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WASHINGTON - As an Obama administration official acknowledged lax regulation prior to the Gulf oil spill, Senate Democrats on Tuesday were foiled in their bid to dramatically lift a cap on oil companies' economic liability for spills.
President Barack Obama said he was disappointed that the proposal had stalled in the U.S. Senate, and blasted Republicans he said had stopped it.
"I am disappointed that an effort to ensure that oil companies pay fully for disasters they cause has stalled in the United States Senate on a partisan basis," Obama said in a statement.
"This maneuver threatens to leave taxpayers, rather than the oil companies, on the hook for future disasters like the BP oil spill," he said.
Republican Sen. James Inhofe of Oklahoma used procedural move to stop the bill from coming to the Senate floor, saying that raising the cap would hurt smaller drillers.
"Big Oil would love to have these caps up there so they can shut out all the independents," he said.
Federal law requires companies to pay for all environmental damage, but economic damages are now capped at $75 million. Some Democrats want to raise the cap to $10 billion, and a few want to take it off completely.
Salazar: Regulators were lax
Also in the Senate Tuesday, Interior Secretary Ken Salazar testified that the "collective responsibility" to make sure the disaster is never repeated starts with his department, and specifically, the agency that regulates offshore drilling.
The remainder of the article can be found at:
http://www.msnbc.msn.com/id/37205691/ns/gulf_oil_spill/
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