U.S. Army Captain Michael Kelvington, commander of the Battle company, 1-508 Parachute Infantry battalion, 4th Brigade Combat Team, 82nd Airborne Division, bows next to remains of Gulam Dostager, a member of Afghan Local Police who was killed in the blast of an Improvised Explosive Device (IED) during the joint Tor Janda (Black Flag in Pashtu) operation, in Zahri district of Kandahar province, southern Afghanistan May 25, 2012.  REUTERS/Shamil Zhumatov  (AFGHANISTAN - Tags: MILITARY CIVIL UNREST CONFLICT TPX IMAGES OF THE DAY)

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BP responds to U.S. request to clarify liability

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HOUSTON | Mon May 17, 2010 9:30am EDT

HOUSTON (Reuters) - BP Plc on Sunday said its public statements to date are "absolutely consistent" with the Obama administration's request for the London-based oil giant to clarify its legal liability for paying to clean up a massive Gulf of Mexico oil spill.

Top Obama administration officials on Saturday demanded "immediate public clarification" from BP Chief Executive Tony Hayward over BP's intentions about paying cleanup costs.

"What they are requesting in the letter is absolutely consistent with all our public statements on the matter," BP spokesman David Nicholas said.

At issue is a U.S. law that limits energy companies' liability for lost business and local tax revenues from oil spills to $75 million.

"The public has a right to a clear understanding of BP's commitment to redress all of the damage that has occurred or that will occur in the future as a result of the oil spill," Interior Secretary Ken Salazar and Homeland Security Secretary Janet Napolitano wrote in a letter to Hayward.

BP executives including Hayward have repeatedly said that the London-based energy giant will pay all "legitimate claims" related to the spill.

"We are taking full responsibility for the spill and we will clean it up, and where people can present legitimate claims for damages we will honor them," Hayward told Reuters in an interview on April 30.

Salazar and Napolitano said in their letter: "Based on these statements, we understand that BP will not in any way seek to rely on the potential $75 million statutory cap to refuse to provide compensation to any individuals or others harmed by the oil spill."

The spill could prove to be one of the most devastating environmental disasters the United States has ever faced, and experts have pegged BP's potential legal liability in the billions of dollars.

Nearly 100 lawsuits have already been filed across the Gulf region and lawyers envision the disaster becoming one of the biggest class actions in U.S. history.

(Reporting by Chris Baltimore; Editing by Sandra Maler)

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Comments (1)
afisher wrote:
It seems that BP is trying to sell the “trust me” promise. Regarding liabilities and prolonged damage, I will believe them ONLY when they set aside funds (min $10B) to cover ALL the Environmental Damage that will occur. Thus far, I have not seen any such action. I will bet that they will be more than willing to pay for the “tip of the iceberg) and get the heck out, before the rest of their iceberg disaster is uncovered. I don’t know if US Gov is complicit in this cover-up, but scientists need to be able to study the effect of the chemical’s being dumped in the Gulf and has been recently been reported , the underwater slicks before BP goes back to business as usual.

May 17, 2010 10:47am EDT  --  Report as abuse
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