After the Exxon Valdez oil spill in 1989, Congress passed the Oil Pollution Act of 1990, warmly referred to as “OPA90″. OPA90 provided for an emergency spill fund so that response for a future spill could begin right away; established the US Coast Guard as the lead agency responsible for spill response; and for the first time required minimum insurance coverage and detailed spill contingency plans for operators of marine vessels, including operators of offshore oil and gas leases.

Another thing that OPA90 did, that seems to have escaped the notice of a legion of plaintiffs’ attorneys and potential claimants: it caps the commercial liability of those operators:

§1004 The liability for tank vessels larger than 3,000 gross tons is increased to $1,200 per gross ton or $10 million, whichever is greater. Responsible parties at onshore facilities and deepwater ports are liable for up to $350 millon per spill; holders of leases or permits for offshore facilities … are liable for up to $75 million per spill, plus removal costs.

There have been reports in the news media speculating as to BP’s liability, bidding up the amount each time: $1 billion, $3 billion, $8 billion, $14 billion…

I’m no lawyer, but with OPA90, that sounds a tad high to me.

OPA90 clearly holds BP responsible for the environmental cleanup. They could potentially be liable for personal injury claims related to the rig explosion and fire; injuries to personnel were not the result of the oil spill, after all. The liability for the loss of the rig by contract normally rests with the contractor, in this case Transocean, who is mostly insured for such events.
But claims of individuals and businesses affected by the spill are subject to the $75 million limit. This would include damages to fisheries, demurrage, business interruption, damage to the oil & gas resource, whatever you might imagine. A bankrupt company is of little use in cleaning up a spill.