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May 4, 2010

1990 Law Could Cap BP’s Payout of Economic Damages at $75M
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In Washington, White House Press Secretary Robert Gibbs was questioned
about the crisis which some say could turn out to be the worst
industrial environmental disaster in U.S. history.

Reporter: “Is it your commitment that B.P. will pay all costs associated
with the spill?”

Gibbs: " That’s—that is our commitment, yes."

Reporter: “Including, like, lost wages and that sort of thing?”

Gibbs: "That’s specifically one of the things the president spoke with
Thad Allen about and with parish presidents and fishermen yesterday, is
setting up a system—and Secretary Napolitano talked about this this
morning—setting up a system for compensation and claims that isn’t
bogged down.

While Robert Gibbs said it is the administration’s commitment to make BP
pay all costs associated to the spill, an obscure 1990 law may shield BP
from paying just $75 million in economic dangers related to the spill.
On Monday Democratic Senator Robert Menendez introduced a bill to raise
the economic damages liability cap from $75 million to $10 billion.
Menendez called the bill, the “Big Oil Bailout Prevention Act.”



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