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)

Reuters Photojournalism

Our day's top images, in-depth photo essays and offbeat slices of life. See the best of Reuters photography.  See more | Photo caption 

Members of the U.S. Navy Blue Angels fly over the World Trade Center in lower Manhattan as part of the 25th annual Fleet Week celebration in New York, May 23, 2012.  REUTERS/Eduardo Munoz (UNITED STATES - Tags: MILITARY ANNIVERSARY TPX IMAGES OF THE DAY)

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BP's partners won't set up oil spill claims funds

WASHINGTON | Thu Jul 22, 2010 4:49pm EDT

WASHINGTON (Reuters) - The two oil companies that are BP's partners in the now-capped oil well told Congress on Thursday they will not set aside money for cleanup costs along the Gulf Coast because it is BP's responsibility.

Anadarko Petroleum Corp and MOEX, a unit of Japan's Mitsui & Co, said they do not need to create a special fund to deal with spill-related costs because BP had a 65 percent interest in the well and was its exclusive operator.

"We have not set money aside," Anadarko Chairman James Hackett told a Senate subcommittee looking into the oil spill. "We are not paying."

Naoki Ishii, president of MOEX, said his company "has no established fund" to cover cleanup costs or liability claims they may be ordered to pay relating to the spill.

Anadarko owns 25 percent of the project and MOEX has 10 percent.

At the urging of the White House, BP set up a $20 billion fund to pay future liability claims for lost income from businesses and workers due to the spill and other costs.

Lawmakers rebuked Anadarko and MOEX for failing to set up their own funds.

"You look like you're not stepping up," said Democratic Senator Claire McCaskill.

"Right now the people who are in the Gulf need the money, not the litigation," said Republican Senator John McCain.

Hackett said under their joint operating agreement with BP, "no party is required to pay any costs or damages to the operator to the extend that they are incurred as a result of the operator's gross negligence or willful misconduct."

Lawmakers shot back that nobody was asking Anadarko or MOEX to pay anything, but to begin setting aside some money in case a court finds the companies liable.

(Reporting by Tom Doggett; Editing by David Gregorio)

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