Alaska Drilling

Hey Taxpayers, Guess Who Foots the Bill For Arctic Oil Spills?

Bud Sambasivam | Posted 11.12.2012 | Canada
Bud Sambasivam

In the wake of the 2010 BP Horizon spill in the Gulf of Mexico, our government needs to make changes to our outdated liability regime. Currently, the Canadian taxpayer is liable for offshore oil spills in the Arctic. Under current law, an oil company is responsible for damages up to $40 million of absolute liability, regardless of fault or negligence. Beyond the $40 million, it is either Canadian taxpayers or the company paying, depending on fault. Why are we providing public insurance for oil companies? We do not provide public insurance for homeowners in the case of a fire, or car owners in the case of a motor vehicle accident.