Who’s to pay for Gulf spill clean up? BP says it will _ for legit claims; feds, BP execs meet

By Steven R. Hurst, AP
Monday, May 3, 2010

Administration to press BP to settle Gulf claims

WASHINGTON — The Obama administration is pressing oil giant BP to clarify how the company will cover costs relating to the Gulf oil spill, even as BP indicated it would pay “legitimate and objectively verifiable” claims.

Homeland Security Secretary Janet Napolitano says reimbursement for individuals and state and federal government will be on the agenda when she and Interior Secretary Ken Salazar meet with BP’s top executives in Washington later Monday.

She told ABC’s “Good Morning America” that the Obama administration wants to make sure there is a clear claims process set up for proper reimbursement. She also wants BP to stop requiring those volunteering with the cleanup to sign waivers limiting the company’s liability.

Meanwhile, in a fact sheet posted to the company’s website on Monday, BP said it took responsibility for the response to the Deepwater Horizon oil spill and said “we will clean it up.”

The document says “BP will pay all necessary and appropriate clean-up costs” as well as “legitimate and objectively verifiable” claims for property damage, personal injury, and commercial losses. It pledged that claims will be “promptly investigated” and that resolved claims would be paid promptly.

On Sunday, President Barack Obama traveled to southeastern Louisiana to reassure fishermen and others on the Gulf Coast that the government is doing all it can as masses of oil from a pipeline rupture endanger fisheries, oyster beds and beaches.

“Your government will do whatever it takes for as long as it takes to stop this crisis,” Obama said. “We’re dealing with a massive and potentially unprecedented environmental disaster.”

Obama took a brief helicopter tour 15 miles east of Venice to view the kinds of marshlands and estuaries threatened by the spill. High winds prevented him from flying over the 30-mile spill itself.

The leaking oil imperils not only the environment but an abundant fishing industry, which Obama called “the heartbeat of the region’s economic life.” In front of a cabin and RV park in Boothville, along Louisiana Highway 23, was a plywood sign pleading, “Obama Send Help!!!!”

“We’re going to do everything in our power to protect our natural resources, compensate those who have been harmed, rebuild what has been damaged and help this region persevere like it has done so many times before,” Obama said.

It appeared little could be done in the short term to stem the oil flow, which was also drifting toward the beaches of neighboring Mississippi and farther east along the Florida Panhandle. Obama said the slick was 9 miles off the southeastern Louisiana coast.

BP Chairman Lamar McKay raised faint hope that the spill might be stopped more quickly by lowering a hastily manufactured dome to the ruptured wellhead a mile deep in the next six to eight days, containing the oil and pumping it to the surface. Such a procedure has been used in some well blowouts but never at the mile-deep waters of this disaster.

Another potential hazard was a political one that depends on how the public judges the Obama administration’s response. In 2005, President George W. Bush stumbled in dealing with Hurricane Katrina in the Gulf and left the impression of a president distant from immense suffering. His presidency never recovered.

Administration officials said they were on top of the accident from the first day. A declaration of national significance — opening the way for greater government involvement — came nine days later, when a new leak was discovered and it was determined that far more oil was leaking from the site than initially estimated.

An investigation is under way into the cause of the April 20 well explosion and, depending on its outcome, questions may be raised about whether federal regulation of offshore rigs operating in extremely deep waters is sufficient and whether the government is requiring the best available technology to shut off such wells in event of a blowout.

Administration officials have been at pains to explain that Obama’s late March decision to expand offshore oil exploration could be altered as a result of the spill and that stricter safety rules would doubtless be written into leases.

In reality, oil companies and the government lack the technology to prevent the damage from a well gushing oil, killing wildlife and tainting a delicate ecosystem.

Adm. Thad Allen, the Coast Guard commandant, said the volume of spewing oil could climb to 100,000 barrels a day in the event of a total wellhead failure, a much greater breach than is believed to exist now.

Associated Press Writer Allen Breed in Louisiana contributed to this report.

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