U. S. oil spill law to cause growing tanker problem

Journal Article · Mon Sep 30 04:00:00 EDT 1991 · Oil and Gas Journal; (United States)

OSTI ID:5792750

Price, R B

This paper reports on tanker owners which face a growing dilemma on the issue of oil spill liability. The U.S. Oil Pollution Act, passed last year in the wake of the March 1989 Exxon Valdez oil spill, was intended to reduce risk of and damage from such accidents. However, in addition to phasing in double hulls on most tankers operating in U.S. waters, the law substantially increases shipowner's liability for spills. And the federal law does not preempt state liability laws, which in most cases amount to unlimited liability for spill cleanup. Rather than face potentially unlimited liability in the event of a spill, tanker owners worldwide are exercising a number of options to shield themselves. Some of those options could increase the potential for oil spills, industry officials warn. The act also threatens to shatter the international alliance among shippers. A report by Drewry Shipping Consultants Ltd., London, says the law could have a devastating effect on operating practices. Tanker owners and operators have voiced the most opposition to the new spill law and the shackles it places on them. Now the industry that insures tankers has spoken up about is increased liability, and it too may launch a boycott.

• OSTI ID: 5792750
• Journal Information: Oil and Gas Journal; (United States), Journal Name: Oil and Gas Journal; (United States) Vol. 89:39; ISSN 0030-1388; ISSN OIGJA
• Country of Publication: United States
• Language: English

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