White House wants increased industry liability in Gulf oil spill

The Associated Press ^ | 5-12-2010

[boycott]

WASHINGTON -- The White House asked Congress Wednesday to raise limits on BP's liability for the Gulf oil spill, approve new spending on everything from food stamps to seafood inspections and increase taxes on oil companies for an emergency cleanup fund.

Administration officials said they couldn't forecast total costs from the cleanup of the massive spill and a multitude of economic damages to the Gulf region, but the changes they're seeking in the legislative package unveiled Wednesday suggest a multibillion-dollar response.

The administration wants to increase from $1 billion to $1.5 billion the amount that could be spent from an emergency cleanup fund paid with industry fees, and raise a $75 million limit on how much liability BP would have to bear for costs not directly connected to cleaning up the spill, such as lost wages and tourism.

BP PLC will pay as much as possible, administration officials told reporters on a conference call, although some of the new proposed spending -- such as $29 million for the Interior Department to conduct inspections for proposed offshore drilling leases -- cannot be charged to BP.

Nonetheless, said White House energy adviser Carol Browner: "We take BP at their word. They say they intend to pay for all costs. When we hear 'all' we take it to mean all."

[boycott]

Obama asks to raise liability cap (retroactively), increase tax on oil companies

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These folks are absolutely clueless.

[gcraig]

Agreed... isn’t this an ex post facto attempt?

[Lets Roll NOW]

Change the rules in the middle of the game. Companies will risk everything to drill for oil, I think not. Better get ready to ride your bike to work.

[boycott]

Agreed... isn’t this an ex post facto attempt?

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And if he increases the taxes on the oil companies, who pays?

This would spur inflation in a time when we really couldn’t afford it.

[DonnerT]

Are we looking at Wyatt’s torch?

[boycott]

Are we looking at Wyatt’s torch?

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Honestly, I am not familiar with that.

[Always A Marine]

Agreed... isn’t this an ex post facto attempt?

Sounds like a Bill of Attainder to me -- a law specifically targeted at one victim. AND it would be an ex post facto law. More thuggery...

[DonnerT]

Reference to an oilman in Atlas Shrugged.

Government went too far. He destroyed all his wells but one and left it burning on the top of a mountain in Colorado.

[coaltrain]

BP did not say “all costs” they said “pay all necessary and appropriate clean-up costs.” I have a feeling the courts will end up deciding what the definition of “necessary and appropriate” is. I’m guessing Odumbass wants to have them pick up the tab for date night with Queen Bigbooty.