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: OSLTF
 
Funding
 
for
 
Oil
 
Spills
 
          
i
 
OSLTF
 
FUNDING
 
FOR
 
OIL
 
SPILLS
 
OSLTF
 
Funding
 
for
 
Oil
 
Spills
 
ii
 
I.
 
HOW
 
IS
 
RESPONSE
 
TO
 
OIL
 
SPILLS
 
FUNDED? The
 
Oil
 
Spill
 
Liability
 
Trust
 
Fund
 
(OSLTF
 
or
 
Fund)
 
is
 
a
 
billion-dollar
 
fund
 
established
 
as
 
a
 
funding
 
source
 
to
 
pay
 
removal
 
costs
 
and
 
damages
 
resulting
 
from
 
oil
 
spills
 
or
 
substantial
 
threats
 
of
 
oil
 
spills
 
to
 
navigable
 
waters
 
of
 
the
 
United
 
States. The
 
OSLTF
 
is
 
used
 
for
 
costs
 
not
 
directly
 
paid
 
by
 
the
 
polluter,
 
referred
 
to
 
as
 
the
 
responsible
 
party
 
(RP). The
 
fund
 
is
 
also
 
used
 
to
 
pay,
 
costs
 
to
 
respond
 
to
 
"mystery
 
spills,"
 
for
 
which
 
the
 
source
 
has
 
not
 
been
 
identified. The
 
OSLTF
 
has
 
two
 
major
 
components: 6
 
The
 
Emergency
 
Fund
 
is
 
available
 
for
 
Federal
 
On-Scene
 
Coordinators
 
(FOSCs)
 
to
 
respond
 
to
 
oil
 
discharges
 
and
 
for
 
Federal
 
natural
 
resource
 
trustees
 
to
 
initiate
 
natural
 
resource
 
damage
 
assessments. The
 
Emergency
 
Fund
 
is
 
capitalized
 
by
 
an
 
annual
 
$50
 
million
 
apportionment
 
from
 
the
 
OSLTF. 6
 
The
 
remaining
 
Principal
 
Fund
 
balance
 
is
 
used
 
to
 
pay
 
claims
 
and
 
to
 
fund
 
appropriations
 
by
 
Congress
 
to
 
Federal
 
agencies
 
to
 
administer
 
the
 
provisions
 
of
 
OPA
 
and
 
support
 
research
 
and
 
development. The
 
United
 
States
 
Coast
 
Guard's
 
National
 
Pollution
 
Funds
 
Center
 
(NPFC),
 
in
 
Arlington,
 
Virginia,
 
manages
 
use
 
of
 
the
 
OSLTF. II.