Environmental Law Commons^™

Deterring And Compensating Oil-Spill Catastrophes: The Need For Strict And Two-Tier Liability, W. Kip Viscusi, Richard J. Zeckhauser

Vanderbilt Law Review

The BP Deepwater Horizon oil spill highlighted the glaring weaknesses in the current liability and regulatory regime for oil spills and for environmental catastrophes more broadly. This Article proposes a new liability structure for deep-sea oil drilling and for catastrophic risks generally. It delineates a two-tier system of liability. The first tier would impose strict liability up to the firm's financial resources, including insurance coverage. The second tier would be an annual tax equal to the expected costs in the coming year beyond this damages amount. Before beginning a risky operation, the proposed liability scheme would identify a single firm-the …

Deepwater Drilling: Law, Policy, And Economics Of Firm Organization And Safety, Mark A. Cohen, Madeline Gottlieb, Joshua Linn, Nathan Richardson

Vanderbilt Law Review

Although the causes of the Deepwater Horizon spill are not yet conclusively identified, significant attention has focused on the safety-related policies and practices-often referred to as the safety culture-of BP and other firms involved in drilling the well. This Article defines and characterizes the economic and policy forces that affect safety culture and identifies reasons why those forces may or may not be adequate or effective from the public's perspective. Two potential justifications for policy intervention are that: (1) not all of the social costs of a spill may be internalized by a firm; and (2) there may be principal-agent …

Deterring And Compensating Oil-Spill Catastrophes: The Need For Strict And Two-Tier Liability, W. Kip Viscusi

Vanderbilt Law School Faculty Publications

The BP Deepwater Horizon oil spill highlighted the glaring weaknesses in the current liability and regulatory regime for oil spills and for environmental catastrophes more broadly. This Article proposes a new liability structure for deep-sea oil drilling and for catastrophic risks generally. It delineates a two-tier system of liability. The first tier would impose strict liability up to the firm's financial resources, including insurance coverage. The second tier would be an annual tax equal to the expected costs in the coming year beyond this damages amount. Before beginning a risky operation, the proposed liability scheme would identify a single firm-the …

Making Nuisance Ecological, J.B. Ruhl

Vanderbilt Law School Faculty Publications

Common law nuisance doctrine has the reputation of having provided much of the strength and content of environmental law prior to the rise of federal statutory regimes in the 1970s, but since then has taken a back seat to regulatory law with respect to the environment. In particular, whereas nuisance doctrine has been criticized - many say too harshly - as being inadequate for dealing with the demands of modern pollution control, it has never been considered as having much at all to do with management of ecological concerns. Yet nuisance law evolves with changed circumstances and new knowledge. This …

Regulation By Adaptive Management--Is It Possible?, J.B. Ruhl

Vanderbilt Law School Faculty Publications

Today's voluminous literature on adaptive management traces its roots to Professor C.S. Holling's seminal work, Adaptive Environmental Assessment and Management. Although almost thirty years have passed since he and his colleagues first described the adaptive management methodology, no work on the topic has improved on their core theory. Its essence is an iterative, incremental decisionmaking process built around a continuous process of monitoring the effects of decisions and adjusting decisions accordingly. It is in other words, far more suited to the needs of future regulatory challenges than is prescriptive regulation. My focus, however, is not on what adaptive management should …

Oil Pollution Liability And Control Under International Maritime Law, Michael A. De Gennaro

Vanderbilt Journal of Transnational Law

Oil spills on the world's oceans and waterways are a significant environmental threats. This Note explores some of the myriad reasons why the law--in both the United States and the international community--has failed adequately to address many of the reasons spills occur in the first instance.

Beginning with a brief history of various pollution control schemes enacted over the past few years, this Note focuses on why the current international legal regimes remain ineffective in combating oil pollution. In essence, this Note argues that the current laws fail because of textual deficiencies, a failure to address the external economic realities …

Understanding Causation And Threshold Of Release In Cercla Liability: The Difference Between Single- And Multi-Polluter Contexts, Aaron Cooper

Vanderbilt Law Review

Toxic waste has become an increasing public health problem in America.' Congress enacted the Comprehensive Environmental Response, Compensation and Liability Act CCERCLA" or "the Ace) in 1980, as a means to improve the efficiency of hazardous waste site cleanups. CERCLA encourages parties to clean up toxic sites by allowing those parties to recover response costs from potentially responsible parties (TRPs"). To accomplish this goal, CERCLA contains an expansive liability scheme that imposes strict liability on, among others, a party that has released or threatened release of a toxic substance that has caused or may cause the incurrence of response costs. …

The Impact Of Environmental Liabilities On Privatization In Central And Eastern Europe: A Case Study Of Poland, Randall Thomas

Vanderbilt Law School Faculty Publications

The Central and Eastern Europe (CEE) countries are breaking up their centrally planned economies at a record pace by selling formerly state-owned industrial enterprises to private sector investors. Privatization is expected to create more profit-oriented and efficient industries, a predicate for sustained long term economic growth. This transformation from public to private ownership presents tremendous challenges to these new democracies as they struggle to create market economies and democratic institutions.

Oil Pollution Act Of 1990: Opening A New Era In Federal And Texas Regulation Of Oil Spill Prevention, Containment And Cleanup, And Liability, J.B. Ruhl, Michael J. Jewell

Vanderbilt Law School Faculty Publications

This article assesses Congress' effort, through enactment of OPA, to meet the goals it stated in 1989. Part II provides an overview of the fragmented" condition of pre-OPA federal law addressing oil spills and an examination of the deficiencies Congress believed existed in that body of law. An understanding of those perceived deficiencies is essential for interpreting OPA. Part III surveys the basic features of OPA, particularly its liability provisions. It concludes that, although OPA surely achieves a major overhaul of federal oil spill law, it is basically in the same boat. Part IV examines the response of the states …

The Plight Of The Passive Past Owner: Defining The Limits Of Superfund Liability, J.B. Ruhl

Vanderbilt Law School Faculty Publications

These days, if you want to stir up high emotions in Congress, statehouses, corporate boardrooms or citizen group meetings, mention the word Superfund. That alias for the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA) evokes strong reactions from industry, environmentalists, bankers, politicians, and just about everyone else. CERCLA, a relative latecomer to the present-day body of federal environmental law, was enacted in 1980 to fill a gap in then existing law by creating the authority and liability for cleanup of abandoned facilities contaminated with hazardous substances. In the short time it has been with us, CERCLA has …

Book Reviews, Richard A. Frank

Vanderbilt Journal of Transnational Law

THE INTERNATIONAL LAW OF POLLUTION

By James Barros and Douglas Johnston

New York: Free Press, 1974. Pp. xvii, 476. $12.95.

Richard A. Frank