[Congressional Record Volume 156, Number 93 (Monday, June 21, 2010)]
[Senate]
[Page S5204]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BEGICH (for himself, Mr. Wyden, and Ms. Klobuchar):
  S. 3514. A bill to amend the Outer Continental Shelf Lands Act to 
prohibit a person from entering into any Federal oil or gas lease or 
contract unless the person pays into an Oil Spill Recovery Fund, or 
posts a bond, in an amount equal to the total of the outstanding 
liability of the person and any removal costs incurred by, or on behalf 
of, the person with respect to any oil discharge for which the person 
has outstanding liability, and for other purposes; to the Committee on 
Environment and Public Works.
  Mr. BEGICH. Mr. President, I rise to introduce legislation requiring 
BP and other oil companies to set aside ample funding in an escrow 
account controlled--not by the company but by the Federal Government--
to address the damage and claims from a major catastrophic oil spill 
like the current Gulf of Mexico spill.
  Twenty-one years ago, the oil tanker Exxon Valdez ran aground, 
gushing an estimated 11 million gallons of crude oil into Alaska 
waters. This was the worst oil spill in American history, with oil 
hitting 1,300 miles of shoreline and killing hundreds of thousands of 
birds and marine mammals. Thousands of hard-working Alaskans, just like 
the residents of the Gulf, lost millions of dollars as their 
livelihoods collapsed.
  To add insult to injury, for nearly two decades Exxon fought the 
legitimate claims of Alaskans harmed by the spill for nearly two 
decades. The case went all the way to the Supreme Court when in 2008, 
the Court issued a final judgment, reducing Exxon's punitive liability 
to just 10 percent of what the original court had ordered. During those 
19 years, hundreds of Alaskans entitled to damages had died; thousands 
of others' lives were forever harmed.
  We Alaskans learned many lessons from the Exxon Valdez spill. One of 
the most important was to set up a system as early as possible to 
guarantee that those affected by oil spills are justly compensated. 
That is what my bill is designed to do. I am certainly pleased BP has 
agreed to set up an escrow account voluntarily, but I believe Congress 
should underscore their commitment in law and to protect Americans from 
future spills.
  This bill, the Guaranteed Oil Spill Compensation Act of 2010, 
requires BP or any other party responsible for an oil spill interested 
in future Federal oil and gas leases to deposit into an escrow account 
held by the U.S. Government enough money to compensate those affected 
by a spill. In the event of a spill, the Secretary of Interior can make 
an assessment of outstanding liability under provisions of the Federal 
legislation passed in the aftermath of the Exxon Valdez, the Oil 
Pollution Act of 1990, OPA 90. The spiller must then deposit funds 
equal to the total liability minus the liability established for 
incident by OPA 90 into a separate fund to be administered by the 
Secretary for claims and costs related to that spill. Unexpended funds 
would be returned to the spiller at the earlier of 5 years after the 
date of deposit or the date the Secretary determines all Federal, 
State, and civil claims have been satisfied. The measure would have no 
affect on other liability.
  I believe this legislation achieves what many of us want: ensuring 
Americans damaged by this oil spill and future catastrophic spills are 
fairly compensated in a timely way. This didn't happen to Alaskans with 
the Exxon Valdez. We must ensure it does happen for our Americans in 
the Gulf of Mexico. This is another tool as Congress works on liability 
reform designed to make those injured whole again, while at the same 
time allowing responsible companies to provide oil our country needs.
  The Guaranteed Oil Spill Compensation Act of 2010 is the first of a 
package of bills I intend to introduce designed to make oil companies 
financially responsible for the cost of oil spills; expand scientific 
research, especially in the Arctic; provide a steady source of Federal 
funding for additional science and resources needed in the Far North to 
deal with oil and gas development; and provide greater citizen 
involvement in oil development.
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