Oil Pollution Liability and Compensation Act of 1986

Oil Pollution Liability and Compensation Act of 1986 - Subjects the owner or operator of a vessel or facility to liability for oil discharged in violation of the Federal Water Pollution Control Act (unless the discharge was caused by an act of God, war, by a third party, or by Federal negligence). Causes such owners and operators to be liable for: (1) all actual costs of removal incurred by the United States or a State under the Federal Water Pollution Control Act, the Intervention on the High Seas Act, or the Deepwater Port Act of 1974; (2) any removal costs incurred by any person, as removal is defined under the Federal Water Pollution Control Act; and (3) specified damages for economic loss or loss of natural resources resulting from such a discharge.

Limits such liability, but stipulates that an owner or operator shall be liable for all damages and removal costs in the case of: (1) willful misconduct or negligence; (2) violation of applicable safety, construction, or operating standards or regulations (within the knowledge or privity of the owner or operator); or (3) a refusal to provide reasonable cooperation and assistance requested by a responsible official. Provides that owners or operators subject to the Outer Continental Shelf Lands Act shall bear all costs of removal.

Authorizes the President to establish additional limitations on liability for certain facilities.

Provides for third party liability.

Establishes the Oil Spill Liability Fund for: (1) payment of removal costs; and (2) related research.

Sets forth procedures for asserting claims against the Fund. Requires any claimant, prior to asserting a claim, to present the claim to the owner, operator, or guarantor of the vessel or facility from which the oil was discharged. Directs the President to prescribe forms and procedures for filing claims.

Directs the President, acting through certain Federal agencies, to promulgate and periodically review regulations for the assessment of damages for injury to natural resources resulting from an oil spillage.

Directs the Comptroller General to report to the Congress regarding Oil Spill Liability Fund audit results.

Requires the owner and operator of any offshore vessel and/or facility to establish and maintain stated levels of financial responsibility sufficient to satisfy claims.

Amends the Trans-Alaska Pipeline Authorization Act to abolish the Trans-Alaska Pipeline Liability Fund. Replaces the Trans-Alaska Pipeline Liability Fund and the Deepwater Port Liability Fund with the Oil Spill Liability Fund of this Act.

Repeals the oil spill liability provisions of the Outer Continental Shelf Lands Act Amendments of 1978 (thereby replacing the Offshore Oil Pollution Compensation Fund under that Act with the Oil Spill Liability Fund established in this Act).