The Federal Water Pollution Control Act of 1970, 
as amended (33 U.S.C. 1321), was the first to pro- 
vide specifically for recovery from damages resulting 
from unintentional spills. The owner or operator is 
liable for the costs of spill cleanup and removal 
operations involving navigable waters or contigu- 
ous zone waters unless the spill results from an act 
of God, war, U.S. Government negligence, or an 
act of omission of a third party. The Act established 
liability limits. It also established a $35 million con- 
tingency fund to cover spill cleanup by governments 
(Federal, State, and local) in cases where the source 
of the spill cannot be ascertained or where cleanup 
is not being made by the responsible party. 
The Trans-Alaska Pipeline Act (43 U.S.C. 1653) 
and the Deepwater Port Act of 1974 (33 U.S.C. 
1502 et seq.) both impose liability for all discharges 
by the vessels and facilities covered in the Acts. Both 
Acts establish liability funds that may vary with the 
source of the spill and whether or not it resulted 
from negligence or willful misconduct. 
The OCS Lands Act of 1953 (43 U.S.C. 1331 
et seq.) also covers oil pollution liability. It does 
not specifically establish liability for damages, but 
does authorize the Secretary of the Interior to 
promulgate regulations for items referred to in the 
Act, including conservation and protection of natural 
resources. Current regulations hold the lessees liable 
to the Federal Government for cleanup and removal 
costs resulting from spills relating to exploration and 
development activities. 
The Federal statutes, though pertaining to differ- 
ent sources of oil, are still somewhat overlapping, i.e., 
vessels covered by the Alaska Pipeline Act and the 
Deepwater Port Act could also fall within the scope 
of the Water Pollution Control Act, for instance. 
Differences in standards and liability limits among 
the Acts could then result in controversies.” 
A further complication arises with regard to the 
relationship between State and Federal laws. States’ 
efforts have ranged from codifying the remedies in 
common law to legislatively imposing strict liability. 
Some State statutes list defenses for relieving strict 
liability with proof of acts of war or God, third party 
negligence, intentional acts, and State or Federal 
Government negligence. Other State statutes estab- 
lish the no-fault liability. Sources of oil pollution 
covered, liability limits, financing of funds, etc., vary 
among States. All of these factors contribute to the 
™U.S. Congress, Senate, Committee on Commerce and the 
National Ocean Policy Study. Methods and Procedures for Im- 
plementing a Uniform Law Providing Liability for Cleanup and 
Damages Caused by Oil Spills from Ocean Related Sources: A 
Study by the Department of Justice. 94th Congress, Ist sess. 
Washington, D.C., Government Printing Office, 1975. 
difficulty of resolving the issue of liability and com- 
pensation. 
Today, in response to the need for resolution of 
this issue, various bills have been introduced in both 
the House and the Senate which provide for a com- 
prehensive system of liability and compensation for 
oil pollution. 
There are three “Superfund” bills now before the 
Senate (S. 1187, S. 2083, and H.R. 6803). These 
bills provide for liability for several different types 
of damages, recognize claims from nongovernment 
entities, and provide for a more comprehensive and 
effective system of compensation. H.R. 6803, which 
has passed the House (September 12, 1977), is 
closely alined with the Administration bill, S. 1187; 
the major difference being that it lacks the provision 
for fund payment of the cost of oil spill damage 
assessment. It establishes a $200 million revolving 
Treasury fund for payment of liability resulting from 
oil pollution damage. Claims may be made for: 
® removal, 
e loss or injury to or destruction of real or personal 
property, 
loss of use of natural resources, 
loss of profits or impairment of earning capacity 
due to injury or destruction of real or personal 
property or natural resources, and 
loss of tax revenue for 1 year resulting from injury 
to real or personal property. 
The President is the trustee for U.S. natural re- 
sources. The fund is to be coadministered by the 
Department of Treasury and the Department of 
Transportation. Liability limits are established for 
different class vessels and facilities and require the 
owner or operator to prove financial responsibility. 
S. 2083 was developed by the Senate Commerce 
Committee. It differs in its specific approach to 
several issues regarding the liability and compensa- 
tion proposals, and it directs the Secretary of Com- 
merce and the Secretary of the Treasury to jointly 
administer the fund. 
In summary, the bills create a system of strict 
liability of damage and cleanup costs, set liability 
limits for owners and operators, and establish a 
compensation fund for damages above owner/ 
operator liability limits. They also preempt State 
laws, thereby establishing one uniform compensation 
program. Authority rests with the Secretary of Trans- 
portation. If such legislation passes, it would super- 
cede the liability and compensation provisions of 
other legislation, including the proposed OCS Lands 
Act Amendments, which provide procedures for 
compensation for cleanup costs and damages occur- 
ring as a result of OCS activities. 
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