A CBS 60 Minutes oil spill report has prompted US Senate Majority Leader, Harry Reid, to say publically that the proposed $10 billion liability cap for oil company damages in oil spills is â€˜inadequate.â€™ Currently the liability cap is a mere $75 million, and Democrats have brought legislation that raises the cap to $10 billion.
Harry Reid also urged quick action on the new bill. However, he thinks the new bill is also not enough. While $75 million is laughably low, I am not sure how high he thinks the liability should be for oil companies though. The bill introduced last week was blocked by Republican Senator Lisa Murkowski from Alaska.
The US Congress is scrambling to increase the liability for oil companies in the wake of the BP oil spill in the Gulf of Mexico. Whatever is passed is supposed to be retroactive to cover the spill in the Gulf Coast. BP has said that they will cover the cost of the cleanup in the Gulf.
CBSâ€™s 60 Minutes reported that they found evidence that the tragedy is a result of BP executives trying to make more money. Apparently the schedule was way behind on the drilling of the well, so the Deepwater Horizon was told to speed things up on the schedule. Here is the 60 Minutes oil spill report.
Copyright: Kate James May 17, 2010