum Industry?
- 3.4.4.1 Reputation Risk Management 111
- 3.4.4.2 A Way of Securing the Social Licence to Operate 113
- 3.4.4.3 A Strategy to Maximise Environmental and Social Performance 114
- 3.4.5 Sustainability in Risk Allocation in the Oil and Gas Industry 115
-
3.5 Distributive Justice in Risk Allocation
- 3.5.1 What Is Justice? 116
-
3.5.2 Distinctions in Justice
- 3.5.2.1 Conservative versus Reformative Justice 118
- 3.5.2.2 Substantive versus Procedural Justice 120
- 3.5.2.3 Comparative versus Non-Comparative Justice 121
- 3.5.2.4 Corrective versus Distributive Justice 122
-
3.5.3 Types of Justice
- 3.5.3.1 Distributive Justice 123
- 3.5.3.2 Procedural Justice 124
- 3.5.3.3 Retributive Justice 125
- 3.5.3.4 Restorative Justice 126
-
3.6 Distributive Justice: Concept, Dimensions and Essence
- 3.6.1 Context 127
- 3.6.2 Rawls’s Distributive Justice Perspective 128
- 3.6.3 Nozick’s Distributive Justice Perspective 129
- 3.6.4 Keating’s Distributive Justice Perspective 131
-
3.6.5 Theoretical Elements of Keating’s Distributive Justice
- 3.6.5.1 Fairness 134
- 3.6.5.2 Proportionality 136
- 3.6.5.3 Mutual Benefit 138
- 3.6.6 Why Is Distributive Justice Essential in Risk Allocation? 139
-
3.7 Distributive Justice and Private Law
- 3.7.1 Contract Law and Tort as Vehicles of Distribution 141
- 3.8 Distributive Justice: A Practical Element in Allocating the Risk of Gross Negligence 146
- 3.9 Conclusion 146
-
Chapter 4 Causation and Gross Negligence in Risk Allocation
- 4.0 Introduction 148
-
4.1 Causation and Liability
- 4.1.1 Causation: Meaning and Legal Foundation 148
- 4.1.2 Causation and Liability for Grossly Negligent Conduct 150
-
4.2 Gross Negligence: Context and Dimensions
- 4.2.1 Gross Negligence – A sui generis Liability? 151
- 4.2.2 A Historical Perspective on Gross Negligence 151
- 4.2.3 Varying the Standard of Care in Negligence 153
-
4.2.4 Contextualising the Meaning of Gross Negligence
- 4.2.4.1 Regime of Gross Negligence in the United States 155
- 4.2.4.2 Regime of Gross Negligence in the United Kingdom 158
- 4.2.4.3 Gross Negligence: Perspective of the United Kingdom Courts 159
- 4.3 Wilful Misconduct 161
-
4.4 Challenges Associated with Managi ng and Allocating Gross Negligence Risk
- 4.4.1 Challenge of Defining Gross Negligence 162
- 4.4.2 Varied Standards of Proof for Gross Negligence Cases 164
- 4.4.3 Limited Application of Gross Negligence: Not a Term of Art 165
- 4.4.4 Limited Statutory Provision for Gross Negligence in Petroleum Regulations 168
- 4.4.5 Limited Insurance Coverage 168
- 4.5 A Working Definition of Gross Negligence in Offshore Drilling Contracts 169
- 4.6 Gross Negligence: Examining the Test for Corporate Responsibility in Offshore Drilling Operations 172
- 4.7 Conclusion 175
-
Chapter 5 Guiding Principles for Effective Risk Allocation in Gross Negligence Cases
- 5.0 Introduction 176
-
5.1 Guiding Principles
- 5.1.1 Public Policy Principle 177
- 5.1.2 Human Rights Principle 178
- 5.1.3 Sustainability Principle 181
- 5.1.4 Distributive Justice Principle 182
-
5.2 An Ada ptable Framework for Risk Allocation in Gross Negligence Cases : Strategies for Mainstreaming Liability
- 5.2.1 Regulatory Strategy 183
-
5.2.2 Contractual Strategy
- 5.2.2.1 Liability Subject to the Proportion of Benefit 187
- 5.2.2.2 Indemnity 187
- 5.2.3 Implications of Rethinking the Contractual Strategy 188
- 5.3 Conclusion 191
-
Chapter 6 Practical and Institutional Frameworks and Insurance Coverage for Implementing Risk Allocation in Gross Negligence Cases
- 6.0 Introduction 192
-
6.1 Institutional Framework
- 6.1.1 Coordination 194
- 6.1.2 Training and Capacity Building 195
- 6.1.3 Institutional Interoperability 195
-
6.2 Insurance and Other Coverage Options in the Oil and Gas Industry
- 6.2.1 Insurance and Financial Coverage in the Oil and Gas Industry 197
-
6.2.2 Liability Protection Schemes for the Offshore Oil Industry
- 6.2.2.1 Offshore Pollution Liability Association Limited Scheme 198
- 6.2.2.2 Oil Insurance Limited 200
- 6.2.2.3 Oil Casualty Insurance Limited 201
- 6.2.2.4 Offshore Energy Insurance Cover 201
-
6.2.3 Types of Offshore Energy Insurance
- 6.2.3.1 Coverage for Damage to Offshore Facilities 202
- 6.2.3.2 Operator’s Extra Expense 203
- 6.2.3.3 Excess Liability Insurance 203
- 6.2.3.4 Loss of Production Income Insurance 204
- 6.2.3.5 Protection and Indemnity Insurance Coverage 204
- 6.3 Insurance Coverage and Gross Negligence 205
- 6.4 Aligning Insurance with the Public Policy and Distributive Justice Objectives 207
-
6.5 Applicable Insurance Practice in Gross Negligence Cases
- 6.5.1 An Additional Insured Provision in Insurance Policies 208
- 6.5.2 Status of an Additional Insured 210
-
6.6 Financial Assurance Mechanisms/Strategies to Cover Pollution Liability
-
6.6.1 Available Financial Assurance Tools
- 6.6.1.1 Pooling 213
- 6.6.1.2 Insurance 214
- 6.6.1.3 Self-Insurance 214
- 6.6.1.4 Capital Market 215
- 6.6.2 Are Financial Assurance Mechanisms Fulfilling Their Purpose? 216
- 6.6.3 Financial Assurance Tools and Gross Negligence Situations 219
- 6.7 Regulatory Reforms for Effective Allocation of Gross Negligence Risk 220
- 6.8 Conclusion 221
-
Chapter 7 A Summary for Stakeholders
- 7.0 Introduction 222
- 7.1 A Dynamic Approach to Risk Allocation in the Oil Industry 222
-
7.2 A Distributive Outcome
- 7.2.1 A Distributive Outcome through Capped Liability in Gross Negligence Cases 225
- 7.2.2 Policy and Regulatory Direction for a Distributive Outcome 226
-
7.3 A Strategy to Overcome the Limitations in Allocating Gross Negligence Risk
- 7.3.1 Statutory Control 230
- 7.3.2 Statutory Harmonisation 230
- 7.3.3 Judicial Decisions and Harmonisation 231
- 7.4 Conclusion 232
- Bibliography 233
- Index 259
Chapters in this book
- Frontmatter i
- Contents v
- Acknowledgments xii
- Preface xiii
- Foreword xv
- Table of Cases xvii
- Table of Instruments xxi
- Abbreviations xxiii
-
Chapter 1 Risk Allocation in the Offshore Energy Industry: An Overview
- 1.0 General Introduction and Background 1
- 1.1 Understanding the Concepts of Risk and Risk Allocation 4
-
1.2 Risk and Related Concepts
- 1.2.1 Risk and Uncertainty 5
- 1.2.2 Risk and Probability 6
- 1.3 Risk Ca tegorisation 7
- 1.4 Scholastic Perspectives on Risk 10
-
1.5 Other Approaches to Risk
- 1.5.1 The Judicial Approach 12
- 1.5.2 The Legislative Approach 12
- 1.5.3 The Economic Approach 13
-
1.6 Essential Concepts in the Discussion about Risks
- 1.6.1 Risk Management 14
- 1.6.2 Risk Aversion 14
- 1.6.3 Risk Allocation 15
- 1.6.4 Risk Mitigation 16
- 1.6.5 Contractual Risk Allocation in the Oil Industry 16
-
1.7 Conceptual Understanding and Usage of Terms
- 1.7.1 Negligence and Gross Negligence 17
- 1.7.2 Human Rights and Environment 19
- 1.7.3 Sustainability 20
- 1.7.4 Distributive Justice 21
- 1.7.5 Freedom of Contract 22
- 1.7.6 Public Policy 23
-
1.8 Essential Terms in a Contract Matrix
- 1.8.1 Co-Venturers 23
- 1.8.2 Operator 25
- 1.8.3 Contractor 26
- 1.8.4 Subcontractor 27
- 1.9 Purpose and Objective of the Book 28
- 1.10 Me thodology and Structure of the Book 28
-
Chapter 2 The Context of Offshore Petroleum Drilling Operations and Risk Allocation
- 2.0 Introduction 31
- 2.1 O ffshore Petroleum Exploration 31
-
2.2 Drilling Contracts
- 2.2.1 Daywork/Day Rate Contract 35
- 2.2.2 Footage Contract 35
- 2.2.3 Turnkey Contract 36
- 2.3 Allocating Risks in the Oil and Gas Industry 36
-
2.4 Contractual Risk Allocation in Specific Jurisdictions
-
2.4.1 United Kingdom
- 2.4.1.1 United Kingdom Model Contracts 40
- 2.4.1.2 Analysis of the United Kingdom Mutual Indemnification Practice 44
-
2.4.2 United States of America
- 2.4.2.1 Model Contract for Risk Allocation in the United States 46
-
2.4.3 Nigeria
- 2.4.3.1 Standard Form Contracts for Drilling in Nigeria 53
- 2.4.3.2 Risk Allocation in Drilling Contracts in Nigeria 53
-
2.4.4 Indonesia
- 2.4.4.1 Regime for Risk Allocation in Indonesia 59
- 2.4.4.2 Risk Allocation in Indonesian Production Sharing Contract Forms 61
- 2.4.4.3 Risk Allocation in Operator and Contractor Private Drilling Contracts in Indonesia 62
- 2.5 Changing Perceptions of Risk Allocation 64
-
2.6 Risk Allocation Tools in Oil and Gas Contracts
- 2.6.1 Mutual Indemnity Agreements 66
- 2.6.2 Hold Harmless Clauses 68
- 2.6.3 Mutual Indemnity and Hold Harmless Provisions in Context 69
-
2.6.4 Exclusion and Limitation of Liability Clauses
- 2.6.4.1 Exclusion Clauses 70
- 2.6.4.2 Limitation of Liability Clauses 71
-
2.7 Rationales for Risk Allocation in Oil and Gas Contracts
- 2.7.1 Industry Practice Rationale 72
- 2.7.2 Doctrine of Tradition 72
- 2.7.3 Best Knowledge Doctrine 73
- 2.7.4 ‘Clay Feet’ Doctrine 73
- 2.7.5 Accountability Doctrine 74
- 2.7.6 Rationale Founded on Legal/Economic Considerations 74
- 2.7.7 The Party in the Best Position to Bear the Risk 74
- 2.7.8 Overall Efficiency Rationale 75
- 2.7.9 Economic Benefit Rationale 76
- 2.7.10 Foreseeability Rationale 76
- 2.7.11 Other Rationales 77
-
2.8 Regulatory Interventions in Risk Allocation
- 2.8.1 Anti-Indemnity Legislation 78
-
2.8.2 Indemnification in Texas
- 2.8.2.1 Texas Express Negligence Rule 79
- 2.8.2.2 Texas Anti-Indemnity Statute 80
- 2.8.3 Indemnification in Louisiana 81
- 2.8.4 Unfair Contracts Terms Act 1977 83
- 2.8.5 Contracts (Rights of Third Parties) Act 1999 85
- 2.9 Conclusion 86
-
Chapter 3 Conceptual Considerations in Risk Allocation in the Offshore Energy Industry
- 3.0 Introduction 87
- 3.1 Concept of Freedom of Contract 87
-
3.2 Limit of the Freedom of Contract
- 3.2.1 Commodification 90
- 3.2.2 Externalities 90
-
3.3 Public Policy and the Freedom of Contract in Risk Allocation
- 3.3.1 What Is Public Policy? 91
- 3.3.2 Public Policy – An Unruly Horse? 95
- 3.3.3 Public Policy and the Exercise of the Freedom of Contract 97
-
3.3.4 Public Policy and Risk Allocation behind the Veil of Ignorance
- 3.3.4.1 Conceptual Understanding of the Veil of Ignorance 100
- 3.3.4.2 Hypothetical Risk Allocation behind the Veil of Ignorance in the Hydrocarbon Industry 102
- 3.3.4.3 Assessing the Veil of Ignorance in Gross Negligence Cases 103
-
3.4 Sustainability Dimensions in Risk Allocation
- 3.4.1 Concept of Sustainability 105
-
3.4.2 Aspects of Sustainability
- 3.4.2.1 Environmental Aspect 107
- 3.4.2.2 Social Aspect 109
- 3.4.2.3 Economic Aspect 109
- 3.4.3 Sustainability Risks 110
-
3.4.4 Why Is Sustainability Essential to the Offshore Petroleum Industry?
- 3.4.4.1 Reputation Risk Management 111
- 3.4.4.2 A Way of Securing the Social Licence to Operate 113
- 3.4.4.3 A Strategy to Maximise Environmental and Social Performance 114
- 3.4.5 Sustainability in Risk Allocation in the Oil and Gas Industry 115
-
3.5 Distributive Justice in Risk Allocation
- 3.5.1 What Is Justice? 116
-
3.5.2 Distinctions in Justice
- 3.5.2.1 Conservative versus Reformative Justice 118
- 3.5.2.2 Substantive versus Procedural Justice 120
- 3.5.2.3 Comparative versus Non-Comparative Justice 121
- 3.5.2.4 Corrective versus Distributive Justice 122
-
3.5.3 Types of Justice
- 3.5.3.1 Distributive Justice 123
- 3.5.3.2 Procedural Justice 124
- 3.5.3.3 Retributive Justice 125
- 3.5.3.4 Restorative Justice 126
-
3.6 Distributive Justice: Concept, Dimensions and Essence
- 3.6.1 Context 127
- 3.6.2 Rawls’s Distributive Justice Perspective 128
- 3.6.3 Nozick’s Distributive Justice Perspective 129
- 3.6.4 Keating’s Distributive Justice Perspective 131
-
3.6.5 Theoretical Elements of Keating’s Distributive Justice
- 3.6.5.1 Fairness 134
- 3.6.5.2 Proportionality 136
- 3.6.5.3 Mutual Benefit 138
- 3.6.6 Why Is Distributive Justice Essential in Risk Allocation? 139
-
3.7 Distributive Justice and Private Law
- 3.7.1 Contract Law and Tort as Vehicles of Distribution 141
- 3.8 Distributive Justice: A Practical Element in Allocating the Risk of Gross Negligence 146
- 3.9 Conclusion 146
-
Chapter 4 Causation and Gross Negligence in Risk Allocation
- 4.0 Introduction 148
-
4.1 Causation and Liability
- 4.1.1 Causation: Meaning and Legal Foundation 148
- 4.1.2 Causation and Liability for Grossly Negligent Conduct 150
-
4.2 Gross Negligence: Context and Dimensions
- 4.2.1 Gross Negligence – A sui generis Liability? 151
- 4.2.2 A Historical Perspective on Gross Negligence 151
- 4.2.3 Varying the Standard of Care in Negligence 153
-
4.2.4 Contextualising the Meaning of Gross Negligence
- 4.2.4.1 Regime of Gross Negligence in the United States 155
- 4.2.4.2 Regime of Gross Negligence in the United Kingdom 158
- 4.2.4.3 Gross Negligence: Perspective of the United Kingdom Courts 159
- 4.3 Wilful Misconduct 161
-
4.4 Challenges Associated with Managi ng and Allocating Gross Negligence Risk
- 4.4.1 Challenge of Defining Gross Negligence 162
- 4.4.2 Varied Standards of Proof for Gross Negligence Cases 164
- 4.4.3 Limited Application of Gross Negligence: Not a Term of Art 165
- 4.4.4 Limited Statutory Provision for Gross Negligence in Petroleum Regulations 168
- 4.4.5 Limited Insurance Coverage 168
- 4.5 A Working Definition of Gross Negligence in Offshore Drilling Contracts 169
- 4.6 Gross Negligence: Examining the Test for Corporate Responsibility in Offshore Drilling Operations 172
- 4.7 Conclusion 175
-
Chapter 5 Guiding Principles for Effective Risk Allocation in Gross Negligence Cases
- 5.0 Introduction 176
-
5.1 Guiding Principles
- 5.1.1 Public Policy Principle 177
- 5.1.2 Human Rights Principle 178
- 5.1.3 Sustainability Principle 181
- 5.1.4 Distributive Justice Principle 182
-
5.2 An Ada ptable Framework for Risk Allocation in Gross Negligence Cases : Strategies for Mainstreaming Liability
- 5.2.1 Regulatory Strategy 183
-
5.2.2 Contractual Strategy
- 5.2.2.1 Liability Subject to the Proportion of Benefit 187
- 5.2.2.2 Indemnity 187
- 5.2.3 Implications of Rethinking the Contractual Strategy 188
- 5.3 Conclusion 191
-
Chapter 6 Practical and Institutional Frameworks and Insurance Coverage for Implementing Risk Allocation in Gross Negligence Cases
- 6.0 Introduction 192
-
6.1 Institutional Framework
- 6.1.1 Coordination 194
- 6.1.2 Training and Capacity Building 195
- 6.1.3 Institutional Interoperability 195
-
6.2 Insurance and Other Coverage Options in the Oil and Gas Industry
- 6.2.1 Insurance and Financial Coverage in the Oil and Gas Industry 197
-
6.2.2 Liability Protection Schemes for the Offshore Oil Industry
- 6.2.2.1 Offshore Pollution Liability Association Limited Scheme 198
- 6.2.2.2 Oil Insurance Limited 200
- 6.2.2.3 Oil Casualty Insurance Limited 201
- 6.2.2.4 Offshore Energy Insurance Cover 201
-
6.2.3 Types of Offshore Energy Insurance
- 6.2.3.1 Coverage for Damage to Offshore Facilities 202
- 6.2.3.2 Operator’s Extra Expense 203
- 6.2.3.3 Excess Liability Insurance 203
- 6.2.3.4 Loss of Production Income Insurance 204
- 6.2.3.5 Protection and Indemnity Insurance Coverage 204
- 6.3 Insurance Coverage and Gross Negligence 205
- 6.4 Aligning Insurance with the Public Policy and Distributive Justice Objectives 207
-
6.5 Applicable Insurance Practice in Gross Negligence Cases
- 6.5.1 An Additional Insured Provision in Insurance Policies 208
- 6.5.2 Status of an Additional Insured 210
-
6.6 Financial Assurance Mechanisms/Strategies to Cover Pollution Liability
-
6.6.1 Available Financial Assurance Tools
- 6.6.1.1 Pooling 213
- 6.6.1.2 Insurance 214
- 6.6.1.3 Self-Insurance 214
- 6.6.1.4 Capital Market 215
- 6.6.2 Are Financial Assurance Mechanisms Fulfilling Their Purpose? 216
- 6.6.3 Financial Assurance Tools and Gross Negligence Situations 219
- 6.7 Regulatory Reforms for Effective Allocation of Gross Negligence Risk 220
- 6.8 Conclusion 221
-
Chapter 7 A Summary for Stakeholders
- 7.0 Introduction 222
- 7.1 A Dynamic Approach to Risk Allocation in the Oil Industry 222
-
7.2 A Distributive Outcome
- 7.2.1 A Distributive Outcome through Capped Liability in Gross Negligence Cases 225
- 7.2.2 Policy and Regulatory Direction for a Distributive Outcome 226
-
7.3 A Strategy to Overcome the Limitations in Allocating Gross Negligence Risk
- 7.3.1 Statutory Control 230
- 7.3.2 Statutory Harmonisation 230
- 7.3.3 Judicial Decisions and Harmonisation 231
- 7.4 Conclusion 232
- Bibliography 233
- Index 259