April 20, 2010–Deepwater Horizon BP oil well sank and killed 11 workers. Thus began an environmental tragedy, the worst of which we have yet to see. That’s my thought. But to get BP’s thoughts on the matter, I visited their website and viewed their 2010 end-of-year report. I read those sections pertaining to the oil spill and below is information from it, along with my comments.
This image was taken in the Bon Secour National Wildlife Refuge on the Gulf of Mexico in January 2011. The shelf of oil was thick and extended all along the shoreline. Huge chunks of oil were washed up on the beach (some as large as three feet long by one foot across and 6 inches thick). There were less than 10 workers doing ANYthing on the beach, with most consisting of supervisors riding in four-wheel drive ATV’s. This is BP’s statement from page 3 of their year-end report. “BP and the US Coast Guard are working closely with state and local officials to clean Gulf Coast beaches before the 2011 spring and summer tourism seasons. BP and USCG remain ready to respond if any additional clean-up is required along the Gulf Coast shoreline.”
In the next paragraph I quote, “At the same time, sites, equipment, hired vessels and manpower have been demobilized as and when they are no longer required to support operations. During the fourth quarter, the number of operational sites has reduced from approximately 90 to 79 …. and the number of personnel from approximately 20,000 to approximately 6,200 at the end of the year.” They are indeed laying people off. Another big lay-off occurred in late January. But the oil is STILL THERE on the beach.
One contact I have lives on the Gulf of Mexico beach near Fort Morgan. He and his wife have photographs taken in June and July and very recent photographs. ALL of them contain oil. But…they do not live on a beach frequented by the spring break crowd. And the wildlife refuge is remote and thus is also not a destination for spring break crowds.
This beach is a spring-break destination. Those beaches that will host college students in the spring and later, kids and parents in the summer, are getting deep-cleaning by the large sifters that move huge amounts of sand, screen it through sifters and then return the sand to the shore. Gotta make those tourists think that all is well. Right?!?
BP’s report also cites scientist’s observations of tar mats in shallow, sub-tidal areas. “The federal on-scene commander has directed response teams to focus assessment and recovery efforts on the potentially recoverable near-shore oil.” I might add that if they want to see oil from the shallow, sub-tidal areas, all they need to do is visit a beach after a storm. Rough water stirs the bottom and the oil is dislodged and regurgitated back on the beach. A BP supervisor at the Bon Secour National Wildlife Refuge told me this on my last visit. So why are they laying off all the workers in Alabama? This picture is also taken in January 2011 near Gulf Shores, Alabama. Those boots are a size 9 men’s…not small feel next to the oil chunk washed ashore.
If you are wondering about the claims process, here’s how they break it down in their report. There are three compensation alternatives. 1) A one-time quick pay option of $5,000 for an individual or $25,000 for business (deemed to be eligible). 2) A lump-sum final payment for all documented past, present and future damage. Recipients of both #1 and #2 must sign a release of liability releasing claims against BP and all other potentially liable parties (except claims for bodily injury and mental health injury, unless expressly settled, and claims under securities laws). 3) Quarterly interim payments for documented past damage not previously covered by emergency payments (which do not require execution of a release of liability). 378,103 new individual and business claims were filed in the last quarter of 2010. More than 290,000 claims were denied or judged not eligible for an emergency payment. The ‘trust’ fund paid a condo developer MILLIONS of dollars to complete a condo project while honest, hard-working crabbers, fishermen, and oyster-fishermen were paid nothing. And certainly, not all claims are valid. There are those who will abuse ANY system, but I’m just saying….. Do you have to hire an attorney to qualify for benefits from this ‘trust’ fund?
BP’s fourth quarter profits for 2010 were $4,614 MILLION, compared with $3,447 MILLION a year ago.
BP spent $17.7 billion in 2010 related to the Gulf Oil Spill. This includes money they put into the ‘trust’ fund.
BP holds a 65% working interest in the Macondo well (Deepwater Horizon), with the remaining 35% interest held by two joint venture partners. They are going after (seeking compensation from) their partners to help them cover the cost of their disaster.
The Oil Pollution Act of 1990 allows for claims against BP and for personal injury to fall into three categories: 1) claims by individuals and businesses for removal costs, damage to real or personal property, lost profits or impairment of earning capacity, loss of subsistence use of natural resources and for personal injury. 2) claims by state and local governments. 3) Claims by United States government. “In addition, BP faces civil litigation in which violations of OPA 90 along with other causes of actions, including personal injury claims and punitive damages, are asserted by individuals, businesses and government entities.”
“Natural Resources Damages claims are payable out of the $20-billion trust fund. These damages include, amongst other things, the reasonable costs of assessing the injury to natural resources.” The studies that BP is ‘funding’ are being paid out of the $20-billion trust fund.
Under the ‘fines and penalties’ section, the report states that the fines are based on the number of barrels of oil released. “This calculation assumes a volume of oil spilled determined using an estimate of the flow rate based on the range of figures published and BP’s own analysis of those ranges, and is based upon BP’s belief that it was not grossly negligent and did not engage in willful misconduct.” So now we understand why BP grossly and intentionally underestimated the amount of oil flowing out from the busted well from the very beginning. Should not that, in and of itself, be a criminal act?
The claims and fines related to OPA 90 will be paid through the $20-billion trust fund. As well, any other obligations related to Natural Resource Damage claims and claims asserted in civil litigation. BP’s report reads, “The establishment of this trust fund does not represent a cap or floor on BP’s liabilities and BP does not admit to a liability of this amount.” I felt my brain twisted like a pretzel after reading that statement. We don’t admit to owing this money nor will we put a cap or floor on this thing….this thing we do not claim to owe.
The end of the year report for BP? They had a greater profit than the year before, they are laying off beach cleaning workers while oil is still thick in places, the studies they are funding and the scientists they ‘bought’ are being paid for from the $20-billion trust fund. TRUST fund….there must be better words for this account…blood money, perhaps?