Sen. Reid, Democrats Ask BP To Set Aside $20 Billion For Spill

14th Jun 2010 15:36

By Siobhan Hughes Of DOW JONES NEWSWIRES WASHINGTON (Dow Jones) -- Senate Majority Leader Harry Reid (D, Nev.) and members of the Democratic caucus on Monday asked BP Plc (BP) to set aside $20 billion in a special account to be used to pay for economic damages and clean-up costs of an ongoing oil spill in the Gulf Coast. The lawmakers made the request in a letter to BP Chief Executive Tony Hayward and asked for a response by no later than Friday. The letter comes as U.S. President Barack Obama is preparing to ask BP to set up an independently administered fund for reimbursing victims. In a call with reporters, Sen. Patty Murray (D, Wash.) and Sen. Bob Menendez (D, N.J.) said that the letter was not intended to set a limit on the payouts BP would make in connection with the spill, which followed an April 20 explosion of a drilling rig that BP was leasing in the Gulf of Mexico. The money "is an attempt" to make sure that commercial fishermen, tourism-related businesses and others in the gulf who have "immediate claims" will be "held whole," Menendez said. Asked whether providing the $20 billion would cause Menendez to adjust legislation that currently would eliminate a cap on damage claims that BP and other companies would have to pay for spills and make the policy retroactive, Menendez said that "while I think the $20 billion is incredibly important as a very significant down payment towards the claims of individuals," he said that "I just don't want to limit that liability to that." -By Siobhan Hughes; Dow Jones Newswires; 202-862-6654; [email protected] (END) Dow Jones Newswires June 14, 2010 10:36 ET (14:36 GMT)