Transporters Lose Bid to Recover Costs Under Oil Protection Act

Texas Aromatics LP and other companies who were forced to temporarily stop shipping operations after a 2019 oil spill can’t recover lost costs under the Oil Pollution Act because the oil was contaminated with Xylene, the Fifth Circuit ruled Friday.

When oil is commingled with hazardous substances, parties can’t bring a private right of action under the OPA, the three-judge panel on the US Court of Appeals for the Fifth Circuit said.

The Comprehensive Environmental Response, Compensation, and Liability Act applies to a mixtures of hazardous substances, imposes a cleanup regime, and allows for cost-recovery suits. But Intercontinental Terminals Co., ...