Division of Spill Prevention and Response


Financial Responsibility

These provisions are only applicable to: Oil Terminals, Pipelines, Offshore Facilities, Exploration or Production Facilities, Refineries, Tank Vessels, Oil Barges, and Railroad Tank Cars.

Current financial responsibility dollar amounts (pdf)

For Nontank Vessel Financial Responsibility information, please see the Nontank Vessel Financial Responsibility webpage.

Alaska Statutes 46.04.040 and 46.04.055 require advance proof of an oil industry operator's ability to respond in damages for claims resulting from an oil discharge. This is termed "proof of financial responsibility." These statutes and their defining regulations in the Alaska Administrative Code (18 AAC 75, Article 2) provide standards for proof of financial responsibility that differ from federal requirements.

Applications must be completed and received at least 30 days prior to operation in Alaska of an oil terminal, pipeline, offshore facility, onshore exploration or production facility, refinery, tank vessel, oil barge or railroad tank car. Alaska law requires all operators to have both an approved oil discharge prevention and contingency plan and approved proof of financial responsibility before operating in Alaska.

Financial responsibility may be demonstrated by self insurance, insurance, surety bond, guarantee, letter of credit or certificate of deposit approved by the Department. With certain exceptions, the law requires that an action may be brought in a state court directly against the insurer, the group, or another person who provides proof of financial responsibility. However, the liability under AS 46.04.040 of a third party insurer is limited to the type of risk assumed and the amount of coverage specified in documents submitted as proof. An agent in Alaska must be designated for service of process. The insurance industry commonly refers to these provisions as the "Alaskan Endorsement," and specific language required for insurance is found at 18 AAC 75.250(b). A list of operators and their agents who've had success obtaining insurance with the "Alaskan Endorsement" is available upon request.

More Information


The financial responsibility program is administered out of the Department's Juneau office. Operators may direct questions and submit application forms with accompanying evidence of financial responsibility to:

Christopher Pace, Environmental Program Specialist
Financial Responsibility Program
Alaska Department of Environmental Conservation
Division of Spill Prevention and Response
410 Willoughby Avenue, Suite 303
P.O. Box 111800
Juneau, Alaska 99811-1800

Telephone: (907) 465-5231
Fax: (907) 465-5245
E-Mail: Chris.Pace@alaska.gov