Tips for Any Business: New York's Oil Spill Law

Even those readers who spend summers sailing Chautauqua Lake, or those setting out for more distant ports, might not be familiar with Article 12 of the Navigation Law. This law really has nothing to do with sailing or navigating New York’s waterways, but it can be a vitally important liability concern for anyone operating a business. 

Article 12 was enacted in 1977, about the same time as Superfund was created on the state and national scene. Superfund establishes a continuing fund of money to pay for environmental remediation caused by certain hazardous pollutants. Remediation of spills into soil and water can be a lengthy and expensive process, necessitating an independent funding source to keep projects underway. What makes Article 12 a topic that every businessperson should be aware of is the type of pollutant. The Superfund legislation covers various exotic and dangerous chemicals, but exempts petroleum based pollution. Article 12 of the Navigation Law is known as the “oil spill law” but really it covers any release of petroleum products. Cases have been brought in New York courts concerning underground fuel tanks, leaks from household furnaces, and spillage from overfilling on a mobile home kerosene tank, to name but three examples.