Friday, May 21, 2010

Low balling the leak size wasn't just spin

According to McClatchy, BP could use their minimal flow rate to minimize their ultimate liability.
BP's estimate that only 5,000 barrels of oil are leaking daily from a well in the Gulf of Mexico, which the Obama administration hasn't disputed, could save the company millions of dollars in damages when the financial impact of the spill is resolved in court, legal experts say.

A month after a surge of gas from the undersea well engulfed the Deepwater Horizon offshore drilling rig in flames and triggered the massive leak that now threatens sea life, fisheries and tourist centers in five Gulf coast states, neither BP nor the federal government has tried to measure at the source the amount of crude pouring into the water...

Legal experts said that not having a credible official estimate of the leak's size provides another benefit for BP: The amount of oil spilled is certain to be key evidence in the court battles that are likely to result from the disaster. The size of the Exxon Valdez spill in Alaska, for example, was a significant factor that the jury considered when it assessed damages against Exxon.

"If they put off measuring, then it's going to be a battle of dueling experts after the fact trying to extrapolate how much spilled after it has all sunk or has been carried away," said Lloyd Benton Miller, one of the lead plaintiffs' lawyers in the Exxon Valdez spill litigation. "The ability to measure how much oil was released will be impossible."

"It's always a bottom-line issue," said Marilyn Heiman, a former Clinton administration Interior Department official who now heads the Arctic Program for the Pew Environment Group. "Any company wouldn't have an interest in having this kind of measurement if they can help it."
Time to cancel BP leases and expropriate their property to guarantee payment in full.

Comments:
No shit but of course there will only be tough talk and no action more than likely.
 

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