“OIL POLLUTION PREVENTION, RESPONSE, LIABILITY, AND COMPENSATION ACT OF 1990 (OPA 90)”

Question 1

Under the OPA 90, who is strictly liable for oil spills?

Answer 1

“OPA 90 makes owners and operators of vessels or facilities that discharge oil strictly liable for cleanup costs and damages caused by such discharges. Liability was not extended to cargo owners.’

Question 2

How does section 1004 of the OPA 90 create limited liability?

Answer 2

“Section 1004 of OPA 90 increases the federal liability limit to $1,200 per gross ton, an eight-fold increase over the cap formerly provided in section 311 of the Clean Water Act. OPA 90 also creates a new $1 billion Oil Spill Liability Trust Fund, funded by a five-cent-per-barrel tax on oil, to pay for cleanup costs in excess of the liability limit. The entire $1 billion fund can be paid out for a single spill, with up to $500 million available for payments for damage to natural resources. (Section 311 of the Clean Water Act formerly had authorized a $35 million compensation fund, but the fund contained only $4 million at the time of the Exxon Valdez spill.)”

Question 3

Does the OPA intend to preempt state regulation and liability laws on oil spills?

Answer 3

“OPA 90 expressly disavows any intent to preempt state liability requirements with respect to oil spills and removal activities. §1018, 33 U.S.C. §2718.”

Question 4

Does the OPA have a double hull requirement?

Answer 4

Yes. “For existing ships, the double hull requirement is to be phased in over the next 20 years on a schedule that varies based on tankers’ size and age. The older and larger the ship, the sooner the requirement phases in.”