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Who Will Pay For Oil Spill Cleanup?

The Gulf oil spill has not been contained yet but already the Obama administration has stated BP is responsible for the cleanup costs.  It is not so simple.

The New York Times suggests that untangling liability will be necessary.  In this case, BP, Transocean and Deepwater Horizon all have insurance protecting them against an accidental release of this nature.

Yesterday, NPR posted an article suggesting Haliburtan may be responsible because they had cemented the well within 24 hours of the blow out, intimating that the cement had not sealed the well properly allowing hydrocarbons or liquids into the well upsetting hydrostatic balances.

The litigation amongst potentially responsible parties and their insurers will ensue with the objective of  covering as much of  the clean up costs as possible through insurance.  After all of that is resolved and the responsible parties have cleaned up the gulf as much as possible, Natural Resource Damage Assessment (NRDA) will come into play.

An NRDA determines the financial payout to NOAA and the FWS, the Trustees responsible for the public’s natural resources, sea turtles, birds the fishery and wetlands, etc.   The economic damages are calculated to determine how much money it will cost to restore the affected area to pre-spill conditions, the difference being restoration verses clean-up.

However, there is generally litigation associated with an NRDA to determine an equitable damage figure.  The baseline condition of the resources is a major consideration in NRDA cases.

For the recent Gulf spill, responsible parties may claim the fishery was already significantly damaged by Hurricane Katrina and wetland areas have been damaged by previous oil spills and had not recovered when this spill occurred.

A more accurate statement by the Obama administration would be that many companies will be involved in paying for the cleanup and that BP will be responsible for paying for restoration.

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One thought on “Who Will Pay For Oil Spill Cleanup?

  1. *WHAT COST HEALTH? IT IS PRICELESS*
    Last I heard no fence can hold in the ocean (nice white picket, even stockade … might as well do chain link.)
    FACT: In terms of the health (ultimately monetary) perspective, BP has doomed our mutual real estate, earth … the only home we will ever have …and it is one we share.
    Question is would you shut up and pay a contractor who puts damaging materials into your home, destroying its, your, your family’s and future family’s health (which IS ruining one’s entire life!) Would you let them get away with it?
    Introducing chemicals into water to counteract the oil spill simply adds harmful chemicals to the water supply no matter what kind of spin anyone tries to put on this … effects are either “unknown” and will as always be found to be toxic and carcinogenic sooner (you or your children develop cancer, digestive disorders, neurological impairment, genetic damage, etc.) or later (when your children get cancer, etc. or as adults unable to conceive or carry babies to term)… same illnesses and effects of introducing oil into world’s waters in the first place.
    There is no recovery from the distaster caused by BP oil spill as it has introduced toxins and carcinogens into world’s central water supply, ultimately reaching every ocean, river, lake, pond, etc. in the world, all land it touches, precipitates into the air and reaches and rains down on the land everywhere … ultimately reaches water supply of all animals, vegetables and fruits … and affects humans eating food supply and drinking water.
    Earnings from real estate or any other profession will be meaningless when you have to pay it to the doctors for yourself and your offspring, experience deteriorating health, and cannot enjoy life … and property everywhere U.S.A. … and internationally will be standing on a toxic landfill … earth global.
    BP spends the majority of time, effort and money on PR to counteract the consequences and results of their inappropriate behaviors and lack of ethics, greed, delays in handling the disaster … spending their money on PR to cover up and make them look good with phony ads regarding how they are helping … and researching and buying Google keywords arrange so any word you Google related to their BP oil spill disaster brings up BP’s own website inventing lies about how they are helping! Check it out!
    BP is now also spending its time, energy and money meeting with other big oil companies including EXON which is no doubt BP’s esteemed role model for oil disasters … and together they can spend money to whitewash themselves and charge the cost back to the consumers for whom they have been providing (dis)service … how much does it cost to buy illness for yourself and future generations forever.
    There is no amount of money that will ever create full recovery therefore BP is liable for damaging our planet and all its inhabitants today and forever.
    No need to worry about how and when this disaster gets cleaned up … it will never entirely be cleaned up as that is an impossibility … toxic – carcinogenic oil (and clean up chemicals or any sort) that nature never intended for to be spread in the oceans are and will be there … forever! No amount of payment by BP will ever be enough.
    BP should not past, present or future be paid or retain any remuneration for providing not service … but disservice.
    BP is liable to pay back every cent it has ripped out of our lives and that of future generations of human and non humans … for the pain and suffering every dweller on earth is now or will ever experience due to their misbehaviors … creating the oil spill and wasting time with delays, cover-up lies … while wildlife and humans continue to suffer!
    Any cap on BP payment fails to serve our needs … and there is no time line or end point to the damage and suffering to every adult and child, living and unborn, human and non human, in the Gulf, Florida, ultimately the entire U.S. and our neighbors, the entire world … it is painful to contemplate (if one is a thinking person.)
    Even if you do not relish living with the awareness of an unpleasant truth, you will eventually be forced to consider the extent of damage and health needs that will ultimately result from BP’s criminal perpetration of the environmental holocaust it unleashed.
    As they are advising to those already directly affected, don’t take payoff now … better to demand maximum compensation from BP … everything it has and forever!
    Mark these words … 1, 5, 10, 15 and/or 20 + years you will remember them as you will be reading the related studies and results in scientific and health journals throughout the world! And chowing down useless meds (with other harmful side effects), to counteract negative effects derived from this BP oil spill.
    “It’s not nice to fool Mother Nature!” (And just when you thought you were only eating carcinogenic Trans fats … everything natural you eat, drink and breathe has been ruined.)
    P.S. Time to find and bring to justice policitians/legislators that benefited from BP profits from less spent on life-saving precautions allowed by weak regulations in U.S. and Canada … we don’t see such disasters elsewhere in the world where BP is drilling and where there are strong regulations in place. They need to pay big time too!

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