hings seem to be taking a dramatic turn in the dispute over the oil leak at Penglai 19-3 in the Bohai Bay.

ConocoPhillips China, the operator of the offshore oil field that has drawn public anger over the perfunctory manner in its response to the leaks first detected in early June, has announced a plan to set up a special fund "to address ConocoPhillips' responsibilities in accordance with relevant laws of China and to benefit the general environment in Bohai Bay".

A more consoling message came from a State Council meeting on Sept 7 presided over by Premier Wen Jiabao, which ordered a thorough investigation of the incident.

As of Sept 6, the oil spills have polluted an accumulated 5,500 square kilometers in the Bohai Bay, resulting in severe damage to the marine environment and local fisheries industry. ConocoPhillips China, as the obvious culprit, however, has resorted to various pretexts to play down the seriousness of the oil spills and evade its responsibilities.

Most unsettling of all, the leaks were not stopped until the State Oceanic Administration ordered the company to stop production at the end of last week. But even so potential risks still exist and new spills may take place at any time.

ConocoPhillips China and its partner in the field, China National Offshore Oil Corp, must do everything in their capacities to determine the risks and eliminate them to prevent any new spills, cooperate with investigators to ascertain the real scope of damage, and fulfill their compensation responsibilities in accordance with law. And it would be better if the proposed fund can do more than that.

In the face of ConocoPhillips' attitude, the order from the State Council will hopefully ensure a fair and satisfactory end to the episode.

The State Council meeting was reassuring in that it also looked beyond this incident. The immediate inspections on production safety in the offshore oil industry it has deployed, together with its endeavors to improve the laws protecting the marine environment, will have a long-term effect on offshore drilling. We need sensible precautions, not just in Bohai Bay, to make sure similar incidents do not occur again.

The six measures proposed at the meeting to control pollution in the Bohai Bay and to repair its ecosystem indicate a keen awareness of the issues involved. But their implementation entails more than just policy statements on the government's part.

When corporate self-discipline fails, there must be laws that truly bite.

Bohai Bay is a semi-closed inland sea whose self-purifying capabilities are weak. The concentration of industries along the coastal belt has imposed unbearable environmental burdens on it. Serious pollution has led to repeated calls for a special law to protect its marine environment. The current accident has renewed such concerns, which we strongly believe need addressing.