Brian Barton
The Oil Pollution Act (OPA) of 1990 was passed by the 101st United States Congress and signed by President George H. W. Bush. The act grants the Secretary of the Interior authority over offshore facilities and associated pipelines, excluding deepwater ports, in state and federal offshore waters. A responsible party under the OPA is one who is accountable for the discharge or substantial threat of discharge of oil from a vessel or facility into navigable waters. This act has had a significant impact on the domestic oil production industry due to its stringent offshore facility provisions.
| Characteristics | Values |
|---|---|
| Year | 1990 |
| Other names | OPA, Oil Pollution Act of 1990 |
| Enacted by | 101st United States Congress |
| Signed by | President George H. W. Bush |
| Purpose | To avoid oil spills from vessels and facilities by enforcing the removal of spilled oil and assigning liability for the cost of cleanup and damage |
| Scope | Offshore facilities (except pipelines or deepwater ports) for State and Federal offshore waters |
| Responsible authority | The Secretary of the Interior |
| Delegated authority | Bureau of Ocean Energy Management (BOEM) |
| Financial responsibility | $150 million |
| Penalty for non-compliance | $25,000 per day |
| Certificate of Financial Responsibility | Required by the US Coast Guard for vessels weighing more than 300 gross tons |
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What You'll Learn
- The Oil Pollution Act of 1990 (OPA 90) gave the Secretary of the Interior authority over offshore facilities
- OPA 90 defines the responsible party as one who is accountable for the discharge of oil
- OPA 90 requires evidence of financial liability that covers complete responsibility for a disaster
- OPA 90 requires oil storage facilities to submit plans to the Federal government detailing their response to large discharges
- OPA 90 establishes a fund for damages, cleanup, and removal costs
The Oil Pollution Act of 1990 (OPA 90) gave the Secretary of the Interior authority over offshore facilities
The Oil Pollution Act of 1990 (OPA 90) was passed by the 101st United States Congress and signed by President George H. W. Bush. The Act grants the Secretary of the Interior authority over offshore facilities and associated pipelines, excluding deepwater ports, in State and Federal offshore waters.
The Bureau of Ocean Energy Management (BOEM) in the Department of the Interior is responsible for implementing and enforcing the Act's regulations for offshore oil facilities. BOEM's predecessor agency, the Minerals Management Service, was initially delegated this authority.
The OPA 90 defines an offshore facility as a mobile offshore drilling unit being used as such a facility in the case of a discharge or substantial threat of discharge of oil. The Act holds responsible parties strictly, jointly, and severally liable for the removal costs and any damages linked to the discharge. The liability for removal costs is uncapped, while liability for damages is limited.
The OPA 90 has significantly impacted the domestic oil production industry due to its rigorous offshore facility provisions. For instance, the financial responsibility requirements have increased, with responsible parties mandated to provide evidence declaring financial responsibility of $150 million for potential liability. This is a notable increase from the previous requirement of $35 million.
The OPA 90 also established a fund for damages, cleanup, and removal costs, financed by a tax on oil. This fund is available to clean up spills when the responsible party is incapable or unwilling to do so.
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OPA 90 defines the responsible party as one who is accountable for the discharge of oil
The Oil Pollution Act of 1990 (OPA 90) was passed by the 101st United States Congress and signed by President George H. W. Bush. It works to prevent oil spills from vessels and facilities by enforcing the removal of spilled oil and holding the responsible party accountable for the cost of cleanup and damage. OPA 90 defines the responsible party as one who is accountable for the discharge or substantial threat of discharge of oil from a vessel or facility into navigable waters, exclusive economic zones, or the shorelines of such covered waters.
OPA 90 establishes a framework that addresses the liability of responsible parties in connection with the discharge of oil. It limits certain liabilities of a responsible party in connection with discharges of oil into navigable waters, adjoining shorelines, or exclusive economic zones. The liability limitations established by OPA 90 are based on the type of vessel or facility involved and the amount of oil discharged.
Under OPA 90, responsible parties are strictly, jointly, and severally liable for the cost of removing the oil, as well as any damages linked to the discharge. The Oil Pollution Act allows for additional liability enacted by other relevant state laws. Federal, tribal, state, and any other person can recover removal costs from a responsible party as long as they have incurred costs from carrying out oil removal activities in accordance with the Clean Water Act National Contingency Plan.
Reimbursement claims must first be made to the responsible party. If the potentially responsible party refutes liability or fails to reimburse within 90 days of the claim, the claimant may file a suit in court or bring the claim to the Oil Spill Liability Trust Fund. This fund, financed by a tax on oil, is available to clean up spills when the responsible party is incapable or unwilling to do so.
The shortcomings of previous laws, such as the Oil Pollution Act of 1924, which only limited liability for deliberate discharge of oil, led to the creation of OPA 90. The new act has resulted in significant changes in the oil production, transportation, and distribution industries.
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OPA 90 requires evidence of financial liability that covers complete responsibility for a disaster
The Oil Pollution Act of 1990 (OPA 90) was passed by the 101st United States Congress and signed by President George H. W. Bush. It works to avoid oil spills from vessels and facilities by enforcing the removal of spilled oil and assigning liability for the cost of cleanup and damage. OPA 90 also requires specific operating procedures, defines responsible parties and financial liability, implements processes for measuring damages, and establishes a fund for damages, cleanup, and removal costs.
OPA 90's liability increase for vessel owners raised fears and concerns from the shipping industry. Vessel owners objected that additional oil spill penalties imposed by the states were free from OPA limitations of the Limitation of Liability Act of 1851. The threat of unlimited liability under OPA 90 and other state statutes has led many oil shipping companies to reduce oil trade to and from U.S. ports.
To help ensure OPA 90 compliance, shipping companies like Exxon Shipping compiled all state and federal regulations to which they must abide. OPA 90 has also led to the founding and designing of safer requirements for ships. Despite the newly enforced codes and regulations, there were positive reactions from the oil industries. In 1990, the oil industry united to form the Marine Spill Response Corporation (MSRC), a non-profit corporation whose expenses would be compensated by oil producers and transporters. The major MSRC responsibility was to develop new response plans for oil spills cleanups and for the OPA-required remediation.
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OPA 90 requires oil storage facilities to submit plans to the Federal government detailing their response to large discharges
The Oil Pollution Act (OPA) of 1990 gave the Secretary of the Interior authority over offshore facilities and associated pipelines, with the exception of deepwater ports, for State and Federal offshore waters. OPA 90 streamlined and strengthened the Environmental Protection Agency's (EPA) ability to prevent and respond to catastrophic oil spills.
The OPA requires certain facilities to develop response plans for responding to worst-case discharges of oil and hazardous substances. Federal facility activities subject to OPA requirements include storing or handling petroleum, fuel oil, sludge oil, and oil mixed with waste. The EPA will negotiate a compliance agreement with a federal agency in violation of OPA. The typical compliance agreement contains several provisions, including schedules for achieving compliance and dispute resolution.
OPA implementation for shipowners is supported by an implementation regulation shore-side. This means that facilities terminals, the US Coast Guard, and the States themselves all have parallel requirements that have been imposed on them.
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OPA 90 establishes a fund for damages, cleanup, and removal costs
The Oil Pollution Act of 1990 (OPA 90) was passed by the 101st United States Congress and signed by President George H. W. Bush. OPA 90 establishes a fund for damages, cleanup, and removal costs. It works to avoid oil spills from vessels and facilities by enforcing the removal of spilled oil and assigning liability for the cost of cleanup and damage.
OPA 90 defines 'removal costs' as the costs of removal that are incurred after a discharge of oil has occurred or, in any case, in which there is a substantial threat of an oil discharge, the costs to prevent, minimize, or mitigate oil pollution from such an incident. A 'responsible party' is one who is found accountable for the discharge or substantial threat of discharge of oil from a vessel or facility into navigable waters, exclusive economic zones, or the shorelines of such covered waters. Responsible parties are strictly, jointly, and severally liable for the cost of removing the oil in addition to any damages linked to the discharge.
OPA 90 allows for additional liability enacted by other relevant state laws. Under the Oil Pollution Act, federal, tribal, state, and any other person can recover removal costs from a responsible party so long as such an entity has incurred costs from carrying out oil removal activities in accordance with the Clean Water Act National Contingency Plan. Claims for removal costs and certain damages must, with limited exception, be presented directly to the responsible party. In the event that a claim for removal costs or certain damages is not paid by the responsible party within 90 days, a claimant may present such a claim directly to the Oil Spill Liability Trust Fund or file a suit in court.
OPA 90 and its regulations establish procedures for recovering removal costs and damages against the Oil Spill Liability Trust Fund. This report addresses liability under OPA 90 for removal costs and damages, and the basic procedure for recovering removal costs and damages from the Oil Spill Liability Trust Fund in the event that the responsible party fails to settle such claims.
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Frequently asked questions
The Oil Pollution Act (OPA) was passed in 1990 by the 101st United States Congress and signed by President George H. W. Bush. It aims to prevent oil spills from vessels and facilities by enforcing the removal of spilled oil and holding responsible parties accountable for the cost of cleanup and damages.
An offshore facility under the Oil Pollution Act refers to any mobile offshore drilling unit or vessel that is used for oil operations beyond the coastline. This includes pipelines and deepwater ports, which are under the authority of the Secretary of the Interior.
The Bureau of Ocean Energy Management (BOEM) within the Department of the Interior is responsible for implementing and enforcing the Oil Pollution Act's regulations for offshore oil facilities. The Coast Guard also plays a role in screening the application process for vessels and ensuring compliance with financial liability requirements.
