Senate Republicans Block Bid To Raise Oil-Spill-Damages Limit

[maddezmom]

Source: Dow Jones


By Siobhan Hughes, Of DOW JONES NEWSWIRES

WASHINGTON -(Dow Jones)- An effort by a few Senate Democrats to raise the cap on damage claims that BP Plc (BP) must pay for a a Gulf of Mexico oil spill was blocked on Thursday after Republicans said the plan wouldn't work.

Sen. Lisa Murkowski (R, Alaska) led the charge against the measure, aimed at raising to $10 billion the limit on damage claims. The current limit, of $75 million, has been widely criticized by lawmakers as too low. Republicans blocked efforts to proceed, saying independent offshore oil developers would not be able to stay in business under the legislation because small companies wouldn't be able to self-insure against claims.

"The only companies that are going to be able to self-insure against this level of strict liability are the national oil companies, the super majors," Murkowski said. She said that would create a "monopoly" on offshore drilling among giant companies such as BP. "We need to ensure that BP as the responsible party pays."



Read more: http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201005131521dowjonesdjonline000579&title=senate-republicans-block-bid-to-raise-oil-spill-damages-limit#ixzz0nqEuLLAQ


Read more: http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201005131521dowjonesdjonline000579&title=senate-republicans-block-bid-to-raise-oil-spill-damages-limit

[The Velveteen Ocelot]

1. Quelle surprise.

[babylonsister]

2. Holy crap. I cannot believe they did this; wait, yes I can, I guess.

But no I can't. Jeeze. I hope every last person affected by this spill hears about this. Bastids. :grr:

[Soylent Brice]

3. this whole day SUCKS.

[Deep13]

4. Make sure they do it on camera.

Well need that footage for ads this fall.

[SpiralHawk]

"Sneer. Smirk." - FatCat Republicons & Oil Cronies

[SoapBox]

18. ...this is perfect.

[lumpy]

5. $75 million ! Ridiculous ! A drop in the bucket to the large oil

dogs. Of course the Repubs always use the excuse 'small businesses will suffer 'when any legislation requiring big business to pay a fair share is proposed, whether it is taxes or responsability. I would support nationalizing the oil business if it weren't for the fact that the government is in the business of supporting the obscene big boys. Kick this up.

[Wizard777]

6. How are the republicans going to pay for the damages BP doesn't?.

[Dr.Phool]

7. Instead of buying hookers and booze at their convention in Tampa.

They can buy Dawn and Bounty.

Because the oil will still be on the beaches.

[KansDem]

8. The same way they were going to pay for the Iraq war when their precious W lied us into it...

Oh, wait!...silly me...:silly:uh-huh, uh-huh...

[Wizard777]

23. We have NO money for health care.

But plenty of money to clean up the mess made by a multi billion dollar Corporation. Perhaps we should tell the republicans. Don't spill and if you do the company should die quickly.

[TriplD]

36. Well the taxpayer will pick up the tab of course

The GOP just voted for a $10 billion oil company bailout.

[Kber]

41. 100% correct

and welcome to DU, by the way. :)

[bulloney]

44. And that's how this vote should be framed. Repubs voting for a bailout for Big Oil.

Because if they don't own up and pay for the mess, the taxpayers will.

And it's another lever for them to cry that we just can't afford social spending. Endless money for corporate welfare and the military, however.

[slay]

9. Fine then - let the RNC pay for it - they are the politcal arm of Big Oil anyways

fuckers

[karynnj]

10. Given that even the giant PB had insurance, this is blatantly untrue

"The current limit, of $75 million, has been widely criticized by lawmakers as too low. Republicans blocked efforts to proceed, saying independent offshore oil developers would not be able to stay in business under the legislation because small companies wouldn't be able to self-insure against claims."

I hope the small independents are REQUIRED to insure, as their assets likely could not cover the costs. It should be a condition of their license.

[GOTV]

15. BP is a large corporation - they are saying it's the small companies that would be hurt ....

... of course I wonder why should any company be allowed to get into the position of causing more damage than they can pay for.

[karynnj]

19. I understand what they are saying

but I think there is an implicit inaccurate assumption. While it is true that big companies can self insure, the fact was BP didn't. This means that they likely realized that a major spill would drastically harm them financially.

The fact is that increasing the limit would make it LESS likely that any company would self insure. Why?If they wouldn't gamble with paying $75 million they are going to gamble with a higher payout. The fact is this SHOULD be a risk that they insure against.

So, while they are speaking of the poor little small businesses - that drill for oil, they are wanting to avoid the higher insurance rates that ALL of them will have to pay. (It is obvious if the insurer suddenly faces a higher maximum payout, the rates go up)

It is true that some border line profitable areas will then be unprofitable - but that's as it should be. Those are the real costs.

[tosh]

20. Actually, no....

it was reported soon after the explosion that BP had chosen NOT to insure these operations.

[dipsydoodle]

22. BP has been self insured for years.

.

[tosh]

26. Yes, one would certainly think.

Indeed, I was just searching for that info and can so far find no specifics.

[tosh]

27. Fitch.

http://www.reuters.com/article/idUSN3017954620100430

<snip>
"Insurance will likely cover the majority of BP's costs, limiting rating pressure, Fitch said. It now rates BP AA-plus, just one notch below its top rating of AAA."

<snip>
"Assuming the BP oil spill is worse than the Exxon Valdez accident, as environmentalists are now claiming, and it takes an additional 60 to 90 days to drill a relief well and stop the leak, the total spill could be about 1 million barrels, Fitch said.

Fitch said it will take rating action if necessary because of significant increases in BP's estimated environmental or litigation costs."

.....

That was April 30

[dipsydoodle]

30. Fitch fucked up

Here's the correction :

Fitch acknowledges error in BP's post-spill report : http://www.reuters.com/article/idUSLDE6441W920100505

I knew because it was discussed on our UK tv news closer to the time of the incident.

[tosh]

35. Thanks for that.

I was wondering how I could be so confused on the issue. Now I'm more confused, LOL!

[karynnj]

31. Sorry - I had heard early on that typically they had insurance

However, self insuring means they incur the risk. It's not free. The risk is real - that's why insurance is needed.

One way to look at it is - would you hire someone to replace your roof if they didn't have insurance? I suspect not - even if you could get a cheaper price, because if someone is hurt, you could be liable. That's what these small companies are asking. (In addition, how small can an oil company be?)

[indepat]

42. May those with limited capital shouldn't be involved in ventures wherein the damage they can inflict

dwarfs their capital and insurance resources. :shrug:

[karynnj]

43. Seems obvious to me

[damntexdem]

11. Reconciliation, if possible!!!

If not, force them to actually filibuster -- keep the Senate in session until they back down!

Go to the wall on this one, and put the Repuke Senators' backs against that wall!

And make this a MAJOR campaign issue for November!

[high density]

12. So Republicans continue to approve of bailing out corporations.

Good to know for the 2010 elections.

[Enrique]

13. I smell Frank Luntz

in the "we're looking out for the little guy" line.

[HughMoran]

14. Easy enough to fix

to include the major corporations who are the only ones who seem be be able to make these massive messes anyway.

[Better Believe It]

16. White House did not support the bill to raise oil spill damages limit.

From the same news article:

"The White House came out ahead of the vote with an announcement on Wednesday with proposed legislation to allow the federal government to collect more damages from companies responsible for the spill. But the Obama administration didn't propose a specific increase in the cap on damages, and on Thursday refrained from offering support for the measure from Sen. Bill Nelson (D., Fla.) , Sen. Bob Menendez (D., N.J.), and Sen. Frank Lautenberg (D., N.J.). The Democrats must now go back to the drawing board."

[Jefferson23]

50. That bill was to include a ban on drilling in the pacific, and was

to raise the liability to 10 billion, so he wants something lower than that?

[Zoeisright]

17. I fucking hate those fucking SOBs.

They are just pure evil and pure greed and pure stupidity,.

[thereismore]

21. Tell that to the voters, repigs. nt

[stubtoe]

24. Does't appear to be mentioned anywhere except the blogs so far.

Will MSM touch this?

[Hulk]

25. WHY is there ANY cap?

You and I have no "cap". What makes these f*ckers better? They have rights of the individual. Let them have ALL the rights then.

[NecklyTyler]

28. The ghost of Cheney still haunts the machine

Dick Cheney needs to be in jail

[cindyperry2009]

29. Repukes for a big corporation

and not the little guy? Why I tell you I am utterly shocked I tell you shocked and amazed.

[ladywnch]

32. murkowski is no better than her old man.

I'm sure Alaskans will applaud her the next time there is a spill in AK and the citizens are screwed from recouping their losses.

For a small state Alaska has some of the most corrupt politicians in the country!......Tamany Hall has NOTHING on those losers......Stevens, Murkowski, Young.........all scum! I can hardly wait till they are all voted out.

[Aramchek]

33. if they thought they saw backlash when they opposed Finance Reform, just wait a day or two

[CatWoman]

34. disgusting

simply disgusting.....

[Lucky Luciano]

37. Can't be much more transparent than that! Not even pretending! nt

[felinetta]

38. Let me get this straight: People still vote for Repigs?

[JBoy]

39. If you can't cover the risk of your venture, you have no business doing it!

Even if there are no monetary damages, a small company won't have the capacity to clean up its mess!

[nicky187]

46. That's their M.O. ...

... keep the profits, and socialize the risk & losses. Assholes.

[SleeplessinSoCal]

40. Doesn't Murkowski have a point? What about creating monopolies?

There ought to be a way to prevent the downside of creating "super majors", while having oil companies and their subsidiaries pay for the damage they cause.

Get Al Franken on this. He'd find the way. :)

[nicky187]

45. The only ones...

... who can create that level of damage are the super nationals, the really big oil companies.

Stupidity from Alaska, FTW.

[mbperrin]

47. Name one small independent firm drilling deep offshore.

Nope. Hugely expensive, all done by majors and supermajors.

These bastards make me ill.

[Billsmile]

48. Capping Their Liability....

Means another taxpayer bailout for the transnational corporations.

[Crowman1979]

49. Dear God, I hope the Dems do not cave in AGAIN!

But unfortunately it might happen. I DIDN'T VOTE BI-PARTISANSHIP!

[Devil_Fish]

51. Please provide a list of the "independent offshore oil developers"

I'll make it easy, Name one. Just one.

What a fucking joke.

[enuegii]

54. I'd love to see that list, too...

There might still be wildcat operations drilling on land, but I suspect that the list of those operating offshore would be small indeed.
They may be talking about subcontractors, but I would think that the major players that hire them would bear the burden of liability in case of mishap.
But, yeah, you're right, it's a fucking joke... just not a very funny one.

[perdita9]

52. Note to Clueless Republicans --CAPITALISM

If your buisness causes 10 billion dollars worth of damage, you're on the hook for 10 billion dollars of payments. Can't cover it? You go out of business.

That's Capitalism. What Republicans are practicing is protectionism but only for corporations. The GOP never protects the taxpayer at all.

[JNelson6563]

53. They really are so blatant about their corruption.

How can anyone support these people?

Julie

[Courtesy Flush]

55. Wait a second

So now they don't see the free market as the answer to everything? NOW they want government to fix things. Isn't that what business does best?

[The Damned]

56. Lisa Murkowski BLOCKS Bill to Raise Oil Spill Liability Cap

Source: The Huffington Post

A bill to increase the liability cap for oil spills from $75 million to $10 billion was defeated Thursday by Sen. Lisa Murkowski, R-Alaska.

Bill S.3305, the "Big Oil Bailout Prevention Liability Act" would cap BP's liability at $10 billion, even if damages from the gulf oil spill surpass that figure. The company already estimates that spill will cost $450 million to clean up.

Murkowski, a drilling supporter, has received almost $300,000 in campaign contributions from the oil and gas industry. While Murkowski said that she supports raising the cap, she argued that the $10 billion figure would prohibit all but the biggest of oil companies from drilling oil offshore:

"It would be impossible or perhaps close to impossible for any energy company that is smaller than the supermajors, smaller than the national oil companies, to operate in the O.C.S.


"$10 billion in strict liability would preclude their ability to obtain financing, to obtain the bonds, or insurance for any exploration. And look at who is producing in the offshore? It's the independents."




Read more: http://www.huffingtonpost.com/2010/05/13/lisa-murkowski-blocks-bil_n_575918.html

---

The headline on HuffPo read, "BP's BFF."

Note: I have put in quotation marks that which, in the HuffPo article, was blockquoted. Sorry, but I'm not entirely sure how to blockquote on this site, yet.

[Robbien]

57. If the messes they make exceed $10 billion

then they shouldn't be doing anything which could make that kind of mess.

[izquierdista]

58. One senator?

Good thing we live in a democracy, where the majority arrive at a consensus.....NOT!

[The Damned]

59. Vid link

http://www.youtube.com/v/tyu2d2cu1mw

[LiberalAndProud]

60. Alaskan Politicians and Big Oil -- a match made in hell.

[woodsprite]

61. Bumpersticker material?

It's too early in the morning and I haven't had my coffee yet so my creativity isn't there, but would a bumpersticker that emblazons something like "Republicans support BP killing the Gulf" be a decent saying to shove in people's faces daily - either stickers, signs, etc. At least something to that verbage.

I hate politics and I hate greedy b@stards.