The SONS Money Tale: From Exxon Valdez to Deepwater Horizon to ??

Abstract

Synopsis SONS (Spill of National Significance) have been extensively studied from multiple perspectives. In the realm of the Incident Command Structure (ICS) there have been numerous Operations, Planning, and Logistics examinations, reviews, and recommendations. The fourth ICS node – Finance – has seen little such scrutiny or review. This paper, written by two individuals at the heart of each respective response, will address that gap and identify the problems that arose, were solved, or remain problematic for the next SONS that occurs in the United States. Each spill posed different problems, driven by statute, prior experience, fiscal systems, and the expectations of outside stakeholders. The paper will examine the following dimensions. 1) The available fund balance at the start of the response, and how the fund could be replenished under existing statute.2) The financial role taken by the spillers/responsible parties.3) The mechanisms to provide response funding to the FOSC during the incident.4) Funding National Contingency Plan participants (Federal, State, Local) supporting the FOSC response.5) Funding Trustee led natural resource damage assessments and damage restoration plans during and after the response concluded.6) Payment of claims to injured third parties.7) Billing the spillers/responsible parties for the incident costs and the disposition of the resulting payments. The paper will conclude with an examination of the financial issues that remain and will probably arise for the next SONS. It will summarize possible solutions, reflecting when appropriate a number of legislative changes that have been proposed by various parties.