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BP’s Liability Could Be Capped at $75 Million

The Deepwater Horizon explosion and oil spill has resulted in several people reconsidering statutory caps on liability. Along with extensive environmental damage to the Gulf of Mexico region and potential health issues for the people in the area, the Deepwater Horizon spill is expected to result in billions of dollars in economic damages. A federal statute however would limit BP's liability for the spill. According to the Oil Pollution Act of 1990 (OPA), the liability for each oil spill incident from an offshore facility is the removal costs plus $75 million.

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