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Page added on February 11, 2012

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BP fines paid for spill may disappear into federal black hole

Barrels of bile were spilled in weeks leading up to the Florida primary. But that’s just a clean-up on aisle three compared to the epic five million barrels of crude oil that paralyzed the Gulf Coast states a couple of years ago.

Well, BP’s bill is coming due and almost nine of 10 Floridians think the oil company’s fines should go to the states that suffered the greatest harm from the spill. Sen. Bill Nelson thinks that’s just common sense. Sen. Marco Rubio agrees.

But a huge chunk of BP’s penalties are dangerously close to disappearing into the black hole of the federal treasury instead of coming back to Florida.

The buzz in D.C. says that BP could try to settle with the U.S. Justice Department at the end of February to avoid a trial. If that happens before Congress passes a law directing the fine money back to the Gulf Coast states, Florida and the others can just get back in line and wait some more.

Let’s be clear about what’s at stake. There’s a historic, bipartisan agreement in place among the five key states. It will begin to restore the Gulf Coast at the massive scale needed to rebuild a way of life that’s literally washing out to sea. That agreement, the RESTORE Act, is waiting to hitch a ride on a piece of legislation in the Senate, maybe something like the extension of payroll tax cuts.

Who doesn’t think that’s a good idea? Here’s what even Howie Mandel knows: There’s a time to just take the deal.

Why take the deal? Because if we don’t, we have no reason to believe those dollars will come back to Florida. So much for protecting Florida’s world-famous waters and beaches or using the money toward restoring Florida’s spectacular bird colonies, sea turtles and other wildlife. There goes the hand up for small business owners, fishers or the tourism industry or communities along the coast.

Floridians understand intuitively that clean water, pure air and a healthy environment are the foundation of strong communities and a healthy economy. They’re also part of Florida’s heritage — something that belongs to future generations.

A bipartisan poll in December showed that 84 percent of Floridians — of every conceivable background and political persuasion — think that the money should come back to help the states where the damage was done.

And even in a deeply divided Congress, senators and representatives from both sides of the aisle have come together and agreed on this issue. Nelson emerged as an early champion for the RESTORE Act and he wants his colleagues’ support. Rubio co-sponsored the bill in the Senate, and several Florida representatives are supporting a similar bill in the U.S. House of Representatives.

There’s a lot of self-interest in this bill, but this is what it looks like when elected officials cross the aisle to get a bill done. Yes, it’s been so long since something like this happened that we barely remember what it’s like watching legislative sausage being made.

But time is running out. Congress doesn’t usually pass many laws in election years.

This one is teed up and ready to go, and it is time to get started on the path to Gulf Coast redemption and restoration.

Miami Herald



5 Comments on "BP fines paid for spill may disappear into federal black hole"

  1. BillT on Sun, 12th Feb 2012 4:35 am 

    This is no surprise. Eventually your 401k and other retirement plans that the government can ‘nationalize’ will be in their hands also. That is trillions of dollars that they are already dipping into and the dip will become a flood eventually. I don’t have any of my resources in any of those.

    BTW: Had that well not leaked, the oil from it would have been enough to power the world for 24 minutes. 24 minutes for $50,000,000,000.00+ and we didn’t even get the 24 minutes. Instead we got major pollution and a huge loss.

  2. DC on Sun, 12th Feb 2012 2:39 pm 

    The people of the MH should dig a little deeper. Those ‘fines’ for BP will never materialize. The corporate court system will drag the matter out for years till everyone has forgotten about the matter, then they quietly reduce the ‘fine’ to a what will probably amount to a a few hours profit for BP. See Exxon-Valdez spill for a guide. And once, if ever any actual fine is collected from BP, the govt will quietly arrange some form of ‘tax credit’ or similar, so the fine will be effectively nullified. But on the public record, you just might be convinced BP actually paid a dime in penalties. So I guess in a way the black hole metaphor is a good one, the fine litterally will dis-appear. The writer might have chosen a better concept tho. A wormhole is actually closer to what he was trying to get across. He thinks the money will fall into the govt wormhole and appear somewhere else, far from his state, but it really will be a black hole. The fine will fall into an event horizon and NO one will ever see the fine ever again.

  3. MrEnergyCzar on Mon, 13th Feb 2012 12:45 am 

    They can’t and won’t ever pay the $1,000 fine per gallon or barrel leaked in the gulf. You’re talking billions in fines, I can’t imagine they pay it…

    MrEnergyCzar

  4. BillT on Mon, 13th Feb 2012 1:39 am 

    Remember…”The Supreme Court handed corporate America a major victory this week when it sharply reduced the amount of money Exxon Mobil has to pay in punitive damages for the 1989 Exxon Valdez oil spill in Alaska. An Alaskan jury had initially ruled Exxon should pay $5 billion in punitive damages, but in 2006 the 9th US Circuit Court cut the award of punitive damages in half. On Wednesday, (June 2008) the Supreme Court cut the amount of punitive damages again and ordered Exxon Mobil to pay just $500 million in punitive damages — one-tenth of the original jury’s ruling.”

    So much for any fines or remunerations actually getting paid.

    The Exxon Valdez event happened in…1989.

  5. DC on Mon, 13th Feb 2012 4:53 am 

    Nor should anyone to expect Exxon will ever be required to pay that 500 Million. The rule of law simply does not exist in the amerikan corporate state. Corporations can and do, anything they want. Lie, steal, poison people, either in small doses or large, it does not matter, in amerika, its all perfectly legal…..

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