Question

1. Argo Oil & Gas Company was loading a tanker with fuel oil when the loading hose snapped for an unknown reason and about 2,000 gallons of fuel oil poured into the Pacific Ocean. Argo was sued for this water pollution. Argo raised the defense that it had exercised the outmost due care, was not at fault in any way, and had not intended to pollute the ocean. What laws could be used to prosecute Argo? What are the potential penalties and overall outcome of the lawsuit?  

Answer 1

Below laws can be used to prosecute argo for oil spillage

1)Oil pollution act of 1990-This law places accountability on the vessel or a facility which is found to be responsible for any oil spills or damages due to oil leakage in water bodies. It has increased damages and liabilities and authorises the government to hold the parties liable for any clean-ups and damages.

2)Clean water act- This act makes it liable for parties to be prosecuted in case of release of effluents or pollutants in water bodies unless authorised to do so. Penalities range from 1000$ per barrel to 4000$ per barrel.Felony charges can also be brought about.

3)Endangered species act 1973- This law makes it liable for parties to be prosecuted if any endangered species is killed or harmed due to oil spillage or any other reasons.

According to Oil pollution act of 1990, damages up to $75 million although more damages can be sought if there is willful negligence or misconduct on part of liable parties. The liable parties will be asked to ensure that the spillage is cleaned up.