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Natural Resource Damage Assessment: Methods and Cases

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damages not quantifiable at reasonable cost for adverse environmental effects caused by the spill.<br />

Compensation should be based on the characteristics of the oil spilled (such as its toxicity <strong>and</strong><br />

persistence) <strong>and</strong> the sensitivity of the affected area. The latter depends on the location of the<br />

spill, the habitat sensitivity, seasonal distribution of this sensitivity, importance of the area for<br />

recreational, aesthetic or archaeological use <strong>and</strong> proximity of the spill to wildlife habitats.<br />

Washington’s compensation-schedule method 4 uses minimal spill-specific information,<br />

<strong>and</strong> only pre-existing information about resource vulnerability to the type of oil spilled. The<br />

method has four major components:<br />

(1) A relative “harmfulness” ranking of each of the classes of oil involved as determined<br />

by their known chemical, physical <strong>and</strong> mechanical properties <strong>and</strong> factors that affect<br />

severity <strong>and</strong> persistence of the effects of the spill on the environment.<br />

(2) A relative vulnerability ranking of the receiving environment which takes into<br />

account location of the spill, habitat <strong>and</strong> sensitivity of the resource to the spill,<br />

seasonal distribution of the resources, areas of recreational use <strong>and</strong> aesthetic<br />

importance, the proximity of the spill to important habitats for birds, aquatic<br />

mammals, fish or other species listed as threatened or endangered, <strong>and</strong> areas of<br />

special ecological or recreational importance.<br />

(3) A method for calculating the resource damages from the oil spill based on (1) <strong>and</strong> (2).<br />

(4) A method for adjusting the damages calculated in (3) based on actions taken by the<br />

PRP such as immediate removal of oil from the environment, enhancing or impeding<br />

the detection of the spill <strong>and</strong> extent of damage.<br />

Part 1: Ranking of “harmfulness”<br />

There are several facets to the “harmfulness” ranking of the released material. All three<br />

rankings are on a scale of one to five. Acute toxicity indices (OILAT), which depend on the<br />

properties of the oil <strong>and</strong> its solubility in seawater, have been developed by the state agency for<br />

seven different types of oil. An acute-toxicity ranking of one represents the least harmful<br />

substance. Relative scores for mechanical injury (OILMI) have been developed based on the<br />

specific gravity of the oil spilled. Persistence scores (OILPER) have been developed on a one to<br />

five scale depending on the length of time the spilled oil is known to persist in a variety of<br />

habitat types. For example, a score of five is assigned if the effects of the oil spill will persist for<br />

five to ten years while a score of one is assigned if these effects will only last for days or weeks.<br />

Part 2: Ranking of “vulnerability”<br />

Scores indicating how vulnerable an environment is to an oil spill are determined<br />

separately for each of sixteen marine <strong>and</strong> estuarine regions <strong>and</strong> one hundred <strong>and</strong> thirty-one sub<br />

regions in the state. There are vulnerability scores for spills in: marine <strong>and</strong> estuarine waters; the<br />

4 For complete details including values of scores, see Washington (1992).<br />

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