Amendments to Limits of Liability under OPA 90 – USA
19 July 2006 No.06-004
The Coast Guard and Maritime Transportation Act of 2006 came into effect upon President Bush's signature on 11 July, 2006. The new law significantly increases the liability limits associated with oil spills in the US. The Act contains the following adjustment of the liability limits under Section 1004(a)(1),(2) of the Oil Pollution Act(OPA90) and distinguishes between single-hull tankers and double-hull tankers.
This is the first increase in the limits of liability since OPA90 was enacted; under OPA90, the President is required to adjust the limits every three years according to changes in Consumer Price Index (CPI), but has not done so. The new Act also requires the President to adjust the limits not less than every three years to reflect significant increases in CPI.
With regard to tanker vessels, if an incident occurs before the 90th day following the date of enactment of this Act, the old OPA90 limits will apply. The increase liability limits for non-tank vessels are effective immediately. We understand that the Coast Guard will prepare an interim rule to revise the regulations and applicable COFR forms, but still not published. In this respect, we will revert with further information once available.
| Schedule of Limits | |
| a) Tank Vessel greater than 3,000GT: US$1,200 per GT or US$10 million, whichever is greater. b) Tank Vessel of 3,000GT or less: US$1,200 per GT or US$2 million, whichever is greater. c) Any Other Vessels: US$600 per GT or US$500,000, whichever is greater. |
a) Tank Vessel greater than 3,000GT: Single-Hull Tanker(*) US$3,000 per GT or US$22 million, whichever is greater. Double-Hull Tanker US$1,900 per GT or US$16 million, whichever is greater. b) Tank Vessel of 3,000GT or less: Single-Hull Tanker(*) US$3,000 per GT or US$6 million, whichever is greater. Double-Hull Tanker US$1,900 per GT or US$4 million, whichever is greater. c)Any Other Vessel: US$950 per GT or US$800,000,whichever is greater. |
| (*)Single-Hull Tanker includes a vessel fitted with double sides only or double bottoms only. | |
This is the first increase in the limits of liability since OPA90 was enacted; under OPA90, the President is required to adjust the limits every three years according to changes in Consumer Price Index (CPI), but has not done so. The new Act also requires the President to adjust the limits not less than every three years to reflect significant increases in CPI.
With regard to tanker vessels, if an incident occurs before the 90th day following the date of enactment of this Act, the old OPA90 limits will apply. The increase liability limits for non-tank vessels are effective immediately. We understand that the Coast Guard will prepare an interim rule to revise the regulations and applicable COFR forms, but still not published. In this respect, we will revert with further information once available.