WASHINGTON (Commodity Online) : After realized that the devastated Gulf of Mexico oil spill is the worst ever environmental disaster affecting the country, the US said they would keep billing the oil giant BP for all associated costs for the clean up operations.
British energy giant told to pay $69 million bill and demanded prompt payment for the first instalment of government expenses incurred in the effort.
In a statement issued here, the US government said, The Obama administration today sent a preliminary bill for $69.09 million to BP and other responsible parties for response and recovery operations relating to the BP/Deepwater Horizon Oil Spill under a US law requiring oil firms to pay for cleanups.
The administration will continue to bill BP regularly for all associated costs, the statement, said.
The administration expects prompt payment and will take additional steps as necessary to ensure that BP and other responsible parties, not American taxpayers, pay all of the costs associated with the BP/Deepwater Horizon oil spill.
The White House said BP was given until July 1 to pay the full $69 million.
The total includes $29 million for federal agencies to support operation of ships, aircraft and boats, and for environmental monitoring and related costs; $29 million for National Guard expenditures; $7 million for costs incurred by states for monitoring, oil removal and other expenses; and $4 million for Defence Department support. The total accounts for 75 per cent of the incurred costs to date.
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.
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.