We have changed our privacy policy. In addition, we use cookies on our website for various purposes. By continuing on our website, you consent to our use of cookies. You can learn about our practices by reading our privacy policy.


Tier 3 Spill

Categories: Bonds, Metrics

See: Tier 1 Spill. See: Tier 2 Spill.

Oil spills...happen. Sometimes, these situations don't amount to much. The oil company itself can send out its sweepers and moppers, and get everything back to normal. That event is considered a tier 1 spill. Sometimes, the spill gets away from the oil company and the authorities need to get called in to help with containment and clean-up. A tier 2 spill.

Then...you have the bad ones. The global-level events. The oil spills that lead every news outlet for weeks. The kind of situation that spawns Congressional hearings. Now...events have reached tier 3.

A tier 3 spill represents the most serious stage of the three-tier system put in place by the International Petroleum Industry Environmental Conservation Association, or IPIECA. It represents a massive event that requires a large influx of outside help.



Find other enlightening terms in Shmoop Finance Genius Bar(f)