
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 43USC1653]

 
                         TITLE 43--PUBLIC LANDS
 
                    CHAPTER 34--TRANS-ALASKA PIPELINE
 
Sec. 1653. Liability for damages


(a) Activities along or in vicinity of pipeline right-of-way; strict 
        liability; limitation on liability; subrogation; emergency 
        subsistence and other aid; exemption for State of Alaska

    (1) Except when the holder of the pipeline right-of-way granted 
pursuant to this chapter can prove that damages in connection with or 
resulting from activities along or in the vicinity of the proposed 
trans-Alaskan pipeline right-of-way were caused solely by an act of war 
or negligence of the United States, other government entity, or the 
damaged party, such holder shall be strictly liable to all damaged 
parties, public or private, without regard to fault for such damages, 
and without regard to ownership of any affected lands, structures, fish, 
wildlife, or biotic or other natural resources relied upon by Alaska 
Natives, Native organizations, or others for subsistence or economic 
purposes. Claims for such injury or damages may be determined by 
arbitration or judicial proceedings.
    (2) Liability under paragraph (1) of this subsection shall be 
limited to $350,000,000 for any one incident, and the holders of the 
right-of-way or permit shall be liable for any claim allowed in 
proportion to their ownership interest in the right-of-way or permit. 
Liability of such holders for damages in excess of $350,000,000 shall be 
in accord with ordinary rules of negligence.
    (3) In any case where liability without fault is imposed pursuant to 
this subsection and the damages involved were caused by the negligence 
of a third party, the rules of subrogation shall apply in accordance 
with the law of the jurisdiction where the damage occurred.
    (4) Upon order of the Secretary, the holder of a right-of-way or 
permit shall provide emergency subsistence and other aid to an affected 
Alaska Native, Native organization, or other person pending expeditious 
filing of, and determination of, a claim under this subsection.
    (5) Where the State of Alaska is the holder of a right-of-way or 
permit under this chapter, the State shall not be subject to the 
provisions of this subsection, but the holder of the permit or right-of-
way for the trans-Alaska pipeline shall be subject to this subsection 
with respect to facilities constructed or activities conducted under 
rights-of-way or permits issued to the State to the extent that such 
holder engages in the construction, operation, maintenance, and 
termination of facilities, or in other activities under rights-of-way or 
permits issued to the State.

(b) Control and removal of pollutants at expense of right-of-way holder

    If any area in the State of Alaska within or without the right-of-
way or permit area granted under this chapter is polluted by any 
activities related to the Trans-Alaska Pipeline System, including 
operation of the terminal, conducted by or on behalf of the holder to 
whom such right-of-way or permit was granted, and such pollution damages 
or threatens to damage aquatic life, wildlife, or public or private 
property, the control and total removal of the pollutant shall be at the 
expense of such holder, including any administrative and other costs 
incurred by the Secretary or any other Federal or State officer or 
agency. Upon failure of such holder to adequately control and remove 
such pollutant, the Secretary, in cooperation with other Federal, State, 
or local agencies, or in cooperation with such holder, or both, shall 
have the right to accomplish the control and removal at the expense of 
such holder.

(c) Discharges of oil from vessels loaded at terminal facilities of 
        pipeline; strict liability; limitation on liability; 
        apportionment of liability; establishment and operation of 
        Trans-Alaska Pipeline Liability Fund

    (1) Notwithstanding the provisions of any other law, if oil that has 
been transported through the trans-Alaska pipeline is loaded on a vessel 
at the terminal facilities of the pipeline, the owner and operator of 
the vessel (jointly and severally) and the Trans-Alaska Pipeline 
Liability Fund established by this subsection, shall be strictly liable 
without regard to fault in accordance with the provisions of this 
subsection for all damages, including clean-up costs, sustained by any 
person or entity, public or private, including residents of Canada, as 
the result of discharges of oil from such vessel.
    (2) Strict liability shall not be imposed under this subsection if 
the owner or operator of the vessel, or the Fund, can prove that the 
damages were caused solely by an act or war or by the negligence of the 
United States or other governmental agency. Strict liability shall not 
be imposed under this subsection 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 party.
    (3) Strict liability for all claims arising out of any one incident 
shall not exceed $100,000,000. The owner and operator of the vessel 
shall be jointly and severally liable for the first $14,000,000 of such 
claims that are allowed. Financial responsibility for $14,000,000 shall 
be demonstrated in accordance with the provisions of section 1321(p) \1\ 
of title 33 before the oil is loaded. The Fund shall be liable for the 
balance of the claims that are allowed up to $100,000,000. If the total 
claims allowed exceed $100,000,000, they shall be reduced 
proportionately. The unpaid portion of any claim may be asserted and 
adjudicated under other applicable Federal or state \2\ law. The Fund 
shall expeditiously pay claims under this subsection, including such 
$14,000,000, if the owner or operator of a vessel has not paid any such 
claim within 90 days after such claim has been submitted to such owner 
or operator. Upon payment of any such claim, the Fund shall be 
subrogated under applicable State and Federal laws to all rights of any 
person entitled to recover under this subsection. In any action brought 
by the Fund against an owner or operator or an affiliate thereof to 
recover amounts under this paragraph, the Fund shall be entitled to 
recover prejudgment interest, costs, reasonable attorney's fees, and, in 
the discretion of the court, penalties.
---------------------------------------------------------------------------
    \1\ See References in Text note below.
    \2\ So in original. Probably should be capitalized.
---------------------------------------------------------------------------
    (4)(A) The Trans-Alaska Pipeline Liability Fund is hereby 
established as a non-profit corporate entity that may sue and be sued in 
its own name. The Fund shall be administered by the holders of the 
trans-Alaska pipeline right-of-way under regulations prescribed by the 
Secretary. The Fund shall be subject to an annual audit by the 
Comptroller General, and a copy of the audit shall be submitted to the 
Congress.
    (B) No present or former officer or trustee of the Fund shall be 
subject to any liability incurred by the Fund or by the present or 
former officers or trustees of the Fund, other than liability for gross 
negligence or willful misconduct.
    (C)(i) Subject to clause (ii), each officer and each trustee of the 
Fund--
        (I) shall be indemnified against all claims and liabilities to 
    which he or she has or shall become subject by reason of serving or 
    having served as an officer or trustee, or by reason of any action 
    taken, omitted, or neglected by him or her as an officer or trustee; 
    and
        (II) shall be reimbursed for all attorney's fees reasonably 
    incurred in connection with any claim or liability.

    (ii) No officer or trustee shall be indemnified against, or be 
reimbursed for, any expenses incurred in connection with, any claim or 
liability arising out of his or her gross negligence or willful 
misconduct.
    (5) The operator of the pipeline shall collect from the owner of the 
oil at the time it is loaded on the vessel a fee of five cents per 
barrel. The collection shall cease when $100,000,000 has been 
accumulated in the Fund, and it shall be resumed when the accumulation 
in the Fund falls below $100,000,000, except that after August 18, 1990, 
the amount to be accumulated shall be $100,000,000 or the amount 
determined by the trustees and certified to the Congress by the 
Comptroller General as necessary to pay claims arising from incidents 
occurring prior to August 18, 1990, and administrative costs, whichever 
is less.
    (6) The collections under paragraph (5) shall be delivered to the 
Fund. Costs of administration shall be paid from the money paid to the 
Fund, and all sums not needed for administration and the satisfaction of 
claims shall be invested prudently in income-producing securities 
approved by the Secretary. Income from such securities shall be added to 
the principal of the Fund.
    (7) The provisions of this subsection shall apply only to vessels 
engaged in transportation between the terminal facilities of the 
pipeline and ports under the jurisdiction of the United States. Strict 
liability under this subsection shall cease when the oil has first been 
brought ashore at a port under the jurisdiction of the United States.
    (8) In any case where liability without regard to fault is imposed 
pursuant to this subsection and the damages involved were caused by the 
unseaworthiness of the vessel or by negligence, the owner and operator 
of the vessel, and the Fund, as the case may be shall be subrogated 
under applicable State and Federal laws to the rights under said laws of 
any person entitled to recovery hereunder. If any subrogee brings an 
action based on unseaworthiness of the vessel or negligence of its owner 
or operator, it may recover from any affiliate of the owner or operator, 
if the respective owner or operator fails to satisfy any claim by the 
subrogee allowed under this paragraph.
    (9) This subsection shall not be interpreted to preempt the field of 
strict liability or to preclude any State from imposing additional 
requirements.
    (10) If the Fund is unable to satisfy a claim asserted and finally 
determined under this subsection, the Fund may borrow the money needed 
to satisfy the claim from any commercial credit source, at the lowest 
available rate of interest, subject to approval of the Secretary.
    (11) For purposes of this subsection only, the term ``affiliate'' 
includes--
        (A) Any person owned or effectively controlled by the vessel 
    owner or operator; or
        (B) Any person that effectively controls or has the power 
    effectively to control the vessel owner or operator by--
            (i) stock interest, or
            (ii) representation on a board of directors or similar body, 
        or
            (iii) contract or other agreement with other stockholders, 
        or
            (iv) otherwise; or

        (C) Any person which is under common ownership or control with 
    the vessel owner or operator.

    (12) The term ``person'' means an individual, a corporation, a 
partnership, an association, a joint-stock company, a business trust, or 
an unincorporated organization.
    (13) For any claims against the Fund, the term ``damages'' shall 
include, but not be limited to--
        (A) the net loss of taxes, revenues, fees, royalties, rents, or 
    other revenues incurred by a State or a political subdivision of a 
    State due to injury, destruction, or loss of real property, personal 
    property, or natural resources, or diminished economic activity due 
    to a discharge of oil; and
        (B) the net cost of providing increased or additional public 
    services during or after removal activities due to a discharge of 
    oil, including protection from fire, safety, or health hazards, 
    incurred by a State or political subdivision of a State.

    (14) Paragraphs (1) through (13) shall apply only to claims arising 
from incidents occurring before August 18, 1990. The Oil Pollution Act 
of 1990 [33 U.S.C. 2701 et seq.] shall apply to any incident, or any 
claims arising from an incident, occurring on or after August 18, 1990.

(Pub. L. 93-153, title II, Sec. 204, Nov. 16, 1973, 87 Stat. 586; Pub. 
L. 101-380, title VIII, Secs. 8101, 8102(a)(1), (4), (b)-(e), Aug. 18, 
1990, 104 Stat. 565-567.)

                        Repeal of Subsection (c)

        Pub. L. 101-380, title VIII, Sec. 8102(a)(1), (5)(A), Aug. 18, 
    1990, 104 Stat. 565, 566, provided that subsection (c) of this 
    section is repealed effective 60 days after the date on which the 
    Comptroller General certifies to Congress that: (i) all claims 
    arising under subsection (c) of this section have been resolved, 
    (ii) all actions for the recovery of amounts subject to subsection 
    (c) of this section have been resolved, and (iii) all administrative 
    expenses reasonably necessary for and incidental to the 
    implementation of subsection (c) of this section have been paid.

                       References in Text

    Section 1321(p) of title 33, referred to in subsec. (c)(3), was 
repealed by Pub. L. 101-380, title II, Sec. 2002(b)(4), Aug. 18, 1990, 
104 Stat. 507.
    The Oil Pollution Act of 1990, referred to in subsec. (c)(14), is 
Pub. L. 101-380, Aug. 18, 1990, 104 Stat. 484, which is classified 
principally to chapter 40 (Sec. 2701 et seq.) of Title 33, Navigation 
and Navigable Waters. For complete classification of this Act to the 
Code, see Short Title note set out under section 2701 of Title 33 and 
Tables.


                               Amendments

    1990--Subsec. (a)(1). Pub. L. 101-380, Sec. 8101(a), substituted 
``caused solely by'' for ``caused by''.
    Subsec. (a)(2). Pub. L. 101-380, Sec. 8101(b), substituted 
``$350,000,000'' for ``$50,000,000'' in two places.
    Subsec. (b). Pub. L. 101-380, Sec. 8101(c), inserted ``in the State 
of Alaska'' after ``any area'', ``related to the Trans-Alaska Pipeline 
System, including operation of the terminal,'' after ``any activities'', 
and ``or State'' after ``any other Federal''.
    Subsec. (c)(2). Pub. L. 101-380, Sec. 8102(b), substituted ``caused 
solely by'' for ``caused by''.
    Subsec. (c)(3). Pub. L. 101-380, Sec. 8102(d), inserted at end ``The 
Fund shall expeditiously pay claims under this subsection, including 
such $14,000,000, if the owner or operator of a vessel has not paid any 
such claim within 90 days after such claim has been submitted to such 
owner or operator. Upon payment of any such claim, the Fund shall be 
subrogated under applicable State and Federal laws to all rights of any 
person entitled to recover under this subsection. In any action brought 
by the Fund against an owner or operator or an affiliate thereof to 
recover amounts under this paragraph, the Fund shall be entitled to 
recover prejudgment interest, costs, reasonable attorney's fees, and, in 
the discretion of the court, penalties.''
    Subsec. (c)(4). Pub. L. 101-380, Sec. 8102(e), designated existing 
provisions as par. (A) and added pars. (B) and (C).
    Subsec. (c)(5). Pub. L. 101-380, Sec. 8102(a)(4), inserted before 
period at end of second sentence ``, except that after August 18, 1990, 
the amount to be accumulated shall be $100,000,000 or the amount 
determined by the trustees and certified to the Congress by the 
Comptroller General as necessary to pay claims arising from incidents 
occurring prior to August 18, 1990, and administrative costs, whichever 
is less''.
    Subsec. (c)(13), (14). Pub. L. 101-380, Sec. 8102(c), added pars. 
(13) and (14).


                    Effective Date of 1990 Amendment

    Amendment by Pub. L. 101-380 applicable to incidents occurring after 
Aug. 18, 1990, see section 1020 of Pub. L. 101-380, set out as an 
Effective Date note under section 2701 of Title 33, Navigation and 
Navigable Waters.
    Section 8102(a)(5)(A) of Pub. L. 101-380 provided that: ``The repeal 
by paragraph (1) [repealing subsec. (c) of this section] shall be 
effective 60 days after the date on which the Comptroller General of the 
United States certifies to the Congress that--
        ``(i) all claims arising under section 204(c) of the Trans-
    Alaska Pipeline Authorization Act (43 U.S.C. 1653(c)) have been 
    resolved,
        ``(ii) all actions for the recovery of amounts subject to 
    section 204(c) of the Trans-Alaska Pipeline Authorization Act have 
    been resolved, and
        ``(iii) all administrative expenses reasonably necessary for and 
    incidental to the implementation of section 204(c) of the Trans-
    Alaska Pipeline Authorization Act have been paid.''


                            Savings Provision

    Section 8102(a)(3) of Pub. L. 101-380 provided that: ``The repeal 
made by paragraph (1) [repealing subsec. (c) of this section] shall have 
no effect on any right to recover or responsibility that arises from 
incidents subject to section 204(c) of the Trans-Alaska Pipeline 
Authorization Act (43 U.S.C. 1653(c)) occurring prior to the date of 
enactment of this Act [Aug. 18, 1990].''


                         Bulk Fuel Storage Tanks

    Pub. L. 105-277, div. A, Sec. 101(g) [title III, Sec. 329(a), (b)], 
Oct. 21, 1998, 112 Stat. 2681-439, 2681-470, provided that:
    ``(a) Transfer of Funds.--Notwithstanding any other provision of 
law, the remainder of the balance in the Trans-Alaska Pipeline Liability 
Fund that is transferred and deposited into the Oil Spill Liability 
Trust Fund under section 8102(a)(2)(B)(ii) of the Oil Pollution Act of 
1990 (43 U.S.C. 1653 note) after June 16, 1998 shall be used in 
accordance with this section.
    ``(b) Use of Interest Only.--The interest produced from the 
investment of the Trans-Alaska Pipeline Liability Fund balance that is 
transferred and deposited into the Oil Spill Liability Trust Fund under 
section 8102(a)(2)(B)(ii) of the Oil Pollution Act of 1990 [Pub. L. 101-
380] (43 U.S.C. 1653 note) after June 16, 1998 shall be transferred 
annually by the National Pollution Funds Center to the Denali Commission 
for a program, to be developed in consultation with the Coast Guard, to 
repair or replace bulk fuel storage tanks in Alaska which are not in 
compliance with federal law, including the Oil Pollution Act of 1990 [33 
U.S.C. 2701 et seq.], or State law.''


                       Disposition of Fund Balance

    Section 8102(a)(2) of Pub. L. 101-380, as amended by Pub. L. 105-
277, div. A, Sec. 101(g) [title III, Sec. 329(c)], Oct. 21, 1998, 112 
Stat. 2681-439, 2681-471, provided that:
    ``(A) Reservation of amounts.--The trustees of the Trans-Alaska 
Pipeline Liability Fund (hereafter in this subsection referred to as the 
`TAPS Fund') shall reserve the following amounts in the TAPS Fund--
        ``(i) necessary to pay claims arising under section 204(c) of 
    the Trans-Alaska Pipeline Authorization Act (43 U.S.C. 1653(c)); and
        ``(ii) administrative expenses reasonably necessary for and 
    incidental to the implementation of section 204(c) of that Act.
    ``(B) Disposition of the balance.--After the Comptroller General of 
the United States certifies that the requirements of subparagraph (A) 
have been met, the trustees of the TAPS Fund shall dispose of the 
balance in the TAPS Fund after the reservation of amounts are made under 
subparagraph (A) by--
        ``(i) rebating the pro rata share of the balance to the State of 
    Alaska for its contributions as an owner of oil, which, except as 
    otherwise provided under article IX, section 15, of the Alaska 
    Constitution, shall be used for the remediation of above-ground 
    storage tanks; and then
        ``(ii) transferring and depositing the remainder of the balance 
    into the Oil Spill Liability Trust Fund established under section 
    9509 of the Internal Revenue Code of 1986 (26 U.S.C. 9509).
    ``(C) Disposition of the reserved amounts.--After payment of all 
claims arising from an incident for which funds are reserved under 
subparagraph (A) and certification by the Comptroller General of the 
United States that the claims arising from that incident have been paid, 
the excess amounts, if any, for that incident shall be disposed of as 
set forth under subparagraphs (A) and (B).
    ``(D) Authorization.--The amounts transferred and deposited in the 
Fund shall be available for the purposes of section 1012 of the Oil 
Pollution Act of 1990 [33 U.S.C. 2712] after funding sections 5001 [33 
U.S.C. 2731] and 8103 [43 U.S.C. 1651 note] to the extent that funds 
have not otherwise been provided for the purposes of such sections.''


                  Liabilities of Trustees of TAPS Fund

    Section 8102(a)(5)(B) of Pub. L. 101-380 provided that: ``Upon the 
effective date of the repeal pursuant to subparagraph (A) [see Effective 
Date of 1990 Amendment note above], the trustees of the TAPS Fund shall 
be relieved of all responsibilities under section 204(c) of the Trans-
Alaska Pipeline Authorization Act [43 U.S.C. 1653(c)], but not any 
existing legal liability.''


    Preservation of Rights and Remedies of Contributors to TAPS Fund

    Section 8102(a)(6) provided that: ``This subsection [amending this 
section and enacting provisions set out as notes above] is intended 
expressly to preserve any and all rights and remedies of contributors to 
the TAPS Fund under section 1491 of title 28, United States Code 
(commonly referred to as the `Tucker Act').''

                  Section Referred to in Other Sections

    This section is referred to in title 26 section 9509.
