Case Name: Japan Oil Spill

• IDENTIFICATION
• LEGAL CLUSTERS
• GEOGRAPHIC CLUSTERS
• TRADE CLUSTERS
• ENVIRONMENT CLUSTERS
• OTHER FACTORS

 Source: http://www1.meshnet.or.jp/~response/oileng.htm

Japanese Fisherman and other volunteers work around the clock to clean up the oil spill caused when the Nakhodka, a Russian oil tanker, broke apart in rough seas.

I. Identification

1. The Issue:

On January 2, 1997, the Nakhodka, a Russian oil tanker, broke apart during stormy weather 80 miles off the coast of Japan's Shimane Prefecture. The tanker was carrying 133,000 barrels (17,100 tons) of fuel oil from China to Russia's Far East. Five days after the tanker broke apart in the Japanese Sea, the bow of the tanker ran aground on the rocky coastline of Japan's Fukui Prefecture; while the main body of the boat reportedly sank 2,500 meters to the bottom of the sea. It has been speculated that at least 5,000 tons of oil has leaked into the sea which has severely damaged marine wildlife as well as other wildlife native to the Japanese Coast. Undoubtedly, this oil spill spells disaster for both Japan's fishing and tourism industries. This year's harvest, as well as those in the coming years, of abalone, turbine shell, snow crabs, and seaweed have been wiped out by the massive oil spill. Other wildlife have also been affected by the oil spill like seabirds (Crested Murrelets and White-faced Shear Waters), and also auks which are an endangered species. Although the true damage that the spill has caused will take quite sometime to assess, environmentalists have estimated that the affects of the spill could linger for up to twenty years. Finally, the rocky coastline of the Noto Peninsula, a popular tourist area, has also been severely damaged by the leaking oil and will surely suffer a drop in tourism business in the years to come.

2. Description:

"Even atop the black, craggy cliffs that loom 250 feet above the thrashing Japan Sea, through heavy wind and lashing snow, the stench of oil is piercing. 'I can smell the oil on my own breath,' said Yoshinobnu Nishi, 55, a fisherman."

On January 2, 1997, the Nakhodka, a Russian oil tanker, broke in two leaking an estimated 5,000 tons of oil into the Japanese Sea. The stern of the vessel reportedly sank to the bottom of the sea some 80 miles off the coast of Shimane Prefecture, while the bow of the ship ran aground on the rocks in Mikuni, a fishing village in Fukui Prefecture. On February 9, 1997 a Japanese deep-sea explorer (Dolphin 3k) located the stern of the sunken Nakhodka at a depth of 8,250 feet in the Sea of Japan. Officials have determined that the bow of the ship that is lodged on the rocky coastline is the source of much of the pollution that has occurred. Following the ship's accident, the 32 member crew of the Nakhodka was rescued from a life raft but the captain of the vessel reportedly went down with his ship after ensuring the safety of his crew.

The damage that has been done to the ecosystem as a result of this spill is just now beginning to be assessed. Fisheries officials have concluded that the oil spill has wiped out Japan's shellfish harvest for this season and probably many seasons to come. It has been reported that the seaweed, a staple of the Japanese diet, and edible algae that are usually harvested from this region are no longer fit for human consumption and will probably rot and die. Officials fear that the oil could enter into the food chain via the seaweed and slow the growth of all organisms as it advances up the food chain. In addition, the abalone and turbine shell harvests, both considered shellfish delicacies by the Japanese, have been destroyed. Area snow crabs that reportedly sell for up to $100 a piece have also been wiped out. Finally, the existence of fish farms that line the Japanese coastlines have also been threatened as a result of the disaster. The area has been forced to sell frozen seafood as a result of the disaster, which is something that is virtually unheard of in Japan.

Marine wildlife is not the only wildlife that will suffer as a result of this disaster; sea birds and auk, an endangered bird, will also likely be casualties of this disaster. There are also bird sanctuaries that have been threatened, like that of the 600,000 White-faced Shear Waters that migrate to Japan's 58 acre Kanmurijima Island. The birds utilize the island as a nesting ground and were expected to arrive from Southern Asia in February. The spill has also threatened the nesting ground for 6,000 Crested Murrelets that nest at the Nanatsujima Sanctuary off the Noto Peninsula.

Additionally, the spill forced an emergency evacuation of 14 dolphin from an amusement park aquarium, which drew seawater from the contaminated Japanese Sea. The dolphins were all safely transported by land to five other aquariums in the country and will remain there until the spill is sufficiently cleaned up.

In addition, many varieties of fish will start spawning soon off the coast of Japan, which has raised concern that fish incubated in the contaminated waters might suffer deformities. In fact, one study has already been done by a researcher affiliated with Kyoto University to assess the affects of fish raised in contaminated water. "The researcher found that some 65% of the fish incubated in contaminated water had deformed spines or other defects." (6)

The oil spill has also threatened Japan's profitable tourist industry at a favored vacation spot on the Noto Peninsula. This area is famous for its shellfish, including crabs and shrimp. However, it is also known for its woman divers, known as 'Ama,' who make their living diving for rare seaweed and shellfish without the aid of snorkels or scuba gear. "'This is very sad,' said 12-year- old Koji Ogiwara as he stood with his bicycle looking out at the oil-coated sea. 'This is where I swim in summer, and my mother comes here to dive for abalone,' he said. 'At this time of year, she would normally be looking for seaweed. It's all destroyed and I don't know what we are going to do." (5)

The oil spill caused when the Russian tanker, the Nakhodka, broke in half and sank last month spilling 5,000 tons of oil into the sea off the coast of Japan has now been labeled one of Japan' s worst oil spills ever. The damage estimates for the spill have amounted to a bill of at least 9 billion-yen. However, when the affect that the spill will have on Japan's fishing industry is factored in, it has been speculated by, the London based, International Oil Pollution Compensation Fund that the bill could reach 20 billion yen.

Japan has once again been ridiculed for its slow response to a crisis and some environmentalists have speculated that if they had responded immediately, the extent of the environmental damage could have been avoided. Japan's Maritime Safety agency did, however, dispatched 1600 people, 65 ships, and 10 airplanes to aid in the cleanup effort of the 500 miles of Japanese coastline contaminated by the oil spill. Russia also sent two ships specially equipped for oil cleanups, the Japanese navy sent 20 ships and four planes, the Fisheries Agency sent four ships, and the Transportation Ministry sent one ship. The Japanese governments slow response coupled with the bad weather allowed this oil spill to move inland and contaminate a large portion of Japan's scenic and environmentally rich coastline.

At one point the spill also threatened one of the most concentrated areas of nuclear reactors in the world. The oil slicks came close to the 15 reactors in Japan's Wakasa Bay but the clean up effort was able to keep the oil from seeping into the reactors intake pipes, which serve to cool the reactors with seawater. Officials stated that in the worst case, if the oil had seeped into the pipes, plant operators would simply have been forced to suspend power.

However, at least five people helping to cleanup the Japanese coastline have died as a result of the effort. It was reported on February 5th that the families of the victim's would receive 1 million yen in compensation. It seems many of the spill-related deaths have been caused by heart attacks following a full day of cleaning up the spill. It has been reported that "Thousands of fisherman, firefighters and others are helping the coast guard clean up an estimated 1.2 million gallons of fuel oil spilled from a Russian tanker that broke in two January 2. The volunteers have been scrubbing rocks, scooping up the gummy oil and hauling it away." (2) Many volunteers have been helping with little or no safety equipment except an inadequate pair of gloves. This is very different from the EXXON case where the civilians were kept as far away as possible from the cleanup. Only experts with proper equipment were permitted to assist the 1988 Exxon Valdez clean up of 270,000 barrels of crude oil in Prince William Sound in Alaska.

3. Related Cases:

II. Legal Clusters

Exactly what caused the Russian tanker to break in two on January 2, 1997 off the coast of Japan has not yet been determined. While, Japan and Russia both have differing viewpoints on this issue, they came together on February 5-7, 1997 to discuss the incident. At the conclusion of the three-day meeting, the two countries were unable to reach agreement on the cause of the incident, but both agreed to a joint investigation into the cause of the accident. Japan is convinced that the twenty-six year old tanker was in poor condition, which in the stormy seas caused the vessel to break in two. Russia, however, has categorically denied that the accident had anything to with the age of the ship or any negligence on the part of the captain or crew. "A Russian investigatory commission concluded on the 27th of January that the 13,157 ton tanker, which broke in half in stormy seas off the Oki islands in Shimane Prefecture, Western Japan, collided with a semisubmerged ship or a target used in military shooting drills." (1) Russia's rationalization about what happened has exacerbated an already tense relationship between Japanese and Russian citizens.

It has been reported that determining what caused the tanker to break in half will be important in determining who pays for the spill. Prior to the oil spill, there already was a great deal of animosity between Russia and Japan over an island dispute. Determining who will pay for this catastrophe reaches further than each country's treasury. It could be considered a matter of pride. However, if it is determined that the tanker was not defective, the Nakhodka's insurance company and the International Oil Pollution Compensation Fund will be required to pay up to 22.5 billion yen. It has been speculated that the spill could cost into the hundreds of millions of dollars or up to 20 billion yen to clean up.

 8. Legal Standing: TREATY

Japan has recently ratified an international treaty that calls for refiners to pay a share of the clean up for such accidents. The Shipping Times reported on February 7, 1997 that "Domestic refiners may be urged to contribute as much as 1 billion yen ($11.5 million) each to cover clean-up costs from the oil spill by a grounded Russian tanker...Should the damage reach the maximum 23 billion yen, the refiners will be expected to contribute 6 billion yen, says a Nikkei News report." (4)

 III. Geographic Clusters

9. Geographic Locations

 IV. Trade Clusters

Although the cause of the disaster has not yet been determined, Japan has concluded that the 26 year old tanker was unfit for commercial use. Japanese officials have prompted the International Maritime Organization to implement new regulations with regard to the sea worthiness of oil tankers in hopes of avoiding future catastrophes like this one.

If the above regulation were implemented, the new oil tanker standards could have a direct impact on the trade of oil.

14. Relation of Trade Measure to Environmental Impact

15. Trade Product Identification: [OIL]

16. Economic Data

17. Impact of Trade Restriction: LOW

It is difficult to determine the extent that the oil spill will have on the Japanese Fishing Industry. Will the Japanese be required to import their daily staple of fish? It is difficult to assess how the spill will impact trade at this point.

19. Exporters and Importers:

V. Environment Clusters

21. Name, Type, and Diversity of Species

Snow crab, abalone, turbine shell, edible algae, and seaweed have been wiped out by the massive oil spill. Other wildlife have also been affected by the oil spill like seabirds (Crested Murrelets and White-faced Shear Waters), and also auks which are an endangered species. Many types of fish are likely to be affected by the spill but it is too early to assess the damage to all marine as well as other wildlife. Their role in the ecosystem is such that the Japanese rely on these types of fish as a daily staple in their diet. Any degradation that this spill causes to the environment will have serious consequences for the daily diet of the Japanese people.

It is difficult to assess at this point what the resource implication will be on Japan's fisheries, the fishing industry in Japan is sure to suffer for years to come because of the spill. However, the implication of this is that the Japanese population will be forced to endure a short supply of the usual seafood elements of their diet for many years to come.

Environmentalists do not yet know the extent of the damage that has been done to the ecosystem as a result of the oil spill but they are estimating that precious marine and other wildlife may not be the same for up to 20 years.

VI. Other Factors

There are cultural issues for the fishing villages in Japan. The 'Ama', the woman divers that dive for shellfish, are a cultural way of life in Japan and they no longer will be able dive for prized Japanese shellfish for a living. At least not for many years to come.

The spill has been contained off the coast of Japan and has not managed to contaminate any other country's shoreline.

The many fishing villages that dot the coast of Japan will be out of business for quite sometime.

Agence France Presse, "Fish Raised in Oil- Contaminated Water Found With Defects," 8 February 1997.

Associated Press, "Tokyo to Compensate Families of Those Who Died Cleaning up the Oil" 4 February 1997.

Daily Yomiuri, "Nakhodka Delivers Wake up Call to Japan," 26 February 1997.

Efron, Sonni, "Japan Still Cleaning up After Oil Spill; Four Have Died During Effort to Contain Damage to Beaches," The Los Angeles Times, 16 February 1997.

"Dolphin Project," www1.meshnet.or.jp/~response/dolpe5.htm, 19 January 1997.

Efron, Sonni, Austin American Statesman, "Storms Compound Japanese Oil Spill" 1 February 1997.

Kyodo News Service, "Japan, Russia Disagree on Cause of Tanker Disaster" 7 February 1997.

Kyodo News Service, "Environmental Damage From Spill Could Last For Decades" 1 February 1997.

Mainichi Daily News, "Oil Spill Assessment," 4 March 1997.

Shipping Times, "Japan Refiners May Face Big Bill For Clean-up of Oil Spill," 7 February 1997.

Reuters North American Wire, "Japan Fisheries Fear catastrophe as Oil Hits Land," 7 January 1997.

Reuters North American Wire, "Rough Seas Slow Japan Oil-Spill Cleanup," 7 January 1997.

Reuters North American Wire, "Oil Spill Fouls 285 miles of Japan Coast," 9 January 1997.

Reuters North American Wire, "Japan Calls For Help as Oil Hits Bird Ground," 14 January 1997.

Reuters North American Wire, "Japan Oil Spill Forces Dolphin Evacuation," 17 January 1997.

Reuters North American Wire, "Japan Keeps Oil Spill From Nuclear Plants," 12 January 1997.

Vinogradov, Leonid, "Ship Master of Wrecked Tanker to be Buried in Nakhodka," Russian Information Agency ITAR-TASS, 3 February 1997.

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End Notes

1) Kyodo News Service, "Japan, Russia Disagree on Cause of Tanker Disaster" 7 February 1997

2) Associated Press, "Tokyo to Compensate Families of Those Who Died Cleaning up the Oil" 4 February 1997.

3) Sonni Efron, Austin American Statesman, "Storms Compound Japanese Oil Spill" 1 February 1997.

4) Shipping Times, "Japan Refiners May Face Big Bill For Clean-up of Oil Spill," 7 February 1997.

5) Reuters North American Wire, "Japan Fisheries Fear catastrophe as Oil Hits Land," 7 January 1997.

6) Agence France Presse, "Fish Raised in Oil-Contaminated Water Found With Defects," 8 February 1997.