Gulf Oil Spill: Here's Why BP Won't Pay Full Cost of Clean Up and Damages

The inability to tell the whole truth the first time must be a requirement for political office in America. Shortly after the massive oil spill off the coast of Louisiana, the Obama administration, in fact the President Himself, told the American people that BP will pay the full cost of cleaning up the spill. The promise implied that BP will also foot the bill for all damages associated with the spill, including loss revenue by small business people, impact on the environment, etc.

However, when bluntly asked by a reporter if British Petroleum will bear all costs related to the April 20 th spill, a company official snugly replied, "BP will pay all LEGITIMATE cost."

Yes, "legitimate". Read that to mean "as required by law and not a penny more."

The BP oil czar is the guy we should believe, not the administration, sadly. Under current law, the Oil Spill Liability Fund sets the limit at "$75 million in liability for the damages that might be claimed by individuals, companies or the government, although they are responsible for the cost of containing and cleaning up the spill." (source: reason.com)

Now, the White House appears to be pushing to blow away that $75 million limit. The Associated Press reports, "Democratic Sen. Robert Menendez of New Jersey is co-sponsoring a measure that would raise the liability limit to $10 billion. Menendez also wants it to be made retroactive so it can apply to the huge spill that began after an oil rig exploded in the Gulf on April 20." (source: The Associated Press)

On Tuesday, White House Press Secretary Robert Gibbs said "the administration wants to work with Congress to change a law that caps at $75 million BP's liability for economic damages like lost wages or dwindling tourist dollars. BP PLC is responsible for all cleanup costs under the Oil Pollution Act, but Gibbs said that other costs could easily top $75 million."

OK, so there is some wiggle room in there for the people.

The Press Secretary added that "if BP is found to have acted negligently or violated the law, the cap would not be in effect."

But that's a moot point, since it will be next to impossible to prove negligence on BP's part. In the wake of all that spill, fire and burning, where would the evidence be to find BP negligent or in violation of drilling law? Such a case could drag on for years, far beyond President Obama's years in office.

Here is where the rubber hits the road: Why didn't the politicians tell the people from day one that BP's legal liability was limited, rather than the meaningless tough talk that the company will pay whatever it takes to clean up the spill and to satisfy damages for all affected parties? Well, I forgot... if they talked like that, they wouldn't have qualified to run for, win and hold political office in these United States.