Oil Industry Seeks to Limit Liability in Spill Cleanups

Nearly three years after America’s worst oil spill--and oil industry pledges to be better prepared if it happens again--the industry is pushing state legislation to sharply limit its liability in cleaning up accidents.

Critics, including commercial fishermen and environmentalists, are calling the measure a giveaway that could make it difficult for the state and federal governments to make companies abide by spill contingency plans.

Oil companies argue that unless they obtain relief from lawsuits arising from mistakes they make during cleanups, they will find it legally too risky even to show up after spills.

The bill, which has begun moving through the Alaska House of Representatives, would hold cleanup contractors working on a spill liable for problems only in extreme cases, such as when a company intentionally ignores cleanup plans. It wouldn’t grant immunity to the company responsible for the spill itself.

In Alaska, the issue of who is accountable for cleaning up spilled oil has been argued in court since the Exxon Valdez dumped more than 10 million gallons in Prince William Sound in 1989.

State and federal officials argue that major cleanup responsibility lies with Alyeska Pipeline Service Co., the seven-company consortium that operates the trans-Alaska pipeline and the Valdez tanker terminal.

Alyeska officials dispute the contention that they have a legal obligation to clean up oil once it is loaded onto vessels, contending that its emergency crews’ responses to such spills are “voluntary.” The new legislation is backed by Alyeska.

Critics of the measure, which has yet to come up for a vote, say they’re not necessarily opposed to cleanup relief language if other features are added to assure that companies competently clean up spills. One possibility is state licensing of spill contractors.