Bud's Offshore Energy (BOE)

Let me be clear: BP is responsible for the leak; BP will be paying the bill. President Obama

While this is clearly the case for “removal costs,” damage costs are a different matter.  The Oil Pollution Act of 1990 establishes liability limits as follows:

for an offshore facility except a deepwater port, the total of all removal costs plus $75,000,000;

With regard to maximum liability, a MODU like the Horizon would be treated the same as an offshore facility.  Removal costs are “costs to prevent, minimize, or mitigate oil pollution,” not economic costs to affected parties.

The liability limits do not apply in the event of  “(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.”

The legal battles have already begun and will last for at least a decade.