Oil spill liability cap would apply to rigs
A bill that proposes to dramatically increase the liability limit for oil spills from offshore drilling rigs would not apply to oil tankers or other ships, said the office of its principal author.
A spokesman for Sen. Robert Menendez, D-N.J., told American Shipper his Big Oil Bailout Prevention Act, S. 3305, “only applies to rigs.”
While Menendez said under current law, the responsible party must cover all costs related to clean up, there is a $75 million cap on its liability for economic damages, such as lost business revenues from fishing and tourism, natural resources damages or lost local tax revenues.
The bill would raise that limit to $10 billion in an existing law when applied to “an offshore facility except a deepwater port.”