Obama sends oil firm another hefty invoice

Published Jul 13, 2010

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Washington - The White House on Tuesday sent a fourth bill, for $99.7-million, to BP for clean-up and recovery operations in the wake of the Deepwater Horizon oil disaster in the Gulf of Mexico.

BP and other "responsible parties" in America's worst environmental disaster, have already paid three previous bills, worth $122-million in full, officials said.

The Obama administration said that the bill was for the costs of the disaster response operation by more than two dozen federal entities and agencies spanning three states.

The Oil Pollution Act of 1990, enacted after the Exxon Valdez oil disaster in Alaska, made oil giants liable for cleanup costs resulting from spills and is being used by the administration to hold BP's feet to the fire.

President Barack Obama has also vowed to hold BP responsible if it is found that the company broke any laws before the explosion of the Deepwater Horizon rig in April.

The administration also forced BP to set up a $20-billion escrow compensation account to provide support from people and industries badly hit by the disaster, including in the fishing and tourism sectors.

BP said on Monday that the disastrous oil leak in the Gulf of Mexico had already cost it $3.5-billion, since the explosion in April, which killed 11 workers. - AFP

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