Deepwater Horizon Oil Spill
Quick Facts
• Occurred April 20th, 2010, 50 miles off coast of Louisiana
• Drilled in 5,100 feet of water to a depth of 35,000 feet
• Released approximately 4.9 million barrels of oil (210 million gallons)
• Settled criminal charges with DOJ including 11 counts manslaughter,
and 1 felony count of lying to Congress ($4.525 billion settlement.
• Oil being cleaned up with booms, dispersants, and oil-eating microbes
• www.youtube.com/watch?v=B08p7zltm1w
Which Laws Govern?
• Oil Pollution Act of 1990
• National Environmental Policy Act
• Clean Water Act
Oil Pollution Act of 1990 (“OPA 90”)
• Passed by Congress following Exxon Valdez oil spill in 1989
• Amended Section 311 of the Clean Water Act to govern oil
• Consolidates federal environmental statutes, such as Endangered
Species Act, Migratory Bird Treaty Act, Refuse Act, etc.
• $75 million liability ceiling unless gross negligence or willful
misconduct (waived by BP)
• Creates Oil Spill Trustee Council
• Addresses natural resource damages through NRDA
National Environmental Policy Act
• Followed a blowout at Union Pacific Oil Platform off Coast of Santa
Barbara, California
• Established the Council on Environmental Quality in the Executive
Office of the President
• Sets forth environmental reviews and requires impact statements for
actions taken by the federal government (including cleanup)
Clean Water Act
• Prohibits discharge of pollutants into navigable waters of United
States
• Being used by Justice Department to sue BP civilly
• Penalties of Administered by DHS/EPA
• Penalties: $37,500 per day of violation or $1,100 per barrel of oil
• Gross negligence: $140,000 per day of violation or $4,300 per barrel
Who Is In Charge?
• OPA 90 Trustee Council
• Department of Homeland Security
• Environmental Protection Agency
• National Oceanic and Atmospheric Administration
OPA 90 Trustee Council
• Serves as a legal group of trustees, including federal, state and tribal
representatives
• Trustees typically chosen by the governors of the affected states
• Administers National Resources Damage Assessment
Alexander, Kristina. The 2010 Oil Spill: Natural Resource Damage Assessment Under the Oil Pollution Act. Rep. no. R41396.
Washington D.C.: Congressional Research Service, 2010.
Department of Homeland Security
• National Incident Commander named after Title 40 “Spill of National
Significance”
• Most actions taken through the U.S. Coast Guard
• Considered an interest of national security
• Directed National Response Teams pursuant to Clean Water Act
Environmental Protection Agency
• Responsible for cleanup of oil that lands on the coast
• Collects land-based samples and monitors marshes and wetlands
• Is administering the NEPA environmental impact statements
National Oceanic and Atmospheric Administration
• Collects scientific data in the form of water sampling, satellite imagery
and animal death statistics
• Has cooperative authority along with USCG
• Responsible for monitoring the leaking of oil after well capped
How Is Damage Calculated?
OPA 90’s NRDA Process:
•
Preassessment Phase
•
Restoration Planning Phase
•
Restoration Implementation Phase
Preassessment Phase
• Involves establishment of jurisdictional areas of the Trustee Council
• Notification of responsible parties
• Gathers information regarding injuries to environment and persons
• Collects scientific data from cooperating agencies
Restoration Planning Phase
• Currently being applied
• Calls for Public Notice and Comment
• Calls for injury assessment and developing restoration alternatives
Restoration Implementation Phase
• Administrative record closed
• Present a demand to responsible parties
• Responsible parties respond within 90 days
• Responsible parties must agree or sue
• May establish future committees to oversee long-term monitoring
Source: The International Tanker Owners Pollution Federation Limited. Fate of Marine Oil Spills. Tech. no. 2. London:
International Tanker Owners Pollution Federation Limited, 2002. Print.
How Is BP’s Liability Limited?
• Can sue owner of the rig (Transocean) for indemnification
• Insurance for blowout and some costs of cleanup
• Not eligible for tax deductions
The End