Alaska Senator To Propose Bill Creating Oil-Spill Account

15th Jun 2010 23:00

By Tennille Tracy Of DOW JONES NEWSWIRES WASHINGTON (Dow Jones)--Sen. Mark Begich (D., Alaska) plans to introduce a bill Thursday that would create an escrow account into which BP PLC (BP, BP.LN)and companies involved in future oil spills will deposit funds to pay for clean-up efforts and damages. Begich is preparing his bill as U.S. lawmakers step up pressure on BP to set aside $20 billion to pay for the Deepwater Horizon disaster. Lawmakers say they want to avoid a scenario in which a company drags its heels on paying clean-up costs and claims. In a hearing before a House Energy and Commerce Committee panel, BP America President Lamar McKay said "I cannot comment on whether there will be a fund." In a conference call Tuesday, Begich and two other senators--Jeanne Shaheen (D., N.H.) and Amy Klobuchar (D., Minn.)--said an escrow account is crucial given that Exxon Mobil Corp. (XOM) took more than two decades to pay costs related to the 1989 Exxon Valdez spill. "History tells us that the word of these oil companies isn't always enough," Shaheen said. On Monday, several Democratic senators sent a letter to BP Chief Executive Tony Hayward, asking him to commit to the escrow account. "Establishment of this account would serve as an act of good faith and as a first step towards ensuring that there will be no delay in payments or attempt to evade responsibility for damages," the letter said. The senators asked BP to reply to their request by Friday. When he introduces the escrow proposal later this week, Begich also plans to introduce four other measures, either in separate pieces of legislation or combined in one bill. The four other measures would raise the single-spill liability cap from $75 million to a minimum of $200 million, and dedicate funds to spill prevention, response research and citizen involvement. -By Tennille Tracy, Dow Jones Newswires; 202-862-6619; [email protected] (END) Dow Jones Newswires June 15, 2010 18:00 ET (22:00 GMT)