BP OIL SPILL DAMAGES

Two federal civil lawsuits were filed on Thursday in federal court in Montgomery, Alabama, one for Transocean (NYSE:RIG) and one for BP (NYSE:BP).

They accuse BP for violations of the Federal Oil Pollution Act and negligent or wanton failure to adhere to recognized industry standards, causing damage in Alabama’s environment and economy. Their announcements was also dishonest, presenting the estimate of the original oil flow 60 times less then it really was.

Governor Bob Riley had hoped to work with BP on an out-of-court settlement and for this reason he has opposed the lawsuit. He wanted to avoid a long time process and determine GP to pay for things that they desperately need now, but King said that “This lawsuit can always be settled if BP should suddenly do right by our state and our citizens, but it can never again be brought with the same strategic advantages we have right now”.

If there’s a time for recriminations, for BP it begins now and Alabama wants money for cleanup and rehabilitation costs. BP said on Thursday they have already paid $352m in claims, like a first step representing an initial commitment of $20bn. They also managed to seal the well by pouring heavy fluids and cement down the top, three months after the Deepwater Horizon rig exploded on April 20, generating an estimated 4.9 million barrels of oil leak into the water, affecting industries and other sectors such as housing.

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