August 2006
Following the “Athos I” oil spill in the Delaware River in November 2004, the U.S. authorities considered the compensation limits provided for under OPA ’90 to be insufficient. Accordingly, the Coast Guard and Maritime Transportation Act of 2006, signed by President Bush on 11 July 2006, includes the following changes to the liability limits provided for under OPA ’90:
Vessel Type Current OPA ’90 Limits New OPA ’90 Limits A. Single hull tank vessels (including single-hull fitted with double sides only or a double bottom only) ... The greater of $1,200 per gross ton OR The greater of $3,000 per gross ton OR ... in the case of a vessel greater than 3,000 gross tons $10,000,000 $22,000,000 ... in the case of a vessel of 3,000 gross tons or less $2,000,000 $6,000,000 B. A tank vessel other than a single hull vessel referred to in A, above ... The greater of $1,200 per gross ton OR The greater of $1,900 per gross ton OR ... in the case of a vessel greater than 3,000 gross tons $10,000,000 $16,000,000 ... in the case of a vessel of 3,000 gross tons or less $2,000,000 $4,000,000 C. For any non-tank vessel $600 per gross ton or $500,000, whichever is greater $950 per gross ton or $800,000, whichever is greater
The amended limits are effective in respect of an oil discharge or substantial threat of discharge as follows:
- For any tank vessels, on or after 9 October 2006.
- For any other vessel, on or after 11 July 2006.
The text also includes language which requires the President to adjust these limits of liability “not less” than every three years to reflect significant increases in the Consumer Price Index.
The existing regulations governing the need for Certificates of Financial Responsibility (COFRs) have not yet been amended which means that existing COFRs remain valid despite the increase in limits of liability.
