Federal law may limit BP liability in spill

**Justin Case** · 05-04-2010, 08:15 AM

Federal law may limit BP liability in spill

Economic losses in the area to likely exceed $75 million
By ERICA WERNER/Associated Press
Published: Tuesday, May 4, 2010 12:13 AM MDT
WASHINGTON — Federal law may limit how much BP has to pay for damages such as lost wages and economic suffering in the Gulf Coast oil spill, despite President Barack Obama’s assurances that taxpayers will not be on the hook.

A law passed in response to the 1989 Exxon Valdez spill in Alaska makes BP responsible for cleanup costs. But the law sets a $75 million limit on other kinds of damages.

Economic losses to the Gulf Coast are likely to exceed that. In response, several Democratic senators introduced legislation Monday to raise the liability limit to $10 billion, though it was not clear that it could be made to apply retroactively.

White House press secretary Robert Gibbs said Monday the administration’s commitment was for BP to pay for all costs associated with the spill.

Obama said the same thing during a tour of the area Sunday. “Let me be clear: BP is responsible for this leak; BP will be paying the bill,” the president said.

Kenneth Baer, spokesman for the Office of Management and Budget, also noted that if BP were found to have acted negligently in the spill or to have violated federal laws, the damages cap under the Oil Pollution Act would be lifted.

Baer said BP could also be held liable under additional federal or state laws.

“You can be sure that BP will be held accountable to the full extent of the law,” he said.

Nevertheless, the existence of the liability cap might complicate Obama’s commitments to make BP pay for numerous costs anticipated in the Gulf such as shortened fishing seasons and lost tourism. It is not clear how high those costs could rise.

“We’re glad that the costs for the oil clean up will be covered, but that’s little consolation to the small businesses, fisheries and local governments that will be left to clean up the economic mess that somebody else caused,” said Sen. Robert Menendez, D-N.J.

BP issued a fact sheet Monday committing to pay “all necessary and appropriate cleanup costs” as well as “legitimate and objectively verifiable claims for other loss and damage caused by the spill.” A company representative did not immediately return a phone message left seeking comment on whether claims would be paid out over $75 million.

Beyond the $75 million in law, the federal government also maintains an Oil Spill Liability Trust Fund supported by industry fees. It can make a total of $1 billion in payouts per incident to individuals, businesses and governments.

Roughly 2.6 million or more gallons has spilled into the Gulf since the April 20 blast that sunk an oil rig and killed 11 workers.
http://mohavedailynews.com/articles/...3742522626.txt

**Rick** · 05-04-2010, 03:42 PM

Right, right, right. See? You just pulled my chain. Aaargh! There is a 5 cent a barrel tax on crude to pay for the fund. Oh, you'll like this. Who pays for the tax? That's right the Petroleum Companies. But wait....where do they get the money to pay it....from us. That money is included in the price of gasoline that everyone pays. So who gets to pay for the oil spill clean up? WE DO!!!!!!!!

http://www.uscg.mil/npfc/About_NPFC/osltf.asp

Scroll down to Barrel Fund:

And while you're at it.....read this.

http://www.huffingtonpost.com/david-..._b_561055.html

**Ken** · 05-04-2010, 03:44 PM

The law is probably unconstitutional with respect to private parties who get injured economically or otherwise. Besides, how can this incident NOT be the result of some form of negligence?

File some criminal charges - betcha' some criminal laws were broken out there. That's how criminal defendants, including corporations, can be required to pay restitution.

**crashdive123** · 05-04-2010, 05:29 PM

I believe that law was enacted following the Exxon Valdez incident. I heard today that legislation may be introduced to up the limit, but didn't know if they could make it retroactive. I don't know why "they" have that concern, since it hasn't stopped them on anything else.

The bottom line is, as Rick posted - we are all going to pay for this.

**Ken** · 05-04-2010, 05:55 PM

Laws can usually be made retroactive - except for substantive criminal laws. Even procedural criminal laws can be retroactive.

**Alaskan Survivalist** · 05-05-2010, 12:13 AM

If they do like the Exxon Valdez spill It will be cheaper to hire attorneys to tie it up in court for twenty years and settle for ten cents on the dollar with the grandchildren of those who suffered the loss.

**Rick** · 05-05-2010, 06:41 AM

I've done an extensive search on Google Earth. Does anyone know where the flush handle is for the planet?

**crashdive123** · 05-05-2010, 07:18 AM

Originally Posted by Rick

I've done an extensive search on Google Earth. Does anyone know where the flush handle is for the planet?

Found it.

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**Alaskan Survivalist** · 05-05-2010, 01:24 PM

Like all the news the subtantive issues are not being discussed. Why has not any one asked how much oil is in this field that they cannot stop from leaking? How many other rigs are tapping that field? What happens to the global economy when major loss hits BP? The dominoes are falling. Connect the dots. It's not if, it's when collapse finds you. The solution is the same to all the worlds problem. The system and everything connected to it is dieing, all that can be done is for people to become self reliant and save thier own piece of the world. There is no time to waste on those who have not figured this out and think there is a solution. Stay focused!

**Justin Case** · 05-09-2010, 10:54 AM

As Of Today, 3 Million Gallons leaked,,,and counting.

**Rick** · 05-10-2010, 02:12 AM

Originally Posted by AS

What happens to the global economy when major loss hits BP

Not a darn thing. They are still making record profits. A spill like this is just the cost of doing business, albeit a large cost for this one. Just look at BP's history.

Exxon Valdez (BP was Exxon's partner in the Prudhoe Bay Oilfield.)

How many pipeline spills have there been in Alaska? Alyeska is headed by a BP exec. James Hermiller.

In 1990, when information was going to Washington about those spills, Hermiller hired Wackenhut Corp (a security firm) to track down their whistleblower.

1993-1995 Doyon Drilling, a BP contractor, illegally dumped hazardous materials down oil well shafts on the North Slope. BP was convicted in court for failing to report the dumping as soon as it learned about it, a felony. BP was fined $500,000, placed on five years probation and ordered to create a nationwide environmental management program that cost the company at least $40 million.

2006 - Two North Slope spills total more that 200,000 gallons because of corrosion. Chief of BP's corrosion unit, Richard Woollam took the 5th Amendment during hearings.

In November last year, 46,000 gallons of oil and water gushed from an over-pressurized BP pipeline on the North Slope, prompting the EPA and the Alaska Department of Environmental Conservation to open another criminal investigation of BP.

And that's just in your own backyard. We could talk about the Texas City Refinery Explosion in 2005 that killed 15 workers.

As for the money picture, they just (in April 2010) agreed to pay ...

A 15.7 percent stake in Valhall and a 25 percent stake in Hod for $991 million cash.

Devon Energy $7.0 billion for assets in Brazil, Azerbaijan and the Gulf of Mexico.

A 75 percent stake in the Canadian sands company Value Creation for $900 million.

That's just how the system works. It's how it has always worked (remember names like Rockefeller, Morgan, Carnegie?). And it will continue to work that way long after we're dead. It's just a different day with the same old song still playing.

**Justin Case** · 05-11-2010, 05:50 PM

Do you Have an Idea on how to stop the leak ? well ,, They want to know what it is !
http://www.deepwaterhorizonresponse..../inquiry/2931/

**2dumb2kwit** · 05-11-2010, 06:15 PM

Originally Posted by Justin Case

Do you Have an Idea on how to stop the leak ? well ,, They want to know what it is !
http://www.deepwaterhorizonresponse..../inquiry/2931/

Nuke it?

http://trueslant.com/juliaioffe/2010...ke-that-slick/

I wonder how much damage it would really do. Ya think the Russians would tell us the truth?

**Justin Case** · 05-11-2010, 06:28 PM

Originally Posted by 2dumb2kwit

Nuke it?

http://trueslant.com/juliaioffe/2010...ke-that-slick/

I wonder how much damage it would really do. Ya think the Russians would tell us the truth?

Probably create a tidal wave ,, lol

**Rick** · 05-11-2010, 07:35 PM

Why don't they get a boat with a dozer blade on front and just push the oil over to Texas City and start refining it. We could turn the Gulf into a huge oil storage area.