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

Page 883 TITLE 33—NAVIGATION AND NAVIGABLE WATERS § 2705 after, report to the Congress on the desir- ability of adjusting the limits of liability spec- ified 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 Con- sumer Price Index. (Pub. L. 101–380, title I, § 1004, Aug. 18, 1990, 104 Stat. 491; Pub. L. 104–55, § 2(d)(1), Nov. 20, 1995, 109 Stat. 546; Pub. L. 105–383, title IV, § 406, Nov. 13, 1998, 112 Stat. 3429; Pub. L. 109–241, title VI, § 603(a)(1), (2), (b), July 11, 2006, 120 Stat. 553, 554; Pub. L. 111–281, title IX, § 903(a)(2), (e)(1), Oct. 15, 2010, 124 Stat. 3010, 3011; Pub. L. 115–232, div. C, title XXXV, § 3547(c), Aug. 13, 2018, 132 Stat. 2328.) Editorial Notes REFERENCES IN TEXT This Act, referred to in subsec. (b)(1), is Pub. L. 101–380, Aug. 18, 1990, 104 Stat. 484, known as the Oil Pollution Act of 1990, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 2701 of this title and Tables. The Intervention on the High Seas Act, referred to in subsec. (c)(2)(C), is Pub. L. 93–248, Feb. 5, 1974, 88 Stat. 8, which is classified generally to chapter 28 (§ 1471 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under sec- tion 1471 of this title and Tables. AMENDMENTS 2018—Subsec. (d)(2)(C). Pub. L. 115–232 substituted ‘‘under subparagraph (A)’’ for ‘‘under this subparagraph (A)’’. 2010—Subsec. (a)(2). Pub. L. 111–281, § 903(e)(1), struck out first comma after ‘‘$800,000’’. Pub. L. 111–281, § 903(a)(2), made technical amendment to directory language of Pub. L. 109–241, § 603(a)(2). See 2006 Amendment note below. 2006—Subsec. (a)(1)(A) to (C). Pub. L. 109–241, § 603(a)(1), added subpars. (A) to (C) and struck out former subpars. (A) and (B), which read as follows: ‘‘(A) $1,200 per gross ton; or ‘‘(B)(i) in the case of a vessel greater than 3,000 gross tons, $10,000,000; or ‘‘(ii) in the case of a vessel of 3,000 gross tons or less, $2,000,000;’’. Subsec. (a)(2). Pub. L. 109–241, § 603(a)(2), as amended by Pub. L. 111–281, § 903(a)(2), substituted ‘‘$950 per gross ton’’ for ‘‘$600 per gross ton’’ and ‘‘$800,000,’’ for ‘‘$500,000’’. Subsec. (d)(4). Pub. L. 109–241, § 603(b), amended head- ing and text of par. (4) generally. Prior to amendment, text read as follows: ‘‘The President shall, by regula- tions issued not less often than every 3 years, adjust the limits of liability specified in subsection (a) to re- flect significant increases in the Consumer Price Index.’’ 1998—Subsec. (a)(1). Pub. L. 105–383, § 406(1), sub- stituted comma for ‘‘(except 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)’’ after ‘‘tank vessel’’. Subsec. (c)(4). Pub. L. 105–383, § 406(2), added par. (4). 1995—Subsec. (a)(1). Pub. L. 104–55 substituted ‘‘for a tank vessel (except 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)’’ for ‘‘for a tank vessel,’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Pub. L. 111–281, title IX, § 903(a), Oct. 15, 2010, 124 Stat. 3010, provided that the amendment by section 903(a)(2) is effective with enactment of Pub. L. 109–241. EFFECTIVE DATE OF 2006 AMENDMENT Pub. L. 109–241, title VI, § 603(a)(3), July 11, 2006, 120 Stat. 554, provided that: ‘‘In the case of an incident oc- curring before the 90th day following the date of enact- ment of this Act [July 11, 2006], section 1004(a)(1) of the Oil Pollution Act of 1990 (33 U.S.C. 2704(a)(1)) shall apply as in effect immediately before the effective date of this subsection [July 11, 2006].’’ REPORT Pub. L. 109–241, title VI, § 603(c), July 11, 2006, 120 Stat. 554, as amended by Pub. L. 114–120, title VI, § 601(b), Feb. 8, 2016, 130 Stat. 79, provided that: ‘‘(1) INITIAL REPORT.—Not later than 45 days after the date of enactment of this Act [July 11, 2006], the Sec- retary of the department in which the Coast Guard is operating shall submit a report on liability limits de- scribed in paragraph (2) to the Committee on Com- merce, Science, and Transportation of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives. ‘‘(2) CONTENTS.—The report shall include, at a min- imum, the following: ‘‘(A) An analysis of the extent to which oil dis- charges from vessels and nonvessel sources have or are likely to result in removal costs and damages (as defined in section 1001 of the Oil Pollution Act of 1990 (33 U.S.C. 2701)) for which no defense to liability ex- ists under section 1003 of such Act [33 U.S.C. 2703] and that exceed the liability limits established in section 1004 of such Act [33 U.S.C. 2704], as amended by this section. ‘‘(B) An analysis of the impacts that claims against the Oil Spill Liability Trust Fund for amounts ex- ceeding such liability limits will have on the Fund. ‘‘(C) Based on analyses under this paragraph and taking into account other factors impacting the Fund, recommendations on whether the liability lim- its need to be adjusted in order to prevent the prin- cipal of the Fund from declining to levels that are likely to be insufficient to cover expected claims. ‘‘(3) ANNUAL UPDATES.—The Secretary shall provide an update of the report to the Committees referred to in paragraph (1) not later than January 30 of the year following each year in which occurs an oil discharge from a vessel or nonvessel source that results or is like- ly to result in removal costs and damages (as those terms are defined in section 1001 of the Oil Pollution Act of 1990 (33 U.S.C. 2701)) that exceed liability limits established under section 1004 of the Oil Pollution Act of 1990 (33 U.S.C. 2704).’’ Executive Documents DELEGATION OF FUNCTIONS For delegation of functions of President under subsec. (d) of this section, see section 4 of Ex. Ord. No. 12777, set out as a note under section 1321 of this title. § 2705. Interest; partial payment of claims (a) General rule The responsible party or the responsible par- ty’s guarantor is liable to a claimant for inter- est on the amount paid in satisfaction of a claim under this Act for the period described in sub- section (b). The responsible party shall establish a procedure for the payment or settlement of claims for interim, short-term damages. Pay- ment or settlement of a claim for interim, Page 884 TITLE 33—NAVIGATION AND NAVIGABLE WATERS § 2706 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 re- flected in the paid or settled partial claim. (b) Period (1) In general Except as provided in paragraph (2), the pe- riod for which interest shall be paid is the pe- riod beginning on the 30th day following the date on which the claim is presented to the re- sponsible party or guarantor and ending on the date on which the claim is paid. (2) Exclusion of period due to offer by guar- antor If the guarantor offers to the claimant an amount equal to or greater than that finally paid in satisfaction of the claim, the period de- scribed 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, the period described in paragraph (1) does not include any period be- fore 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 inter- ests of justice, no interest shall accrue under this section during that period. (4) Calculation of interest (A) In general The interest paid for claims, other than Federal Government cost recovery claims, under this section shall be calculated at the average of the highest rate for commercial and finance company paper of maturities of 180 days or less obtaining on each of the days included within the period for which interest must be paid to the claimant, as published in the Federal Reserve Bulletin. (B) Federal cost recovery claims The interest paid for Federal Government cost recovery claims under this section shall be calculated in accordance with section 3717 of title 31. (5) Interest not subject to liability limits (A) In general Interest (including prejudgment interest) under this paragraph is in addition to dam- ages and removal costs for which claims may be asserted under section 2702 of this title and shall be paid without regard to any limitation of liability under section 2704 of this title. (B) Payment by guarantor The payment of interest under this sub- section by a guarantor is subject to section 2716(g) of this title. (Pub. L. 101–380, title I, § 1005, Aug. 18, 1990, 104 Stat. 493; Pub. L. 104–324, title XI, § 1142(a), Oct. 19, 1996, 110 Stat. 3991; Pub. L. 117–263, div. K, title CXIII, § 11311, Dec. 23, 2022, 136 Stat. 4086.) Editorial Notes REFERENCES IN TEXT This Act, referred to in subsec. (a), is Pub. L. 101–380, Aug. 18, 1990, 104 Stat. 484, as amended, known as the Oil Pollution Act of 1990, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 2701 of this title and Tables. AMENDMENTS 2022—Subsec. (b)(4). Pub. L. 117–263 designated exist- ing provisions as subpar. (A) and inserted heading, sub- stituted ‘‘The interest paid for claims, other than Fed- eral Government cost recovery claims,’’ for ‘‘The inter- est paid’’, and added subpar. (B). 1996—Pub. L. 104–324, § 1142(a)(1), inserted ‘‘; partial payment of claims’’ after ‘‘Interest’’ in section catch- line. Subsec. (a). Pub. L. 104–324, § 1142(a)(2), inserted at end ‘‘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 ulti- mately may be entitled shall not preclude recovery by the claimant for damages not reflected in the paid or settled partial claim.’’ § 2706. Natural resources (a) Liability In the case of natural resource damages under section 2702(b)(2)(A) of this title, liability shall be— (1) to the United States Government for nat- ural resources belonging to, managed by, con- trolled by, or appertaining to the United States; (2) to any State for natural resources belong- ing to, managed by, controlled by, or apper- taining to such State or political subdivision thereof; (3) to any Indian tribe for natural resources belonging to, managed by, controlled by, or appertaining to such Indian tribe; and (4) in any case in which section 2707 of this title applies, to the government of a foreign country for natural resources belonging to, managed by, controlled by, or appertaining to such country. (b) Designation of trustees (1) In general The President, or the authorized representa- tive of any State, Indian tribe, or foreign gov- ernment, shall act on behalf of the public, In- dian tribe, or foreign country as trustee of natural resources to present a claim for and to recover damages to the natural resources. (2) Federal trustees The President shall designate the Federal of- ficials who shall act on behalf of the public as trustees for natural resources under this Act. (3) State trustees The Governor of each State shall designate State and local officials who may act on be- half of the public as trustee for natural re- sources under this Act and shall notify the President of the designation. (4) Indian tribe trustees The governing body of any Indian tribe shall designate tribal officials who may act on be-