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The agency that regulates offshore oil drilling drew sharp criticism in Washington as BP PLC began drilling a new well in a frantic attempt to stanch the gusher fouling the Gulf of Mexico.
BP and the Obama Administration say they are focused on stopping the flow of crude from the damaged well nearly a mile below the surface. But already lawmakers and interest groups are firing the first shots in what could be a lengthy fight over financial liability and political blame.
"Our priority at this time is to contain and remediate this oil spill," the official added.
White House officials stressed again Monday that BP would be held liable for the cost of the cleanup and economic compensation for losses on the Gulf Coast. But Democratic senators said the Oil Pollution Act of 1990, passed in the wake of the Exxon Valdez, caps economic damage liability at $75 million. Democratic Sens. Bill Nelson of Florida and Robert Menendez and Frank Lautenberg of New Jersey introduced legislation to raise that cap to $10 billion.
The law, dubbed the Big Oil Bailout Prevention Act, would eliminate a cap of $1 billion per incident on claims against the Oil Spill Liability Trust Fund.
If damages exceed the size of the trust fund—$1.6 billion—claimants would be able to collect damages from future revenues, with interest. The bill would also eliminate a $500 million cap on natural resources damage.
"BP says it'll pay for this mess. Baloney," Sen. Nelson said. "They're not going to want to pay any more than what the law says they have to."
White House budget office spokesman Ken Baer said Monday night the president supports efforts to raise the cap "based on the information we currently have."
