Question

Who would pay for lost revenues to a Florida Gulf Coastal beach city and local businesses should they suffer because of oil on the beach?

Answer 1

As per OPA’s basic liability scheme is set out in Section 1002(a) of the statute, codified at 33 U.S.C. § 2702(a), the party responsible will pay for lost revenues to a Florida Gulf Coastal beach city and local businesses should they suffer because of oil on the beach are

1.) lessee or permittee of an area in which an “offshore facility” is located. “Offshore facility” is defined to include any “facility”14 that is “located in, on, or under any of the navigable waters of the United States.”

2.) According to the the Oil Pollution Act of 1990 the party responsible for the pollution pay for all costs associated with the cleanup operations. However, similar to a car accident, insurance companies aren't going to start writing checks without first looking at the circumstances. But time is of the essence when oil hits the water.

While insurance companies work out the details of legal (and hence, monetary) responsibility, the U.S. Coast Guard is able to set up an immediate source of funding for federal and state agencies and tribes who support the oil spill cleanup, which pays for their contributions to the response. If the polluter is ultimately deemed liable for the spill, then they reimburse all expenses to the U.S. Coast Guard. Meaning the polluter pays for the cost of the oil spilled.

3.) In case, hat a polluter can be found not to be liable or the polluter can reach its limit of liability under the law. In these cases, the costs are then covered by the Oil Spill Liability Trust Fund. This fund accrues from taxes on most domestically produced and imported oil.