Wednesday, July 14, 2010

Bahamas government will seek compensation from British Petroleum (BP) for all the pre-assessment, monitoring and any post oil spill clean-up costs

Bahamas govt confirms it will seek compensation from BP
By KARIN HERIG
Tribune Staff Reporter
kherig@tribunemedia.net:



THE Bahamas government has officially confirmed that it will be seeking compensation from British Petroleum (BP) following the disastrous oil spill in the Gulf of Mexico which could affect the Bahamas' shores.

Environment Minister Dr Earl Deveaux told The Tribune that his government will be seeking compensation for "all the pre-assessment, monitoring and any post spill clean-up."

This comes after a report released by the United States' National Oceanic and Atmospheric Administration (NOAA) estimated that Cay Sal Bank and the Bimini Cays are 41 to 60 per cent likely to have shoreline impact from the spill for years to come.

The northwest coast of Grand Bahama, the report said, is 20 per cent likely to be affected, and Andros is less than one per cent likely to be affected.

In an interview earlier this month, Bahamas National Trust (BNT) Eric Carey had said he wants BP to foot the bill in advance.

And while NOAA has concluded that the oil spill most likely will not harm marine life in the Bahamas, Mr Carey said it is still unknown how the dispersants from the spill will affect the country's ecosystem.

The money the government will now be requesting from BP is expected to assist scientific testing and expeditions to monitor the situation.

The next expedition should set sail in about a week and Mr Carey said he hopes BP will cover the costs.

The oil company told the Associated Press on Sunday that the overall cost of dealing with the spill is now at $3.5 billion.

Some $165 million of that sum were paid to settle individual claims. So far, BP has received over 100,000 claims for compensation and made more than 50,000 payments.

It is unknown at this time how much money the Bahamas will be requesting from BP, nor is it clear when or if the oil company will pay out in this instance.

Meanwhile, as BP yesterday removed the containment cap currently in place over the blown-out oil well to replace it with a tighter fitting one, the Obama administration has issued a new offshore drilling ban after a previous moratorium order was overturned.

BP has stated that it believes this second cap will possibly stop the oil from gushing into the Gulf of Mexico.

The company said some oil will still leak out, but the tighter cap will enable them to capture it and funnel it up to the surface where collection ships await.

According to latest estimates, somewhere between 89 million and 179 million gallons of oil have spilled from BP's Deepwater Horizon rig 5,000ft below the ocean surface since an explosion on April 20 killed 11 people.

July 13, 2010

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