Tar Sands Exempt from Oil Spill Insurance Fund; Taxpayers at Risk
With costs for cleaning up spills so staggeringly high, one might reasonably assume that oil pipeline operators have insurance of some sort to cover costs they cannot afford to pay. And it is true; pipeline operators pay a few cents per barrel into the
Oil Spill Liability Trust Fund to defray cleanup costs. And given that
dilbit is so much more difficult clean up, since its density causes it to separate and sink in water rather than float on the surface, one might reasonably assume that tar sands pipeline operators would be required to pay a little bit more.
However, one would be wrong. They are, in fact,
not required to pay into the fund at all. Thanks to an interpretation of the law creating the liability fund by the Internal Revenue Service,
bitumen is exempted because it is not "conventional oil."
Regardless of who pays for it, the notion of cleaning up of an oil spill is essentially delusional