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33 U.S.C. § 2704 — Limits on liability

Federal law — U.S. Code and appendices · legal_authorities

33 U.S.C. § 2704 — Limits on liability

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Source location: Title 33, Chapter 40, § 2704; chapter-040-oil-pollution.md

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**(a) General rule** Except as otherwise provided in this section, the total of the liability of a responsible party under [section 2702 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title33-section2702&num=0&edition=prelim) and any removal costs incurred by, or on behalf of, the responsible party, with respect to each incident shall not exceed— (1) for a tank vessel the greater of— (A) with respect to a single-hull vessel, including a single-hull vessel fitted with double sides only or a double bottom only, $3,000 per gross ton; (B) with respect to a vessel other than a vessel referred to in subparagraph (A), $1,900 per gross ton; or (C) (i) with respect to a vessel greater than 3,000 gross tons that is— (I) a vessel described in subparagraph (A), $22,000,000; or (II) a vessel described in subparagraph (B), $16,000,000; or (ii) with respect to a vessel of 3,000 gross tons or less that is— (I) a vessel described in subparagraph (A), $6,000,000; or (II) a vessel described in subparagraph (B), $4,000,000; (2) for any other vessel, $950 per gross ton or $800,000, whichever is greater; (3) for an offshore facility except a deepwater port, the total of all removal costs plus $75,000,000; and (4) for any onshore facility and a deepwater port, $350,000,000. **(b) Division of liability for mobile offshore drilling units** (1) **Treated first as tank vessel** — For purposes of determining the responsible party and applying this Act and except as provided in paragraph (2), a mobile offshore drilling unit which is being used as an offshore facility is deemed to be a tank vessel with respect to the discharge, or the substantial threat of a discharge, of oil on or above the surface of the water. (2) **Treated as facility for excess liability** — To the extent that removal costs and damages from any incident described in paragraph (1) exceed the amount for which a responsible party is liable (as that amount may be limited under subsection (a)(1)), the mobile offshore drilling unit is deemed to be an offshore facility. For purposes of applying subsection (a)(3), the amount specified in that subsection shall be reduced by the amount for which the responsible party is liable under paragraph (1). **(c) Exceptions** (1) **Acts of responsible party** — Subsection (a) does not apply if the incident was proximately caused by— (A) gross negligence or willful misconduct of, or (B) the violation of an applicable Federal safety, construction, or operating regulation by, the responsible party, an agent or employee of the responsible party, or a person acting pursuant to a contractual relationship with the responsible party (except where the sole contractual arrangement arises in connection with carriage by a common carrier by rail). (2) **Failure or refusal of responsible party** — Subsection (a) does not apply if the responsible party fails or refuses— (A) to report the incident as required by law and the responsible party knows or has reason to know of the incident; (B) to provide all reasonable cooperation and assistance requested by a responsible official in connection with removal activities; or (C) without sufficient cause, to comply with an order issued under subsection (c) or (e) of [section 1321 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title33-section1321&num=0&edition=prelim) or 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.). (3) **OCS facility or vessel** — Notwithstanding the limitations established under subsection (a) and the defenses of [section 2703 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title33-section2703&num=0&edition=prelim), all removal costs incurred by the United States Government or any State or local official or agency in connection with a discharge or substantial threat of a discharge of oil from any Outer Continental Shelf facility or a vessel carrying oil as cargo from such a facility shall be borne by the owner or operator of such facility or vessel. (4) **Certain tank vessels** — Subsection (a)(1) shall not apply to— (A) a tank vessel on which the only oil carried as cargo is an animal fat or vegetable oil, as those terms are used in [section 2720 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title33-section2720&num=0&edition=prelim); and (B) a tank vessel that is designated in its certificate of inspection as an oil spill response vessel (as that term is defined in [section 2101 of title 46](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section2101&num=0&edition=prelim)) and that is used solely for removal. **(d) Adjusting limits of liability** (1) **Onshore facilities** — Subject to paragraph (2), the President may establish by regulation, with respect to any class or category of onshore facility, a limit of liability under this section of less than $350,000,000, but not less than $8,000,000, taking into account size, storage capacity, oil throughput, proximity to sensitive areas, type of oil handled, history of discharges, and other factors relevant to risks posed by the class or category of facility. (2) **Deepwater ports and associated vessels** (A) *Study* — The Secretary shall conduct a study of the relative operational and environmental risks posed by the transportation of oil by vessel to deepwater ports (as defined in [section 1502 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title33-section1502&num=0&edition=prelim)) versus the transportation of oil by vessel to other ports. The study shall include a review and analysis of offshore lightering practices used in connection with that transportation, an analysis of the volume of oil transported by vessel using those practices, and an analysis of the frequency and volume of oil discharges which occur in connection with the use of those practices. (B) *Report* — Not later than 1 year after August 18, 1990, the Secretary shall submit to the Congress a report on the results of the study conducted under subparagraph (A). (C) *Rulemaking proceeding* — If the Secretary determines, based on the results of the study conducted under subparagraph (A), that the use of deepwater ports in connection with the transportation of oil by vessel results in a lower operational or environmental risk than the use of other ports, the Secretary shall initiate, not later than the 180th day following the date of submission of the report to the Congress under subparagraph (B), a rulemaking proceeding to lower the limits of liability under this section for deepwater ports as the Secretary determines appropriate. The Secretary may establish a limit of liability of less than $350,000,000, but not less than $50,000,000, in accordance with paragraph (1). (3) **Periodic reports** — The President shall, within 6 months after August 18, 1990, and from time to time thereafter, report to the Congress on the desirability of adjusting the limits of liability specified in subsection (a). (4) **Adjustment to reflect Consumer Price Index** — The President, by regulations issued not later than 3 years after July 11, 2006, and not less than every 3 years thereafter, shall adjust the limits on liability specified in subsection (a) to reflect significant increases in the Consumer Price Index.

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Federal law — U.S. Code and appendices · legal_authorities

33 U.S.C. § 1321 — Oil and hazardous substance liability

**(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”

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Federal law — U.S. Code and appendices · legal_authorities

33 U.S.C. § 2702 — Elements of liability

**(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

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Federal law — U.S. Code and appendices · legal_authorities

33 U.S.C. § 2701 — Definitions

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

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46 U.S.C. § 2101 — General definitions

In this subtitle— (1) “associated equipment”— (A) means— (i) a system, accessory, component, or appurtenance of a recreational vessel; or (ii) a marine safety article intended for use on board a recreational vessel; but (B) with the exception of emergency locator beacons for recreational vessels operating beyond 3 nautical miles from the baselines from which the territorial sea of the United States is measured or beyond 3 nautical miles from the coastline of the Great Lakes, does not include radio equipment. (2) “Coast Guard” means the organization established and continued under [section 101 of title 14](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title14-section101&num=0&edition=prelim). (3) “Commandant” means the Commandant of the Coast Guard. (4) “commercial service” includes any type of trade or business involving the transportation of goods or individuals, except service performed by a combatant vessel. (5) “consideration” means an economic benefit, inducement, right, or profit including pecuniary payment accruing to an individual, person, or entity, but not including a voluntary sharing of the actual expenses of the voyage, by monetary contribution or donation of fuel, food, beverage, or other supplies. (6) “crude oil” means a liquid hydrocarbon mixture occurring naturally in the earth, whether or not treated to render it suitable for transportation, and includes crude oil from which certain distillate fractions may have been removed, and crude oil to which certain distillate fractions may have been added. (7) “crude oil tanker” means a tanker engaged in the trade of carrying crude oil. (8) “dangerous drug” means a narcotic drug, a controlled substance, or a controlled substance analog (as defined in section 102 of the Com

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Federal law — U.S. Code and appendices · legal_authorities

33 U.S.C. § 2703 — Defenses to liability

**(a) Complete defenses** A responsible party is not liable for removal costs or damages under [section 2702 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title33-section2702&num=0&edition=prelim) if the responsible party establishes, by a preponderance of the evidence, that the discharge or substantial threat of a discharge of oil and the resulting damages or removal costs were caused solely by— (1) an act of God; (2) an act of war; (3) an act or omission of a third party, other than an employee or agent of the responsible party or a third party whose act or omission occurs in connection with any contractual relationship with the responsible party (except where the sole contractual arrangement arises in connection with carriage by a common carrier by rail), if the responsible party establishes, by a preponderance of the evidence, that the responsible party— (A) exercised due care with respect to the oil concerned, taking into consideration the characteristics of the oil and in light of all relevant facts and circumstances; and (B) took precautions against foreseeable acts or omissions of any such third party and the foreseeable consequences of those acts or omissions; or (4) any combination of paragraphs (1), (2), and (3). **(b) Defenses as to particular claimants** A responsible party is not liable under [section 2702 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title33-section2702&num=0&edition=prelim) to a claimant, to the extent that the incident is caused by the gross negligence or willful misconduct of the claimant. **(c) Limitation on complete defense** Subsection (a) does not apply with respect to a responsible party who fails or refuses— (1) to report the incident as required by law if t

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33 U.S.C. § 1471 — Definitions

As used in this chapter— (1) “a substance other than convention oil” means those oils, noxious substances, liquefied gases, and radioactive substances— (A) enumerated in the protocol, or (B) otherwise determined to be hazardous under [section 1473(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title33-section1473/a&num=0&edition=prelim); (2) “convention” means the International Convention Relating to Intervention on the High Seas in Cases of Oil Pollution Casualties, 1969, including annexes thereto; (3) “convention oil” means crude oil, fuel oil, diesel oil, and lubricating oil; (4) “Secretary” means the Secretary of the department in which the Coast Guard is operating; (5) “ship” means— (A) a seagoing vessel of any type whatsoever, and (B) any floating craft, except an installation or device engaged in the exploration and exploitation of the resources of the seabed and the ocean floor and the subsoil thereof; (6) “protocol” means the Protocol Relating to Intervention on the High Seas in Cases of Marine Pollution by Substances Other Than Oil, 1973, including annexes thereto; and (7) “United States” means the States, the District of Columbia, the Commonwealth of Puerto Rico, the Canal Zone, Guam, American Samoa, the United States Virgin Islands, the Trust Territory of the Pacific Islands, the Commonwealth of the Northern Marianas, and any other commonwealth, territory, or possession of the United States.

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Federal law — U.S. Code and appendices · legal_authorities

33 U.S.C. § 1502 — Definitions

In this chapter: (1) **Adjacent coastal State.—** — The term “adjacent coastal State” means any coastal State which (A) would be directly connected by pipeline to a deepwater port, as proposed in an application; (B) would be located within 15 miles of any such proposed deepwater port; or (C) is designated by the Secretary in accordance with [section 1508(a)(2) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title33-section1508/a/2&num=0&edition=prelim). (2) **Affiliate.—** — The term “affiliate” means any entity owned or controlled by, any person who owns or controls, or any entity which is under common ownership or control with an applicant, licensee, or any person required to be disclosed pursuant to section subparagraph (A) or (B) of [section 1504(c)(2) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title33-section1504/c/2&num=0&edition=prelim). (3) **Application.—** — The term “application” means an application submitted under this Act for a license for the ownership, construction, and operation of a deepwater port. (4) **Citizen of the United States.—** — The term “citizen of the United States” means any person who is a United States citizen by law, birth, or naturalization, any State, any agency of a State or a group of States, or any corporation, partnership, or association organized under the laws of any State which has as its president or other executive officer and as its chairman of the board of directors, or holder of a similar office, a person who is a United States citizen by law, birth or naturalization and which has no more of its directors who are not United States citizens by law, birth or naturalization than constitute a minority of the number required for a quorum necessary to conduct the b

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Federal law — U.S. Code and appendices · legal_authorities

33 U.S.C. § 2720 — Differentiation among fats, oils, and greases

**(a) In general** Except as provided in subsection (c), in issuing or enforcing any regulation or establishing any interpretation or guideline relating to the transportation, storage, discharge, release, emission, or disposal of a fat, oil, or grease under any Federal law, the head of that Federal agency shall— (1) differentiate between and establish separate classes for— (A) animal fats and oils and greases, and fish and marine mammal oils, within the meaning of paragraph (2) of [section 61(a) of title 13](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title13-section61/a&num=0&edition=prelim), and oils of vegetable origin, including oils from the seeds, nuts, and kernels referred to in paragraph (1)(A) of that section; and (B) other oils and greases, including petroleum; and (2) apply standards to different classes of fats and oils based on considerations in subsection (b). **(b) Considerations** In differentiating between the class of fats, oils, and greases described in subsection (a)(1)(A) and the class of oils and greases described in subsection (a)(1)(B), the head of the Federal agency shall consider differences in the physical, chemical, biological, and other properties, and in the environmental effects, of the classes. **(c) Exception** The requirements of this Act shall not apply to the Food and Drug Administration and the Food Safety and Inspection Service.

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Federal law — U.S. Code and appendices · legal_authorities

33 U.S.C. § 2705 — Interest; partial payment of claims

**(a) General rule** The responsible party or the responsible party’s guarantor is liable to a claimant for interest on the amount paid in satisfaction of a claim under this Act for the period described in subsection (b). The responsible party shall establish a procedure for the payment or settlement of claims for interim, short-term damages. Payment or settlement of a claim for interim, short-term damages representing less than the full amount of damages to which the claimant ultimately may be entitled shall not preclude recovery by the claimant for damages not reflected in the paid or settled partial claim. **(b) Period** (1) **In general** — Except as provided in paragraph (2), the period for which interest shall be paid is the period beginning on the 30th day following the date on which the claim is presented to the responsible party or guarantor and ending on the date on which the claim is paid. (2) **Exclusion of period due to offer by guarantor** — If the guarantor offers to the claimant an amount equal to or greater than that finally paid in satisfaction of the claim, the period described in paragraph (1) does not include the period beginning on the date the offer is made and ending on the date the offer is accepted. If the offer is made within 60 days after the date on which the claim is presented under [section 2713(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title33-section2713/a&num=0&edition=prelim), the period described in paragraph (1) does not include any period before the offer is accepted. (3) **Exclusion of periods in interests of justice** — If in any period a claimant is not paid due to reasons beyond the control of the responsible party or because it would not serve the interests of justice, no interest shall

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Federal law — U.S. Code and appendices · legal_authorities

33 U.S.C. § 2708 — Recovery by responsible party

**(a) In general** The responsible party for a vessel or facility from which oil is discharged, or which poses the substantial threat of a discharge of oil, may assert a claim for removal costs and damages under [section 2713 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title33-section2713&num=0&edition=prelim) only if the responsible party demonstrates that— (1) the responsible party is entitled to a defense to liability under [section 2703 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title33-section2703&num=0&edition=prelim); or (2) the responsible party is entitled to a limitation of liability under [section 2704 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title33-section2704&num=0&edition=prelim). **(b) Extent of recovery** A responsible party who is entitled to a limitation of liability may assert a claim under [section 2713 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title33-section2713&num=0&edition=prelim) only to the extent that the sum of the removal costs and damages incurred by the responsible party plus the amounts paid by the responsible party, or by the guarantor on behalf of the responsible party, for claims asserted under [section 2713 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title33-section2713&num=0&edition=prelim) exceeds the amount to which the total of the liability under [section 2702 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title33-section2702&num=0&edition=prelim) and removal costs and damages incurred by, or on behalf of, the responsible party is limited under [section 2704 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-

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