§ 2704. — Limits on liability.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 33USC2704]
TITLE 33--NAVIGATION AND NAVIGABLE WATERS
CHAPTER 40--OIL POLLUTION
SUBCHAPTER I--OIL POLLUTION LIABILITY AND COMPENSATION
Sec. 2704. Limits on liability
(a) General rule
Except as otherwise provided in this section, the total of the
liability of a responsible party under section 2702 of this title and
any removal costs incurred by, or on behalf of, the responsible party,
with respect to each incident shall not exceed--
(1) for a tank vessel the greater of--
(A) $1,200 per gross ton; or
(B)(i) in the case of a vessel greater than 3,000 gross
tons, $10,000,000; or
(ii) in the case of a vessel of 3,000 gross tons or less,
$2,000,000;
(2) for any other vessel, $600 per gross ton or $500,000,
whichever is greater;
(3) for an offshore facility except a deepwater port, the total
of all removal costs plus $75,000,000; and
(4) for any onshore facility and a deepwater port, $350,000,000.
(b) Division of liability for mobile offshore drilling units
(1) Treated first as tank vessel
For purposes of determining the responsible party and applying
this Act and except as provided in paragraph (2), a mobile offshore
drilling unit which is being used as an offshore facility is deemed
to be a tank vessel with respect to the discharge, or the
substantial threat of a discharge, of oil on or above the surface of
the water.
(2) Treated as facility for excess liability
To the extent that removal costs and damages from any incident
described in paragraph (1) exceed the amount for which a responsible
party is liable (as that amount may be limited under subsection
(a)(1) of this section), the mobile offshore drilling unit is deemed
to be an offshore facility. For purposes of applying subsection
(a)(3) of this section, the amount specified in that subsection
shall be reduced by the amount for which the responsible party is
liable under paragraph (1).
(c) Exceptions
(1) Acts of responsible party
Subsection (a) of this section does not apply if the incident
was proximately caused by--
(A) gross negligence or willful misconduct of, or
(B) the violation of an applicable Federal safety,
construction, or operating regulation by,
the responsible party, an agent or employee of the responsible
party, or a person acting pursuant to a contractual relationship
with the responsible party (except where the sole contractual
arrangement arises in connection with carriage by a common carrier
by rail).
(2) Failure or refusal of responsible party
Subsection (a) of this section does not apply if the responsible
party fails or refuses--
(A) to report the incident as required by law and the
responsible party knows or has reason to know of the incident;
(B) to provide all reasonable cooperation and assistance
requested by a responsible official in connection with removal
activities; or
(C) without sufficient cause, to comply with an order issued
under subsection (c) or (e) of section 1321 of this title or the
Intervention on the High Seas Act (33 U.S.C. 1471 et seq.).
(3) OCS facility or vessel
Notwithstanding the limitations established under subsection (a)
of this section and the defenses of section 2703 of this title, all
removal costs incurred by the United States Government or any State
or local official or agency in connection with a discharge or
substantial threat of a discharge of oil from any Outer Continental
Shelf facility or a vessel carrying oil as cargo from such a
facility shall be borne by the owner or operator of such facility or
vessel.
(4) Certain tank vessels
Subsection (a)(1) of this section shall not apply to--
(A) a tank vessel on which the only oil carried as cargo is
an animal fat or vegetable oil, as those terms are used in
section 2720 of this title; and
(B) a tank vessel that is designated in its certificate of
inspection as an oil spill response vessel (as that term is
defined in section 2101 of title 46) and that is used solely for
removal.
(d) Adjusting limits of liability
(1) Onshore facilities
Subject to paragraph (2), the President may establish by
regulation, with respect to any class or category of onshore
facility, a limit of liability under this section of less than
$350,000,000, but not less than $8,000,000, taking into account
size, storage capacity, oil throughput, proximity to sensitive
areas, type of oil handled, history of discharges, and other factors
relevant to risks posed by the class or category of facility.
(2) Deepwater ports and associated vessels
(A) Study
The Secretary shall conduct a study of the relative
operational and environmental risks posed by the transportation
of oil by vessel to deepwater ports (as defined in section 1502
of this title) versus the transportation of oil by vessel to
other ports. The study shall include a review and analysis of
offshore lightering practices used in connection with that
transportation, an analysis of the volume of oil transported by
vessel using those practices, and an analysis of the frequency
and volume of oil discharges which occur in connection with the
use of those practices.
(B) Report
Not later than 1 year after August 18, 1990, the Secretary
shall submit to the Congress a report on the results of the
study conducted under subparagraph (A).
(C) Rulemaking proceeding
If the Secretary determines, based on the results of the
study conducted under this \1\ subparagraph (A), that the use of
deepwater ports in connection with the transportation of oil by
vessel results in a lower operational or environmental risk than
the use of other ports, the Secretary shall initiate, not later
than the 180th day following the date of submission of the
report to the Congress under subparagraph (B), a rulemaking
proceeding to lower the limits of liability under this section
for deepwater ports as the Secretary determines appropriate. The
Secretary may establish a limit of liability of less than
$350,000,000, but not less than $50,000,000, in accordance with
paragraph (1).
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(3) Periodic reports
The President shall, within 6 months after August 18, 1990, and
from time to time thereafter, report to the Congress on the
desirability of adjusting the limits of liability specified in
subsection (a) of this section.
(4) Adjustment to reflect Consumer Price Index
The President shall, by regulations issued not less often than
every 3 years, adjust the limits of liability specified in
subsection (a) of this section to reflect significant increases in
the Consumer Price Index.
(Pub. L. 101-380, title I, Sec. 1004, Aug. 18, 1990, 104 Stat. 491; Pub.
L. 104-55, Sec. 2(d)(1), Nov. 20, 1995, 109 Stat. 546; Pub. L. 105-383,
title IV, Sec. 406, Nov. 13, 1998, 112 Stat. 3429.)
References in Text
This Act, referred to in subsec. (b)(1), is Pub. L. 101-380, Aug.
18, 1990, 104 Stat. 484, as amended, known as the Oil Pollution Act of
1990, which is classified principally to this chapter. For complete
classification of this Act to the Code, see Short Title note set out
under section 2701 of this title and Tables.
The Intervention on the High Seas Act, referred to in subsec.
(c)(2)(C), is Pub. L. 93-248, Feb. 5, 1974, 88 Stat. 8, as amended,
which is classified generally to chapter 28 (Sec. 1471 et seq.) of this
title. For complete classification of this Act to the Code, see Short
Title note set out under section 1471 of this title and Tables.
Amendments
1998--Subsec. (a)(1). Pub. L. 105-383, Sec. 406(1), substituted
comma for ``(except a tank vessel on which the only oil carried as cargo
is an animal fat or vegetable oil, as those terms are used in section
2720 of this title)'' after ``tank vessel''.
Subsec. (c)(4). Pub. L. 105-383, Sec. 406(2), added par. (4).
1995--Subsec. (a)(1). Pub. L. 104-55 substituted ``for a tank vessel
(except a tank vessel on which the only oil carried as cargo is an
animal fat or vegetable oil, as those terms are used in section 2720 of
this title)'' for ``for a tank vessel,''.
Delegation of Functions
Specific functions of President under subsec. (d) of this section
delegated to Administrator of Environmental Protection Agency, Secretary
of Transportation, and Secretary of the Interior by section 4 of Ex.
Ord. No. 12777, Oct. 18, 1991, 56 F.R. 54763, set out as a note under
section 1321 of this title.
Section Referred to in Other Sections
This section is referred to in sections 2702, 2705, 2708, 2712, 2716
of this title.
