BP Needs to Pay for the Oil Spill Sooner Not Later

As the BP oil spill continues it appears that the company has given information that is favorable to it's position. The estimates of oil flow have been low until challenged and other information has been less than transparent as well if not complete misinformation. Mitigation operations have been less than what is actually needed as these operations have been based on estimates that have been low. The bill adds up daily with a wide range of liabilities that will likely be tied up in court for quite a while. The low estimates would be natural for an oil company when the fine for releasing a barrel of oil into the water is $4300.

At the federally mandated fine level of $4300 with the original estimate of 1000 barrels a day the daily fine would be $4,300,000. With the second BP estimate of 5000 barrels a day the fine would be 21,500,000 dollars a day. Now that the government estimates the spill to be 12,000-20,000 a day the bill would be between 51 million and 86 million a day. High estimates would put the price at over 300 million a day. These are all estimates and having hard facts will probably continue to be elusive especially with the amount of money involved.

The federal and state efforts and liabilities involved add to this bill. BP acts like they are being responsible and benevolent by throwing out a million or two here and there. Though we don't know the cost of this yet, now is the time to start collecting. Having to pay out daily has motivated companies I have dealt with and I am sure it would motivate BP. A running bill gives me fear that when it is all sorted out BP attorneys will attempt to negotiate the bill. Our fish, wildlife and lives of our people are non negotiable.

Capping the well is in BP's best interest and if they could have they would have. But mitigating the disaster is after the fact and Tony Hayward being a businessman he will try to dodge every bill he can. The lack of motivation to fully respond is due to trying to hold on to as much cash as possible. A half a billion dollar fine daily is a reasonable way to light a fire under BP, so to speak.

The federal government needs to get the money from BP now and put the burden of proof on them to get it back. As American citizens the burden of proof lies with us when the IRS wants our money, why should it be different with BP. As I live in South Louisiana I know that a full deployment of resources is not happening as people are still waiting for the word to go. We know that BP owes the federal government and the states and people of the Gulf Coast. It is time to start collecting because by the time this makes it to court and is argued the headlines will be long gone. It will be much easier for BP to negotiate the fines and have BP walk away from many of the costs.