Wednesday
Jun162010
White House Meeting Procures Key Agreements From BP
Top executives with BP have agreed to establish a $20 billion account that will be used to award claims made by individuals and businesses that have been affected by the Gulf oil spill. The company will also suspend making dividend payments to shareholders for the rest of the year.
At the behest of the White House, BP Board Chairman Carl Henric-Svanberg, CEO Tony Hayward and others with the company met privately with President Obama and other administration officials in the Roosevelt Room on Wednesday. The meeting, which the President took part in for only 20 minutes, lasted nearly four hours. Vice President Joe Biden, White House Economic Adviser Larry Summers and the administration’s point man on the ground in the Gulf in charge of managing efforts to stop the spill, Adm. Thad Allen, were among those who attended the meeting.
In brief remarks to to the press afterwards, the President confirmed BP’s willingness to oblige his request to set up an escrow account. The company will contribute $5 billion per year to the account over the course of the next four years. However, with questions looming as to whether or not $20 billion will be enough to cover all claims, the President assured that the figure would not represent a cap for BP, adding his belief that the oil giant will make good on its promise to fully pay for all damages caused by the spill.
“I’m absolutely confident BP will be able to meet its obligations to the Gulf Coast and to the American people,” said Obama. “BP is a strong and viable company and it is in all our interests that it remains so.”
“This is about accountability,” he added. “At the end of the day, that’s what every American wants and expects.”
The President said lawyer Ken Feinberg will be asked to oversee the fund. Feinberg previously presided over the fund set up to remunerate families of the 9/11 attack victims. Currently, he oversees a program within the Troubled Assets Relief Program (TARP) that monitors executive compensation, and is frequently referred to as the White House’s ‘pay czar.’ Within the BP fund, a panel of three judges will be assigned to hear appeals to decisions made by Feinberg.
Moments after the President concluded his remarks, Svanberg, the chairman, who until today had not spoken with Obama, addressed reporters who had gathered at a stakeout location outside the briefing room, and apologized for his company's actions.
"I would like to take this opportunity to apologize to the American people," he said. "Through our actions and commitments, we hope...that we will regain the trust that you have in us."
Svanberg also reportedly issued a personal apology to the President during their meeting. White House Press Secretary Robert Gibbs told reporters later in the day that he "assumed" Mr. Obama had accepted it.
Following his brief statement, the BP Chairman took a handful of questions, including one regarding what he discussed specifically with the President. Svanberg, a Swede who speaks English as a second language, responded by saying both he and Mr. Obama are frustrated over not being able to help the "small people" in the Gulf by plugging the leak.
"I hear comments sometimes that large oil companies are greedy companies or don’t care,” he said. "But that is not the case indeed. We care about the small people."
In addition to agreeing on the escrow fund and postponing dividend payments, BP agreed to not attempt to use a liability cap established under the Oil Pollution Act of 1990 (OPA 90) to avoid awarding claims. Furthermore, the company agreed to contribute $100 million to a foundation designed to support oil workers that have lost their jobs as a result of the six-month drill moratorium announced by the President in response to the spill.
At the behest of the White House, BP Board Chairman Carl Henric-Svanberg, CEO Tony Hayward and others with the company met privately with President Obama and other administration officials in the Roosevelt Room on Wednesday. The meeting, which the President took part in for only 20 minutes, lasted nearly four hours. Vice President Joe Biden, White House Economic Adviser Larry Summers and the administration’s point man on the ground in the Gulf in charge of managing efforts to stop the spill, Adm. Thad Allen, were among those who attended the meeting.
In brief remarks to to the press afterwards, the President confirmed BP’s willingness to oblige his request to set up an escrow account. The company will contribute $5 billion per year to the account over the course of the next four years. However, with questions looming as to whether or not $20 billion will be enough to cover all claims, the President assured that the figure would not represent a cap for BP, adding his belief that the oil giant will make good on its promise to fully pay for all damages caused by the spill.
“I’m absolutely confident BP will be able to meet its obligations to the Gulf Coast and to the American people,” said Obama. “BP is a strong and viable company and it is in all our interests that it remains so.”
“This is about accountability,” he added. “At the end of the day, that’s what every American wants and expects.”
The President said lawyer Ken Feinberg will be asked to oversee the fund. Feinberg previously presided over the fund set up to remunerate families of the 9/11 attack victims. Currently, he oversees a program within the Troubled Assets Relief Program (TARP) that monitors executive compensation, and is frequently referred to as the White House’s ‘pay czar.’ Within the BP fund, a panel of three judges will be assigned to hear appeals to decisions made by Feinberg.
Moments after the President concluded his remarks, Svanberg, the chairman, who until today had not spoken with Obama, addressed reporters who had gathered at a stakeout location outside the briefing room, and apologized for his company's actions.
"I would like to take this opportunity to apologize to the American people," he said. "Through our actions and commitments, we hope...that we will regain the trust that you have in us."
Svanberg also reportedly issued a personal apology to the President during their meeting. White House Press Secretary Robert Gibbs told reporters later in the day that he "assumed" Mr. Obama had accepted it.
Following his brief statement, the BP Chairman took a handful of questions, including one regarding what he discussed specifically with the President. Svanberg, a Swede who speaks English as a second language, responded by saying both he and Mr. Obama are frustrated over not being able to help the "small people" in the Gulf by plugging the leak.
"I hear comments sometimes that large oil companies are greedy companies or don’t care,” he said. "But that is not the case indeed. We care about the small people."
In addition to agreeing on the escrow fund and postponing dividend payments, BP agreed to not attempt to use a liability cap established under the Oil Pollution Act of 1990 (OPA 90) to avoid awarding claims. Furthermore, the company agreed to contribute $100 million to a foundation designed to support oil workers that have lost their jobs as a result of the six-month drill moratorium announced by the President in response to the spill.
tagged 
geoff holtzman in Frontpage 1, News/Commentary, White House
geoff holtzman in Frontpage 1, News/Commentary, White House
Reader Comments (1)
"On Monday, British Petroleum promised to pay all necessary cleanup costs for this oil spill. And they said they will do it, no matter how much they have to raise gas prices." —Jay Leno