Crude Defenses? Liability Limits for Offshore Drilling Accidents and Oil Spills

Richard Faulk, Gardere Wynne Sewell LLP

Abstract

All those who participate in realizing the benefits of exploration – including those who use the resulting products and depend on their safe handling to avoid harm – are subject to their dangers. When the risks are enormous, and when society’s demands are extraordinary, the situation is ripe for political compromise. The products of that compromise may not be popular at this time of crisis, but that does not lessen their importance as anchors of reason during difficult times.

The Limitation Act and the OPA, as well as the procedures under Supplemental Rule F, form a foundation that enables the construction of a meritorious process that facilitates compensation and remediation while avoiding consumptive litigation. Leaving their safe harbor during this storm risks even greater uncertainties and complications.