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    Shown is a petrol pump of Total SA in this Paris gas station. Europe’s third-largest oil company may not be liable for all of the costs a French community incurred cleaning up the damage caused by the oil tanker Erika in 1999, an adviser to the European Union’s top court said. International law limits Total’s liability to pay for the cleanup stemming from the Erika spill, the adviser said in an opinion last week. --Bloomberg

     
    European fuel company may be able
    to skip oil-spill cleanup payments

    LUXEMBOURG—Total SA, Europe’s third-largest oil company, may not be liable for all of the costs a French community incurred cleaning up the damage caused by the oil tanker Erika in 1999, an adviser to the European Union’s (EU) top court said.

    International law limits Total’s liability to pay for the cleanup stemming from the Erika spill, the adviser said in an opinion last week. The French district of Mesquer, which is 200 kilometers south of the spot in Brittany where the Erika sank, is suing Total for almost €70,000 ($109,000).

    Total is only liable for all of the costs if “the damage was caused intentionally or recklessly,” said Juliane Kokott, an advocate general at the Luxembourg-based Court of Justice. The court follows this legal advice in a majority of cases.

    The almost 10-year-old environmental disaster killed tens of thousands of birds and polluted 400 kilometers of coast. The community of Mesquer on the western coast of France, which sued Total in 2000, argues that under EU legislation the Paris-based company is solely responsible for the cleanup. Such a ruling would cause “utter chaos,” Total’s lawyers argued.

    EU waste-disposal rules “should simply not apply to coastal pollution by heavy fuels,” Total lawyer Jean-Paul Hordies told the EU court at a January 22 hearing.

    Victims of oil pollution have the right to some compensation from an international fund for damages caused by oil pollution.

    The European Commission, the EU’s executive agency, argued that because compensation from that fund is limited, EU rules apply in waste-disposal cases that aren’t provided for under international legislation.

    The case has no legal relationship to a separate French lawsuit where Total was ordered in January to pay a share of a more than €190 million fine for the incident. Mesquer received €500,000 in that ruling.

    The case is C-188/07 Commune de Mesquer v. Total France, SA, Total International Ltd. (Bloomberg)

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