OPA 90 - Limits of Liability Increased
Danielle Southey
Published: March 01, 2015
In a Final Rule issued by the US Coast Guard, the limits of liability under the US Oil Pollution Act 1990 (“OPA”) have been increased, effective from 21 December 2015.
Under OPA parties responsible for vessels, deepwater ports and offshore facilities are strictly liability, jointly and severally, for removal costs and damages caused by any oil discharge into the navigable waters or the adjoining shorelines of the United States, up to specified limits.
OPA provides for a review of these limits every three years, prompting the recent increase which is intended to reflect the increase in the Consumer Price Index.
Under the latest Rule, the review procedure has been simplified so that the limits will increase when the CPI next increases by 3%. If, after three years, the increase is less than 3%, a notice of no inflation will be published.
For vessels, the increase in limitation amounts to approximately 10%.
| Source category | Previous limit of liability | New limit of liability |
|---|---|---|
|
(1) The OPA 90 limits of liability for tank vessels, other than (i) For a single-hull tank vessel greater than 3,000 gross tons |
The greater of $3,200 per gross ton or $23,496,000 | The greater of $3,500 per gross ton or $25,845,600 |
| (ii) For a tank vessel greater than 3,000 gross tons, other than a single-hull tank vessel | The greater of $2,000 per gross ton or $17,088,000 | he greater of $2,200 per gross ton or $18,796,800 |
| (iii) For a single-hull tank vessel less than or equal to 3,000 gross tons | The greater of $3,200 per gross ton or $6,408,000 | The greater of $3,500 per gross ton or $7,048,800 |
| (iv) For a tank vessel less than or equal to 3,000 gross tons, other than a single-hull tank vessel | The greater of $2,000 per gross ton or $4,272,000 | The greater of $2,200 per gross ton or $4,699,200 |
| (2) The OPA 90 limits of liability for any vessel other than a vessel listed in subparagraph (a)(1) of § 138.230, including for any edible oil tank vessel and any oil spill response vessel, are - | The greater of $1,000 per gross ton or $854,400 | The greater of $1,100 per gross ton or $939,800 |
There are also consequent increases in the amount of financial responsibility that owners/operators are required to maintain in order to operate in the United States. Owners will have until 21 March 2016 to demonstrate the necessary increase in financial responsibility.
Full details, including a full table of the revised limits, can be found at the following link.
