House Panel Votes to Keep BP From Obtaining Offshore Leases

14th Jul 2010 17:22

By Siobhan Hughes Of DOW JONES NEWSWIRES WASHINGTON (Dow Jones) -- A House panel on Wednesday voted to ban BP PLC (BP, BP.LN) from obtaining new offshore leases or drilling permits for as many as seven years if the company winds up paying substantial civil penalties and criminal fines in connection with a prolonged oil spill in the Gulf of Mexico. The amendment, offered by Rep. George Miller (D, Calif.), was approved by voice vote in the U.S. House Natural Resources Committee. The panel voted to add the measure to a bill that responds to the Gulf spill by dividing responsibility for drilling oversight among three new agencies. BP is not mentioned by name in the amendment, but the measure applies to the company's situation. Under the amendment, companies may not bid on leases or apply for drilling permits unless they are able to certify that they have paid damage and cleanup costs for any oil spill. Companies also must be able to certify that they were not assessed more than $10 million in civil penalties and criminal fines for violations of the Federal Water Pollution Control Act over the preceding seven years. Analysts have estimated that BP's penalties could total billions of dollars. The broader bill is expected to be approved by the panel later Wednesday. The path to law remains unclear, as numerous House panels claim jurisdiction over spill legislation. -By Siobhan Hughes; Dow Jones Newswires; (202) 862-6654; [email protected] (END) Dow Jones Newswires July 14, 2010 12:22 ET (16:22 GMT)