Federal · Title 33 — Navigation and Navigable Waters

33 U.S.C. § 2704: Limits on liability

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with respect to a single-hull vessel, including a single-hull vessel fitted with double sides only or a double bottom only, $3,000 per gross ton; with respect to a vessel other than a vessel referred to in subparagraph (A), $1,900 per gross ton; or a vessel described in subparagraph (A), $22,000,000; or a vessel described in subparagraph (B), $16,000,000; or a vessel described in subparagraph (A), $6,000,000; or a vessel described in subparagraph (B), $4,000,000; for any other vessel, $950 per gross ton or $800,000, whichever is greater; for an offshore facility except a deepwater port, the total of all removal costs plus $75,000,000; and for any onshore facility and a deepwater port, $350,000,000. For purposes of determining the responsible party and applying this Act and except as provided in paragraph (2), a mobile offshore drilling unit which is being used as an offshore facility is deemed to be a tank vessel with respect to the discharge, or the substantial threat of a discharge, of oil on or above the surface of the water. To the extent that removal costs and damages from any incident described in paragraph (1) exceed the amount for which a responsible party is liable (as that amount may be limited under subsection (a)(1)), the mobile offshore drilling unit is deemed to be an offshore facility. For purposes of applying subsection (a)(3), the amount specified in that subsection shall be reduced by the amount for which the responsible party is liable under paragraph (1). gross negligence or willful misconduct of, or the violation of an applicable Federal safety, construction, or operating regulation by, to report the incident as required by law and the responsible party knows or has reason to know of the incident; to provide all reasonable cooperation and assistance requested by a responsible official in connection with removal activities; or without sufficient cause, to comply with an order issued under subsection (c) or (e) of section 1321 of this title or the Intervention on the High Seas Act ( 33 U.S.C. 1471 et seq.). Notwithstanding the limitations established under subsection (a) and the defenses of section 2703 of this title , all removal costs incurred by the United States Government or any State or local official or agency in connection with a discharge or substantial threat of a discharge of oil from any Outer Continental Shelf facility or a vessel carrying oil as cargo from such a facility shall be borne by the owner or operator of such facility or vessel. a tank vessel on which the only oil carried as cargo is an animal fat or vegetable oil, as those terms are used in section 2720 of this title ; and a tank vessel that is designated in its certificate of inspection as an oil spill response vessel (as that term is defined in section 2101 of title 46 ) and that is used solely for removal. Subject to paragraph (2), the President may establish by regulation, with respect to any class or category of onshore facility, a limit of liability under this section of less than $350,000,000, but not less than $8,000,000, taking into account size, storage capacity, oil throughput, proximity to sensitive areas, type of oil handled, history of discharges, and other factors relevant to risks posed by the class or category of facility. The Secretary shall conduct a study of the relative operational and environmental risks posed by the transportation of oil by vessel to deepwater ports (as defined in section 1502 of this title ) versus the transportation of oil by vessel to other ports. The study shall include a review and analysis of offshore lightering practices used in connection with that transportation, an analysis of the volume of oil transported by vessel using those practices, and an analysis of the frequency and volume of oil discharges which occur in connection with the use of those practices. Not later than 1 year after August 18, 1990 , the Secretary shall submit to the Congress a report on the results of the study conducted under subparagraph (A). If the Secretary determines, based on the results of the study conducted under subparagraph (A), that the use of deepwater ports in connection with the transportation of oil by vessel results in a lower operational or environmental risk than the use of other ports, the Secretary shall initiate, not later than the 180th day following the date of submission of the report to the Congress under subparagraph (B), a rulemaking proceeding to lower the limits of liability under this section for deepwater ports as the Secretary determines appropriate. The Secretary may establish a limit of liability of less than $350,000,000, but not less than $50,000,000, in accordance with paragraph (1). The President shall, within 6 months after August 18, 1990 , and from time to time thereafter, report to the Congress on the desirability of adjusting the limits of liability specified in subsection (a). The President, by regulations issued not later than 3 years after July 11, 2006 , and not less than every 3 years thereafter, shall adjust the limits on liability specified in subsection (a) to reflect significant increases in the Consumer Price Index. Not later than 45 days after the date of enactment of this Act [ July 11, 2006 ], the Secretary of the department in which the Coast Guard is operating shall submit a report on liability limits described in paragraph (2) to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives. An analysis of the extent to which oil discharges from vessels and nonvessel sources have or are likely to result in removal costs and damages (as defined in section 1001 of the Oil Pollution Act of 1990 ( 33 U.S.C. 2701 )) for which no defense to liability exists under section 1003 of such Act [ 33 U.S.C. 2703 ] and that exceed the liability limits established in section 1004 of such Act [ 33 U.S.C. 2704 ], as amended by this section. An analysis of the impacts that claims against the Oil Spill Liability Trust Fund for amounts exceeding such liability limits will have on the Fund. Based on analyses under this paragraph and taking into account other factors impacting the Fund, recommendations on whether the liability limits need to be adjusted in order to prevent the principal of the Fund from declining to levels that are likely to be insufficient to cover expected claims. The Secretary shall provide an update of the report to the Committees referred to in paragraph (1) not later than January 30 of the year following each year in which occurs an oil discharge from a vessel or nonvessel source that results or is likely to result in removal costs and damages (as those terms are defined in section 1001 of the Oil Pollution Act of 1990 ( 33 U.S.C. 2701 )) that exceed liability limits established under section 1004 of the Oil Pollution Act of 1990 ( 33 U.S.C. 2704 ).”

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