No, This Is Not Blackmail
BP ultimatum: Let us drill or funds will dry up
"Oil giant BP is telling lawmakers that if it isn't allowed to get new offshore drilling permits in the Gulf, it will not be able to afford to pay for the damage caused by the Deepwater Horizon oil spill, the New York Times reported in its Friday edition.
The Times reports the UK-based oil giant is on the warpath against a drilling reform bill passed by the House earlier this summer that would effectively bar BP from getting new drilling permits in the US.
The CLEAR Act, passed by the House in July, includes an amendment (PDF) that states any oil company that has received more than $10 million in safety fines, or has seen more than 10 workers killed in the past seven years, is barred from being granted new drilling permits. The Times notes that, currently, only BP fits that criteria.
BP officials reportedly insist that their warnings to Congress don't mean that they are backing away from the $20 billion escrow fund the company established to pay damages to victims of the oil spill. But the Times reports that BP is using some of its voluntary payments as "bargaining chips" with lawmakers.
"As state and federal officials, individuals and businesses continue to seek additional funds beyond the minimum fines and compensation that BP must pay under the law, the company has signaled its reluctance to cooperate unless it can continue to operate in the Gulf of Mexico," the Times reports."
"Oil giant BP is telling lawmakers that if it isn't allowed to get new offshore drilling permits in the Gulf, it will not be able to afford to pay for the damage caused by the Deepwater Horizon oil spill, the New York Times reported in its Friday edition.
The Times reports the UK-based oil giant is on the warpath against a drilling reform bill passed by the House earlier this summer that would effectively bar BP from getting new drilling permits in the US.
The CLEAR Act, passed by the House in July, includes an amendment (PDF) that states any oil company that has received more than $10 million in safety fines, or has seen more than 10 workers killed in the past seven years, is barred from being granted new drilling permits. The Times notes that, currently, only BP fits that criteria.
BP officials reportedly insist that their warnings to Congress don't mean that they are backing away from the $20 billion escrow fund the company established to pay damages to victims of the oil spill. But the Times reports that BP is using some of its voluntary payments as "bargaining chips" with lawmakers.
"As state and federal officials, individuals and businesses continue to seek additional funds beyond the minimum fines and compensation that BP must pay under the law, the company has signaled its reluctance to cooperate unless it can continue to operate in the Gulf of Mexico," the Times reports."
posted by nolocontendere at 2:40 PM
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