Senate Hearing, Liability for Offshore Oil Production
The Senate Committee on Energy and Natural Resources conducted a hearing to receive testimony on the liability and financial responsibility issues related to offshore oil production. The committee also considered the Outer Continental Shelf Lands Act Amendments act of 2010 (S. 3346) to increase the limits on liability under the Outer Continental Shelf Lands Act (OCSLA). Senator Sheldon Whitehouse (D-RI) testified. Mr. Thomas Perrelli, Department of Justice, testified concerning liability and compensation under the Oil Pollution Act of 1990 (OPA 90). Mr. David Hayes, Department of the Interior, testified concerning the Department’s outer continental shelf oil and gas development enforcement program. Mr.
WQIS Prepared for COFR Limit Increase
On July 11, 2006 the President signed into law Title VI of the Coast Guard and Maritime Transportation Act of 2006, which increased the limits of liability for vessels under OPA 90. It also split the tank vessel category into single and double hulls with single hulls having higher limits. Those limits went into effect in 2006. However, the requirement for evidence of financial responsibility required to obtain a Certificate of Financial Responsibility (COFR) was not increased at that point. Meaning, existing COFRs remained valid. By a notice in the Federal Register/Vol. 73, No.181/Wednesday, September 17, 2008 the Coast Guard promulgated regulations implementing the new COFR regulations to take effect from January 15, 2009. As of that date, the financial guaranty or insurance to the U.S.
