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33 U.S.C. § 2716 — Financial responsibility
Federal law — U.S. Code and appendices · legal_authorities
**(a) Requirement** The responsible party for—
(1) any vessel over 300 gross tons (except a non-self-propelled vessel that does not carry oil as cargo or fuel) using any place subject to the jurisdiction of the United States;
(2) any vessel using the waters of the exclusive economic zone to transship or lighter oil destined for a place subject to the jurisdiction of the United States; or
(3) any tank vessel over 100 gross tons using any place subject to the jurisdiction of the United States;
shall establish and maintain, in accordance with regulations promulgated by the Secretary, evidence of financial responsibility sufficient to meet the maximum amount of liability to which the responsible party could be subjected under section 2704(a) or (d) of this title, in a case where the responsible party would be entitled to limit liability under that section. If the responsible party owns or operates more than one vessel, evidence of financial responsibility need be established only to meet the amount of the maximum liability applicable to the vessel having the greatest maximum liability.
**(b) Sanctions**
(1) **Withholding clearance** — The Secretary of the Treasury shall withhold or revoke the clearance required by [section 60105 of title 46](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section60105&num=0&edition=prelim) of any vessel subject to this section that does not have the evidence of financial responsibility required for the vessel under this section.
(2) **Denying entry to or detaining vessels** — The Secretary may—
(A) deny entry to any vessel to any place in the United States, or to the navigable waters, or
(B) detain at the place,
any vessel that, upon request, does not produce the evidence of financial responsibility requir
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Source file: Laws/federal/codes/united-states-code/title-33/section-2716-financial-responsibility--ddb378fa3e.md
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Source location: Title 33, Chapter 40, § 2716; chapter-040-oil-pollution.md
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**(a) Requirement** The responsible party for—
(1) any vessel over 300 gross tons (except a non-self-propelled vessel that does not carry oil as cargo or fuel) using any place subject to the jurisdiction of the United States;
(2) any vessel using the waters of the exclusive economic zone to transship or lighter oil destined for a place subject to the jurisdiction of the United States; or
(3) any tank vessel over 100 gross tons using any place subject to the jurisdiction of the United States;
shall establish and maintain, in accordance with regulations promulgated by the Secretary, evidence of financial responsibility sufficient to meet the maximum amount of liability to which the responsible party could be subjected under section 2704(a) or (d) of this title, in a case where the responsible party would be entitled to limit liability under that section. If the responsible party owns or operates more than one vessel, evidence of financial responsibility need be established only to meet the amount of the maximum liability applicable to the vessel having the greatest maximum liability.
**(b) Sanctions**
(1) **Withholding clearance** — The Secretary of the Treasury shall withhold or revoke the clearance required by [section 60105 of title 46](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section60105&num=0&edition=prelim) of any vessel subject to this section that does not have the evidence of financial responsibility required for the vessel under this section.
(2) **Denying entry to or detaining vessels** — The Secretary may—
(A) deny entry to any vessel to any place in the United States, or to the navigable waters, or
(B) detain at the place,
any vessel that, upon request, does not produce the evidence of financial responsibility required for the vessel under this section.
(3) **Seizure of vessel** — Any vessel subject to the requirements of this section which is found in the navigable waters without the necessary evidence of financial responsibility for the vessel shall be subject to seizure by and forfeiture to the United States.
**(c) Offshore facilities**
(1) **In general**
(A) *Evidence of financial responsibility required* — Except as provided in paragraph (2), a responsible party with respect to an offshore facility that—
(i)
(I) is located seaward of the line of ordinary low water along that portion of the coast that is in direct contact with the open sea and the line marking the seaward limit of inland waters; or
(II) is located in coastal inland waters, such as bays or estuaries, seaward of the line of ordinary low water along that portion of the coast that is not in direct contact with the open sea;
(ii) is used for exploring for, drilling for, producing, or transporting oil from facilities engaged in oil exploration, drilling, or production; and
(iii) has a worst-case oil spill discharge potential of more than 1,000 barrels of oil (or a lesser amount if the President determines that the risks posed by such facility justify it),
shall establish and maintain evidence of financial responsibility in the amount required under subparagraph (B) or (C), as applicable.
(B) *Amount required generally* — Except as provided in subparagraph (C), the amount of financial responsibility for offshore facilities that meet the criteria of subparagraph (A) is—
(i) $35,000,000 for an offshore facility located seaward of the seaward boundary of a State; or
(ii) $10,000,000 for an offshore facility located landward of the seaward boundary of a State.
(C) *Greater amount* — If the President determines that an amount of financial responsibility for a responsible party greater than the amount required by subparagraph (B) is justified based on the relative operational, environmental, human health, and other risks posed by the quantity or quality of oil that is explored for, drilled for, produced, or transported by the responsible party, the evidence of financial responsibility required shall be for an amount determined by the President not exceeding $150,000,000.
(D) *Multiple facilities* — In a case in which a person is a responsible party for more than one facility subject to this subsection, evidence of financial responsibility need be established only to meet the amount applicable to the facility having the greatest financial responsibility requirement under this subsection.
(E) *Definition* — For the purpose of this paragraph, the seaward boundary of a State shall be determined in accordance with [section 1301(b) of title 43](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title43-section1301/b&num=0&edition=prelim).
(2) **Deepwater ports** — Each responsible party with respect to a deepwater port shall establish and maintain evidence of financial responsibility sufficient to meet the maximum amount of liability to which the responsible party could be subjected under [section 2704(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title33-section2704/a&num=0&edition=prelim) in a case where the responsible party would be entitled to limit liability under that section. If the Secretary exercises the authority under [section 2704(d)(2) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title33-section2704/d/2&num=0&edition=prelim) to lower the limit of liability for deepwater ports, the responsible party shall establish and maintain evidence of financial responsibility sufficient to meet the maximum amount of liability so established. In a case in which a person is the responsible party for more than one deepwater port, evidence of financial responsibility need be established only to meet the maximum liability applicable to the deepwater port having the greatest maximum liability.
**(d) Methods of financial responsibility** Financial responsibility under this section may be established by any one, or by any combination, of the following methods which the Secretary (in the case of a vessel) or the President (in the case of a facility) determines to be acceptable: evidence of insurance, surety bond, guarantee, letter of credit, qualification as a self-insurer, or other evidence of financial responsibility. Any bond filed shall be issued by a bonding company authorized to do business in the United States. In promulgating requirements under this section, the Secretary or the President, as appropriate, may specify policy or other contractual terms, conditions, or defenses which are necessary, or which are unacceptable, in establishing evidence of financial responsibility to effectuate the purposes of this Act.
**(e) Claims against guarantor**
(1) **In general** — Subject to paragraph (2), a claim for which liability may be established under [section 2702 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title33-section2702&num=0&edition=prelim) may be asserted directly against any guarantor providing evidence of financial responsibility for a responsible party liable under that section for removal costs and damages to which the claim pertains. In defending against such a claim, the guarantor may invoke—
(A) all rights and defenses which would be available to the responsible party under this Act;
(B) any defense authorized under subsection (d); and
(C) the defense that the incident was caused by the willful misconduct of the responsible party.
The guarantor may not invoke any other defense that might be available in proceedings brought by the responsible party against the guarantor.
(2) **Further requirement** — A claim may be asserted pursuant to paragraph (1) directly against a guarantor providing evidence of financial responsibility under subsection (c)(1) with respect to an offshore facility only if—
(A) the responsible party for whom evidence of financial responsibility has been provided has denied or failed to pay a claim under this Act on the basis of being insolvent, as defined under [section 101(32) of title 11](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section101/32&num=0&edition=prelim), and applying generally accepted accounting principles;
(B) the responsible party for whom evidence of financial responsibility has been provided has filed a petition for bankruptcy under title 11; or
(C) the claim is asserted by the United States for removal costs and damages or for compensation paid by the Fund under this Act, including costs incurred by the Fund for processing compensation claims.
(3) **Rulemaking authority** — Not later than 1 year after October 19, 1996, the President shall promulgate regulations to establish a process for implementing paragraph (2) in a manner that will allow for the orderly and expeditious presentation and resolution of claims and effectuate the purposes of this Act.
**(f) Limitation on guarantor’s liability** Nothing in this Act shall impose liability with respect to an incident on any guarantor for damages or removal costs which exceed, in the aggregate, the amount of financial responsibility which that guarantor has provided for a responsible party pursuant to this section. The total liability of the guarantor on direct action for claims brought under this Act with respect to an incident shall be limited to that amount.
**(g) Continuation of regulations** Any regulation relating to financial responsibility, which has been issued pursuant to any provision of law repealed or superseded by this Act, and which is in effect on the date immediately preceding the effective date of this Act, is deemed and shall be construed to be a regulation issued pursuant to this section. Such a regulation shall remain in full force and effect unless and until superseded by a new regulation issued under this section.
**(h) Unified certificate** The Secretary may issue a single unified certificate of financial responsibility for purposes of this Act and any other law.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Definitions** For the purpose of this section, the term—
(1) “oil” means oil of any kind or in any form, including, but not limited to, petroleum, fuel oil, sludge, oil refuse, and oil mixed with wastes other than dredged spoil;
(2) “discharge” includes, but is not limited to, any spilling, leaking, pumping, pouring, emitting, emptying or dumping, but excludes (A) discharges in compliance with a permit under [section 1342 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title33-section1342&num=0&edition=prelim), (B) discharges resulting from circumstances identified and reviewed and made a part of the public record with respect to a permit issued or modified under [section 1342 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title33-section1342&num=0&edition=prelim), and subject to a condition in such permit,,11 So in original. (C) continuous or anticipated intermittent discharges from a point source, identified in a permit or permit application under [section 1342 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title33-section1342&num=0&edition=prelim), which are caused by events occurring within the scope of relevant operating or treatment systems, and (D) discharges incidental to mechanical removal authorized by the President under subsection (c) of this section;
(3) “vessel” means every description of watercraft or other artificial contrivance used, or capable of being used, as a means of transportation on water other than a public vessel;
(4) “public vessel” means a vessel owned or bareboat-chartered and operated by the United States, or by a State or political subdivision thereof, or by a foreign nation, except when such vessel is engaged in commerce;
(5) “United States”
Source: Supplied U.S. Code snapshot — release unconfirmed · 33 U.S.C. § 1321
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Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** Notwithstanding any other provision or rule of law, and subject to the provisions of this Act, each responsible party for a vessel or a facility from which oil is discharged, or which poses the substantial threat of a discharge of oil, into or upon the navigable waters or adjoining shorelines or the exclusive economic zone is liable for the removal costs and damages specified in subsection (b) that result from such incident.
**(b) Covered removal costs and damages**
(1) **Removal costs** — The removal costs referred to in subsection (a) are—
(A) all removal costs incurred by the United States, a State, or an Indian tribe under subsection (c), (d), (e), or (l) of [section 1321 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title33-section1321&num=0&edition=prelim), under the Intervention on the High Seas Act ([33 U.S.C. 1471](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title33-section1471&num=0&edition=prelim) et seq.), or under State law; and
(B) any removal costs incurred by any person for acts taken by the person which are consistent with the National Contingency Plan.
(2) **Damages** — The damages referred to in subsection (a) are the following:
(A) *Natural resources* — Damages for injury to, destruction of, loss of, or loss of use of, natural resources, including the reasonable costs of assessing the damage, which shall be recoverable by a United States trustee, a State trustee, an Indian tribe trustee, or a foreign trustee.
(B) *Real or personal property* — Damages for injury to, or economic losses resulting from destruction of, real or personal property, which shall be recoverable by a claimant who owns or leases that property.
(C) *Subsistence use* — Damages for loss of subsistenc
Source: Supplied U.S. Code snapshot — release unconfirmed · 33 U.S.C. § 2702
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Federal law — U.S. Code and appendices · legal_authorities
For the purposes of this Act, the term—
(1) “act of God” means an unanticipated grave natural disaster or other natural phenomenon of an exceptional, inevitable, and irresistible character the effects of which could not have been prevented or avoided by the exercise of due care or foresight;
(2) “barrel” means 42 United States gallons at 60 degrees fahrenheit;
(3) “claim” means a request, made in writing for a sum certain, for compensation for damages or removal costs resulting from an incident;
(4) “claimant” means any person or government who presents a claim for compensation under this subchapter;
(5) “damages” means damages specified in [section 2702(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title33-section2702/b&num=0&edition=prelim), and includes the cost of assessing these damages;
(6) “deepwater port” is a facility licensed under the Deepwater Port Act of 1974 ([33 U.S.C. 1501–152](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title33-section1501–152&num=0&edition=prelim)4);
(7) “discharge” means any emission (other than natural seepage), intentional or unintentional, and includes, but is not limited to, spilling, leaking, pumping, pouring, emitting, emptying, or dumping;
(8) “exclusive economic zone” means the zone established by Presidential Proclamation Numbered 5030, dated March 10, 1983, including the ocean waters of the areas referred to as “eastern special areas” in Article 3(1) of the Agreement between the United States of America and the Union of Soviet Socialist Republics on the Maritime Boundary, signed June 1, 1990;
(9) “facility” means any structure, group of structures, equipment, or device (other than a vessel) which is used for one or more of the following purposes: exploring for, drill
Source: Supplied U.S. Code snapshot — release unconfirmed · 33 U.S.C. § 2701
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Vessels of the United States.—** Except as otherwise provided by law, a vessel of the United States shall obtain clearance from the Secretary of Homeland Security before proceeding from a port or place in the United States—
(1) for a foreign port or place;
(2) for another port or place in the United States if the vessel has on board foreign merchandise for which entry has not been made; or
(3) outside the territorial sea to visit a hovering vessel or to receive merchandise while outside the territorial sea.
**(b) Other Vessels.—** Except as otherwise provided by law, a vessel that is not a vessel of the United States shall obtain clearance from the Secretary before proceeding from a port or place in the United States—
(1) for a foreign port or place;
(2) for another port or place in the United States; or
(3) outside the territorial sea to visit a hovering vessel or to receive or deliver merchandise while outside the territorial sea.
**(c) Regulations.—** The Secretary may by regulation—
(1) prescribe the manner in which clearance under this section is to be obtained, including the documents, data, or information which shall be submitted or transmitted, pursuant to an authorized data interchange system, to obtain the clearance;
(2) permit clearance to be obtained before all requirements for clearance are complied with, but only if the owner or operator of the vessel files a bond in an amount set by the Secretary conditioned on the compliance by the owner or operator with all specified requirements for clearance within a time period (not exceeding 4 business days) established by the Secretary; and
(3) permit clearance to be obtained at a place other than a designated port of entry, under conditions the Secretary may prescribe.
Source: Supplied U.S. Code snapshot — release unconfirmed · 46 U.S.C. § 60105
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Requirement** No person may engage in the ownership, construction, or operation of a deepwater port except in accordance with a license issued pursuant to this chapter. No person may transport or otherwise transfer any oil or natural gas between a deepwater port and the United States unless such port has been so licensed and the license is in force.
**(b) Issuance, transfer, amendment, or reinstatement** The Secretary may—
(1) on application, issue a license for the ownership, construction, and operation of a deepwater port; and
(2) on petition of the licensee, amend, transfer, or reinstate a license issued under this chapter.
**(c) Conditions for issuance** The Secretary may issue a license in accordance with the provisions of this chapter if—
(1) the Secretary determines that the applicant is financially responsible and will meet the requirements of [section 2716 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title33-section2716&num=0&edition=prelim);
(2) the Secretary determines that the applicant can and will comply with applicable laws, regulations, and license conditions;
(3) the Secretary determines that the construction and operation of the deepwater port will be in the national interest and consistent with national security and other national policy goals and objectives, including energy sufficiency and environmental quality;
(4) the Secretary determines that the deepwater port will not unreasonably interfere with international navigation or other reasonable uses of the high seas, as defined by treaty, convention, or customary international law;
(5) the Secretary determines, in accordance with the environmental review criteria established pursuant to [section 1505 of this title](https://uscode.house.gov/view.xhtml?req
Source: Supplied U.S. Code snapshot — release unconfirmed · 33 U.S.C. § 1503
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Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** Any person, including the Fund, who pays compensation pursuant to this Act to any claimant for removal costs or damages shall be subrogated to all rights, claims, and causes of action that the claimant has under any other law.
**(b) Interim damages**
(1) **In general** — If a responsible party, a guarantor, or the Fund has made payment to a claimant for interim, short-term damages representing less than the full amount of damages to which the claimant ultimately may be entitled, subrogation under subsection (a) shall apply only with respect to the portion of the claim reflected in the paid interim claim.
(2) **Final damages** — Payment of such a claim shall not foreclose a claimant’s right to recovery of all damages to which the claimant otherwise is entitled under this Act or under any other law.
**(c) Actions on behalf of Fund** At the request of the Secretary, the Attorney General shall commence an action on behalf of the Fund to recover any compensation paid by the Fund to any claimant pursuant to this Act, and all costs incurred by the Fund by reason of the claim, including interest (including prejudgment interest), administrative and adjudicative costs, and attorney’s fees. Such an action may be commenced against any responsible party or (subject to [section 2716 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title33-section2716&num=0&edition=prelim)) guarantor, or against any other person who is liable, pursuant to any law, to the compensated claimant or to the Fund, for the cost or damages for which the compensation was paid. Such an action shall be commenced against the responsible foreign government or other responsible party to recover any removal costs or damages paid from the Fund as the result of the disc
Source: Supplied U.S. Code snapshot — release unconfirmed · 33 U.S.C. § 2715
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Administrative** Any person who, after notice and an opportunity for a hearing, is found to have failed to comply with the requirements of [section 2716 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title33-section2716&num=0&edition=prelim) or the regulations issued under that section, or with a denial or detention order issued under subsection (b)(2) of that section, shall be liable to the United States for a civil penalty, not to exceed $25,000 per day of violation. The amount of the civil penalty shall be assessed by the President by written notice. In determining the amount of the penalty, the President shall take into account the nature, circumstances, extent, and gravity of the violation, the degree of culpability, any history of prior violation, ability to pay, and such other matters as justice may require. The President may compromise, modify, or remit, with or without conditions, any civil penalty which is subject to imposition or which had been imposed under this paragraph. If any person fails to pay an assessed civil penalty after it has become final, the President may refer the matter to the Attorney General for collection.
**(b) Judicial** In addition to, or in lieu of, assessing a penalty under subsection (a), the President may request the Attorney General to secure such relief as necessary to compel compliance with [section 2716 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title33-section2716&num=0&edition=prelim), including a judicial order terminating operations. The district courts of the United States shall have jurisdiction to grant any relief as the public interest and the equities of the case may require.
Source: Supplied U.S. Code snapshot — release unconfirmed · 33 U.S.C. § 2716a
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Federal law — U.S. Code and appendices · legal_authorities
A State may enforce, on the navigable waters of the State, the requirements for evidence of financial responsibility under [section 2716 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title33-section2716&num=0&edition=prelim).
Source: Supplied U.S. Code snapshot — release unconfirmed · 33 U.S.C. § 2719
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Federal law — U.S. Code and appendices · legal_authorities
**(a)** A vessel may transfer oil or hazardous material in a port or place subject to the jurisdiction of the United States, when the cargo has been transferred from another vessel on the navigable waters of the United States or in the marine environment, only if—
(1) the transfer was conducted consistent with regulations prescribed by the Secretary;
(2) both the delivering and receiving vessels had on board, at the time of transfer, a certificate of inspection or a certificate of compliance, as would have been required under section 3710 or 3711 of this title, had the transfer taken place in a port or place subject to the jurisdiction of the United States;
(3) the delivering and the receiving vessel had on board at the time of transfer, a certificate of financial responsibility as would have been required under section 1016 of the Oil Pollution Act of 1990, had the transfer taken place in a place subject to the jurisdiction of the United States;
(4) the delivering and the receiving vessel had on board at the time of transfer, evidence that each vessel is operating in compliance with section 311(j) of the Federal Water Pollution Control Act ([33 U.S.C. 1321(j)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title33-section1321/j&num=0&edition=prelim)); and
(5) the delivering and the receiving vessel are operating in compliance with [section 3703a of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section3703a&num=0&edition=prelim).
**(b)** The Secretary shall prescribe regulations to carry out subsection (a) of this section. The regulations shall include provisions on—
(1) minimum safe operating conditions, including sea state, wave height, weather, proximity to channels or shipping lanes, and other similar factors;
Source: Supplied U.S. Code snapshot — release unconfirmed · 46 U.S.C. § 3715
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Federal law — U.S. Code and appendices · legal_authorities
Page 892
TITLE 33—NAVIGATION AND NAVIGABLE WATERS
§ 2715
§ 2715. Subrogation
(a) In general
Any person, including the Fund, who pays
compensation pursuant to this Act to any claim-
ant for removal costs or damages shall be sub-
rogated to all rights, claims, and causes of ac-
tion that the claimant has under any other law.
(b) Interim damages
(1) In general
If a responsible party, a guarantor, or the
Fund has made payment to a claimant for in-
terim, short-term damages representing less
than the full amount of damages to which the
claimant ultimately may be entitled, subroga-
tion under subsection (a) shall apply only with
respect to the portion of the claim reflected in
the paid interim claim.
(2) Final damages
Payment of such a claim shall not foreclose
a claimant’s right to recovery of all damages
to which the claimant otherwise is entitled
under this Act or under any other law.
(c) Actions on behalf of Fund
At the request of the Secretary, the Attorney
General shall commence an action on behalf of
the Fund to recover any compensation paid by
the Fund to any claimant pursuant to this Act,
and all costs incurred by the Fund by reason of
the claim, including interest (including prejudg-
ment interest), administrative and adjudicative
costs, and attorney’s fees. Such an action may
be commenced against any responsible party or
(subject to section 2716 of this title) guarantor,
or against any other person who is liable, pursu-
ant to any law, to the compensated claimant or
to the Fund, for the cost or damages for which
the compensation was paid. Such an action shall
be commenced against the responsible foreign
government or other responsible party to re-
cover any removal costs or damages paid from
the Fund as the result of the discharge, o
Source: Supplied 2024 U.S. Code historical extraction · 33 U.S.C. § 2716
Stored review status: historical_2024_not_currentness_verified. Same stored citation; legal effect and authority still require review.