Liability Cap Fight May Sink Senate Spill Bill

Top Senators argued Wednesday over whether oil firms should have to pay for all spill-related damages, and whether that requirement should be applied retroactively to BP. The dispute could sink the chances of passing even the already-weakened Democratic energy bill.

At the Capitol Wednesday, Senate Majority Leader Harry Reid discussed his energy and oil spill legislation, a far less comprehensive package than he had hoped for, with no cap on carbon emissions.

Republicans have already denounced the lighter legislation, citing concerns over the Democrats' proposal to lift the $75-million liability cap on economic damages from offshore spills. Unlimited liability would make it financially impossible for small and mid-sized companies to afford the insurance necessary to operate in the Gulf of Mexico, Republicans claim, and they are circulating an alternative bill.

One critical difference between the two bills: The Republicans' liability cap could not be applied retroactively to cover BP's oil spill in the Gulf. Reid has already condemned this move on the GOP's part. The Republican bill would also end the Obama administration's six-month moratorium on deepwater drilling for any rig that meets new inspection and safety requirements.

"Republicans should come to their senses and remember that they represent the American people, not BP," Reid spokesman Jim Manley said in a statement. "Republicans want taxpayers to foot the bill for BP's disaster and allow BP to use endless legal battles to run out the clock on those whose livelihoods they destroyed."

Republicans denounced the bill at a Capitol Hill press conference Wednesday, calling it hastily-crafted. Senate Minority Leader Mitch McConnell complained that the Democrats' bill will hurt the oil business.

"Our energy bill would give the president the ability to raise the liability caps on economic damages done by companies like BP -- without driving small independent oil producers out of business," McConnell said.

Reid plans to bring his energy bill to the Senate floor next week, but its prospects don't look good, having already elicited the wrath Senate Republicans and even some Democrats. Sens. Mary Landrieu (D-La.) and Mark Begich (D-Alaska) oppose the liability cap and have suggested a liability cap of their own that would require all oil- and gas-producers to share the liability for a spill collectively.

Sen. Lamar Alexander (R-Tenn.) charged Wednesday that Democrats will not allow GOP amendments to be voted on, and Reid has not denied it. When asked point-blank by a reporter whether he would allow Republican amendments Reid smiled and said, "We'll see."

WATCH McConnell blast Reid's energy bill here:

Comments

[melj44]

07:36 PM on 08/01/2010

The Republican party should just change its name to the Oil Party. It couldn't be any more obvious who's pulling the strings.

[MSaxe]

11:25 PM on 07/28/2010

The GOP only wants to protect their clients. That is it.

So, no matter how much you cut the legislation back, Senator Reid, they are still never going to climb on board. Go ahead, bring the strongest legislation you can to the floor. Show the public whose side you are on. Let them filibuster. They will anyway.

Your only hope is that people realize that the GOP go us in this mess and they have no new ideas to get us out.

[RightsGuy]

11:23 PM on 07/28/2010

The human cost of the oil spill and BPs corruption is huge, not only with this oil spill disaster, but with many other losses of life on other BP rigs.

Everyone please take a look at the following tribute by Steve Joynt to the 11 men who died on the Deepwater Horizon, “Oil spill Day 100: The 11 men who died on the Deepwater Horizon”

http://blog.al.com/live/2010/07/oil_spill_day_100_the_11_men_w.html

We can never lose sight of the human cost of BP’s malfeasance.

[FarOutFish]

11:15 PM on 07/28/2010

"Top Senators argued Wednesday over whether oil firms should have to pay for all spill-related damages, and whether that requirement should be applied retroactively to BP."

No it can't. The Constitution forbids ex post facto laws. Sorry, you can't do that.

[leftpinkie]

09:16 PM on 07/28/2010

The senate rules do a wonderful job in protecting the rights of the minority party. As much as Republicans complain about not being included in the writing of bills etc, they seem to be calling the shots in all major bills. Bills that start out with so much hope for progressives either end up filibustered or morphed into regressive bills, all because the Democrats, who are in power, end up kowtowing to a handful of Republicans and then some of them don't even vote for the revised bills.

[Torrentlover]

09:03 PM on 07/28/2010

Incredible.

At a time when we are witnessing what is perhaps the largest environmental catastrophe this country has seen, a democratic led house cannot pass a bill with no liability cap for the cleanup costs?

How useless are the democrats?

First it was a health care bill that doesn't do much for the people and enriches insurance companies and now during a catastrophe they can't pass a decent bill.

Completely useless party. Force the party of no to filibuster and use that footage in the Gulf region for the upcoming election campaigns. Those are red states ripe for picking.

[callinguonit]

11:08 PM on 07/28/2010

Since 1975 this isn't required...
In 1975, the Senate reduced the number of votes needed to invoke cloture to three-fifths (60) of Senate membership. At the same time, they made the filibuster "invisible" by requiring only that 41 Senators state that they intend to filibuster;”

[zitlight73]

08:53 PM on 07/28/2010

It seems that only in theory the Democrats are in control of both houses of congress and the White House.

[FarOutFish]

11:19 PM on 07/28/2010

"The difference between a Republican and a Democrat is the Democrat is a cannibal they have to live off each other, while the Republicans, why, they live off the Democrats." Will Rogers

[Jim Krow]

08:33 PM on 07/28/2010

With wells costing $150,000,000 plus to drill and complete, they must be talking about Bill Gates mom and pop.

[Drdemocrat]

08:31 PM on 07/28/2010

Who cares since the bill is so bad any ways.

[stopthemadness69]

08:23 PM on 07/28/2010

Anybody else getting the oil industry ad at the top and top right side of this page? Refresh the page and look at the ad. It says that the deep drilling moritorium will cost the industry 400 million in wages. 400 million in wages for 33 rigs for 6 months? Half of which hadn't even begun drilling yet? Maybe they mean 400 million in oil profits?

[stopthemadness69]

08:18 PM on 07/28/2010

If you're not big enough to pay for the damage then you're not big enough to drill for oil.

[Dan1902]

08:16 PM on 07/28/2010

GOP=Godamn Oil Protecters!!!

[humbug]

08:13 PM on 07/28/2010

The remarks of the Big Staller and Liar Supreme McConnell could be summarized as "Blah, Blah, Blah" with the intent of stalling, prevaricating and lending no support to the preponderance of Americans. If it does not please big corporations, it is unacceptable to the Senators from the Chamber of Commerce. It is increasingly apparent the GOP will foil the American people and create a depression and foster racism in order to gain more control over the country. Bah on the GOP!

[Dan1902]

08:15 PM on 07/28/2010

Fan #2

[unclelew]

08:10 PM on 07/28/2010

Yep, small companies should be able to spill to their hearts' content. I mean, how much damage can a lone well cause to the environment?

[callinguonit]

11:09 PM on 07/28/2010

touche' and faved