BP Told to Stop Distributing Oil Spill Settlement Agreements

By: Stephanie Condon
Topics: In The News ,; Domestic Issues

(Credit: United States Coast Guard)

BP is financially responsible for the devastatingly massive oil spill off the Gulf of Mexico, but some are concerned the oil company isn't giving residents along the affected coastline or emergency relief crews a fair shake.

Alabama Attorney General Troy King said Sunday night that he has told BP they should stop circulating settlement agreements among coastal Alabamians, the Mobile Press-Register reports. King reportedly said the agreements stipulate that residents will give up their right to sue the company in exchange for a payment of up to $5,000.

"People need to proceed with caution and understand the ramifications before signing something like that," said King, who noted that he is prohibited from giving legal advice to private citizens. "They should seek appropriate counsel to make sure their rights are protected."

The Press-Register reports that BP spokesman Darren Beaudo responded, "To the best of my knowledge BP did not ask residents of Alabama to waive their legal rights in the way that has been described."

U.S. Homeland Security Secretary Janet Napolitano and Interior Secretary Ken Salazar are holding a conference call with BP executives later today to discuss the claims process for people impacted by the oil spill, CBS News White House Correspondent Peter Maer reports.

Meanwhile, BP has agreed to alter waivers signed by fishermen responding to the disaster, after a fisherman complained to a U.S. District judge. Commercial fisherman George Barasich on Sunday asked a federal court to stop BP from forcing the volunteer corps of oil-spill responders to sign a waiver that compromised their right to sue the company in the case of an accident and required confidentiality about the clean up.

According to the Globe and Mail, the waiver read, "I hearby agree on behalf of myself and my representatives, to hold harmless and indemnify, and to release, waive, and forever discharge BP Exploration and Production Inc., its subsidiaries, affiliates, officers, directors, regular employees and independent contractors..."

After a judge said the waiver was too broad, BP said it would strip out the offending provisions and would not enforce the waivers already signed.

BP CEO Tony Hayward told CBS' "The Early Show" Monday that "This is not our accident, but it's our responsibility." On the company's website, BP says it will pay compensation for "legitimate and objectively verifiable" claims for property damage, personal injury and commercial losses.

President Obama this weekend said the oil spill is a "massive and potentially unprecedented environmental disaster."

Special Section: Disaster in the Gulf
BP CEO: "Absolutely Focused" on Oil Spill Stop
Oil Spill by the Numbers
Gulf Oil Spill Containment Efforts

Stephanie Condon
Stephanie Condon is a political reporter for CBSNews.com.
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by timdgrim May 3, 2010 2:41 PM EDT: UP TO $5000!!! What an effing joke! Sue this frickin' oil company into bankruptcy people. How about BP pays $5000 for every single bird, fish and other wildlife it kills because of this.; Reply to this comment


by jimatmadison May 3, 2010 2:37 PM EDT: Their oil slick has barely 'sheened' onto shore and BP has already started the crooked dealings with the residents and with people looking to help. If there are any unemployed lawyers out there, head south. There's going to be a lot of work for you.; Reply to this comment

by antoniof123 May 3, 2010 2:37 PM EDT

I hope that Mr. Holder gets involved very quickly at least that way these people will get justice if gonzo were in charge he would be wondering what, where, when, how, who.

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by MurdochSucks May 3, 2010 4:17 PM EDT: Naw, he'd be too busy firing judges for political affiliations and forgetting about it.


by scattershot1232000 May 3, 2010 2:01 PM EDT: Ok yeah that was a bad move but come on folks accidents happen. A company is only as smart as the people running it. I think that they should sort out the lawsuits after the cleanup. Right now they have work to do!; Reply to this comment

by book_of_wally May 3, 2010 1:28 PM EDT

Ya get them cheap now BP, Once they sign that check they cant sue. LOL! What I dont understand is why is a republican AG looking out for consumers over corporate interests?

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by NYPD1966 May 3, 2010 1:53 PM EDT: cheap shot at republicans...grow up


by antoniof123 May 3, 2010 2:32 PM EDT: Answer is that Holder will come looking and they fear someone who knows what he is doing unlike the last bunch.


by greco99-2009 May 3, 2010 12:55 PM EDT: When a subsidiary or partner is used for the purposes of avoiding liability then the beneficiary is liable - this is called 'Piercing the corporate veil'.

In fact, the fact that BP took such measures to try to shield itself from liability shows they were well aware of the danger.

To state the obvious fact: look at who the beneficiary is...BP !

Often companies will also try to blame a 'rogue employee'. E.g. Jim Smith was drunk on the job so it is al his fault (plus he is dead anyway and his wife and lawyer can't afford a lawyer)...

And, I think that sorry ploy will not work here either.; Reply to this comment

by HGOODGUY May 3, 2010 12:44 PM EDT

Rush Limbaugh exists because people like all of you listen to his garbage.

If you don't like what he's regurgitating the best thing to do is NOT LISTEN. It will hit him and all the stations right in the pocketbook because without anyone listening no one will pay to sponsor this gasbag!

How about a LISTEN OUT PROTEST FOR 30 DAYS!!

WANT TO HURT LIMBAUGH? THAT'S THE BEST WAY TO KICK HIM IN THE GROIN!!!

I DARE ALL OF YOU TO SEE IF YOU CAN STAND BOYCOTTING HIM FOR 30 DAYS!!

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by NYPD1966 May 3, 2010 1:54 PM EDT: your life is obviously going well if your biggest concern is a radio show host...why dont you take some of that angst and help some poor people or something useful


by ladd09 May 3, 2010 12:43 PM EDT: Hey Friend, Can I interest you in some money, If you'll just sign on this dotted line...; Reply to this comment


by ladd09 May 3, 2010 12:40 PM EDT: Beware of Oil companies bearing gifts!; Reply to this comment


by HGOODGUY May 3, 2010 12:38 PM EDT: Talk about pouring salt into the wounds!!

Typical Oil Company action called COVER YOU ASS!!!!; Reply to this comment