Solomon Islands landowners file for compensation over 300-tonne oil spill near world heritage site

The residents of Rennell Island still remember the day a slick of black oil spread across the waters near their home. This bay in the Solomon Islands, once known for its unique "dolphin calling" tradition where locals would lure dolphins to the shore, is treasured by its inhabitants. "Rennell is one of the most beautiful islands in the world, it is very unique and special," said Rence Potangata, chairman of the West Rennell Landowners Association.

However, about six years ago, more than 300 tons of heavy fuel oil leaked into the island’s Kangava Bay after the “Solomon Trader” cargo ship ran aground on a reef. The spill was described as the Pacific nation's "worst man-made environmental disaster" and could take decades for the environment to recover. More than five years later, local residents are still fighting for justice.

Today, a legal team representing the landowners will file a civil lawsuit in the Solomon Islands High Court against the insurance company Korea Protection and Indemnity Club (KPI) and the shipowner, King Trader Limited, seeking compensation for the oil spill. The Solomon Islands government is also expected to file a claim as part of the same lawsuit before the statute of limitations expires on February 5.

According to a confidential report leaked to the Australian Broadcasting Corporation (ABC) in 2020, the “Solomon Trader” oil spill near the World Heritage site in 2019 could take 130 years for the area to return to its previous state. The report also found that economic losses could reach $50 million, with the spill directly causing the loss of more than 10,000 square meters of coral reef and 4,000 square meters of lagoon habitat. Lawyers involved in the case are seeking up to $60 million in compensation.

Environmental activist Lawrence Kapanigi Makili said that the lawsuit was long overdue, and the impact on the area was severe. "It's a real disaster," he said, "the destruction that was left behind is immense, impacting most of the coral around the area." He also noted that the country's mining industry is "booming," and accountability for the 2019 spill must be enforced. "If we cannot hold anyone accountable for this, we are setting a precedent, then this whole (mining) boom is going to be a disaster."

Rence Potangata stated that the island, the world's second-largest raised coral atoll, has already been damaged in large parts by ongoing logging and mining. He believes the oil spill only exacerbated the environmental destruction in the area. "It's like putting salt on a wound," he said. He also expressed that the oil spill was devastating for local residents, who are heavily reliant on the ocean for food and livelihoods. "Oh, she's part of our lives," he said, "it could take 100 plus years for this place to be safe. So imagine, this generation and the next will not be able to enjoy the environment as it used to be."

In response to the filing of the civil suit, the insurance company KPI stated that the Solomon Islands government sent a claim request to the company in October 2021. "KPI responded requesting clarification but received no reply," said a KPI spokesperson. "We have not received notice of court proceedings at this time." KPI also stated that they "went to great lengths to ensure the best possible clean-up outcome, which was approved by the Solomon Islands government in 2019." The KPI spokesperson also referred to a press release issued at the end of its shoreline cleanup operation in August 2019, when the company said that "as a gesture of goodwill," it donated many items used in the "Solomon Trader" grounding incident to the local community, "including vehicles, generators, compressors, and inflatable boats. A large amount of rice was also donated to local families."

Two years after the disaster, the Solomon Islands signed the International Convention on Civil Liability for Oil Pollution Damage, or the “Bunker Convention.” This convention provides a basis for strengthening civil liability and seeking compensation related to marine pollution incidents. However, since the Solomon Islands was not a signatory at the time of the disaster, according to Professor Donald Rothwell, an international law professor at the Australian National University Law School, this may have little legal impact on the current case. "The Bunker Convention would be a very difficult legal argument to run because the Solomon Islands only became a party to the Bunker Convention very recently in 2021," he said.

He believes that in this case, damages and losses should not be difficult to prove, and existing legal frameworks, namely the Shipping Act and the International Convention for the Prevention of Pollution from Ships (MARPOL), can be used. "There's no question that the Solomon Islands government has the capacity to sue the shipowner for loss and damage caused by this incident. But it also needs to be pointed out that there are quite complex legal arguments that need to be developed in any such claim," he said, referring to assessing the extent of damage through scientific evidence.

For Rence Potangata, it's simple: by allowing large-scale mining, the government is "creating a cancer in the system." "If they care so much about the oil spill and the environmental pollution on Rennell, then they should help," he said, referring to the government and relevant companies. "Provide them with food. Provide them with what they need to sustain their livelihood because their food security has been reduced or destroyed." He added, "Nature can recover, it can rebuild itself. But when it comes to man-made destruction, like logging and mining, I don't think the recovery process will be quick."