[Code of Federal Regulations]
[Title 43, Volume 1]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 43CFR29.7]

[Page 471-472]
 
                    TITLE 43--PUBLIC LANDS: INTERIOR
 
PART 29--TRANS-ALASKA PIPELINE LIABILITY FUND--Table of Contents
 
Sec. 29.7  Imposition of strict liability.

    (a) Notwithstanding the provisions of any other law, where a vessel 
is engaged in any segment of transportation between the terminal 
facilities of the Pipeline and ports under the jurisdiction of the 
United States, and is carrying TAPS oil, the Owner and Operator (jointly 
and severally), and the Fund established by section 204(c) of the Act, 
shall be strictly liable without regard to fault in accordance with that 
section for all damages, including clean-up costs, sustained by any 
person or entity, public or private, including residents of Canada, as a 
result of any discharge of TAPS oil from such vessel. Strict liability 
under this section shall cease when the TAPS oil has first been brought 
ashore at a port under the jurisdiction of the United States.
    (b) Strict liability shall not be imposed under this part if the 
Owner or Operator of the vessel, or the Fund, can prove that the damages 
were caused by an act of war or by the negligence of the United States 
or other governmental agency. Strict liability shall not be imposed 
under the Act with respect to the claim of a damaged party if the Owner 
or Operator of the vessel, or the Fund, can prove that the damage was 
caused by the negligence of such damaged party.
    (c)(1) Strict liability for all claims arising out of any one 
incident shall not exceed $100 million. The Owner and Operator of the 
vessel shall be jointly and severally liable for the first $14 million 
of the claims that meet the definition of damages as provided for in 
these regulations. The Fund shall be liable for the balance of the 
claims that meet the same definition up to $100 million. If the total of 
these claims exceeds $100 million, they shall be reduced 
proportionately. The unpaid portion of any claim may be asserted and 
adjudicated under other applicable Federal or State law.
    (2) The Fund shall establish uniform procedures to determine whether 
claims from a TAPS oil spill might exceed $14 million and $100 million. 
These procedures shall provide that when a determination is made that 
claims may exceed $100 million, payment of claims may be withheld in 
full or in part for a twenty-four month period so that claims may be 
proportionately reduced prior to payment.
    (d)(1) Each Owner or Operator of a vessel shall obtain from the 
Federal Maritime Commission a ``Certificate of Financial Responsibility 
(Alaska Pipeline)'' demonstrating compliance with the provisions of 
section 311(p) of the

[[Page 472]]

Federal Water Pollution Control Act, as amended (33 U.S.C. 1321(p)), and 
regulations promulgated pursuant to such act (33 CFR part 131). 
Notwithstanding inconsistent language in such act, financial 
responsibility in the amount of $14 million for all such vessels must be 
established.
    (2) The certificate obtained in accordance with this subsection 
shall be carried on board the vessel. No TAPS oil may be loaded on any 
vessel which has not been issued a valid certificate which is still in 
effect at the time of loading.