US Senator Begich Introduces Oil-Spill Escrow Bill

21st Jun 2010 19:45

By Siobhan Hughes Of DOW JONES NEWSWIRES WASHINGTON (Dow Jones)--Sen. Mark Begich (D., Alaska) on Monday introduced legislation that would require oil companies to set aside funding in an escrow account to meet claims stemming from catastrophic oil spills like the one polluting the Gulf of Mexico. Under the bill, oil companies would be unable to enter any oil or gas offshore drilling leases with the federal government without paying into an oil-spill-recovery fund. It wasn't immediately clear whether oil companies would pay into the spill-recovery fund when obtaining leases or only after a spill had occurred. A spokeswoman for Begich said the legislation would also enshrine in law a deal reached last week between the White House and BP PLC (BP). Under the pact, BP must set aside $20 billion in a spill fund to cover some claims arising from the April 20 drilling-rig explosion and subsequent oil gushing from a broken pipe in the Gulf of Mexico. -Siobhan Hughes, Dow Jones Newswires; (202) 862-6654; [email protected] (END) Dow Jones Newswires June 21, 2010 14:45 ET (18:45 GMT)