Who Will Pay for Oil Spill Cleanup?

Press Release

House Transportation and Infrastructure Committee Members are considering increasing the liability limits and the financial responsibilities of companies liable for oil spills, as oil from a broken BP wellhead continues to seep into the Gulf of Mexico and clean-up costs continue to skyrocket.

Under the Oil Pollution Act of 1990, imposed after the Exxon Valdez oil spill in 1989, owners and operators of offshore facilities are liable for all removal costs plus a total of $75 million for all damages arising from an oil spill. Lawmakers are considering removing the cap or raising it to $10 billion. Current clean-up costs of the Gulf disaster are estimated to be at least $1 billion.

U.S. Representative John Boozman (R-AR), Ranking Member of the Water Resources and Environment Subcommittee, heard testimony from witnesses in the hearing and expressed the need to put measures in place to increase the liabilities of companies responsible for oil spills.

"To pass the cost of this tragic incident to American taxpayers is unfair and unreasonable. The responsible parties must be held accountable and should bear the financial burden of cleaning up oil spills. While an oil spill is extremely rare, our laws leave taxpayers vulnerable to having to pay a substantial price for the clean-up and this is unacceptable. This situation is a reminder that we must adopt a comprehensive energy strategy that includes deepwater exploration in environmentally sound ways in addition to supporting nuclear, clean coal and alternative energy sources," Boozman said.

Several pieces of legislation have been introduced to amend the Oil Pollution Act of 1990 and address issues related to the liability and financial responsibility for oil spills. House Majority leaders indicate the House could vote on legislation when Members return from the July 4th District Work period.

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