bp oil spill environmental issues

BP and the oil spill: a misconception Big 3 Questions

Asghar Kamboh: What is the biggest misunderstanding about the responsibility the BBC?

Noah Hall: This is an excellent question. On the one hand, and I think some people go to extreme liability the BBC and is expected to bankruptcy any time. But while the 40 or 50 billion billion dollars, the amount shall be responsible for the environmental disaster without precedent, and BP of unprecedented wealth, income and cash reserves. And the $ 40 or $ 50 billion, which I call "Back to the napkin "estimates will be paid over five to 10 years. So you're really talking about five billion dollars, 10 million dollars a year on liability BP that the company can effectively absorb and size of pay and can still be solvent and profitable.

In addition, there appears to be a misunderstanding, especially in some hostile environments of the company, BP will leave these free Scotland, without paying a penny or maybe only $ 75 million or something. This has and meaningless. BP pays a huge bill to that effect. I think the truth is really just between the two. I do not think that this disaster on his own and was the collapse of the Palestinian Authority. I do not think BP will pay all damages.

I think, in fact, legally speaking, this situation will clear up a point at which BP will be responsible for damages. They will be checks for damage. There will be a dispute on losses and economic damage to businesses and governments to landowners and local authorities in the Gulf region. But in fact, I think BP will pay, and they have enough money to pay them.

Greer, Noah, when discussing with students in private law? What are the major questions and we are trying to get an idea of how it goes this? In terms of responsibility BBC

Hall: Absolutely. A number of things. The first is the BP will be able to perform other responsible parties to share the burden of responsibility? And Transocean Inc. (NYSE: in advance) and Halliburton Company (NYSE: HAL) that the two companies that I think one of the first place. Let's say the BBC on the hook for 40 billion dollars. He may be trying to say Transocean responsible for 10% of Halliburton, which is responsible for 10% of that. So I think you'll see fights between the responsible parties. I get the impression however, is actually going to be an effective strategy, especially for BP. Transocean owned altered. We have not seen much evidence that any Transocean lack or have no incentive to cut corners or at the end of drilling and safety procedures, and payment is Transocean every day because they are leasing drilling rigs BP. It was very good if Transocean BBC took an extra month to make the right to work. The company had a small role, and a lot of mistakes and may have already done. So I think the BBC does not receive much help from other parties responsible express.

The second question is whether gross negligence or BBC do something that would justify punitive damages. We know that the BBC is responsible, and most laws to be presented in the context of claims does not even matter if they have done something wrong. Little Whether you do all the work or take the best precautions available are strictly liable. Basically, the oil in the water. BBC responsible. They had to pay the claim. But we see applications for things like punitive damages, when you really know how to react and if you have really terrible BP is something wrong or liable only when the impact of this disaster.

The third thing I'd be fun to see how the economic loss is based, as this is what really can get out of control. Now, most of the economic loss claim is based, is very clear. Some things, like fishing boats based in the Gulf oil spill, and can not leave a living — paid $ 5,000 per month or $ 10,000 per month, and very direct. But what will happen after five years from now, when the tourism industry in Florida is still 20% or 30%, and demand that as a result of oil spills BP? BP, of course, say no, but the result of the recession, marketing, bad, and consumer preference, or other factors that come into the presence or absence of the industry in good condition or the economy in good condition.

The big question is – how much economic impact the Gulf region will be posted on the BBC? BP will be legally responsible? It is, in fact, just walk down to a battle of experts in economics.