Senate Republicans Block Bid To Raise Oil-Spill-Damages Limit

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Source: Dow Jones


By Siobhan Hughes, Of DOW JONES NEWSWIRES

WASHINGTON -(Dow Jones)- An effort by a few Senate Democrats to raise the cap on damage claims that BP Plc (BP) must pay for a a Gulf of Mexico oil spill was blocked on Thursday after Republicans said the plan wouldn't work.

Sen. Lisa Murkowski (R, Alaska) led the charge against the measure, aimed at raising to $10 billion the limit on damage claims. The current limit, of $75 million, has been widely criticized by lawmakers as too low. Republicans blocked efforts to proceed, saying independent offshore oil developers would not be able to stay in business under the legislation because small companies wouldn't be able to self-insure against claims.

"The only companies that are going to be able to self-insure against this level of strict liability are the national oil companies, the super majors," Murkowski said. She said that would create a "monopoly" on offshore drilling among giant companies such as BP. "We need to ensure that BP as the responsible party pays."



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