Last week when BP (NYSE:BP) would go on record at a court hearing about waiving the liability cap instituted via the Oil Pollution Act of 1990, it caused a mini uproar and confusion after they had publicly stated in the past they would waive the restrictions.
That changed today and clarity was brought to the situation as BP said in a court filing they would indeed waive the liability cap.
Also per the filing, BP was generous with their advice for other major players in the Gulf spill, encouraging Transocean Holdings LLC (NYSE:RIG), Anadarko Petroleum Corp (NYSE:APC) and MOEX Offshore 2007 LLC to also waive the cap.
MOEX is the majority owner of Mitsui (Nasdaq:MITSY), which has a 10 percent stake in the Macondo oil well. Anadarko has a 25 percent stake and BP the remaining 65 percent. Transocean owned the Deepwater Horizon oil rig which was leased by BP from them.
Also in the filing BP stated it has reserved the right to go after reimbursement for money it has already paid from its partners. Much of that remains to be decided based on whether they are designated as being grossly negligent in the matter.
If they are, the other participants and owners probably won't have to pay damages to BP.
Showing posts with label Oil Pollution Act. Show all posts
Showing posts with label Oil Pollution Act. Show all posts
Tuesday, October 19, 2010
Monday, October 18, 2010
BP (NYSE:BP) Reneging on $75 Million Cap?
In a feisty exchange between a BP (NYSE:BP) lawyer and lawyer for plaintiffs before U.S. District Judge Carl J. Barbier, BP attorney Don Haycraft implied BP could seek to hide behind the $75 million liability cap law under the Oil Pollution Act.
Originally BP had said they wouldn't seek to protect themselves under the cap.
Plaintiffs' attorney Steven Herman responded saying: "We're shocked over here to hear the defendants now bring up this $75 million cap. We were under the impression [the cap] was waived."
Barbier said the American public did have the impression BP was going to waive the cap, paving the way for higher liability payments.
Haycraft responded saying "I know that BP has paid lots and lots and lots" of money at this time in relationship to the oil spill.
When pressed by Herman if BP is prepared to pay all legitimate claims only up to $75 million, Haycraft said he was "not prepared to answer that question in this context."
According to Kenneth Feinberg, who administers the claimant portion of the BP compensation fund, the oil giant has paid out $1.4 billion in claims so far.
Originally BP had said they wouldn't seek to protect themselves under the cap.
Plaintiffs' attorney Steven Herman responded saying: "We're shocked over here to hear the defendants now bring up this $75 million cap. We were under the impression [the cap] was waived."
Barbier said the American public did have the impression BP was going to waive the cap, paving the way for higher liability payments.
Haycraft responded saying "I know that BP has paid lots and lots and lots" of money at this time in relationship to the oil spill.
When pressed by Herman if BP is prepared to pay all legitimate claims only up to $75 million, Haycraft said he was "not prepared to answer that question in this context."
According to Kenneth Feinberg, who administers the claimant portion of the BP compensation fund, the oil giant has paid out $1.4 billion in claims so far.
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