BP agrees to 20B from the jump. Is 20B enough? Absolutely, NOT. We are talking about BP lying about the actually oil spill from day one. We are talking about not having enough haz-mat suits for folks dealing with that crude. We are talking about an economy in that region, which has reached to Florida, which will impact them for YEARS, not just this year, YEARS.
Also, 100M is set aside for unemployed oil workers in that region because while the environment is being destroyed, they still want to drill for oil.
Following a meeting with the President of the United States, the BP Board announces an agreed package of measures to meet its obligations as a responsible party arising from the Deepwater Horizon spill.
Agreement was reached to create a $20bn claims fund over the next three and a half years on the following basis:
• BP will initially make payments of $3bn in Q3 of 2010 and $2bn in Q4 of 2010. These will be followed by a payment of $1.25bn per quarter until a total of $20bn has been paid in.
• While the fund is building, BP's commitments will be assured by the setting aside of U.S. assets with a value of $20bn. The intention is that this level of assets will decline as cash contributions are made to the fund.
• The fund will be available to satisfy legitimate claims including natural resource damages and state and local response costs. Fines and penalties will be excluded from the fund and paid separately. Payments from the fund will be made as they are adjudicated, whether by the Independent Claims Facility (ICF) referred to below, or by a court, or as agreed by BP.
• The ICF will be administered by Ken Feinberg. The ICF will adjudicate on all Oil Pollution Act and tort claims excluding all federal and state claims.
• Any money left in the fund once all legitimate claims have been resolved and paid will revert to BP.
The fund does not represent a cap on BP liabilities, but will be available to satisfy legitimate claims. Further and more detailed terms regarding the establishment and operation of the claims fund and the ICF will be finalized and announced as soon as possible.
Big news, BP will not pay out dividends for the rest of the year. Shareholders take a hit.
President Obama's remarks to the agreement:
BP Chairman of the Board, Carl Henric Svanberg and catch his phrase of caring about the SMALL PEOPLE:
The independent fund for damage claims will be directed by lawyer Kenneth Feinberg, who oversaw payments to families of victims of the Sept. 11, 2001, terrorist attacks. At present, Feinberg is known as Obama's "pay czar," setting salary limits for companies getting the most aid from a $700 billion government bailout fund.
The $20 billion is not a cap — if legitimate claims outstrip that amount, then BP will required to pay more. A three-person panel will decide appeals of rejected claims.
Clouds of oil have been found drifting underwater in the Gulf of Mexico as far as 142 miles from the wrecked Deepwater Horizon drilling rig, government officials said Tuesday.
At a briefing, Jane Lubchenko, of the National Oceanic and Atmospheric Administration (NOAA), said that tests conducted at three sites by a University of South Florida research vessel confirmed oil as far as 3,300 feet below the surface.
The oil was found 42 miles northeast of the well site and also 142 miles to the southeast.
Meaning this shit will be in the Gulf for years. We have a very long haul here.
But the reality is that he can not. BP is a foreign company, called British Petroleum. While we all are frustrated, the administration still have to depend on BP to cap this. Now we all have our opinions, but we are trapped in a box. My only complaint has been the slow movement of the Obama Administration, the perception of that, and its total belief in what BP has told them. Which are LIES.
Obama's admission of the scandal of the MMS Division of the Interior Department.
This part of the interview is reason, ALONE, that if you had a known division corrupt it is imperative that you clean it up with your OWN people. This oil spill will be a start how business SHOULD BE DONE in this country.
First off, the BP Oil Disaster on the Deepwater Horizon is British Petroleum's fault at the end of the day. Now BP can continue to point fingers at Transocean or Halliburton, but at the end of the day, it was BP who was drilling in deep ocean water for crude oil.
Next, this is not Barack Obama's fault. This was a man made disaster caused by greed, in my opinion. Greed of a company to make more money, and greed of the money received to allowe BP to drill by the United States of America.
Finally, the reality is that this oil will probably spill until the relief wells are on line, the earliest late July and the latest late August. So, for another solid 60 days, we have the glorious opportunity to continue to view the toxic oil dumping into the Gulf Coast.
I am angry at the Obama Administration who has walked slower than turtles during this disaster. I said during the campaign when something happens, only then does Barack Obama move. Well, I am glad that he is moving now with more presence (from him), more comunication (from the White House and Louisiana), and sending Attorney General Eric Holder to the region.
Over the weekend, the Obama administration tossed some harsh words in the direction of BP. And it’s dispatched its top cop, Attorney General Eric Holder, to the Gulf Coast to meet with top federal prosecutors for the states most affected by the spill.
Also joining Holder: Assistant Attorney General for Environment and Natural Resources Ignacia Moreno and Assistant Attorney General for the Civil Division Tony West.
I am glad that movement from the Obama White House is finally being seen. I state this because this region, more than any other in the United States, has been through the fire and walking through a furious one now. This region has every right to be skeptical about the intervention of government. Government did not do a very good job after Hurricane Katrina, still has not made that region whole and bitter remenants are left from government in this region.
Now we have the Obama Administration who was given a golden opportunity about what government CAN DO, but was slow as turtles in communicating it and delivering it. I liked that President Obama made the original statement in Louisiana after the Deepwater Horizon blowout informing us that this is "BP's spill and BP's bill", but his presence was needed repeatedly in that region with back up of ACTION from his words. That is just happening.
I don't know if Barack Obama's friends, staff are being honest with him and I mean about the perception of all of this. I state this because if I was in charge of watching the fallout from the news, I would tell him to dump repeating Steven Chu being a Nobel Peace Price recipient. That is important to whom? Right now, when you are worried about your life as you know it, knowing that is not more important than how much BOOM is in my backyard. That is perception. The perception for me hit, when I was able to see live video feed of that oil continuously pumping with no stoppage in sight. If I saw this, I know everyone in the White House did, too.
Reality is sinking into the Gulf Coast Region. They know that this oil will probably continue to pump its toxins into the region. Mississippi and Alabama will probably see this oil coming to their shores, a most certainty. And Florida? They are getting hammered because they are in the vicinity. Perception is a thing that can contaminate all these states. I don't know if the perception train has left in regards to the Obama Administration, but they finally found a clue that people are angry about this and distancing themselves from BP.
With Attorney General Eric Holder now huddling with Gulf states attorneys general, the uneasy relationship between BP and the Obama administration is taking the ugly but inevitable "see you in court" turn. The White House is so anxious to separate itself from the BP stink that from now on only Coast Guard Adm. Thad Allen will do daily briefings on the spill, with no BP exec in sight.
And yet, as The Washington Post's Joel Achenbach and Jerry Markon point out, this creates quite the awkward situation. Obama desperately needs BP to succeed. His status as a leader erodes with each day of gushing-oil webcasts from the sea bottom.
The reality is sitting in for everyone around here. We have the privilege, opportunity to continue to see black crude oil pump its toxins into our Gulf Coast waters until August. This is going to be a long, hot, summer for all of us.
Lastly, we need a shake up in that White House. I am watching Robert Gibbs painfully answer questions about BP and it does not look good. Put it like this, he does not wear answering BP questions well and someone needs to be at these pressers that CAN ANSWERS BP QUESTIONS WELL. David Axelrod was a wonderful strategist for the campaign, but in this White House he has been horrific. And Rahm? You all know the answer to that question.
Videos:
Carol Browner letting the public know, again we are preparing for the worst and BP has an interest for low balling the flow rate of oil into the Gulf:
Conservationist Rick Steiner gives a great explanation of this blowout on Friday and why he believed the top kill was not working (at the time):
Keith Olbermann's comment on President Obama:
This is why BP needs to keep their CEO away from a mic, more importantly to just fire his ass.
And isn't wonderful that BP's CEO states that, "He wants his life back." How selfish, vain a statement. What about the Gulf Coast region and how the oil is expanding to other states DAILY? What about their lives, livlihood, etc.? They just want their lives back too!!! But you, Mr. Hayward will be ok. You will continue to fly down to the South of France and live life the way you want. You can just turn the whining of the Gulf Region and its U.S.A. citizens off, because you don't have your life staked in this catastrophe. WE, the U.S.A. do.
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