	Background

The Oil Pollution Act of 1990 (OPA) establishes a framework that addresses the liability of responsible parties in connection with the discharge of oil into the navigable waters of the United States, adjoining shorelines, or the exclusive economic zone. Among other provisions, OPA limits certain liabilities of a responsible party in connection with discharges of oil into such areas. Additionally, OPA created categories of damages for which the responsible party would be liable, within specified limits, based on the type of vessel or facility involved in the oil spill incident. The following sections of this report will discuss liability under OPA for removal costs and damages, and the basic procedure for recovering removal costs and damages from the Oil Spill Liability Trust Fund in the event that the responsible party fails to pay such claims. A responsible party's liability for damages, however, is limited under OPA. Responsible Party Liability for Removal Costs

A responsible party in an oil spill incident is liable for removal costs under OPA:
Notwithstanding any other provision or rule of law, and subject to the provisions of [OPA], each responsible party for a vessel or a facility from which oil is discharged, or which poses the substantial threat of a discharge of oil, into or upon the navigable waters or adjoining shorelines or the exclusive economic zone is liable for the removal costs and damages … that result from such incident. In limited situations, however, certain claims for removal costs may be presented initially to the Oil Spill Liability Trust Fund. In the event that a responsible party fails to settle a claim for damages for lost government revenues within 90 days, a claimant may present such a claim directly to the Oil Spill Liability Trust Fund. Defenses to Liability

OPA provides limited defenses to liability. A responsible party is not liable for removal costs or the damages mentioned above if it can establish—by a preponderance of the evidence—that the discharge or substantial threat of discharge of oil and the resulting damages or removal costs were caused solely by
(1) an act of God; (2) an act of war; (3) an act or omission of a third party, other than an employee or agent of the responsible party or a third party whose act or omission occurs in connection with any contractual relationship with the responsible party (except where the sole contractual arrangement arises in connection with carriage by a common carrier by rail), if the responsible party establishes, by a preponderance of the evidence, that the responsible party—(A) exercised due care with respect to the oil concerned, taking into consideration the characteristics of the oil and in light of all relevant facts and circumstances; and (B) took precautions against foreseeable acts or omissions of any such third party and the foreseeable consequences of those acts or omissions; or (4) any combination of paragraphs (1), (2), (3).
The Oil Pollution Act of 1990 (OPA) establishes a framework that addresses the liability of responsible parties in connection with the discharge of oil into the navigable waters of the United States, adjoining shorelines, or the exclusive economic zone. Among other provisions, OPA limits certain liabilities of a responsible party in connection with discharges of oil into such areas. The liability limitations established by OPA are currently the subject of significant congressional interest in the wake of the Deepwater Horizon oil spill in the Gulf of Mexico.
A responsible party is strictly liable for removal costs plus damages resulting from an oil spill incident under OPA. A responsible party's liability under OPA is confined to specific categories of damages. Pursuant to OPA, the total liability for damages in connection with an oil spill is limited based on the type of vessel or facility involved, and the amount of oil discharged. OPA provides limited defenses which, if applicable, allow a responsible party to discharge its liability to persons injured by a discharge of oil into the navigable waters of the United States, adjoining shorelines, or the exclusive economic zone.
Claims for removal costs and certain damages must, with limited exception, be presented directly to the responsible party. In the event that a claim for removal costs or certain damages is not paid by the responsible party within 90 days, a claimant may present such a claim directly to the Oil Spill Liability Trust Fund or file suit in court. OPA and its regulations establish procedures for recovering removal costs and damages against the Oil Spill Liability Trust Fund.
This report addresses liability under OPA for removal costs and damages, and the basic procedure for recovering removal costs and damages from the Oil Spill Liability Trust Fund in the event that the responsible party fails to settle such claims.