I am ashamed of what happened at the White House yesterday. I think it is a tragedy of the first proportion that a private corporation can be subjected to what I would characterize as a shakedown — in this case a $20 billion shakedown…I apologize.
“I want the record to be absolutely clear that I think BP is responsible for this accident,” he said. “If anything I said this morning has been misconstrued, in opposite effect, I want to apologize for that misconstruction.”
“I apologize for using the term ’shakedown’ with regard to yesterday’s actions at the White House this morning, and I retract my apology to BP,” it began, and finished: “I regret the impact that my statement this morning implied that BP should not pay for the consequences of their decisions and actions in this incident.”
According to news reports, the Energy and Commerce Committee's top Republican who publicly apologized to BP has now apologized to his fellow Republican Members of Congress in a behind-closed-doors meeting this morning. As described by Republican Leader John Boehner (R-OH):
Joe has done the right thing by apologizing — it's time to move on,” Boehner told his Republican colleagues, according to multiple sources in the room.
Boehner, speaking in the lobby of the Republican National Committee's Washington headquarters, said that Barton apologized to his colleagues and Democrats are trying to make his apology a distraction. The issue is closed, Boehner said.
House Republican Whip Eric Cantor (R-VA), this morning on FOX News, explains:
Joe Barton retracted his statements, he retracted his apology for BP, he was clearly misstating I assume his intentions. He admitted the mistake, he apologized, he apologized to the members of the Republican Conference today in a meeting we just came out of.
Senior GOP aides said lawmakers received Barton warmly and with applause.
Barton declined to talk about what exactly he said, saying his remarks were between him and his colleagues and that he “made a statement from the heart.”
So Rep. Barton has now apologized to BP for the President’s efforts in establishing a fund to protect American taxpayers and to his Republican colleagues for creating a political distraction. At what point do he and other Congressional Republicans…
… apologize to Gulf Coast residents and businesses for opposing a fund to protect them?
… apologize to Americans for opposing legislation to hold BP accountable?
… apologize to Gulf Coast residents and businesses and all Americans for Congressman Barton chairing a committee for years that allowed Big Oil to write our nation's energy policy and the lax rules for offshore drilling?
Last week, House Committees held six hearings related to the disastrous oil spill, including testimony from the top executives from the big five oil companies that uncovered serious disaster response plan inadequacies. For example, BP (and three of the companies) include references to protecting walruses, mammals that do not live in the Gulf of Mexico, in their plans and ExxonMobil's response plan claims they could handle a “worst-case scenario” of over 160,000 barrels per day (four times bigger than the current spill) using the “same plan BP has with the same contractors BP is using”. Read more from that hearing»
This week, the House is continuing their full inquiry into the disaster with three hearings and one markup. On Wednesday:
The Education & Labor Committee is holding a hearing at 10 am “to examine how worker health and safety is regulated and enforced by various parties from oil rigs themselves to post-accident cleanup operations. Questions have been raised about who is ultimately responsible for worker health and safety in light of the Deepwater Horizon explosion that killed 11 workers and exposed cleanup workers to toxic chemicals.” Witnesses:
Rear Admiral Kevin Cook Director of Prevention Policy for Marine Safety, Security, and Stewardship U.S. Coast Guard Washington, D.C.
Dr. John Howard Director, National Institute for Occupational Safety and Health (NIOSH) Centers for Disease Control and Prevention, U.S. Department of Health and Human Services Washington, D.C.
David Michaels Assistant Secretary of Labor for Occupational Safety and Health U.S. Department of Labor
Mr. Doug Slitor Acting Chief of the Office of Offshore Regulatory Programs, Offshore Energy and Minerals Management Minerals Management Service, U.S. Department of the Interior Herndon, Va.
…I am ashamed of what happened at the White House yesterday. I think it is a tragedy of the first proportion that a private corporation can be subjected to what I would characterize as a shakedown–in this case a $20 billion shakedown.
BP's reported willingness to go along with the White House's new fund suggests that the Obama Administration is hard at work exerting its brand of Chicago-style shakedown politics.
The president just called for creating a fund that would be administered by outsiders, which would be more of a redistribution-of-wealth fund.
In addition to residents directly affected by the spill and the vast majority of the American people, newspapers across the country support the BP disaster compensation fund:
Gulf Coast residents who have watched their livelihoods drown in a geyser of crude oil learned Wednesday how BP will make good on its promise to pay for the immense economic damage caused by its runaway oil well.
BP executives, who spent several hours with President Barack Obama at the White House Wednesday, announced a $20 billion compensation fund and said the company will pay more if necessary. That’s the most concrete assurance to date that BP will pay for the blow that this disaster has dealt to people’s incomes. The fact that there isn’t a cap on this fund is encouraging.
Given the size of the disaster in the Gulf of Mexico, we suspect that $20 billion may not be enough to compensate all of the people whose lives and futures have been derailed by the spill. But it's a good start…
Having $20 billion in guarantees should reassure the spill's victims, and all Americans, that BP will not be able to walk away from its responsibilities. It is also reassuring that the fund will be managed by Kenneth Feinberg, a veteran administrator who won high marks for overseeing the 9/11 victims' compensation fund.
The escrow fund is the fruit of the president’s first face-to-face meeting with top BP executives, who were summoned to the White House the morning after Obama addressed the nation from the Oval Office. It will be funded by BP but administered by an independent panel…
The $20 billion won’t cover all of BP’s liability. But it’s a start. And setting it aside now is crucial, as the company’s value plummets and its financial obligations soar.
BP’s agreement with the administration Wednesday to establish an independently managed $20 billion escrow fund provides assurance that the company will not be able to wriggle away easily from its promises to pay for damages caused by its leaking oil well in the Gulf of Mexico…
Obama’s choice to manage the fund also inspires confidence. It will be run by Kenneth Feinberg, who managed the Sept. 11 victims compensation fund…
Creation of the escrow fund at least secures a minimum amount for payout, and putting it under independent management with a formal process for payout protects against a change of attitude by BP once the media spotlight has moved to other issues.
The escrow fund is a major improvement over vague promises from BP.
For the president, the hoped-for home run swing may have come on Wednesday, when Obama announced BP’s agreement to fund a $20 billion escrow account to compensate Gulf Coast fishermen and others who have lost wages and work due to the spill. No question, this is good news for a change — a powerful boost to hopes for full, long-term recovery in the Gulf.
This is personal. The lives of fishermen and shrimpers all along the Gulf Coast follow seasonal rhythms that were utterly destroyed by the Deepwater Horizon spill. As were those of the thousands who make their livings from tourism. These folks deserve to be made whole, and in a timely manner. Creation of the escrow account is a welcome step; so is Obama’s promise to see this through, especially to so many who felt abandoned following Hurricane Katrina.
Putting $20 billion in escrow gives the government the ability to do what it needs to do to clean up the spill or pay claims of those whose livelihoods are damaged by the disaster without worry that BP has the money or the will to pay the bill.
The money should not be a problem for a company that made $63 billion during the past three years and has assets of more than $130 billion.
Announcement from the White House on Wednesday that BP will fund a $20-billion compensation fund, as well as provide $100 million for out-of-work rig workers, shows a promising start.
BP’s agreement to forego dividend payments for the rest of the year and deposit $20 billion over four years into an independent compensation fund goes a long way toward guaranteeing that Gulf Coast residents won’t repeat one grim element of the Alaska oil spill experience…
The Gulf disaster that began with the explosion on the Deepwater Horizon on April 20 is a long way from over. But the president’s insistence on an independent compensation agency is a step in the right direction for tens of thousands of Gulf residents and businesses.
And his appointment of Kenneth Feinberg to oversee compensation payments is a good choice.
UPDATE: Speaker Pelosi was asked about comments by Energy & Commerce Ranking Republican Member Joe Barton (R-TX) today on the disaster compensation fund at her weekly press conference:
Q: Do you think Mr. Barton should step aside as Ranking Member on the Energy and Commerce Committee? And do you think his sudden firestorm that's blown up around his comments represents kind of a turning point for the Republicans, and this attitude you describe of favoring big business?
Speaker Pelosi: A turning point for them supporting big business? They've always been on that track.
Q: Is this comment too far?
Speaker Pelosi: Well, let me just say that — that was one comment. I think it's important to note that it was not inconsistent with comments made the chairman of the Republican Study Committee — a part of the Republican leadership, Representative Tom Price. He said: “BP's reported willingness to go along with the White House new fund suggests that the Obama Administration is hard at work exerting its brand of Chicago-style 'shakedown' politics.”
So I think that Mr. Barton's comments fit comfortably among the leadership of the Republicans in the House of Representatives. It's up to them to decide who's in the leadership of their committees. But he is not alone in his association with sympathy for the oil companies.
As I said before, people in the Gulf are suffering from BP's negligence and recklessness. Republicans in Congress are apologizing to BP.
Yesterday, the Energy & Commerce Subcommittee on Health held a hearing on the health effects of the oil spill and how the Department of Health and Human Services is responding. Oil spills pose health risks for both responders involved in the cleanup activities and individuals living and working in the affected communities–past spills have shown health risks include inhaling toxic vapors, physical contact with the oil through skin contact or ingestion, and psychological stress in confronting the devastation.
Congressional oversight is already yielding key findings–the Energy and Commerce Committee has found evidence BP took measures to cut costs in the weeks before the catastrophic blowout in the Gulf of Mexico from internal BP documents. In a letter to BP CEO Tony Hayward, Chairmen Waxman and Stupak noted at least five questionable decisions BP made in the days leading up to the explosion such as using the more risky option for the well casing and rejecting the testing the integrity of the cement. They write, “BP appears to have made multiple decisions for economic reasons that increased the danger of a catastrophic well failure.” Watch the hearing webcast live at 10am»
Instead of standing up for the people, businesses and environment of the Gulf, House Republicans continue to side with Big Oil. In fact, some held a news conference this week to demand more offshore drilling when oil is still spilling into the Gulf, we’ve discovered an appalling lack of response plans, and we don't yet know how to improve the safety of offshore drilling.
As Speaker Pelosi has said, “the disastrous BP oil spill is a harsh reminder of the price we are now paying for the Bush Administration and Republican Congress placing the employees of Big Oil in charge of regulating their own industry…our energy policy must move in a New Direction.”
BP must be held accountable and responsible for paying the full costs of cleaning up the Gulf and restoring the local economy. Following today's meeting with the President, BP executives agreed to create an accountability fund to pay its obligations to the American people — as proposed by House Democrats earlier this week. And if it takes more than $20 billion, BP will have to cover the full amount for the families, workers, and small business owners of the Gulf Coast.
Responding to calls from Congress, BP has agreed to suspend all dividend payments this year and create a $100 million fund to compensate the workers impacted by the closure of other deep water oil rigs.
We will monitor BP's payments to those hit hardest by this crisis, and will not hesitate to pass tough legislation if BP fails to follow through on its responsibilities.
By blocking the Big Oil Bailout Prevention Act, Congressional Republicans are opposing legislation that demands financial accountability from BP and Big Oil and protecting oil profits at the expense of our economy and our environment. Democrats will keep standing with America's middle class and small businesses — on the Gulf Coast and across the country — and preserving the public interest over special interests.
Today, the Energy & Commerce Subcommittee on Energy and Environment held a hearing with the top executives of the big five oil companies on the impact of our dependence on oil, the safety of drilling operations, disaster response measures, and the ongoing response to the oil spill in the Gulf of Mexico. Testifying were:
Rex Tillerson, Chairman and Chief Executive Officer, ExxonMobil
John Watson, Chairman and Chief Executive Officer, Chevron Corporation
James Mulva, Chairman and Chief Executive Officer, ConocoPhillips
Lamar McKay, President and Chairman, BP America, Inc.
Marvin Odum, President, Shell Oil Company
In his opening remarks, Chairman Ed Markey (D-MA) addressed the inadequacy of the disaster response plans by all the oil companies–noting BP (and three of the companies) included references to protecting walruses…mammals that do not live in the Gulf of Mexico:
Chairman Henry Waxman (D-CA) sheds light on why these response plans are so similar–it turns out the same company, the Response Group, wrote all five plans. Chairman Waxman concludes that this shows “ExxonMobil, Chevron, ConocoPhillips, and Shell are no better prepared to deal with a major oil spill than BP”:
Chairman Bart Stupak (D-MI) discussed documents showing ExxonMobil devoted 40 pages of its disaster response plan to “media response strategy” and a mere 5 pages to “resource protection” and 9 pages to “oil removal.” They even have fill in the blank press releases ready to go responding to an [INCIDENT]:
Rep. Stupak summarizes, “in short, ExxonMobil has meticulously anticipated virtually every conversation that the company might need to have with the media in the days following an oil spill in the Gulf of Mexico. My problem is that ExxonMobil has given far less attention to actually controlling a spill”:
Rep. Lois Capps (D-CA) asks Mr. McKay, President and Chairman of BP America, about testimony he gave last year before Congress saying “today’s off-shore drilling technology bears about as much resemblance to what was available in the 1960s as a rotary dial telephone does to an iPhone” given that the spill containment measures (booms, clean-up workers) in the ’60s are nearly identical to the measures being used to respond to the disaster now:
Chairman Stupak (D-MI) asks Mr. Tillerson, CEO of ExxonMobil, about the validity of their response plan given that ‘ExxonMobil’s worst-case scenario is over 160,000 barrels per day–four times bigger than the current spill–using the same plan BP has with the same contractors BP is using’:
Rep. Peter Welch (D-VT) asks the oil executives “should taxpayers of the United States continue to provide billions of dollars in subsidies to an industry — the oil industry — that’s mature; to an industry that’s extremely profitable; and to an industry that’s based on a carbon-based fuel”:
Rep. Jay Inslee (D-WA) asks the executives “whether or not the industry has made appropriate investments in improving safety of offshore drilling”:
Chairman Waxman (D-CA) asks the executives of ExxonMobil, Chevron, ConocoPhillips and Shell Oil what they would have done differently from BP to prevent the disaster that happened:
Rep. Anthony Weiner (D-NY) asks Mr. McKay about reports that BP is preventing journalists and scientific experts from accessing the areas affected in the Gulf Coast and what constitutes a “legitimate” claim:
As Chairman Waxman said at the hearing today:
Congress needs to pass new laws that put teeth into our regulatory system. But we cannot stop there. Our national energy policy is broken. We are addicted to oil, and this addiction is fouling our beaches, polluting our atmosphere, and undermining our national security.
We can't snap our fingers and transform our energy economy overnight. But we can start down the path to a clean energy future. The House did its part when it passed comprehensive energy reform a year ago. Now it's time for the Senate to act.
This afternoon, Speaker Pelosi met with family members of individuals who died on the Deepwater Horizon oil rig that exploded in the Gulf of Mexico:
On the meeting, the Speaker said:
On behalf of my colleagues, I conveyed our sympathy and sorrow to these family members. We will turn their grief into action. We will ensure that BP and other responsible parties are held fully accountable for their actions, liability issues are addressed to prevent corporations from shortchanging victims and their families, and safety is improved for American workers.
These family members have taken their pain and turned to advocacy – in the memory of their loved ones and to ensure future generations never have to face such personal loss.
“I think the people responsible in the oil spill–BP and the federal government–should take full responsibility for what’s happening there,” Boehner said at his weekly press conference this morning.
Boehner’s statement followed comments last Friday by US Chamber of Commerce CEO Tom Donohue who said he opposes efforts to stick BP, a member of the Chamber, with the bill. “It is generally not the practice of this country to change the laws after the game,” he said. “Everybody is going to contribute to this clean up. We are all going to have to do it. We are going to have to get the money from the government and from the companies and we will figure out a way to do that.”
House Democrats are siding with American taxpayers. BP should be held accountable. To that end, House Committees are holding oversight and legislative hearings in response to the oil spill — just yesterday, we held three.
The Speaker thanked the Chairs for their ongoing oversight efforts saying:
I am here to express my gratitude for the leadership that our chairmen and subcommittee chairs have demonstrated on the issues relating to the tragedy in the Gulf of Mexico. In the past few weeks, they have held hearings, written legislation, visited the region on more than one occasion and have given us, on an ongoing basis, the benefit of their thinking–whether we are talking about leasing reform, liability reform, the safety of the workers, the integrity of the certification process; whether we are talking about preparedness of the private sector to help respond to the spill; whether we are talking about research and development into new technologies; whether we are talking about the confidence that the people in the region have about what the response is from around; whether we are talking about the Coast Guard, and the Coast Guard having responsibility but none of the opportunity to help write these readiness plans.
…
So I thank them, and I want my colleagues to know that we are assured that the intellectual resources to address this issue, the experience from other spills and other tragedies has taught us well how to go forward and we need to exploit and enforce the laws that are there, change them if necessary, and pass others to make us stronger in terms of protecting the interest of the taxpayer–the economy, the ecology, the quality of life in the region of the Gulf of Mexico.
The Speaker also asked the Chairs to continue their legislative work in response to this crisis expeditiously with the goal of completing committee consideration of legislation by July 4 and on the House floor by the August work period, explaining:
We are ready–some of the bills that have passed out of committee, some of them have passed the House and gone to the Senate and not come back. I think, I don't know what further evidence anyone would need that we need a new energy policy in our country as we go forward–what further evidence than what has happened in the Gulf of Mexico. We are told the technology is there to do the drilling. When it doesn't work, there is no technology to correct it and no technology to clean it up. Instead of digging deeper into the core of the earth, we should be looking to the sun, the wind, and the soil for renewables and alternatives to that. And as the President has said, countries know that the country that prevails in the green economy will be the country, the nation that prevails in the global economy. We want America to be that country.
Earlier today, the Science Committee held a hearing to explore the research, development, and technology needs for the recovery of oil and effective cleanup of oil spills and to examine the current gaps in spill response research and technology development, and what is needed to improve the coordinated federal response going forward. Read witness statements»