311 



public or private, without regard to fault for such 

 damages, and without regard to ownership of any 

 affected lands, structures, fish, wildlife, or blotlc or 

 other natural resources relied upon by Alaska Na- 

 tives, Native organizations, or others for subsistence 

 or economic purposes. Claims for such injury or 

 damages may be determined by arbitration or judi- 

 cial proceedings. 



(2) Liability under paragraph (1) of this subsec- 

 tion shall be limited to $50,000,000 for any one inci- 

 dent, and the holders of the right-of-way or permit 

 shall be liable for any claim allowed in proportion to 

 their ownership interest in the right-of-way or per- 

 mit. Liability of such holders for damages in excess 

 of $50,000,000 shall be in accord with ordinary rules 

 of negligence. 



(3) In any case where liability without fault is im- 

 posed pursuant to this subsection and the damages 

 involved were caused by the negligence of a third 

 party, the rules of subrogation shall apply in accord- 

 ance with the law of the jurisdiction where the 

 damage occurred. 



(4) Upon order of the Secretary, the holder of a 

 right-of-way or permit shall provide emergency 

 subsistence and other aid to an affected Alaska Na- 

 tive, Native organization, or other person pending 

 expeditious filing of, and determination of, a claim 

 under this subsection. 



(5) Where the State of Alaska is the holder of a 

 right-of-way or permit under this chapter, the State 

 shall not be subject to the provisions of this sub- 

 section, but the holder of the permit or right-of-way 

 for the trans-Alaska pipeline shall be subject to this 

 subsection with respect to facilities constructed or 

 activities conducted under rights-of-way or permits 

 issued to the State to the extent that such holder 

 engages in the construction, operation, maintenance, 

 and termination of facilities, or in other activities 

 under rights-of-way or permits issued to the State. 



(b) Control and removal of pollutants at expense of 

 right-of-way holder. 



If any area within or without the right-of-way or 

 permit area granted under this chapter is polluted 

 by any activities conducted by or on behalf of the 

 holder to whom such right-of-way or permit was 

 granted, and such pollution damages or threatens 

 to damage aquatic life, wildlife, or public or private 

 property, the control and total removal of the pol- 

 lutant shall be at the expense of such holder, includ- 

 ing any administrative and other costs incurred by 

 the Secretary or any other Federal ofiBcer or agency. 

 Upon failure of such holder to adequately control 

 and remove such pollutant, the Secretary, in coop- 

 eration with other Federal, State, or local agencies, 

 or in cooperation with such holder, or both, shall 

 have the right to accomplish the control and re- 

 moval at the expense of such holder. 



(c) Discharges of oil from vessels loaded at terminal 

 facilities of pipeline; strict liability; limitation on 

 liability; apportionment of liability; establishment 

 and operation of Trans-Alaska Pipeline Liability 

 Fund. 



(1) Notwithstanding the provisions of any other 

 law, if oil that has been transported through the 

 trans-Alaska pipeline is loaded on a vessel at the 

 terminal facilities of the pipeline, the owner and 



operator of the vessel (jointly and severally) and the 

 Trans- Alaska Pipeline Liability Fund established by 

 this subsection, shall be strictly liable without regard 

 to fault in accordance with the provisions of this sub- 

 section for all damages, including clean-up costs, 

 sustained by any person or entity, public or private, 

 including residents of Canada, as the result of dis- 

 charges of oil from such vessel. 



(2) Strict liability shall not be imposed under this 

 subsection if the owner or operator of the vessel, or 

 the Fund, can prove that the damages were caused 

 by an act or war or by the negligence of the United 

 States or other governmental agency. Strict liability 

 shall not be imposed under this subsection with re- 

 spect to the claim of a damaged party if the owner or 

 operator of the vessel, or the Fimd, can prove that 

 the damage was caused by the negligence of such 

 party. 



(3) Strict liability for all claims arising out of any 

 one incident shall not exceed $100,000,000. The owner 

 and operator of the vessel shall be jointly and sever- 

 ally liable for the first $14,000,000 of such claims that 

 are allowed. Financial responsibility for $14,000,000 

 shall be demonstrated in accordance with the provi- 

 sions of section 1321(p) of Title 33 before the oil is 

 loaded. The Fund shall be liable for the balance of 

 the claims that are allowed up to $100,000,000. If the 

 total claims allowed exceed $100,000,000, they shall 

 be reduced proportionately. The unpaid portion of 

 any claim may be asserted and adjudicated under 

 other applicable Federal or state law. 



(4) The Trans- Alaska Pipeline Liability Fund is 

 hereby established as a non-profit corporate entity 

 that may sue and be sued in its own name. The Fnmd 

 shall be administered by the holders of the trans- 

 Alaska pipeline right-of-way under regulations pre- 

 .scribed by the Secretary. The Fund shall be subject 

 to an annual audit by the Comptroller General, and a 

 copy of the audit shall be submitted to the Congress. 



(5) The operator of the pipeline shall collect from 

 the owner of the oil at the time it is loaded on the 

 vessel a fee of five cents per barrel. The collection 

 shall cease when $100,000,000 has been accumulated 

 in the Fund, and it shall be resumed when the ac- 

 cumulation in the Fund falls below $100,000,000. 



(6) The collections under paragraph (5) shall be 

 delivered to the Fimd. Costs of administration shall 

 be paid from the money paid to the Fund, and all 

 sums not needed for administration and the satis- 

 faction of claims shall be invested prudently in in- 

 come-producing securities approved by the Secre- 

 tary. Income from such securities shall be added to 

 the principal of the Fund. 



(7> The provisions of this subsection shall apply 

 only to vessels engaged in transportation between 

 the terminal facilities of the pipeline and ports under 

 the jurisdiction of the United States. Strict liability 

 under this subsection shall cease when the oil has 

 first been brought ashore at a port under the juris- 

 diction of the United States. 



(8) In any case where liability without regard to 

 fault is imposed pursuant to this subsection and the 

 damages involved were caused by the unseaworthi- 

 ness of the vessel or by negligence, the owner and 

 operator of the vessel, and the Fund, as the case may 

 be shall be subrogated under applicable State and 



