One of the concerns regarding the environment is the pollution caused by the extraction and transportation of oil products. In this regard, paying attention to international oil contracts is crucial. The observance of the principles of environmental law in oil contracts affects reduction of oil pollution, and the role of these contracts in adjusting the behaviors of the parties must be monitored. Insertion of responsibility for compliance with environmental principles in oil contracts means recognition or the possible aggrieved party, determining the pollutant, facilitating the legal process in favor of the aggrieved party, and protecting their rights in regards of receiving compensation or restoration. Determining the guarantee of proper execution for oil pollution in oil contracts, will obligate the parties to use standards that will reduce oil pollution. These standards are the governing principles over the environmental regulations such as the principle of prevention, the principle of public action, the principle of joint responsibility, the principle of transparency, the principle of compensation by the polluter, and the principle of precautionary approach which will be imperative in the document text; their implementation will reduce oil pollution and gradually eradicate it. In this article, using the Descriptive-analytical method, the implementation of oil contracts in the light of environmental standards in US and Iranian law is examined and environmental challenges and solutions to upstream oil contracts are presented.
