11. GULF SPILL:

House lawmakers slam BP's efforts to make Gulf state businesses whole

Published:

Gulf Coast Republicans today bluntly criticized BP PLC's efforts to make whole individuals and businesses that suffered lost earnings as a result of last year's massive oil spill.

The criticism came as the House Transportation and Infrastructure Committee considered legislation intended to send 80 percent of the potentially billions of dollars in spill-related fines to the five Gulf Coast states of Florida, Alabama, Mississippi, Louisiana and Texas to pay for environmental and economic recovery efforts.

"BP and responsible parties have not, and in many cases do not intend to make many of the individuals that were harmed economically whole," said Rep. Jeff Miller (R-Fla.).

Although BP created a $20 billion victim compensation fund that is being overseen by Kenneth Feinberg, critics noted that the fund has expended about $6 billion to date and that many businesses have shuttered and still remain uncompensated for the damage done to the region's fishing and tourism industries.

In pushing for the legislation, Miller said there is no legal requirement for companies responsible for the spill to compensate for economic damages.

"There is not a mechanism to restore the countless small businesses that went out of business because of the spill," Miller told the committee. "There is not a mechanism to help the people who lost jobs, lost homes, lost families because of the spill. You either roll the dice with the BP-Feinberg claims facility or take your chances in court."

Rep. Steve Scalise (R-La.), who hails from a state as economically dependent on offshore oil drilling as it is on fishing and tourism, was similarly critical of BP and its efforts to compensate victims and cited an example of an old seafood company that was forced to close and others whose representatives testified during the hearing.

"A lot of the promises that were made haven't actually come to fruition -- some of the promises by BP to make things whole," Scalise said. "There are a whole lot of people still waiting in line that haven't gotten made whole, and some businesses have already gone bankrupt."

BP did not respond to a telephone call seeking comment in time for publication this afternoon.