Greg Pallast
Deal buries evidence of oil company willful negligence
Following the Deepwater Horizon explosion, Greg Palast led a four-continent investigation of BP PLC for Britain's television series Dispatches. From 1989-91, Palast directed the investigation of fraud charges in the Exxon Valdez grounding for Alaska Native villages.
Some deal. BP gets the gold mine and the public gets the shaft.
On Friday night, the lawyers for 120,000 victims of the Deepwater Horizon blow-out cut a deal with oil company BP PLC which will save the oil giant billions of dollars. It will also save the company the threat of a trial that could expose the true and very ugly story of the Gulf of Mexico oil platform blow-out.
I have been to the Gulf and seen the damage — and the oil that BP says is gone. Miles of it. As an economist who calculated damages for plaintiffs in the Exxon Valdez oil spill case, I can tell you right now that there is no way, no how, that the $7.8 billion BP says it will spend on this settlement will cover that damage, the lost incomes, homes, businesses and boats, let alone the lost lives — from cancers, fetal deformities, miscarriages, and lung and skin diseases.
Two years ago, President Barack Obama forced BP to set aside at least $20 billion for the oil spill's victims. This week's settlement will add exactly ZERO to that fund. Indeed, BP is crowing that, adding in the sums already paid out, the company will still have spent less than the amount committed to the Obama fund.
There's so much corrosion, mendacity and evil covered up by this settlement deal that I hardly know where to begin.
So, let's start with punitive damages.
I was stunned that there is no provision, as was expected, for a punishment fee to by paid by BP for it's willful negligence. In the Exxon Valdez trial, a jury awarded us $5 billion in punitives - and BP's action, and the damage caused in the Gulf, is far, far worse.
BP now has to pay no more than proven damages. It's like telling a bank robber, "Hey, just put back the money in the vault and all's forgiven."
This case screamed for punitive damages.
Here's just a couple of facts that should have been presented to a jury:
For example, the only reason six hundred miles of Gulf coastline has been slimed by oil was that BP failed to have emergency oil spill containment equipment ready to roll when the Deepwater Horizon blew out. BP had promised the equipment's readiness in writing and under oath.
And here's the sick, sick part. This is exactly the same thing BP did in the Exxon Valdez case. It was BP, not Exxon, that was responsible for stopping the spread of oil in Alaska in 1989. In Alaska, decades ago, BP told federal regulators it would have oil spill "boom" (the rubber that corrals the spreading stuff) ready to roll out if a tanker hit. When the Exxon Valdez struck Bligh Reef, BP's promised equipment wasn't there: BP had lied.
Deal buries evidence of oil company willful negligence
Some deal. BP gets the gold mine and the public gets the shaft.
On Friday night, the lawyers for 120,000 victims of the Deepwater Horizon blow-out cut a deal with oil company BP PLC which will save the oil giant billions of dollars. It will also save the company the threat of a trial that could expose the true and very ugly story of the Gulf of Mexico oil platform blow-out.
I have been to the Gulf and seen the damage — and the oil that BP says is gone. Miles of it. As an economist who calculated damages for plaintiffs in the Exxon Valdez oil spill case, I can tell you right now that there is no way, no how, that the $7.8 billion BP says it will spend on this settlement will cover that damage, the lost incomes, homes, businesses and boats, let alone the lost lives — from cancers, fetal deformities, miscarriages, and lung and skin diseases.
Two years ago, President Barack Obama forced BP to set aside at least $20 billion for the oil spill's victims. This week's settlement will add exactly ZERO to that fund. Indeed, BP is crowing that, adding in the sums already paid out, the company will still have spent less than the amount committed to the Obama fund.
There's so much corrosion, mendacity and evil covered up by this settlement deal that I hardly know where to begin.
So, let's start with punitive damages.
I was stunned that there is no provision, as was expected, for a punishment fee to by paid by BP for it's willful negligence. In the Exxon Valdez trial, a jury awarded us $5 billion in punitives - and BP's action, and the damage caused in the Gulf, is far, far worse.
BP now has to pay no more than proven damages. It's like telling a bank robber, "Hey, just put back the money in the vault and all's forgiven."
This case screamed for punitive damages.
Here's just a couple of facts that should have been presented to a jury:
For example, the only reason six hundred miles of Gulf coastline has been slimed by oil was that BP failed to have emergency oil spill containment equipment ready to roll when the Deepwater Horizon blew out. BP had promised the equipment's readiness in writing and under oath.
And here's the sick, sick part. This is exactly the same thing BP did in the Exxon Valdez case. It was BP, not Exxon, that was responsible for stopping the spread of oil in Alaska in 1989. In Alaska, decades ago, BP told federal regulators it would have oil spill "boom" (the rubber that corrals the spreading stuff) ready to roll out if a tanker hit. When the Exxon Valdez struck Bligh Reef, BP's promised equipment wasn't there: BP had lied.
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