BP is mounting a new challenge to the U.S. government’s estimate of how much oil flowed from the runaway Macondo well in the Gulf of Mexico, an argument that could reduce by billions of dollars the federal pollution fines it faces for the largest offshore oil spill in history. BP’s lawyers are arguing that the government overstated the spill by 20% to 50%, staffers working for the presidential oil spill commission say. In a 10-page document obtained by The Associated Press, BP says the government’s spill estimate of 206 million gallons is “overstated by a significant amount” and that any consensus around that number is premature and inaccurate. The company submitted the document to the presidential commission, the Justice Department, and the National Oceanic and Atmospheric Administration.
In a statement today, the company says the government’s estimates failed to account for equipment that could obstruct the flow of oil and gas, such as the blowout preventer, making its numbers “highly unreliable.” BP’s request could save it as much as $10.5 billion or as little as $1.1 billion, depending on factors such as whether the government concludes that BP acted negligently. Louisiana lawmakers are pushing legislation that would require at least 80% of the civil and criminal penalties charged to BP, and possibly other companies, to be returned to the Gulf Coast.
William K. Reilly, co-chairman of the presidential commission, expressed amazement at BP’s case today. Reilly headed the Environmental Protection Agency under President George H.W. Bush. “They are going to argue that it is 50% less” than the government’s total? Reilly asked. “Wow.”
