One Year Later

It's hard to believe it has been a whole year since the BP oil spill in the Gulf, possibly the worst environmental disaster this nation has experienced.  As a result of the blowout, 11 employees died, and the coastal and gulf ecosystems were irreversibly devastated as 206 million gallons of oil emptied into the Gulf; that's 19 times more than the infamous Exxon Valdez spill.

And in the year since that tragic disaster, the blame game has already started.  BP has filed suit in federal court against Cameron International, alleging negligent design of the blowout preventer.  On Wednesday, BP sued cement contractor Halliburton for fraud and negligence.  BP has also sued Transocean, the owner of the rig, for over $40 billion in damages.  You can read more about the legal battles here.

Unfortunately, the blame game does not help the rig workers' families and business owners who have had to close shop in the aftermath.  As NPR reported earlier this year, BP has been slow in its efforts to compensate families with the $20 billion compensation fund that was created.  Only $3.5 billion in compensation has been provided, and many families and businesses are struggling while BP adjusters decide whether and how much to pay out claimants.

NPR covered the story of two sisters who saw their profitable beach-wedding business go under due to the BP spill.  After closing their doors, the sisters had a $240,000 loss on their hands.  After six weeks waiting on BP, the sisters received a check for $7,700.  No explanation was given for that figure.

This tragic story illustrates some of the problems that result by giving negligent corporations the power to create and oversee compensation plans like the one BP is still administering.  We have already discussed House Bill 2031, which would encourage other BP-like voluntary compensation plans.  The bill has now passed committee.  Hopefully the lessons of BP will teach our Texas congressmen and congresswomen that compensation plans are not the answer.