Just When You Think…
It can’t get worse, more reality creeps in.
Via Digby [and a number of others] from the New York Times: Tax on Oil May Help Pay for Cleanup
Under the law that established the reserve, called the Oil Spill Liability Trust Fund, the operators of the offshore rig face no more than $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.
This means that BP is on the hook for all of the costs of clean-up, but their liability is capped at $75 million for the associated losses suffered by others because of the spill. The Feds have a fund that will cover another $1 billion in losses, but that is not going to be enough.
The law creating the fund was passed under Reagan. The tax that supports the fund and the liability limits were passed during Bush 1, and is one of the earlier examples of privatizing profits while socializing risks.
Before I forget… you will notice that the latest date on the Minerals Management Service report on failed blow out preventers was 1999. The Hedgemony discontinued those reports and a lot of others that might have provided people with needed data when opposing drilling or other corporate actions.
[Updated based on looking at the text of the laws involved.]
