The evolving environmental liability of the energy industry

Conference · Fri Mar 01 04:00:00 EST 1991 · AAPG Bulletin (American Association of Petroleum Geologists); (United States)

OSTI ID:5570258

Davis, P R ^[1]

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1. American Envirolegal Services, Half Moon Bay, CA (United States)

Under traditional common law and statutory theories of liability, the concept of causation reduced the exposure to liability in the use of toxic or hazardous substances in the exploration, production, transportation, refinement, and marketing of oil and gas. While claims for damages may still be brought under traditional negligence, negligence per se, and public or private nuisance theories, the risks associated with hazardous substances were changed by the passage in 1980 of the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA). Since then, CERCLA has been amended and supplemented periodically with even more stringent legislation. To minimize liability exposure under CERCLA, UST, and the other environmental laws discussed above, it is recommended that lessees, operators, buyers, and sellers of interests in real property obtain environmental audits to document the status of the site at the time of the activity or transaction. Parties to a transfer of ownership interest should allocate amongst themselves liability for future environmental clean up. Be aware, however, that governmental commissions are not parties to any contractual contribution or indemnification agreements. Therefore, state or federal regulations regarding proper operations, disposal of substances, and plugging and abandonment of wells will prevail to establish liability on an operator, regardless of contractual agreements of the parties. In order to preclude statutory destruction of the existing oil and gas exemptions, forestall the EPA from exercising the full regulatory control it possesses, and minimize liability exposure, the oil and gas industry must continually monitor its protection of the environment.

• OSTI ID: 5570258
• Report Number(s): CONF-910403--
• Conference Information: Journal Name: AAPG Bulletin (American Association of Petroleum Geologists); (United States) Journal Volume: 75:3
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
021000* -- Petroleum-- Legislation & Regulations
03 NATURAL GAS
031000 -- Natural Gas-- Legislation & Regulations
29 ENERGY PLANNING, POLICY, AND ECONOMY
293000 -- Energy Planning & Policy-- Policy
Legislation
& Regulation
DRILLING FLUIDS
ENVIRONMENTAL IMPACTS
FLUIDS
GROUND WATER
HYDROGEN COMPOUNDS
INDUSTRY
LAWS
LEGAL ASPECTS
LIABILITIES
NATURAL GAS INDUSTRY
OXYGEN COMPOUNDS
PETROLEUM INDUSTRY
POLLUTION LAWS
SURFACE WATERS
VICTIMS COMPENSATION
WATER