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Understanding Covered Offshore Facility [Oil Spill]: Legal Definitions and Implications
Definition & meaning
A covered offshore facility (COF) refers to any structure or equipment involved in the exploration, drilling, or production of oil, as well as the transportation of oil from these facilities. This includes various components such as wells, pipelines, and devices, but does not include vessels or deepwater ports licensed under the Deepwater Port Act of 1974. A COF must be located seaward of the coastline or within a bay connected to the sea and depicted on specific US Geological Survey (USGS) maps. Additionally, it must have the potential for a worst-case oil spill discharge of more than one thousand barrels of oil, or a lesser amount if deemed necessary by the Director due to spill risk.
Table of content
Legal use & context
The term "covered offshore facility" is primarily used in environmental law and regulatory compliance related to oil spill financial responsibility. It is relevant to operators of offshore oil facilities who must demonstrate financial capability to manage potential oil spills. Users can manage their compliance needs through legal templates and forms available on platforms like US Legal Forms.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: An offshore oil platform located in the Gulf of Mexico that has pipelines transporting oil to the mainland is classified as a covered offshore facility due to its structure and potential spill risk.
Example 2: A mobile offshore drilling unit (MODU) drilling for oil in federal waters is considered a covered offshore facility, provided it meets the discharge potential criteria (hypothetical example).
Relevant laws & statutes
The primary regulation governing covered offshore facilities is found in Title 30 of the Code of Federal Regulations, specifically 30 CFR 253.3. This regulation outlines the definition and requirements for oil spill financial responsibility for offshore facilities.
Comparison with related terms
Term
Definition
Key Differences
Covered Offshore Facility
A facility involved in oil exploration or production with specific regulatory requirements.
Focuses on financial responsibility for oil spills.
Oil Spill
The release of oil into the environment, particularly marine areas.
Refers to the incident itself, not the facility's regulatory status.
Deepwater Port
A facility for transferring oil between tankers and pipelines offshore.
Specifically licensed under a different act, not included as a COF.
Common misunderstandings
What to do if this term applies to you
If you operate or are involved with a covered offshore facility, it is essential to ensure compliance with financial responsibility regulations. Consider using legal templates from US Legal Forms to assist with necessary documentation. If your situation is complex, consulting with a legal professional is advisable.
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Typical discharge potential threshold: More than 1,000 barrels of oil.
Jurisdiction: Federal waters and specific state waters.
Compliance requirement: Demonstrate financial responsibility for oil spills.
Key takeaways
FAQs
A covered offshore facility is a structure or equipment used for oil exploration or production that meets specific regulatory criteria.
Financial responsibility ensures that operators can manage the costs associated with potential oil spills, protecting the environment and complying with regulations.
No, only those that meet the defined criteria regarding location and spill potential qualify.