Eric Holder

Fri, 2012-10-05 06:00Farron Cousins
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BP Settlement Deal Could Put Taxpayers On The Hook For Spill Costs

A proposed settlement deal between the federal government and BP over their involvement in the 2010 Deepwater Horizon oil rig explosion and subsequent oil leak could shift the burden of cleanup costs away from the oil giant and onto U.S. taxpayers.

The current settlement option is just one of several being negotiated between the federal government and BP.  But this settlement option would route fine and settlement money through the Natural Resource Damage Assessment (NRDA), rather than fining the company directly via the Clean Water Act.

Not only could this reduce the total amount of money that the company pays in fines, but it would shift the burden of cost onto U.S. taxpayers.  While the company would still be paying out of pocket, the NRDA allows the company to write off their fines and deduct that from their yearly taxes.  Paying through the Clean Water Act would not allow the costs to be tax deductible. 

But the cost shift is just one of the problems with the proposed deal.  The provision that has residents of the Gulf Coast up in arms is the fact that the NRDA would route the money through the U.S. Treasury, instead of directly sending it to local and state governments.  This means that the Treasury, not the affected areas, would be in charge of determining how the money is spent.

Tue, 2011-08-23 21:24Farron Cousins
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Justice Department Launches Investigation Into BP's Oil Gusher Cover Up

The U.S. Department of Justice has launched an official investigation to determine whether or not BP lied to the public and to the government about the amount of oil that was leaking from a broken pipe during last year’s Gulf of Mexico oil disaster. The leak was the result of the explosion and subsequent sinking of the Deepwater Horizon oil rig, owned by Transocean but operated by BP.

During the initial days of the oil leak, BP was constantly updating their estimates of how much oil was flowing out of the broken pipeline. In spite of their advanced camera, computer, and other data technologies, they were somehow never able to give an accurate, or even close to accurate, account of what was happening beneath the water’s surface. The Justice Department is hoping to find out whether the company was acting dishonestly, or if they actually couldn’t determine the flow rate despite all the data available to them.

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