US Coast Guard warns of possible depletion of oil spill fund
Washington (Platts)--16May2005
The US Coast Guard warned Monday of the possible depletion of the Oil Spill Liability Trust Fund, which was established by the Oil Pollution Act of 1990. The fund held $842-mil at the start of fiscal year 2005, according to the Coast Guard. Between now and fiscal year 2007 expenditures from the fund are expected to increase significantly as a result of several large spills in the past few years, the Coast Guard said. "A stable source of funding for oil spill clean-up costs and damages is vital in protecting the environment and compensating those who have been damaged by spills," Jan Lane, director of the National Pollution Funds Center, which administers the fund, said in a statement. The fund makes it possible for clean-up equipment and personnel to be instantly deployed, and provides money to compensate claimants for their costs. Until 1994, there was a 5 cts/bbl tax on petroleum produced or imported to the US. Between the tax and the consolidation of other federal funds, the spill fund once held $1-bil, according to the Coast Guard. This story was originally published in Platts Global Alert http://www.globalalert.platts.com
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