Gulf oil spill: BP accepts responsibility for oil cleanup

BP, the oil company at the heart of what was likely the nation’s worst oil disaster, said on Monday it would pay for the cleanup costs connected to the massive oil leak in the Gulf of Mexico.

In a round of appearances on morning television and radio news shows, BP Chief Executive Tony Hayward accepted responsibility for the cleanup and said the company would pay compensation for legitimate claims for property damage, personal injury and business losses.

“We are responsible, not for the accident, but we are responsible for the oil and for dealing with it and cleaning the situation up,” Hayward said.

The original accident took place April 20 on a deep-water rig operating about 130 miles southeast of New Orleans. The rig sank two days later, and 11 were believed dead.

Oil began leaking from the wellhead, pouring at least 5,000 barrels of oil into the gulf waters, though some estimates have place the flow from three leaks at much more. The leading edge of the oil has reached Louisiana wetlands and is expected to make landfall in the next days.

Throughout the weekend, federal officials led by President Obama have stressed that BP will be responsible for the cleanup and for capping the leaking well.

On Monday, Hayward acknowledged that his company would be responsible for the cleanup, expected to cost billions of dollars. But he was careful to contend that the original accident was the fault of offshore drilling contractor Transocean Ltd., which operated the rig that sank.

“We will await all the facts before drawing conclusions, and we will not speculate,” a spokesman for Transocean said.

The original accident and the oil leaks also are being investigated by the federal government.

Hayward explained in his appearances that the company was working below the surface to cap the leaks from the well, some 5,000 feet underwater. BP is also working on the surface to control the leak with chemicals to disperse the oil and has an active effort underway to place booms to contain the spread of the spill.

-- Michael Muskal
Twitter.com/LATimesmuskal

Comments

[swf]

First, they described the spill area as the size of Jamaica, then as large as Puerto Rico. Please let us know when it reaches the size of the state of Alaska.

[City Dave]

I hope everyone who drives large trucks and huge SUV's (for no reason except ego) know you are all responsible for this.

[DRM]

"We are responsible, not for the accident, but we are responsible for the oil and for dealing with it"

This is nonsensical. Who's fault is it if YOUR equipment breaks and causes this? If that's not your fault, why would you care about cleaning up the spill? Unbelievable.

[The Bell]

It's easy for an oil company to say they'll accept responsibility when an insane Federal statute generously caps corporate financial liability in such instances at $75 Million, leaving the rest for the taxpayer to struggle with.

Too easy, in fact.

[cshargeit]

i have a notion that oil prices may go up because of this crime. that means i will pay for it.

[Bob Munger]

I am begining to wonder if BP truly has the resources to pay for all of the damage done. First of all, how in the Hades to you value a healthy vs. unhealthy ocean?

My guess is that there is no governing body or authority out there that can attest to the viability or likelihood of success of their proposed "fix," which I believe is to swap out the wellhead/shutoff apparatus, a hastily-arranged maneuver at 5000 ft below sea level (something never before attempted). I hope it works but if not, it sounds like it will make things dramatically worse, in terms of increasing the flow.

I pray that this is not a desparate move by a company that has seen the writing on the wall.

[mac]

I note that some may have a morbid fascination with Halliburton. Cheney, they should note has been gone from there for many years. Halliburton has been in the Oil well servicing business for many years and are competent, find a new horse to beat, that one died!

[Keith]

Who Pays? You Pay
Under the law the liability for the Oil companies limit is $75 million dollars. Oil companies buy insurance to pay for any environmental damage. The USA has placed a tax/fee on every barrel of oil sold or imported into the USA of .08 cents for environmental damage/incidents. Currently the Trust Fund on paper has $1.5 billion in it. However like the SS Trust Fund it is full of IOU's and there is no money in the accounts.
The tax payer and the consumer pay the clean up fees for all oil disasters. Don't believe the propaganda for .gov and Big Oil.

[El Guapo de la ciudad de Los Angeles]

Big of them!

[MtnWoman]

Regarding those "legitimate" claims of property damage, they may not have much liability under the law - limited to $75 million.

From the NY Times:

Under the law that established the reserve, called the Oil Spill Liability Trust Fund, the operators of the offshore rig face no more than $75 million in liability for the damages that might be claimed by individuals, companies or the government, although they are responsible for the cost of containing and cleaning up the spill.

http://www.nytimes.com/2010/05/02/us/02liability.html

That $75 million is supposed to cover claims by individuals, companies or the government. $75 million in this tragedy is nothing.

How lucky for BP and the companies associated. Even if the law is amended, can it be made retroactive?

[cyn]

I'm having nightmares
because of this.
This a world wide problem.
We need help.
God help us.
Lets cover hole.
NASA
any suggestions?
....This should be the #1 story. I am very dissapointed with the administration.
CANCELL the dinners, Set AMerican idol aside....GET THERE, get to WORK....
Hillary please-intervene.

[mike]

maybe we should boycott bp/arco and make sure they pay for the cleanup

[Rob]

I'm with Mark when it comes to being completely puzzled about the underreporting on this story. I swear to God, the balloon boy got as much coverage at some news outlets. I pray that I'm wrong, but I truly don't think the gravity of this story will be realized until this oil has caused more economic and ecological damage than anyone could have feared.

[Jim Hines]

Notice they "promise" to pay for the clean-up - But - watch when it comes to make restitution for lost incomes - fat chance anyone will be adequately reimbursed for the loss of their livelihood. Don't believe me? Just look at what happened to the fishermen in Prince William Sound, AL after the Valdeze.

[Hypatia]

Isn't it fascinating that we keep hearing that BP is responsible for the oil spill
disaster off the Gulf Coast. But wasn't there in the media a passing mention of Dick Cheney's old shop, Halliburton, which had just finished installing the concrete cap on the well, I believe 20 hours before the explosion? But we don't hear about that any more? Oh, sorry... wasn't supposed to go there...

[Mark]

I don't understand why this story is not "the" number one story across news outlets. Also why does this article still quote the fraudulently low 5,000 barrels per day figure? This spill has the potential to destroy nearly half of the commercial fisheries available in the continental US with no end in sight! Don't drop the ball on this LATimes.