China Biodiversity Conservation and Green Development Foundation, a nonprofit organization, has filed a landmark lawsuit against two oil giants, ConocoPhillips and China National Offshore Oil Corp. (CNOOC), in a maritime court over the oil spill that polluted Bohai Bay in northeast China in 2011, according to a report published by china.org.cn.
The lawsuit is the first public interest litigation brought by a nonprofit organization in China over marine environmental pollution that was accepted by a Chinese court.
The nonprofit organization said on Sunday, July 26, that the maritime court in Qingdao, Shandong Province, had notified them that the suit had already been filed.
The report said that the filing of such case was not possible before until the government passed a new environmental protection law that took effect this year.
Under the new measure, any environmental organization registered with a civil affairs bureau at city level that has been operating for at least five years can bring public interest litigation.
According to the report, the Dalian Environmental Protection Volunteer Association filed a case in June in which it demanded 645 million yuan ($105 million) for damage for the pollution caused by China National Petroleum Corp. in July 2010. The claim, still under review by Dalian Maritime Court, was said to be the largest made in an environmental case in China.
On the other hand, the China Biodiversity Conservation and Green Development Foundation is not suing ConocoPhillips and CNOOC for compensation, as the two companies have already paid about 1.7 billion yuan to the State Oceanic Administration, a government agency that administers maritime affairs.
The foundation said that based on public interest, it is calling for the two companies to accept responsibility for the damage they have caused during the four-year oil spill and also asked them to begin remedial work.
Between June 4 and July 12, 2011, the oil spill in the Penglai 19-3 field in Bohai Bay has polluted more than 6,200 square kilometers of water, the foundation added.
The State Oceanic Administration said in June 2012 that the oil spill has caused huge losses to the tourist and aquatic farming industries in Liaoning and Hebei Provinces.
Penglai 19-3 is one of China's largest offshore oil fields that produce about 160,000 barrels of oil a day. It is a joint venture between ConocoPhillips China and CNOOC, the country's largest offshore oil producer.
Based on the damage compensation agreement, ConocoPhillips China has agreed to pay 1.09 billion yuan for ecological losses, while CNOOC paid 480 million yuan and ConocoPhillips China 113 million yuan for environmental protection efforts in Bohai Bay.
The oceanic administration said that the compensation for fishermen has been sent to the governments in Hebei and Liaoning Provinces.
Despite that, some 21 aquaculture farmers sued the two oil giants in Tianjin Maritime Court over the oil spill in December.
In Leting County in Hebei Province, sea cucumber farmers demanded compensation of 148 million yuan to cover their economic losses and litigation costs. The case is still pending resolution in the court.