Title: 
Headings:  Oil Spill Liability Trust Fund (OSLTF) Funding for Oil Spills
Oil
 
Spills
 

January
 
2006
 

PURPOSE
 

OSLTF
 
FUNDING
 
FOR
 
OIL
 
SPILLS
 

HOW
 
IS
 
RESPONSE
 
TO
 
OIL
 
SPILLS
 
FUNDED?
 

ACCESS
 
TO
 
THE
 
OSLTF
 

What
 
Can
 
the
 
Fund
 
be
 
Used
 
for?
 

Who
 
Can
 
Access
 
the
 
Fund?
 

Limitations
 
to
 
Accessing
 
the
 
OSLTF
 

LIABILITY
 
ISSUES
 

COFR
 
Requirements/Role
 
of
 
Guarantor
 
 
6
 
 
6
 
 
6
 

Responsibility
 
of
 
RP
 
to
 
Respond
 
to
 
a
 
Spill
 
 
6
 
 
6
 
 
6
 

Responsibility
 
of
 
RP
 
to
 
Settle
 
Claims
 
 
6
 
 
6
 
 
6
 

Multiple
 
RPs
 

Impact
 
of
 
Liability
 
Limits
 
and
 
OPA
 
Defenses
 
 
6
 
 
6
 
 
6
 
 
6
 
 
6
 
 
6
 

FUND
 
MANAGEMENT
 

Tracking
 
Daily
 
Removal
 
Costs
 
 
6
 
 
6
 
 
6
 

OSLTF
 
Emergency
 
Fund
 
Advancement
 
Authority
 
 
6
 
 
6
 
 
6
 
 
6
 

Funding
 
Considerations
 
for
 
Mixed
 
Oil
 
and
 
Hazardous
 
Substance
 
Incidents
  
 
6
 
 
6
 
 
6
 

V.
 
 
CLAIMS
 
FOR
 
DAMAGES
 
AND
 
REMOVAL
 
COSTS
 

The
 
OSLTF
 
can
 
be
 
used
 
to
 
pay
 
for
 
claims
 
for:
 
 
6
 
 
6
 
 
6
 
 
6
 
 
6
 
 
6
 
 
6
 

Factors
 
that
 
Impact
 
Claims
 
Costs
 
 
6
 
 
6
 
 
6
 

RP’S
 
Role
 
 
6
 
 
6
 
 
6
 
 
6
 
 
6
 

Claimant’s
 
Role
 
 
6
 
 
6
 
 
6
 
 
6
 

When
 
the
 
RP
 
Denies
 
Designation
 
or
 
is
 
Unknown
 
 
6
 
 
6
 
 
6
 
 
6
 

Submitting
 
Interim
 
Claims
 
 
6
 
 
6
 
 
6
 
 
6
 

NATURAL
 
RESOURCE
 
DAMAGES
 

Who
 
are
 
the
 
Natural
 
Resource
 
Trustees?
 
 
6
 
 
6
 
 
6
 

Role
 
of
 
Trustees
  
 
6
 
 
6
 
 
6
 
 
6
 
 
6
 
 
6
 

Preassessment
 
Funding
 

Submitting
 
Claims
 
for
 
Natural
 
Resource
 
Damages
 
 
6
 
 
6
 
 
6
 
 
6
 

NRD
 
Impact
 
on
 
the
 
Life
 
Cycle
 
Cost
 
of
 
Spill
 
 
6
 
 
6
 
 
6
 

ADDITIONAL
 
RESOURCES
 

www.uscg.mil/npfc

VIII.
 
ACRONYM
 
LIST
 

P
 
&
 
I
 
PRFA
 
RP
 
USCG
 


Content: Owners/operators
 
are
 
permitted
 
to
 
self-insure
 
their
 
financial
 
responsibility
 
requirements,
 
or
 
they
 
may
 
purchase
 
insurance
 
from
 
an
 
OPA
 
guarantor,
 
which
 
NPFC
 
also
 
certifies,
 
who
 
is
 
contractually
 
obligated
 
to
 
pay
 
for
 
oil
 
spill
 
costs. If
 
a
 
spill
 
occurs,
 
OPA
 
guarantors
 
are
 
subject
 
to
 
direct
 
action
 
for
 
payment
 
under
 
OPA--
except
 
for
 
incidents
 
caused
 
by
 
RP
 
willful
 
misconduct
 
or
 
where
 
OPA
 
defenses,
 
described
 
below,
 
are
 
available
 
to
 
the
 
RP. Responsibility
 
of
 
RP
 
to
 
Respond
 
to
 
a
 
Spill
 
 
6
 
 
6
 
 
6
 
When
 
an
 
oil
 
spill
 
occurs,
 
the
 
RP
 
is
 
responsible
 
for
 
complete
 
cleanup
 
of
 
the
 
spill
 
up
 
to
 
its
 
limit
 
of
 
liability. If
 
the
 
RP
 
does
 
not
 
fully
 
remove
 
the
 
spill
 
(or
 
if
 
the
 
spill
 
is
 
so
 
large
 
that
 
it
 
involves
 
government
 
response),
 
then
 
the
 
FOSC
 
responds
 
to
 
the
 
spill,
 
tracking
 
all
 
costs,
 
most
 
of
 
which
 
are
 
paid
 
from
 
the
 
OSLTF
 
Emergency
 
Fund. The
 
RP
 
is
 
later
 
billed
 
for
 
all
 
Federal
 
response
 
costs,
 
which
 
include
 
all
 
costs
 
paid
 
from
 
the
 
OSLTF
 
as
 
well
 
as
 
costs
 
incurred
 
by
 
the
 
agencies
 
themselves,
 
such
 
as
 
Coast
 
Guard
 
personnel
 
and
 
equipment. Responsibility
 
of
 
RP
 
to
 
Settle
 
Claims
 
 
6
 
 
6
 
 
6
 
The
 
RP
 
likewise
 
has
 
primary
 
responsibility
 
for
 
handling
 
claims,
 
including
 
advertising,
 
adjudication,
 
and
 
payment. The
 
RP
 
may
 
establish
 
a
 
claims
 
office
 
to
 
serve
 
the
 
affected
 
area
 
for
 
spills
 
with
 
large
 
claims
 
potential. If
 
the
 
RP
 
does
 
not
 
fulfill
 
this
 
responsibility,
 
the
 
NPFC
 
performs
 
the
 
claims
 
adjudication
 
function
 
and
 
charges
 
the
 
cost
 
to
 
the
 
RP. The
 
government
 
uses
 
the
 
OSLTF
 
Principal
 
Fund
 
to
 
pay
 
these
 
claims. Likewise,
 
if
 
the
 
RP
 
denies
 
a
 
claim,
 
the
 
claimant
 
can
 
then
 
submit
 
it
 
to
 
the
 
NPFC
 
for
 
adjudication.