BP, other oil spill companies start the blame game

Source: Reuters

Oil giant BP Plc has been carefully playing the public relations game by saying it bore responsibility for the costs of the clean up of the oil that was shooting out of the damaged well a mile below the surface of the Gulf. But in recent days it has begun to point directly at driller Transocean Ltd as the main culprit.

BP has also sent a letter to its drilling contractors, including Transocean, to verify the condition of their blowout protectors -- a valve fitted onto the wellhead that is designed to prevent catastrophic surges of oil and gas.

If the BOP was defective, that could drag its maker, Cameron International Corp, into the fray. Investors have already punished Cameron, knocking its stock down 20 percent since April 26.


Under the Oil Pollution Act of 1990, BP has responsibility to pay for clean up of the spill that could run into the billions of dollars, as well as up to $75 million liability for economic damages, according to Alfred Kuffler, a partner at law firm Montgomery McCracken in Philadelphia and an expert in maritime pollution law.

"The responsible party has very limited defenses," he said of the law, which was created in response to the Exxon Valdez oil spill in Alaska.


Read more: http://www.reuters.com/article/idUSTRE64578H20100506

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Halliburton is mentioned in the article

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:hi:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x8285963

Every man for himself. I wonder who will end up under the bus for good.
This list doesn't even include agancies and politicians that were involved.

thanks. I kicked it...with benefits

as soon as a fellow DU'er pointed out that it was a Swiss holding company that BP was using to "own" the rig.

Why shouldn't they?

Everybody else has been playing it. The assumption is that because they're an oil company, they must be guilty. Even if there's no crime or there hadn't been an oil spill, they'd be guilty of something. All that remains to do is for the jury to pronounce sentence--there can be no due process. After all, due process under the US Constitution is for people we approve of and like. That sound you hear when other entities and people, those we don't like, is the US Constitution being shredded.

Just because BP has the responsibility to pay for the clean-up doesn't mean that it doesn't also have the ability to try to recoup those costs from some other companies.

However, Reuter's conveniently--as part of its move in the blame game--ignores that there's a lot more than just clean-up expenses and the trivial "economic harm" amount. There are also all the private suits, and I don't recall them saying they'd be pleading nolo contendere to all (or even any) of those. So even if they do assume responsibility without admitting guilt so that they pay the amount of out their shareholder's pockets that doesn't mean they're on the hook for all claimants. Even then, since many of the biggest shareholders are pension funds and mutual funds . . . Never mind.

no doubt about that. I liked the post, thanks

I will mention two things:
1. no jury trial will ever happen. They have too much money to let there be an official judgement on this. Not that that is bad mind you-- you or I would do the same.

2.Economic harm is paupers pennies. Economic benefit never covers the real costs. EXAMPLE- 50 year old makineg $50K loses an arm. An arm is probably 20% disability (not sure about that but lets go with it). 15 years left of working life, $50K, 20% = (15x50,000)x.2 = $1,050,000 sorry about the arm.............. AND they have insurance to cover it.