U.S. INDUSTRY EXPANDS SPILL RESPONSE PLAN

Feb. 5, 1990
Expanded plans are in place by U.S. oil companies to form a standby oil spill cleanup group, the Petroleum Industry Response Organization (PIRO). Plans began taking shape in earnest last summer in the aftermath of the Exxon Valdez spill in Alaska's Prince William Sound (OGJ, June 26, 1989, p. 18). John Costello, president of PIRO Implementation Inc., said the 20 companies that originally proposed PIRO and 20 more large firms are being asked to join by Mar. 1. He said, "The PIRO

Expanded plans are in place by U.S. oil companies to form a standby oil spill cleanup group, the Petroleum Industry Response Organization (PIRO).

Plans began taking shape in earnest last summer in the aftermath of the Exxon Valdez spill in Alaska's Prince William Sound (OGJ, June 26, 1989, p. 18).

John Costello, president of PIRO Implementation Inc., said the 20 companies that originally proposed PIRO and 20 more large firms are being asked to join by Mar. 1.

He said, "The PIRO proposed is more capable, more robust, and more mobile than originally envisioned."

BROADER SCOPE

PIRO plans to establish and equip five regional spill response centers-two on the Atlantic Coast, one on the Gulf Coast, and two on the Pacific Coast-each with the capacity to handle open sea spills as large as 216,000 bbl. That's an increase from the 200,000 bbl originally planned.

PIRO has not decided on sites for its five regional response centers and 19 equipment staging sites. Originally, it proposed to have centers in New York City, Norfolk, New Orleans, Long Beach, and Seattle.

Alyeska Pipeline Co., which is upgrading its cleanup capabilities at Valdez, would be responsible for Alaska, although it could draw support from PIRO.

By combining its equipment, transported on chartered aircraft, PIRO could battle a 1.8 million bbl spill.

Costello said, "Each region will be nearly 10 times larger than anything that exists in the U.S. today, and half again as large as the world's biggest existing response capability in the North Sea."

The 5 year budget for PIRO is estimated at $393 million, up $118 million from the original estimate. The larger figure includes a 40% increase in staff and a $35 million research and development program.

COMPLICATIONS

Although oil spill liability bills in the House and Senate would create an expanded federal oil spill response team, Costello said there still is a need for PIRO.

He explained existing U.S. spill cooperatives cannot meet the bills' requirements for vessel and facility spill cleanup capability for spills larger than 25,000 bbl.

PIRO is asking Congress to amend the oil spill bill to give private spill cleanup firms, such as PIRO, a liability exemption that overrides state laws.

"Spilled oil does not respect state boundaries," Costello said.

"Responders should not have to look at the laws of every individual state to decide whether and how they will operate."

He said PIRO is willing to accept liability for grossly negligent actions or willful misconduct in cleaning spills, but "we want to ensure that the 'good Samaritan' actions of responders aren't exposed to liability that rightfully remains with the spiller."

Costello also said Congress should stipulate that the U.S. Coast Guard will assume control of all large spills.

He said oil spill response cannot be managed by committee, and without firm control PIRO cannot operate as the strike force it was intended to be.

A steering committee recommended that PIRO's charter ban it from responding to a spill larger than 1,200 bbl unless the Coast Guard is in charge.

PIRO noted it can only make its best effort in responding to a spill. It is impossible to remove all oil in a large spill, and rough weather could block cleanup efforts.

PIRO also is seeking tax rulings giving it nonprofit status so member companies' dues will be tax deductible.

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