U.S. Department of the Interior
Minerals Management Service
Office of Communications

NEWS RELEASE

MMS PUBLISHES FINAL RULE ON OIL SPILL FINANCIAL RESPONSIBILITY

The U.S. Department of the Interior's Minerals Management Service (MMS) will publish the final regulation on Oil Spill Financial Responsibility for Offshore Facilities in the August 11, 1998, Federal Register.

The regulation implements the Oil Pollution Act of 1990 (OPA) requirement for responsible parties to show they can pay for cleanup and damages caused by facility oil spills. The new rule applies to certain crude oil wells, production platforms, and pipelines located along and seaward of the U.S. coastline. Also, contained in the regulation are procedures for filing claims for spill-related compensation.

"Publication of this regulation culminates a multi-year effort by MMS to clarify the intent of Congress, ensure the public interest is protected, and avoid unreasonable economic burdens on businesses," said MMS Director Cynthia Quarterman. "During the next few months, we will focus on implementing the new financial responsibility program by working with States and businesses to ensure effective program coordination and compliance."

A special subcommittee of the Outer Continental Shelf Policy Committee was established to address the issue of financial responsibility for activities in State waters. The subcommittee includes representatives from coastal States with affected activities.

The rule goes into effect 60 days from the date of publication. The MMS will hold implementation workshops at the following locations.

• Houston: Tuesday, September 1, 9:00am

• New Orleans: Tuesday, September 15, 9:00am

• California: Thursday, September 24, 9:00am

MMS is the federal agency that manages the Nation's natural gas, oil and other mineral resources on the Outer Continental Shelf, and collects, accounts for, and last year disbursed about $6 billion in revenues from offshore mineral leases and onshore mineral leases on federal and Indian lands.

-MMS-

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