Posted by: Debby Durkee | June 15, 2010

Obama’s alarming, unlawful attack on BP.

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Obama’s alarming, unlawful attack on BP.

The latest Obama demand of BP is that they pay into an escrow account managed by someone appointed by Obama, which is supposed to be used to pay costs of the oil spill. Now, are you comforted by another large pile of money with a politician in charge of administering it? Yeah, me neither. That’s on top of the criminal probe of BP by the Justice Department (announced loudly by AG Holder) and the Democrat Congress’ preparation to illegally lift the cap on the $75 million liability (that BP has already said it would not limit itself to). Obama’s administration and the Democrats in general don’t seem to follow any laws. They make them up as they go along. This is from the Wall Street Journal.

No wonder Britain’s Prime Minister and other officials are alarmed about the fate of one of their country’s foremost corporations. This is the kind of treatment that Americans would protest if it were applied to U.S. companies by Venezuela or Russia.  Snip –

Which brings us to the escrow demand that the President will presumably elaborate on in his Oval Office speech tonight? The idea is for BP to turn its assets over to a fund administered by an “independent” trustee who would decide what legitimate damage claims from Gulf residents and businesses are. Senate Democrats have graciously advised BP to start its payments to the fund at $20 billion.  Snip –

BP has more than 600 claims personnel working to pay fishermen and others that have suffered economic damage. It has vowed to pay all “legitimate” claims and has worked through 20,000 of 42,000 submitted so far, at a cost of $53 million. BP has also promised it will not limit its payments to the Oil Pollution Act’s $75 million cap on these damages, and last month it announced it would hire an independent mediator to review claims. Any claimant denied payment has the right to sue for redress under the law, which means BP has an incentive to get these payouts right.

By contrast, a government-administered fund more or less guarantees a more politicized payment process. The escrow administrator will be chosen by the White House, and as such would be influenced by the Administration’s political goals. Those goals would include payments to those harmed by the Administration’s own six-month deep water drilling ban. That reckless policy will soon put thousands of Gulf Coast residents out of work, but the White House knows that BP isn’t liable under current law for those claims. The escrow account is an attempt to tap BP’s funds by other means to pay the costs of Mr. Obama’s own policy blunder.

Every $1 spent to pay for damages caused by the moratorium is also $1 less available for the oil-spill victims for which this money was intended

only last week Democrats on Capitol Hill wanted to siphon money out of the Oil Spill Liability Trust Fund—established in 1986 and funded by oil taxes to help clean-up spills—to pay for their extension of unemployment benefits. The history of such government funds is that they are always raided for politically favored purposes.  Snip –

Offshore drilling, even in shallow water, is coming to a stop as the entire industry considers the additional political risks of operating amid a political panic in which even the President of United States seems oblivious to the rule of law. We hope BP resists Mr. Obama’s demands to put a political actor in control of its Gulf payments—both for the sake of legitimate Gulf claims, and to vindicate the U.S. as a nation that doesn’t discard the law for the sake of political retribution.

We also hope other politicians, in the U.S. or U.K., begin to push back against a White House more concerned about its poll numbers than about the U.S. or Gulf Coast economies.

This is an amazing story. Our country is in trouble. Read this whole thing because we are fast on the road to a banana republic. We must rid ourselves of these lawmakers and those who are supposed to enforce the law who continually make up the  law as they go along. Please read it all here: http://online.wsj.com/article/SB10001424052748704324304575307111725173500.html?mod=WSJ_Opinion_LEADTop

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Responses

  1. Obama’s leadership skills display failure in its highest form. The problem is that it’s not about leading us toward the shining city on the hill but instead he’s driving us into the slum where the lord of the flies reins. God Save Us!


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