The US Oil Pollution Act 1990
Pollution is the other area in which coastal states are very active. One of the most
forthright initiatives in recent years is the US Oil Pollution Act (1990). Thislegislation was formulated in response to the public concern caused by the grounding
of the Exxon Valdez in the Prince William Sound, Alaska in March 1989.
The Act applies to oil spills in US inland waters; up to three miles off shore;
and the ‘exclusive economic zone’ up to 200 miles to sea from the shoreline. The
LOOP Terminal is not included. It lays down wide ranging regulations for the
handling of oil spills. The ‘responsible party’ is defined as the owner or operator
of the tanker. The responsible party is required to pay for the clean-up, up to a
liability limit of $10 million, or $1,200 per gross ton, whichever is the greater.
However, if there has been gross negligence these limits do not apply.
In addition to making shipowners responsible for the cost of pollution incidents,
the Act laid down specific requirements for ships operating in US waters. These
include requirements that ships should carry a certificate of financial responsibility,
demonstrating that they have sufficient financial means to pay a claim. There is
also a requirement that vessels ordered after 30 June 1990 or delivered after 1
January 1994 should have double-hulls and a schedule for phasing out single hull
tankers by 2010. The coastguard is required to evaluate the manning standards of
foreign vessels and to ensure that these are at least equivalent to US law. All
tankers are required to carry a contingency plan for responding to an oil spill.
This legislation, particularly the requirement for double-hulled tankers, caused
great controversy. However, the effect was to focus the attention of the shipping
community far more rigorously on the risks associated with oil pollution. In particular,
for the first time, shipowners were faced with the possibility of unlimited liability
for the cost of any oil spill they are involved in. The high cost of cleaning up after
the Exxon Valdez spill put a financial dimension on the possible scale of this problem.