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Bid to lift liability cap in spill is blocked


Posted: May 19, 2010

Obama, Democrats blast Republican move; Salazar says regulators were lax

msnbc.com news services
updated 3:45 p.m. PT, Tues., May 18, 2010

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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As usual, slanted. Here is Inhofe's statement: - Backwards Typist

[ In Reply To ..]
As usual, the Prez either doesn't know what went on, or decided to keep the wedge between dems and pubs or try to divide them even further apart (and that includes the people who read those articles).



Opening Statement of Senator James M. Inhofe
Ranking Member, Senate Committee on Environment and Public Works

"It might come as a surprise to some people in this room, but I want to commend President Obama for his speech on the oil spill last Friday. He didnât waste time pointing fingers, assigning blame, or issuing irresponsible statements against domestic energy production. He said what Iâve said from the very start. Let me quote him. The âmost important order of business,â he said, âis to stop the leakâ¦and we need to stop it as soon as possible.â

The President went on to say that we must âcontain the spill and protect the Gulf Coast and the people who live there.â Again, thatâs exactly what we should be doing. He also mentioned the need to âmitigate the damage caused by the spill,â and to put in place âevery necessary safeguard and protection so that a tragedy like this oil spill does not happen again.â

This is very similar to what I said at our last hearing on the spill. I said that we need to:

⢠Mitigate and contain the environmental impacts;
⢠Provide assistance to the Gulfâs commercial and recreational fishing industries; and
⢠Investigate the causes so we can prevent a disaster of this kind from happening again.

Administrator Jackson, I have great respect for youâand I was pleased with what you said recently about the spill. You said we need a thoughtful response to ensure this doesnât happen again. You said the focus must be on stopping the oil spill and helping the people affected. I couldnât agree more.

I also appreciate your hard work, along with the Coast Guard and NOAA, in approving the testing on the subsea use of dispersants. The early results are encouraging. I also support your diligence in monitoring to ensure that the use of dispersants is effective and environmentally sound.

Based on what Iâve seen thus far, we have agreement on what needs to get done and I hope we can agree on the path forward. Unfortunately, Iâm afraid that this spill has occasioned some fatally misguided legislation, which will make us more dependent on foreign oil.

This Committee exercises primary jurisdiction over the Oil Pollution Act (OPA) of 1990. Senator Menendezâs bill, S. 3305, would amend the OPA. He may not know it, but his bill is a big help for big oil companies, such
as BP, and for foreign and state-owned oil companies.

S. 3305 would make offshore production for small- and medium-sized independent producers economically
infeasibleâthey would be forced out of the Gulf. We canât forget that the independents produce 63 percent of the Gulfâs natural gas and 36 percent of its oil. If S. 3305 became law, their business would be swallowed up by the likes of BP and the China National Offshore Oil Corporation. How would that help address the spill? How would that lessen our dependence on foreign oil?

We experienced something like this in 1989 with the Exxon-Valdez oil spill. Remember that that incident was different from what are dealing with now. Exxon-Valdez was the name of the tanker that crashed in Prince William Sound. It was a transportation accident.

I was on the House Transportation Committee at the time. Much to my dismay, environmental groups politicized the accident; they exploited it to achieve their goal of shutting down domestic oil production. Of course, the irony is that we are more dependent on foreign oil. Companies moved their operations overseas. Whatâs more, we now have more tankers coming to port, which increases our risk of oil spills.

Yesterday, President Obama announced plans to establish an independent commission to comprehensively investigate the causes of this spill. Madame Chairman, letâs address the urgent needs of the moment. And then, after that, when we have all the facts, we can draft the appropriate response, one that will protect the environment and lessen our dependence on foreign oil. We can do both and I hope we will do both. "

Maybe I'm reading it wrong but this bill was not blocked. - Backwards Typist

[ In Reply To ..]
S3305 was set up as an amendment under the Financial Responsibility Act. It was read twice and referred to the Committee on Environment and Public Works. I don't see where there was any vote taken on it yet (my earlier message).

IMHO, big oil should pay the total cost of any oil spill created by them. Right now they pay $75M towards cleanup and the Mendendez bill wants it upped to $10B, but they should NOT limit any bill to dollar amounts. Even the BP spill may cost over $10B...so if this bill would pass, all BP has to do is pay the $10B cleanup and they're done. If it's over that amount, the rest would still be on our shoulders.

Here is the bottom line.... - sm

[ In Reply To ..]
If U.S. officials had followed up on a 1994 response plan for a major Gulf oil spill, it is possible that the spill could have been kept under control and far from land.

The problem: The federal government did not have a single fire boom on hand.

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