Letter To Mr. Tony Hayward, Group Chief Executive, BP p.l.c, c/o BP America Inc.

Letter

Dodd Joins Reid, Senate Democrats in Calling on BP to Create Account to Ensure Payments to Oil Spill Victims

Senator Chris Dodd (D-CT) joined Senate Majority Leader Harry Reid (D-NV) and members of the Senate Democratic Caucus yesterday in sending a letter to BP CEO Tony Hayward calling on the company to set aside $20 billion in a special account to be used to pay for economic damages and clean-up costs related to the recent oil spill in the Gulf Coast.

In the letter, the senators state that the spill has already taken the lives of 11 individuals, wounded 17 others and caused billions of dollars in damages.

"Although legislative action is forthcoming, the damages are immediate," the senators wrote. "In order to ensure BP fully and quickly covers the costs of this disaster, we are calling on BP to immediately establish a special account of $20 billion, administered by an independent trustee, to be used for payment of economic damages and clean-up costs. Establishment of this account would serve as an act of good faith and as a first step towards ensuring that there will be no delay in payments or attempt to evade responsibility for damages."

The senators also requested a response to this request no later than Friday, June 18, in light of the urgency of the matter. Dodd is committed to holding BP accountable for the April oil spill in the Gulf, ensuring that taxpayers do not bail out BP and preventing future spills.

The full text of the letter is below:

June 14, 2010

Mr. Tony Hayward
Group Chief Executive, BP p.l.c
c/o BP America Inc.
4101 Winfield Road
Warrenville, IL 60555

Dear Mr. Hayward:

We are writing to express our profound concern over the Deepwater Horizon oil disaster and our deep regret for the severe consequences the continued outflow of oil into the Gulf of Mexico is having on our nation and the way of life for millions of Americans. This tragedy has already taken the lives of 11 men, injured 17 others, and caused billions of dollars in damages. The oil slick resulting from the spill stretches across 2,500 square miles and has damaged miles of environmentally sensitive beaches and marshes stretching across four states. Although this disaster continues to unfold, it is already very clear we are facing a catastrophe of historic proportions that will take decades to fully rectify.

The damages caused by your company are far reaching. While much is already visible today, history informs us that the full extent of the destruction may not be discovered for months or even years. For example, it is already evident that fishermen, shrimpers, the tourist industry, and the secondary industries that support them will sustain billions of dollars in losses. It is also possible that marine and wildlife habitats will be destroyed, estuaries and wetlands will be decimated, and bird, fish, and animal populations will be devastated.

While we are pleased that BP has admitted liability for such damages and vowed to provide full remuneration for economic losses and clean-up costs, history has taught us that corporations often fail to live up to their initial promises. After the Exxon Valdez tanker spilled more than 11 million gallons of oil into Alaska's Prince William Sound, damages totaled more than $7 billion; although Exxon continued making massive profits after the accident, it fought liability at every step and ultimately paid far less than the billions of dollars worth of damages it had caused many, many years later.

Congress is currently gathering information and holding hearings in order to develop evidence-based legislative solutions to address the Deepwater Horizon disaster. Although legislative action is forthcoming, the damages are immediate. In order to ensure BP fully and quickly covers the costs of this disaster, we are calling on BP to immediately establish a special account of $20 billion, administered by an independent trustee, to be used for payment of economic damages and clean-up costs. Establishment of this account would serve as an act of good faith and as a first step towards ensuring that there will be no delay in payments or attempt to evade responsibility for damages. Although creating this account at this level in no way limits BP's liability, we believe it will do more to improve BP's public image than the costly public relations campaign your company has launched.

We appreciate your interest in fully and quickly reimbursing those who have been injured by your actions. We believe the establishment of the $20 billion account to compensate victims and provide for clean-up is a useful first step for demonstrating that BP intends to meet its commitments. In light of the urgency of this matter we ask the courtesy of your response no later than June 18, 2010.

Sincerely,

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