Cummings Hears Testimony on Oil Company Liability

Friday, June 11, 2010

Congressman Elijah E. Cummings (MD-07) took part in a hearing held by the House Transportation and Infrastructure Committee, called to examine the liability requirements for oil spills that are imposed by the Oil Pollution Act of 1990 (OPA) and related statutes on offshore facilities and vessels operating in U.S. waters. The Committee also considered the potential impact on the offshore industry of the liability claims arising from the loss of the Deepwater Horizon in the Gulf of Mexico and the subsequent oil spill from the Macondo well site.

To get more information on the issue of both claims and liability caps, Cummings and the Committee also questioned a panel of oil and insurance industry experts, hearing testimony regarding the potential of raising the liability cap.

“Although facilities are legally liable for all costs associated with cleaning up the oil they spill, the cap of $75 million in liability for the damages that a spill from an offshore facility might cause is unrealistically low given what are now the obvious risks associated with offshore drilling,” said Cummings. “It is imperative that this cap be raised to a level that reflects the extent of the potential consequences associated with spills from offshore facilities.

“Further, under current statutes, facilities are not required to demonstrate more than $150 million in financial responsibility although it is apparent their potential liabilities may be many times that figure. As we consider the appropriate liability level for offshore facilities, we must also assess the appropriate level of financial responsibility they should be required to demonstrate.  The current threshold of $150 million is unrealistically below the extent of the potential liability in light of what has happened in the Gulf.”
 

Maritime Reporter August 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

News

Ingram to Build 20 Tank Barges in 2015

Ingram Barge Company announced that it will build 20 tank barges in 2015 to meet growing demand for chemical shipments. While most of the company’s recent tank

Webinar: 3D Laser Scanning in the Marine Industry

Maritime industry professionals have increasingly taken notice of 3D laser scanning in recent years as acceptance for the technology and its applications mounts throughout the sector.

Senator Says 2015 Could Be Time for US Oil Export Bill

The top supporter in the U.S. Congress for reversing the 40-year ban on crude oil exports, Senator Lisa Murkowski from Alaska, said next year could be the time for a bill on lifting the restriction.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Offshore Oil Pod Propulsion Port Authority Salvage Ship Electronics Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1729 sec (6 req/sec)