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2020.07.28 22:35 .Ken Feinberg, the Obama administration’s pay czar in the wake of the BP oil spill, has decided the companies that provide oil to BP must pay an estimated $20 billion in fines.
That’s $2.4 million for each barrel that BP ships offshore. And it’s double the amount BP has already settled with the Justice Department for environmental crimes—all because BP broke the law by trying to hide how much oil it was pumping into the Gulf of Mexico.
That’s the amazing part.
As far as I know, no one ever said BP broke the law in any way that led to the spill. BP was simply doing its job as a business, protecting its well-invested bottom line.
As Feinberg himself noted in his letter to BP yesterday announcing the fees, that’s not the real reason the Justice Department and the Federal Election Commission have already sued BP for $3 billion, the difference between $20 billion and the $5.5 billion BP has paid so far. (To claim that the company that caused the spill is somehow responsible for BP’s business practices is like saying Pfizer should pay the penalty for the entire medical establishment for putting too much arsenic in aspirin.)
The real reason BP broke the law and should be fined the $20 billion it’s being assessed is that BP violated safety regulations imposed by the Coast Guard. BP, like any other company operating deep-water offshore oil rigs, is subject to federal safety regulations; the company did not, and could not, comply with those rules.
The company says it plans to contest the fee. And I’m sure it will. But it won’t do anything to change the fundamentals of the situation. This is simply a regulatory question of whether the Coast Guard or BP gets to impose the penalty. And BP has broken the rules, so it should pay the penalty, much as McDonald’s should pay a fine for selling tainted beef.
In fact, BP should be held up as the gold standard of punishment for polluters. Shouldn’t a company that ignores the law be forced to pay a penalty for the cost of all the damage that results from ignoring the law?Q:
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