Tier 2 Spill

AAA

DEFINITION of 'Tier 2 Spill'

The second of the three types of oil spills as categorized by the International Petroleum Industry Environmental Conservation Association (IPIECA). A Tier 2 spill is larger than a Tier 1 spill, but is still one that occurs in the area of the producing company's facilities. Tier 2 spills usually require the aid of other companies and resources, including the government.

INVESTOPEDIA EXPLAINS 'Tier 2 Spill'

The IPIECA has defined the three tiers according to various characteristics. Oil companies may join a co-op with other companies to pool their Tier 1 resources to fight Tier 2 spills. They may go in with other companies to purchase equipment to this end.

RELATED TERMS
  1. BP Oil Spill

    A 2010 oil spill that occurred in the Gulf of Mexico as a result ...
  2. Oil Pollution Act Of 1990

    A law that caps civil liability for oil spills caused by tankers ...
  3. Tier 3 Spill

    One of the three levels of oil spills as categorized by the International ...
  4. Tier 1 Spill

    One of the three categorized levels of oil spills. Tier 1 spills ...
  5. Commodity

    1. A basic good used in commerce that is interchangeable with ...
  6. Sweet Crude

    A type of oil that meets certain content requirements, including ...
Related Articles
  1. Oil: A Big Investment With Big Tax Breaks
    Investing Basics

    Oil: A Big Investment With Big Tax Breaks

  2. Oil And Gas Industry Primer
    Active Trading

    Oil And Gas Industry Primer

  3. Uncovering Oil And Gas Futures
    Active Trading

    Uncovering Oil And Gas Futures

  4. Investing In Oil And Gas UITs
    Mutual Funds & ETFs

    Investing In Oil And Gas UITs

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center