DEFINITION of 'Oil Pollution Act Of 1990'

A law that caps civil liability for oil spills caused by tankers and drilling vessels in the United States' territorial waters. The passage of the law was prompted by the Exxon Valdez oil spill in 1989, where Exxon was held liable for billions in civil damages. The bill enjoyed popular support at its passage.

BREAKING DOWN 'Oil Pollution Act Of 1990'

The Oil Pollution Act of 1990 caps BP's civil liability for the Deepwater Horizon spill at $75 million. The law forces companies to have a "place to prevent spills that may occur". The House passed the bill with a vote of 375-5, and it was passed in the Senate by a voice vote.

RELATED TERMS
  1. Tier 1 Spill

    One of the three categorized levels of oil spills. Tier 1 spills ...
  2. Tier 2 Spill

    The second of the three types of oil spills as categorized by ...
  3. BP Oil Spill

    A 2010 oil spill that occurred in the Gulf of Mexico as a result ...
  4. Tier 3 Spill

    One of the three levels of oil spills as categorized by the International ...
  5. Civil Rights Act of 1964

    Landmark federal legislation that prohibits discrimination on ...
  6. Water Pollution Liability

    Financial and legal responsibility for causing contamination ...
Related Articles
  1. Investing

    Should You Invest in Oil and Gas? Consider These 3 Risks

    Learn about some of the major risks with investing in the oil and gas sector including volatile commodity prices, dividend cut risk and an oil spill risk.
  2. Investing

    What to Expect in Exxon Q2 Earnings?

    Wall Street expects both revenue and earnings to remain under pressure, thanks to weak oil prices.
  3. Investing

    The Top 6 Companies In Crude Tanker Business

    Investopedia provides a list of the top companies which are in the business of moving the crude oil across the globe
  4. Financial Advisor

    Series 66 Exam Prep: The Broker-Dealer

    Before you take the series 66, you need to understand civil liabilities.
  5. Financial Advisor

    Exxon Mobil Stock: A Dividend Analysis (XOM)

    Learn about Exxon's strong history of paying and growing dividends. Understand how the company's revenues are hurt by low commodity prices.
  6. Investing

    The Top 5 Large-Cap Oil Stocks for 2016 (SLB, CVX)

    Read about large-cap oil companies that could recover in 2016. Learn about why oil prices fell so dramatically during 2014 and 2015.
  7. Investing

    BP Stock Rises After $175M Oil Spill Settlement (BP)

    The $175 million settlement also eliminates uncertainty surrounding the company's future liabilities as it relates to the spill, reported Bloomberg.
  8. Investing

    Exxon Stock Up Ahead of Earnings, Hikes Dividend (XOM)

    A downgrade in credit rating Tuesday by Standard & Poor's wasn't enough to keep investors from buying shares of Exxon Mobil, which also hiked its dividend.
  9. Investing

    Who Are Exxon’s Main Competitors? (RDS.A, XOM)

    Learn about some of the main competitors to Exxon Mobil in the energy sector, and find out how their businesses are different from that of Exxon.
  10. Investing

    Crude Tankers: The Business of Transporting Oil

    An analysis of the crude tanker industry, factors affecting the business and historic performance.
RELATED FAQS
  1. What happens to the fines collected by the Securities and Exchange Commission?

    When the Securities and Exchange Commission (SEC) enforces a civil action against a corporation or an individual found guilty ... Read Answer >>
  2. How can particular scarcities benefit specific stocks?

    Learn about scarce resources, such as crude oil and water. Explore how companies that produce these resources have benefited ... Read Answer >>
  3. What is the difference between legal liability and public liability?

    Discover the differences between a general legal liability, a specific public liability and a professional indemnity in the ... Read Answer >>
  4. What causes oil prices to fluctuate?

    Discover how OPEC, demand and supply, natural disasters, production costs and political instability are some of the major ... Read Answer >>
Hot Definitions
  1. IRS Publication 970

    A document published by the Internal Revenue Service (IRS) that provides information on tax benefits available to students ...
  2. Federal Direct Loan Program

    A program that provides low-interest loans to postsecondary students and their parents. The William D. Ford Federal Direct ...
  3. Cash Flow

    The net amount of cash and cash-equivalents moving into and out of a business. Positive cash flow indicates that a company's ...
  4. PLUS Loan

    A low-cost student loan offered to parents of students currently enrolled in post-secondary education. With a PLUS Loan, ...
  5. Graduate Record Examination - GRE

    A standardized exam used to measure one's aptitude for abstract thinking in the areas of analytical writing, mathematics ...
  6. Graduate Management Admission Test - GMAT

    A standardized test intended to measure a test taker's aptitude in mathematics and the English language. The GMAT is most ...
Trading Center