**GAO-10-795T**                      Published: Jun 16, 2010. Publicly Released: Jun 16, 2010.                  

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## Highlights

On April 20, 2010, an explosion at the mobile offshore drilling unit Deepwater Horizon resulted in a massive oil spill in the Gulf of Mexico. The spill's total cost is unknown, but may result in considerable costs to the private sector, as well as federal, state, and local governments. The Oil Pollution Act of 1990 (OPA) set up a system that places the liability--up to specified limits--on the responsible party. The Oil Spill Liability Trust Fund (Fund), administered by the Coast Guard, pays for costs not paid for by the responsible party. GAO previously reported on the Fund and factors driving the cost of oil spills and is beginning work on the April 2010 spill. This testimony focuses on (1) how oil spills are paid for, (2) the factors that affect major oil spill costs, and (3) implications of major oil spill costs for the Fund. It is largely based on GAO's 2007 report, for which GAO analyzed oil spill cost data and reviewed documentation on the Fund's balance and vessels' limits of liability. To update the report, GAO obtained information from and interviewed Coast Guard officials.

## Full Report

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Full Report (27 pages)

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## GAO Contacts

Susan Fleming
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## Topics

Natural Resources and Environment

Claims settlementCost analysisCrude oilCrude oil pipeline operationsDamage claimsDomestic crude oilExpense claimsOffshore oil drillingOil pollutionOil spillsPollution controlShipsLiability (legal)Compensation claimsContingency plansTrust fundsUse of fundsEnvironmental cleanups