National Pollution Funds Center

Four Key Concepts Towards Understanding the National Pollution Funds Center Claim Process for a Responsible Party Under the Oil Pollution Act of 1990

Robert Chambers, SVP ERMS, Global Risk Solutions

The Oil Pollution Act (OPA) of 1990 authorized the Oil Spill Liability Trust Fund (OSLTF) provide up to $1 billion to pay for expeditious oil removal and uncompensated damages up to $1 billion per incident. The administration of the OSLTF was delegated to the United States Coast Guard (USCG) by Executive Order and the National Pollution Funds Center (NPFC) was commissioned to:

-Implement certain provisions of OPA, Title I
-Administer the OSLTF
-Ensure funding for federal response
-Recover costs from liable parties

OSLTF was established to provide:

-Funds for Federal cleanup
-Funds to assess and restore damaged natural resources
-Compensation to claimants for certain removal costs and damages resulting from an oil spill incident
-Cost recovery from responsible parties for costs and damages paid from the OSLTFUSCG, through the NPFC, manages the OSLTF to:

-Disburse funds for Federal cleanup
-Monitor the sources and uses of funds
-Adjudicate claims submitted to the OSLTF for payment
-Pursue reimbursement from the Responsible Party for costs and damages paid by the OSLTF​​​​​​​​​​​​​​

Four Key Concepts Towards Understanding the National Pollution Funds Center Claim Process for a Responsible Party Under the Oil Pollution Act of 1990​​​​​​​

Do you have a claim?

How to submit a claim?

Is there a claim format?

Are there limits on submitting a claim?

The GRS Environmental Risk Management Services Team has extensive experience in managing OPA claims and costs on behalf of the Responsible Party. In a future publication we will look at ways to proactively manage claims and costs.

Read the full article HERE