Various commentators, public officials and BP PLC representatives have stated repeatedly that there is a $75 million damages cap for the BP Gulf of Mexico oil spill. Nothing could be further from the truth.
Under the Oil Pollution Act of 1990 (OPA 90), the states and the federal government are entitled to full recovery for their cleanup costs. Private claims and any other government claims are limited to $75 million; however, there are exceptions, and if gross negligence or federal safety law violations are proved there is no damages cap at all.
