THE GREAT POM-POM CAPER: WASHINGTON'S FIRST COMPENSATION SCHEDULE APPLICATION

Abstract

ABSTRACT When the Washington State Oil Spill Compensation Schedule was developed as a shortcut to estimating natural resource damages, the concept was applauded. But how has it worked in reality? The first use of the compensation schedule successfully occurred in April 1993, when the Nosac Forest spilled an estimated 6,260 gallons of intermediate fuel oil into Commencement Bay in Tacoma during a fuel transfer. Within eight months, the P&I club representing the ship paid in full the $122,696 damage claim calculated by the compensation schedule. Although running the compensation schedule formulas is straightforward, determining the input values offers several challenges. Because the compensation schedule generates a $1-$50/gallon figure, spill volume is a key factor. Limited information about the oil transfer—a common problem—complicated efforts to measure the amount spilled from the Nosac Forest and led to much time spent gathering and analyzing recovery data to generate an estimate. Another complication of this case was ranking the toxicity of the product. Good coordination of the unified state Resource Damage Assessment Committee with tribal representatives and the responsible party expedited resolution of the damage claim. Through the Nosac Forest experience, the compensation schedule demonstrated its effectiveness in quantifying damages that might otherwise not be addressed, making restoration funds available relatively quickly. This case also taught some helpful lessons regarding data collection needs and ways the regulation can be improved.