US Congress calls for unlimited damages for oil firm accidents
BP could face unlimited liability for the Gulf of Mexico spill if a Senate bill becomes law.
US Congress yesterday vowed to get tough on offshore drilling practices, calling for both unlimited liability for oil firms that cause spills and a refusal to give offshore leases to companies with poor track records.
At the Senate’s environment and public works committee, Democrats pushed through a bill eliminating the $75m (£50m) cap on liability that oil companies currently enjoy for damages from offshore spills.
The committee’s vote would open the oil industry to potentially unlimited compensation for economic losses suffered by local businesses and communities and for damages to natural resources.
The change, if approved and made law, would apply retroactively to BP’s massive Gulf of Mexico spill.