LeMieux: BP to decide on $1 Billion Oil Spill Fund Within a Week

Press Release

U.S. Senator George LeMieux (R-FL) today questioned British Petroleum-America President Lamar McKay regarding the request for BP to set aside $1 billion into a revolving fund for Gulf States' mitigation efforts. During a U.S. Senate Commerce Committee hearing, McKay responded by saying that the company is reviewing multiple proposals. When pressed, McKay promised an answer within a week.

"I want to make sure there are enough funds in the hands of the local and state governments to mitigate damage from the spill. Do you have a response for me about setting up this fund to fully allow government entities to prevent this oil from coming on shore?" Senator LeMieux questioned British Petroleum executive Lamar McKay.

McKay responded, "We are supportive of getting the resources where they are needed, however because we are reviewing several proposals I do not have an affirmative response for you about that today."

Pressed on the matter, McKay eventually committed to Senator LeMieux that BP would provide an answer on setting up a spill fund within a week.

Background: On May 11th, Senator LeMieux sent a letter to BP CEO Tony Hayward asking the company to set aside $1 billion into a revolving fund for Gulf states to access for prevention and mitigation efforts related to the oil spill. LeMieux believes the $1 billion would be the first step in holding BP accountable to their promised commitment to make whole the damaged Gulf region. Tuesday, the U.S. Coast Guard reported it has found at least twenty tar balls washed ashore at Key West. Florida relies on the more than 80 million annual visitors to the Sunshine State to stand up its $65.2 billion tourism industry.

Last week, Senator LeMieux joined several Gulf Coast state colleagues to introduce the Oil Spill Response and Assistance Act (OSRA), which would dramatically increase the liability of companies responsible for oil spills. The legislation would establish a new liability cap equal to the last four quarters of the responsible party's profits or double the current limit, whichever is greater. The Oil Spill Response and Assistance Act will establish much greater reserve requirements for the amount of oil containment barriers. Under OSRA, enough flame retardant boom capable of withstanding six-foot waves to corral 100 square miles of ocean would have to be available for deployment anywhere in the country within 24 hours. Further, it requires the development of capping or dome technology capable of working at depths 2,000 feet below the current deepest well that can also be deployed in 24 hours. Finally, the bill would require a thorough report to Congress from all agencies involved in the response to the spill by September 1, 2010. The report will evaluate what went wrong with the immediate response to the spill by private entities and the federal government.

If oil is witnessed coming ashore, citizens should immediately contact the Deepwater Horizon Response Line at 866-557-1401. Constituents seeking help with issues related to the incident can call the senator's office directly and toll-free at (866) 630-7106. A website has been established for citizens to receive up-to-date information on the event at http://deepwaterhorizonresponse.com. The following is a link to the State Emergency Operations Center. They are actively monitoring the Deepwater Horizon Response as well as providing precautionary tips for residents and visitors. http://www.floridadisaster.org/eoc/Update/Home.asp.

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