Parker Waichman LLP

Drilling Overhaul Bill Threatens BP’s Oil Spill Recovery

BP says legislation that would bar the company from getting new offshore drilling permits could prevent it from fully paying for damages from the massive Gulf of Mexico oil spill. According to a report in The New York Times, a drilling overhaul bill passed by the House of Representatives last month includes an amendment that […]

BP says legislation that would bar the company from getting new offshore drilling permits could prevent it from fully paying for damages from the massive Gulf of Mexico oil spill. According to a report in The New York Times, a drilling overhaul bill passed by the House of Representatives last month includes an amendment that would bar any company from receiving permits to drill on the Outer Continental Shelf if more than 10 fatalities had occurred at its offshore or onshore facilities. The April 20 explosion aboard BP’s Deepwater Horizon rig killed 11 men.

According to the Times, the legislation would also bar permits if a company had been penalized with fines of $10 million or more under the Clean Air or Clean Water Acts within a seven-year period. BP is the only company that meets the criteria for a drilling permit ban under the proposed bill.

The company said that if the legislation were adopted, it would cripple its Gulf of Mexico operations, which the Times said generate $5 billion to $7 billion in profits annually. The Gulf accounts for 11 percent of BP’s global production.

BP insists its threat doesn’t mean it is backing away from its promise to set aside $20 billion for a compensation fund to pay damage claims. But officials from both state and federal governments and others are seeking additional funds beyond the company’s legal obligations, which is what BP says would be placed in jeopardy by drilling limits. This includes Gulf Coast restoration efforts that officials want the company to voluntarily support, the Times said.

“I am not going to make a direct linkage to the $20 billion, but our ability to fund these assets and the cash coming from these assets that are securing these funds would be lost” if the House bill were enacted by Congress, a BP spokesperson told the Times.

Daniel Weiss, Chief of Staff for Representative George Miller, Democrat of California and one of the authors of the amendment, dismissed BP’s threat. “BP has substantial assets, whether they develop them or sell them,” he told the Times. “If BP needs to sell assets to meet its financial obligations, that’s a decision they have to make.”

BP said today it has spent $8 billion so far in response to the oil spill. The company also said that about 28,400 personnel, more than 4,050 vessels and dozens of aircraft were still engaged in the response effort

What Our Clients Say About Us
We have worked with thousands of clients and we appreciate them and their positive reviews. Here are just a few recent client reviews...
5 Star Reviews 150
An amazing Law firm that can explain the most obfuscated and complex issues with ease. The level of expertise and compassion is unparalleled to any I've experienced. From the initial consultation I was able to discern the meticulous attention to detail and the exceptional customer first philosophy. They kept me informed every step of the way, I was so happy that I chose the best law firm for my case. If you need an attorney that has your best interest at heart and more importantly deliver the compensation you deserve hire Parker Waichman LLP.
Angel Maldonado
6 years ago
5 Star Reviews 150
Great people great experience 5star
Renee Stumpf
3 years ago
5 Star Reviews 150
Parker and Waichman has some amazing attorneys. Josephine Burgess -Zephrine (my paralegal) and her staff are so very caring and compassionate. They made what was a very rough time, go a little smoother. I would recommend anyone that is injured by someone else's poor judgment To use Parker and Waichman.
Glenroy Hutchinson
5 years ago

Why Choose Us to Help You?

We Take Care of Everything
Your situation is stressful enough: Let us take on the deadlines, paperwork, investigation, and litigation. We'll handle every detail so you don't have to worry.
No Recovery = No Legal Fees
We work on a contingency-fee basis, meaning that we only get paid from a portion of your settlement or jury award. If you don't get compensation, you owe us nothing.
Decades of Experience
Your situation is stressful enough: Let us take on the deadlines, paperwork, investigation, and litigation. We'll handle every detail so you don't have to worry.
Respected by Our Peers
Judges, insurance adjusters, and fellow attorneys all speak highly of our skills, and we've earned numerous accolades, including a flawless rating from AVVO.
We Have Many Locations To Serve You
We have the experience and the skilled litigators to win your case. Contact us and speak with a real attorney who can help you.
Long Island – Nassau
Parker Waichman LLP
6 Harbor Park Drive
Port Washington, NY 11050
Long Island – Suffolk
Parker Waichman LLP
201 Old Country Road – Suite 145
Melville, NY 11747
New York
Parker Waichman LLP
59 Maiden Lane, 6th Floor
New York, NY 10038
Queens
Parker Waichman LLP
118-35 Queens Boulevard, Suite 400
Forest Hills, NY 11375
Brooklyn
Parker Waichman LLP
300 Cadman Plaza West
One Pierrepont Plaza, 12th Floor
Brooklyn, NY 11201
New Jersey
Parker Waichman LLP
80 Main Street, Suite 265
West Orange, NJ 07052
Florida
Parker Waichman LLP
27299 Riverview Center Boulevard
Suite 108
Bonita Springs, FL 34134
Nationwide Service
Parker Waichman LLP
59 Maiden Lane, 6th Floor
New York, NY 10038