Monday, June 07, 2010

White House Endorses Unlimited Liability Cap For Oil Spillers

I guess it's a case of better late than never, but I cannot fathom why the White House did not get on board with removing the liability cap on oil spills a month ago or more. Oil well drilling - whether onshore or offshore - is an inherently dangerous activities which ought to face a strict liability standard. Even when evidence of negligence, possible false application statements, and sacrifices of safety to save money are not involved. Having been in Key West last week and lived on the Gulf Coast of Alabama, it makes me nauseated to think of the environmental damage that has occurred - not to mention what may yet occur. I am still dumbfounded, however, as to why the White House seems to be allowing BP to call the shots rather than the other way around. It still seems to me that destroying the well a month ago wasn't pursued - oh, I forgot, BP doesn't want to lose the well, even if it destroys the entire Gulf of Mexico. Here are highlights from Huffington Post on this belated move by Obama:
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Democrats in Congress and officials in the White House are making yet another major push to pass legislation to make the liability for oil companies involved in damaging spills unlimited.
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On Monday evening, the White House confirmed that it favors the most recent piece of legislation that would drop any numerical ceiling to the amount of money an oil company like BP would have to pay for economic damages caused by a spill. Currently, the cap is $75 million.
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"The president supports removing caps on liability for oil companies engaged in offshore drilling," said spokesman Ben LaBolt. "Oil companies should have every incentive to maximize safety and arbitrary caps on liability create a disincentive to achieve that goal."
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So far, votes to raise the liability cap -- first to $10 billion and then unlimited -- have failed to pass via unanimous consent in the Senate. But now, congressional negotiators are planning alternative legislative routes. On Wednesday, Sen. Robert Menendez (D-N.J.), the author of the liability-cap-raising bill, is set to testify before the U.S. Senate Committee on Environment and Public Works about his proposal.

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