May 4, 2010 10:01 AM

Congress Takes Aim at BP

By
Stephanie Condon
Topics
In The News ,
Domestic Issues ,
Congress
oil (Credit: AP)

Updated at 12:45 p.m. ET

"Our job basically is to keep the boot on the neck of British Petroleum," Interior Secretary Ken Salazar said on CNN's "State of the Union" Sunday.

That's exactly what lawmakers in Washington intend to do in the coming weeks.

Multiple committees in the House and the Senate are scheduling hearings to grill executives from BP and other companies that may be responsible for the oil rig explosion that caused a massive oil spill in the Gulf of Mexico. Administration officials are already investigating the cause of the explosion, but lawmakers are asking for further investigations. They're also calling for new laws to hold oil companies more responsible for future spills.

Three committees in the House of Representatives have already scheduled hearings to discuss the disaster, Politico reports. The questioning begins today, when Rep. Ed Markey (D-Mass.) will host a members-only briefing in a House subcommittee with officials from Transocean, which owned the rig that exploded, and BP, which was leasing the rig.

Next week, BP America President Lamar McKay and the head of Transocean, Steven Newman, are expected to testify before the House Energy and Commerce Committee. The congressional group is also asking Halliburton CEO David Lesar to testify; his company has been accused of improperly cementing the underwater oil well and the well cap. The House Natural Resources Committee also scheduled a hearing for later in the month.

Hearings are also being scheduled in the Senate, where three lawmakers have already introduced legislation aimed at making oil companies responsible for a larger share of the check in the event of such a disaster.

Currently, there is a $75 million cap on an oil company's liability for economic damages, or other damages claimed by individuals or government, under the Oil Spill Liability Trust Fund law. Democratic Senators Robert Menendez (N.J.), Frank Lautenberg (N.J.) and Bill Nelson (Fla.) yesterday unveiled a bill to raise that cap from $75 million to $10 billion. They're calling it the "Big Oil Bailout Prevention Act"

Nelson is also calling on the Interior Department's inspector general to investigate whether oil and gas industry have exerted too much influence over regulators. He is questioning why the Interior Department's Minerals Management Service (MMS), which oversees offshore drilling, allowed oil companies to run rigs without specific back-up systems that would have capped the well in the event of a spill. Nelson, a longtime critic offshore drilling, pointed out in a press release that he helped shine a spotlight on allegations that government employees who responsible for handling billions of dollars in oil royalties were engaged in illicit sex with employees of energy companies.

Rep. Darrell Issa (Calif.), the top Republican in the House Committee on Oversight and Government Reform Committee, sent a letter yesterday to Salazar regarding his committee's investigation into the accident and the role of the MSS.

"The malfunctioning 'failsafe' device raises serious questions about any safety inspections or audits conducted by MMS or third parties during the certification process," he wrote.

Meanwhile, the Center for Responsive Politics is highlighting BP's ongoing lobbying efforts, which came to a total of $16 million in 2009 and $3.53 million in just the first quarter of 2010. Sen. Mary Landrieu (D-La.), one of the Democrats who has come out in defense of offshore drilling in the wake of the disastrous oil spill, was the top congressional recipient of BP-related campaign cash in the last election cyle, according to the Center for Responsive Politics.

Special Section: Gulf Coast Oil Disaster
White House Dismisses Katrina/Oil Spill Comparison
Oil Spill by the Numbers
Gulf Oil Spill Containment Efforts


Add a Comment
by youcancallmeroy May 5, 2010 6:45 PM EDT
05/05/2010
Obama biggest recipient of BP(British Petrooleum) cash
While the BP oil geyser pumps millions of gallons of petroleum into the Gulf of Mexico, President Barack Obama and members of Congress may have to answer for the millions in campaign contributions they?ve taken from the oil and gas giant over the years.
BP and its employees have given more than $3.5 million to federal candidates over the past 20 years, with the largest chunk of their money going to Obama, according to the Center for Responsive Politics. Donations come from a mix of employees and the company?s political action committees ? $2.89 million flowed to campaigns from BP-related PACs and about $638,000 came from individuals.
Read more: http://www.politico.com/news/stories/0510/36783.html#ixzz0n63EmXen
During his time in the Senate and while running for president, Obama received a total of $77,051 from the oil giant and is the top recipient of BP PAC and individual money over the past 20 years, according to financial disclosure records.
Read more: http://www.politico.com/news/stories/0510/36783.html#ixzz0n63pGtSR
Reply to this comment
by kenhamlett May 4, 2010 5:56 PM EDT
Reading about a cap on damages lets me know why BP is eager to pay for cleanups instead of capping off the well. It is more profitable to destroy the land and sea than it is to cap well permanently and quickly.
It would also seem that the people who have economic losses will also suffer if the law is being related properly.
Any limit on their liability is an act of complicity with the destruction of the environment and the detriment to other industry affected.
Spill baby spill is now the new mantra.
Reply to this comment
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