Pelosi: Eliminate $74 million liability limit for economic damages from oil spills

Pelosi: Eliminate liability limit for oil spills

WASHINGTON — House Speaker Nancy Pelosi says oil companies that cause major spills like the BP spill in the Gulf of Mexico should face unlimited liability for economic damages.

Federal law caps liability at $75 million for economic damages beyond direct cleanup costs. Pelosi said at a news conference that she supports legislation eliminating the cap as part of a series of bills Congress is working on in response to the spill.

The Senate is considering a bill to increase the cap to $10 billion. Industry representatives say such a high cap would make it difficult, if not impossible, for oil companies to insure drilling operations.

BP executives have promised to pay all legitimate claims.