NORTH CAPE OIL SPILL NRDA PROCESS UNDER OPA 1990

Abstract

ABSTRACT On January 19, 1996, the tank borge North Cape and the tug Scandia grounded on Moonstone Beach in southern Rhode Island, spilling 828,000 gallons of no. 2 heating oil into Block Island Sound. Just 2 weeks prior to the grounding, the National Oceanic and Atmospheric Administration (NOAA) had published the final natural resource damage assessment (NRDA) rule for the Oil Pollution Act of 1990 (OPA). The North Cape oil spill became the first opportunity to implement the new NRDA rules. One of the key provisions of the NRDA rule is the requirement that trustees must invite the responsible parties (RP) to participate in a cooperative assessment of damages. If the trustees and the RP can agree to perform the initial phases of an assessment cooperatively, the chances of achieving a fair settlement and avoiding protracted litigation are expected to be enhanced. The cooperative approach should also reduce overall transaction costs, facilitate settlement, and result in a more rapid implementation of restoration projects. This paper presents an overview of the cooperative natural resource damage assessment process being undertaken by the trustees and the RPs following the North Cape oil spill and highlights some of the lessons learned in conducting a cooperative assessment.