The Great Spill in the Gulf . . . and a Sea of Pure Economic Loss: Reflections on the Boundaries of Civil Liability
The Great Spill in the Gulf . and a Sea of Pure Economic Loss: Reflections on the Boundaries of Civil Liability Vernon Valentine Palmer1 I. INTRODUCTION A. Event and Aftermath What has been called the greatest oil spill in history, and certainly the largest in United States history, began with an explosion on April 20, 2010, some 41 miles off the Louisiana coast. The accident occurred during the drilling of an exploratory well by the Deepwater Horizon, a mobile offshore drilling unit (MODU) under lease to BP (formerly British Petroleum) and owned by Transocean.2 The well-head blowout resulted in 11 dead, 17 injured, and oil spewing from the seabed 5,000 ft. below at an estimated rate of 25,000-30,000 barrels per day.3 The Deepwater Horizon is technically described as “a massive floating, dynamically positioned drilling rig” capable of operating in waters 8,000 ft. deep.4 In maritime law, such a rig qualifies as a vessel; yet, as a MODU, the rig also qualifies as an offshore facility that may attract higher liability limits under the Oil Pollution Act of 1990 (OPA).5 Under these provisions the double designation as vessel and/or MODU 1. Thomas Pickles Professor of Law and Co-Director of the Eason Weinmann Center for Comparative Law, Tulane University. This paper was presented in October 2010 in Hong Kong at a conference convened under the auspices of the Centre for Chinese and Comparative Law of the City University of Hong Kong. The conference theme was “Towards a Chinese Civil Code: Historical and Comparative Perspectives.” The conference papers will be published in a forthcoming volume edited by Professors Chen Lei and Remco van Rhee.
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