Without Passage of RESTORE Act, BP Could Get Sweet Settlement Deal

BP could soon squirm its way to a sweet settlement deal this week for the Gulf oil disaster—a move that would allow the company’s pockets to continue to expand on the heels of their record profits, while leaving more uncertainty for restoring the Gulf of Mexico to an environmentally and economically healthy state.

News reports indicate that BP may be close to reaching a settlement for its part in the Gulf oil disaster. The proposed settlement allegedly requires BP to pay a mere 3 percent of the full amount of Clean Water Act (CWA) penalties it could be fined under the law. Reports suggest the agreement would require BP to pay only $142 per barrel of oil spilled into the Gulf, although CWA allows up to $4,300 per barrel to be assessed against a liable party. BP has reportedly set aside $3.5 billion in preparation for paying CWA fines, but this settlement deal would be significantly less.

Read more...