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UPDATE 1-BP ready to pay "legitimate" oil spill claims-CEO

Mon May 3, 2010 7:56am EDT

(Adds quotes, details)

MIAMI May 3 (Reuters) - BP Plc (BP.L) is ready to pay all legitimate claims tied to the oil spill caused by the accident at its Gulf of Mexico undersea well, Chief Executive Tony Hayward told National Public Radio on Monday.

"We've made it clear that where legitimate claims are made, we will be good for them," Hayward said.

"We have the claims process set up, small claims today that are being paid instantly ... bigger claims we clearly have a process to run through," the BP chief executive added.

He said the London-based company fully accepted responsibility for the spill and would pay for the cleanup operation.

The huge slick caused by the spill is heading for the U.S. Gulf shore in what President Barack Obama has called a "massive and potentially unprecedented environmental disaster".

BP has not put an estimate on the likely costs of the spill, which follows the explosion and sinking of a drilling rig operated by Swiss-based driller Transocean (RIG.N) last month.

BP said last week that it and its partners in the well, including Anadarko Petroleum (APC.N), were paying $6 million a day in clean-up efforts but admitted costs would rise sharply when the oil slick hit land, as would claims for damages.

Hayward said the technical options his company was working on to try to seal the ruptured well included an undersea containment system that would capture the leaking oil and channel it to a tanker on the surface.

"It's fabricated and will be on location next weekend," he said.

Another option, the drilling of a relief well to intersect and try to control the ruptured well, was also "now underway," Hayward added.

BP was also using undersea robotic vehicles to try to fix the well blowout preventer -- a mechanism that he said had failed to prevent the oil gushing from the ruptured well following the rig accident.

"No one understands why it's failed. We have assembled in Houston 160 companies from across the industry to focus on this task," Hayward said. (Reporting by Pascal Fletcher; Editing by Paul Simao)

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Comments (9)
Billcarson wrote:
Don’t be to quick to accept any payment.This spill could last twenty years ! Take pictures of your loss ,document everything! Take any offers given to you in writing and keep them as proof of loss down the road .
“Don’t Take Any Wooden Nickles”

Document everything including the Coast Guard Statements in the press ,who were the spokespeople and who gave the Coast Guard the information – Ask Questions – Get you local politicians involved -They represent you !

May 03, 2010 8:33am EDT  --  Report as abuse
bentwheeler wrote:
If there is such a thing, “proactive in hindsight” is the paradox that comes to mind when reading this article. Some consideration of forthcoming claims is in order, but it seems capping the geyser and cleaning up the slick is more pressing.

My last purchase of BP gasoline was about a week before the explosion. Enjoy the benefit of that $35 tank of gas, boys, because when I say last I mean last.

May 03, 2010 8:38am EDT  --  Report as abuse
COFLZephyr wrote:
Just another CEO trying to weasel his way out of accepting responsibility and passing the buck to the taxpayers in a form of corporate welfare. Legitimate expense are all any any costs related to stopping the leak, managing the spill, collecting the oil, cleaning the beaches, cleaning the wildlife, compensating fisherman and others make a living from the water for lost wages, etc. This includes reimbursing the DOD for the Navy and Coast Guard for their efforts. There should also not be any “Volunteers” to clean the beaches or wildlife. BP should be required to hire and compensate all the clean up workers and provide workers compensation insurance for them. A fair wage would seem to be around $15 per hour. There are no expenses related to this spill that BP should not be forced to pay. The last three major oil spills in this country (Alaskan pipeline and California Coast) were BP spills caused by negligence, poor maintenance and cost cutting. The Taxpayers got the bill for all of those spill clean-up efforts. BP should be banned from exploring or operating wells, and pipelines in the US or off its shores for a period of 20 years.

May 03, 2010 8:53am EDT  --  Report as abuse
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