Cosco Busan faces over $61 million in Bay cleanup

Eric Watkins
Senior Correspondent

LOS ANGELES, Dec.21 -- The cost of cleaning up the San Francisco Bay oil spill is expected to reach $61 million and may rise even higher, according to Admiral Thad Allen, Commander of the US Coast Guard.

Allen told Congress that figure is significant because it's what the owner of the Cosco Busan is required to pay under federal law for spilling 58,000 gal of fuel after striking the Bay Bridge Nov. 7. However he said the costs likely will rise beyond that amount to cover costs of completing cleanup and restoring coastal areas hit by the spillage.

Those liability limits can be increased if the US Justice Department determines a spill was caused by gross negligence. Allen said the USCG is discussing an increase of those limits with the companies involved in the spill.

The Coast Guard said $54.7 million had been spent on cleanup as of Dec. 14, an average of about $770,000/day.

To recover their costs, federal, state, and local authorities have filed civil suits against the ship's owner, Regal Stone Ltd.; its insurer, Shipowners' Insurance & Guaranty; and the bar pilot who was at the helm, Capt. John Cota.

A spokesman for the Hong Kong-based Regal Stone said the company is already paying for private cleanup crews who have been skimming oil and cleaning beaches.

He said the firm will meet its legal responsibility, but declined to say if it would pay any bill exceeding the $61.8 million.

The Cosco Busan was allowed to leave San Francisco to sail to South Korea for repairs after its owners agreed to post a $79 million bond as a guarantee the firm would pay its share of the cleanup costs.

Contact Eric Watkins at hippalus@yahoo.com.

Related Articles

Senate passes Defense bill with BLM drilling permit program provision

12/15/2014 The US Senate approved a Department of Defense appropriations bill on Dec. 13 containing a provision extending and making permanent a drilling perm...

Mitigating methane

12/15/2014

Among greenhouse gases, methane should be particularly amenable to deliberate cuts in emissions.

Study: To cool climate, eat less less meat, milk

12/15/2014

Meeting stated goals for Earth's climate requires not only using pricey energy but also spurning animal protein.

API: Producers reducing methane emissions already

12/15/2014 US oil and gas producers are reducing wellhead methane emissions already and don't need ill-conceived, overly prescriptive federal regulations, Ame...

A message from Oil & Gas Journal

12/15/2014

An important transition occurred during production of this issue of Unconventional Oil & Gas Report.

EPA approves Magellan’s Corpus Christi splitter project

12/12/2014 The US Environmental Protection Agency has issued a final greenhouse gas prevention of significant deterioration construction permit to Magellan Pr...

US needs more data before ending crude export ban, House panel told

12/11/2014 Much more environmental impact information is needed before the US can reasonably remove crude oil export limits, a witness told a House Energy and...

BOEM raises offshore oil spill liability limit to $134 million

12/11/2014 The US Bureau of Ocean Energy Management increased the liability limit for oil-spill related damages from offshore operations to $134 million from ...

Small subset of wells accounts for most methane emissions, researchers say

12/09/2014 A small subset of natural gas wells are responsible for most methane emissions from US natural gas production, said a study from the University of ...

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected