Estimating the Cumulative Cost of OPA 90 to Private Industry

1999 ◽  
Vol 1999 (1) ◽  
pp. 257-265
Author(s):  
Edward J. Maillett ◽  
Gary A. Yoshioka

ABSTRACT The purpose of this paper is to estimate the cumulative cost incurred by private industry as a result of the various regulations enacted under the Oil Pollution Act of 1990 (OPA 90) and to compare these costs against the estimated effectiveness of the program in terms of avoided future oil spills. The authors reviewed Federal Register announcements of federal agency rulemakings to identify estimated costs to industry and to determine if reported costs are one-time occurrences for capital-related expenditures or represent annual estimates for repeated activities. The authors then estimated the total costs of each rulemaking through the year 2015. The costs of regulations implemented under OPA 90 that impact the private sector range from zero to $3.5 billion in discounted dollars. Based on these individual government estimates for each OPA 90 regulation, the authors estimate the discounted cost to industry to comply with all of the OPA 90 requirements to be $12.1 billion, the largest portion of which affects the marine vessel industry. Total benefits of the rulemakings are estimated to exceed 3.6 million barrels of avoided oil spills through the year 2015. Over one-half of this benefit estimate results from the facility response planning requirements for non-transportation-related on-shore facilities and pipelines. The cost effectiveness of regulations implemented under OPA 90 ranges between several hundred dollars to over $26,000 per barrel of avoided oil spill.

2005 ◽  
Vol 2005 (1) ◽  
pp. 161-165
Author(s):  
Carl Jochums ◽  
Glen Watabyashi ◽  
Heather Parker-Hall

ABSTRACT California has initiated a new approach to create an objective standard and regulate best achievable protection (BAP) for sensitive shoreline protection from vessel spills. The Oil Pollution Act (OPA 90) and California's Lempert-Keene-Seastrand Oil Spill Prevention and Response Act (SB 2040) mandate BAP as the standard for preparedness and response. BAP poses the critical response planning questions: “How much response resources should industry provide?” and “In what timeframes should those resources be deployed?” Prior California regulations intended to achieve BAP by relying on vessels to identify hazards, trajectories, environmental consequences, and response resource plans, produced less than optimal results in many instances. Though effective in theory, this approach resulted in fuzzy consequences and vague arrangements for adequate response. Because it was neither clear what sites would be protected (and what response resources would be required) nor at what time, and because it was consequentially not clear what response resources would be engaged to execute protection, drilling C-plans became obtuse. This in turn fostered “paper tiger” OSROs and resulted in an uneven playing field for business competitors. In Californias new approach, OSPR used many of the original concepts to identify BAP by using the NOAA GNOME oil spill model for generic vessel risk threats for California ports and along the California coast. This paper explains the theory, steps, and details. As a result of this process, BAP has been defined in terms of specific site deployments at specific time intervals and presented in tables in regulation. This new approach provides a number of benefits and solutions to the difficult issues in the former approach, including a standard for BAP.


2014 ◽  
Vol 2014 (1) ◽  
pp. 856-868
Author(s):  
Geeva Varghese

ABSTRACT A rapidly growing economy has pushed the energy demands and has significantly increased the exploration and production activities as well as the shipping traffic over recent years in the Southeast Asian Region. Since the introduction of offshore exploration and production in the 1960's, Southeast Asia has gone through a remarkable transition from an onshore to an offshore focused region with more than 80% of oil production coming from offshore fields in 2011. Also the region has recently moved into deepwater exploration and production activities which now makes up more than 10% of the offshore production. With the rising production volumes, the transport of oil products has continuously increased both in volume and in number of ships used. This trend is expected to grow further with the investment in new refinery capacity of several Southeast Asian countries. All these factors have significantly contributed to the increased risk of marine spill incidents in the region. An increased risk of oil spills necessitates an increase in the capability to respond and manage major oil spill incidents. Even though the Southeast Asian region has made some notable progress over the past few decades in terms of oil spill preparedness and response, the region's capabilities are arguably less mature compared to other parts of the world. Most of the countries in the region have been successful in establishing the elements of preparedness advocated by the OPRC (International Convention on Oil Pollution Preparedness Response and Cooperation) convention. But recent spill incidents and preparedness work in the region have revealed a need for greater collaboration between the government and industry stakeholders from oil, shipping and port industries, planning and preparing of major trans-boundary oil spill incidents and alignment of oil spill preparedness and response system of a country from the national to provincial level. This paper examines the increasing risks of oil spills from the growing vessel traffic and exploration and production activities in Southeast Asia against the current level of preparedness in the region. In doing so, the author will share the experience gained from working on various oil spill response planning and preparedness projects with the Governments and industry in the region with lessons learned, current developments and recommendation for improvements.


1997 ◽  
Vol 1997 (1) ◽  
pp. 453-457 ◽  
Author(s):  
CDR Robert A. Van Zandt

ABSTRACT The Coast Guard's oil spill removal organization (OSRO) classification process underwent significant revision in late 1995. The revision was necessary to strengthen the program into a more credible and useful tool for facilitating preparation and review of vessel and facility response plans. The revised process is more closely linked to the response planning criteria that vessel and facility owners and operators are required to meet under the Oil Pollution Act of 1990. As a result, the process provides a better indication of an OSRO's capacity and potential to respond to and recover oil spills of various sizes. Data provided by each OSRO are being included in the computer-based national Response Resource Inventory (RRI). The paper describes the important features and limitations of the revised classification process and gives an interpretation of what the new classifications mean to response plan holders and reviewers. It also describes the method by which plan holders can use the computer-based RRI as a tool to conduct their own analysis of an OSRO's capacity to meet their specific planning requirements.


2009 ◽  
Vol 46 (04) ◽  
pp. 219-228
Author(s):  
Yashuhira Yamada

The purpose of this paper is to consider a practical way to estimate the cost of oil spills from ships within the framework of establishing environmental risk evaluation criteria in International Maritime Organization (IMO). Regression analysis between the cost of oil spills and the weight of oil spilled (oil spill weight) was carried out using historical oil spill data from tankers reported by International Oil Pollution Compensation (IOPC) Funds. A nonlinear regression formula between the cost of oil spills and the oil spill weight is estimated from the historical data, and a critical value of cost to avert one tonne of spilled oil (CATScr) is obtained. CATScr obtained by the present study is compared with that obtained by previous work. This study shows that the cost of oil spills estimated by the present regression formula is in fairly good agreement with the mean value obtained from historical data while the CATScr gives relatively larger costs and shows the upper bound of the cost of oil spills.


1999 ◽  
Vol 71 (1) ◽  
pp. 103-111 ◽  
Author(s):  
F. R. Engelhardt

Introduction: Remote sensing is useful in several modes of oil spill control, including large area surveillance, site specific monitoring and tactical assistance in emergencies. Remote sensing is able to provide essential information to enhance strategic and tactical decision-making, potentially reducing incidence of spills by providing a deterrent factor, decreasing response costs by facilitating rapid oil recovery and ultimately minimising impact. Marine oil spills can be separated into two categories of relevance to the type of remote sensing technology which might be used to detect and respond to the incident. A first category is non-accidental discharges, which can include incidental losses from vessels due to hull or equipment leaks, as well as oil discharged intentionally during deballasting and tank-cleaning activities. While these non-accidental discharges tend to be small in themselves, they are frequent and contribute much more to the overall introduction of oil to the marine environment than accidental spills, and are of increasing international regulatory concern. Accidental spills are much less frequent, but typically involves much larger releases of oil. Such oil spills are high profile events for which rapid and effective emergency response is needed to contain and recover the spilled oil. In many countries, an appropriate and effective response capability is required by law, such as demanded by the Oil Pollution Act of 1990 in the US, as well as by recent amendments to the Canada Shipping Act in Canada. There is a growing recognition that using remote sensing, especially airborne, to aid cleanup response efforts can mitigate the effects of oil on the environment, as well as reduce cleanup costs. Airborne remote sensing sensing in the support of spill response operations has a mixed level of interest by spill responders when viewed globally. In the US, for instance, airborne remote has had varying degrees of success in meeting operational expectations, and thus is not yet fully integrated into national, regional and area response plans and operations. By comparison, the record of successful use in the UK, for instance, is such that remote sensing support is contracted by the UK Coast Guard on a stand-by basis and used routinely when a significant spill occurs. As another example, airborne remote sensing technologies are now being adopted by the Australian Maritime Safety Authority to support its spill response actions. Low altitude aircraft have proven to be the most effective tactical method for obtaining information about spills and assisting in spill response. Combined with accurate oil drift computer model forecasting, these two methods were the primary strategic tools used for environmental response planning during the IXTOC-1 and Arabian Gulf spills, although less useful for guiding tactical operations (Pavia and Payton, 1983; Cekirge et al., 1992). Conversely, essential tactical support was provided by aerial remote sensing for the application of dispersants, a major spill response in the Sea Empress spill in Southwest Wales (Harris, 1997; Lunel et al., 1997). Currently, the use of imaging satellites for spill response is restricted because of limited spatial resolution, slow revisit times and often long delays in receipt of processed image data. The topic of oil spill monitoring by imaging satellites has been reviewed by Bern (1993a,b). There are significant advances being made, however, to increase resolution and coverage, as well as in the speed of image product delivery. Sensing oil on water by satellites appears best suited for routine surveillance purposes. There are synergisms in protecting the environment and property from oil spills which can be achieved by an integrated approach which draws on the remote sensing advantages of airborne and satellite imaging technology. There are many potential users of such remote sensing information, in government and private sector organisations. Government authorities use such information in surveillance, for example in the North and Baltic Seas, detecting spills when they occur and for identification of the spiller, which could be a vessel discharging illegally. Many government organisations also maintain an organised oil spill response capability, which would be supported by remote sensing information in oil spill response operations. The private sector includes the primary oil industry operating globally, and oil transporters, which carry responsibility and potential liability in the event of a spill. Other potential users are oil spill response organisations which might offer a sub-contracted remote sensing capability to their clients. Other private sector groups include the insurers for the shipping industry, who are directly and immediately interested in keeping both the costs of the response and oil spill impact damage as low as possible. The news media is a additional potential user, interested in quality graphical representation of the oil spill, as is true for any disaster event.


1999 ◽  
Vol 1999 (1) ◽  
pp. 41-47 ◽  
Author(s):  
Catherine J. Grey

ABSTRACT The 1971 and 1992 International Oil Pollution Compensation Funds (IOPC Funds) provide compensation to the victims of oil spills from tankers in countries which have ratified the 1971 and 1992 Fund Conventions. Since 1978, they have dealt with more than 100 incidents, paying compensation in 68 of these. Details of the individual incidents are given together with the total cost for each, expressed in US$. The numbers, sizes and costs of the incidents are analysed in detail and compared with the incidence of all tanker spills in Fund countries, using data from the International Tanker Owners Pollution Federation's (ITOPF) Oil Spill Database. This analysis reveals a number of trends relating to the size of tankers; the amount and type of oil spilled; and the geographical location. The 1971 IOPC Fund has undoubtedly proved highly effective, but recent incidents have tested the limits of compensation available. The 1992 Fund Convention entered into force in May 1996, providing both higher limits and a broader scope. However, the threshold at which it comes into effect is also higher, thereby excluding many of the less expensive spills which would previously have been covered by the 1971 Fund Convention. The significance of this for the numbers and costs of incidents likely to be dealt with by both the 1971 and the 1992 IOPC Funds is examined.


1969 ◽  
Vol 1969 (1) ◽  
pp. 151-156
Author(s):  
J. Stephen Dorrler

Abstract When compared on an individual basis to major oil pollution disasters, the average Navy oil spillage incident seems insignificant. However, when the cleanup costs are tallied, these limited oil spills do not appear so small. For example, a one barrel oil spill, discharged from a destroyer berthed at the Long Beach Naval Shipyard, took nine laborers, a boat operator, a truck driver, a crane operator and a supervisor one and a half days to clean up at a cost of $1,300. On the East Coast, the Norfolk Naval Shipyard spends approximately $1,000 an incident in its oil spill cleanup operations. These spills vary between 50 and 500 gallons. From the presented data which defines the limited oil spill, three general statements are derived:1. Limited oil spills are a large problem due to their numerous occurrences.2. Limited oil spills require proper treatment.3. Limited oil spills are expensive to treat. This paper investigates this last statement and by so doing discloses the actual problems which contribute to the high cost of cleaning up limited oil spills. Three factors are discussed:1. The physical conditions affecting an oil spill.,a. Location of the slick,b. Oil Slick Movement,(1) Spreading,(2) Weather, wind and current effects,2. The type of equipment employed.,a. Booms,b. Chemical Dispersants,c. Physical Removal,(1) Skimmers,(2) Straws,3. The completeness of the removal operation. The limited harbor oil spill is expensive and the cost is expected to rise. At the present time, the typical oil spill costs the Navy over $1,000 to clean up. This cost will increase as control agencies rightfully require more removal and more complete removal.


1991 ◽  
Vol 1991 (1) ◽  
pp. 377-383
Author(s):  
Richard W. Dunford ◽  
Sara P. Hudson ◽  
William H. Desvousges

ABSTRACT The new Oil Pollution Act of 1990 defines natural resource damages from oil spills as the sum of the cost to restore foregone natural resource services, the diminution of value of natural resource services prior to restoration, and damage assessment costs. Natural resource damages are usually determined once removal activities (containment, protection, and cleanup) are completed. Nevertheless, removal activities affect the magnitude of all three natural resource damage components. Consequently, to minimize the total cost of oil spills, decisions on removal activities should consider the linkages between removal activities and natural resource damages. Successful containment results in minimal natural resource damages, because oil generally does far less damage to natural resources in open water than on shore. If oil cannot be contained, the potential natural resource damages from oil coming ashore in certain areas can help determine priorities for protection activities. In particular, oil may harm natural resource services much more in some areas than in others. Furthermore, some natural resource services are more costly to restore and assess than others. Finally, some cleanup activities do more harm than good to natural resource services. If the effects of cleanup activities on natural resource damages are ignored, “excessive” cleanup activities are likely.


Author(s):  
Emilio D’Ugo ◽  
Milena Bruno ◽  
Arghya Mukherjee ◽  
Dhrubajyoti Chattopadhyay ◽  
Roberto Giuseppetti ◽  
...  

AbstractMicrobiomes of freshwater basins intended for human use remain poorly studied, with very little known about the microbial response to in situ oil spills. Lake Pertusillo is an artificial freshwater reservoir in Basilicata, Italy, and serves as the primary source of drinking water for more than one and a half million people in the region. Notably, it is located in close proximity to one of the largest oil extraction plants in Europe. The lake suffered a major oil spill in 2017, where approximately 400 tons of crude oil spilled into the lake; importantly, the pollution event provided a rare opportunity to study how the lacustrine microbiome responds to petroleum hydrocarbon contamination. Water samples were collected from Lake Pertusillo 10 months prior to and 3 months after the accident. The presence of hydrocarbons was verified and the taxonomic and functional aspects of the lake microbiome were assessed. The analysis revealed specialized successional patterns of lake microbial communities that were potentially capable of degrading complex, recalcitrant hydrocarbons, including aromatic, chloroaromatic, nitroaromatic, and sulfur containing aromatic hydrocarbons. Our findings indicated that changes in the freshwater microbial community were associated with the oil pollution event, where microbial patterns identified in the lacustrine microbiome 3 months after the oil spill were representative of its hydrocarbonoclastic potential and may serve as effective proxies for lacustrine oil pollution.


1978 ◽  
Vol 35 (5) ◽  
pp. 510-520 ◽  
Author(s):  
John M. Teal ◽  
Kathryn Burns ◽  
John Farrington

We have analyzed the two- and three-ring aromatic hydrocarbons from the Wild Harbor oil spill in September 1969 and the Winsor Cove oil spill in October 1974, in intertidal marsh sediments, using glass capillary gas-chromatographic and mass-fragmentographic analyses. Naphthalenes with 0–3 alkyl substitutions and phenanthrenes with 0–2 substitutions decreased in concentration with time in surface sediments. The more substituted aromatics decreased relatively less and in some cases actually increased in absolute concentration. The changes in composition of the aromatic fraction have potential consequences for the ecosystem and provide insight into geochemical processes of oil weathering. Key words: oil pollution, aromatic hydrocarbons; gas chromatography; gas chromatography–mass spectrometry; geochemistry; marsh; sediments; oil spills


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