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  June 3, 2010, 12:41 pm

BP will pay $360 million to build barrier islands

By Vicki Needham

In an effort to slow the spread of the oil spill to the shoreline, BP will pay the estimated $360 million for the federal government's barrier island proposal. 

U.S. government officials are planning the construction of six sections of the Louisiana barrier island proposal; BP will make payments in stages as the project progresses, but "will not manage or contract directly for the construction of the island sections, nor will the company assume any liability for unintended consequences of the project," BP said in a release. 

"BP is committed to implementing the most effective measures to protect the coastline of Louisiana and reduce the impact of the oil and gas spill in the Gulf of Mexico," BP CEO Tony Hayward said in a release. "The federal government and the state of Louisiana have agreed that the barrier islands construction is an effective response to the spill and we look forward to working with them on this project."

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  June 3, 2010, 12:32 pm

Rahall urges Justice Dept. to force BP royalty payments on gushing oil

By Ben Geman

House Natural Resources Committee Chairman Nick Rahall (D-W.Va.) says Attorney General Eric Holder should take legal action to force BP to pay royalties on all the oil and natural gas escaping into the Gulf of Mexico.

In a letter to Holder on Wednesday, Rahall notes the Oil Pollution Act of 1990 allows the U.S. to recover damages, including lost royalties, from parties responsible for oil spills.

Rahall’s letter acknowledges that while there is a not a “precise” tally of the volumes pouring from BP’s blown-out well, government estimates suggest at least a half-million barrels of oil and hundreds of millions of cubic feet of gas have been released.

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  June 3, 2010, 12:10 pm

‘Significant step’ toward oil capture reported as Obama to visit Gulf again

By Ben Geman

Adm. Thad Allen said BP was able to cut through a riser pipe and will soon attempt to move a containment device into place.


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  June 3, 2010, 11:59 am

Florida senator calls on Obama to do more to contain oil spill

By Alexander Bolton

Sen. Bill Nelson (D-Fla.) said Obama should send more military assets to the Gulf.

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  June 3, 2010, 11:08 am

Oil spill commission co-chair has not yet spoken to BP

By Jordan Fabian

One of the two co-chairmen of President Barack Obama's bipartisan oil-spill commission said Thursday he has not yet spoken to BP about the incident. 

Former Sen. Bob Graham (D-Fla.), who is serving with President George H.W. Bush's EPA administrator William Reilly, said that he is waiting for the rest of the commissioners to be appointed before reaching out to the company responsible for the Gulf spill. 

"The answer is no, I have not talked to anyone from BP," he told Bloomberg television. "Withhold judgment as to what kind of relationship we’re going to have, I hope it will be a good one. We're going to be first getting the other five members of the commission appointed."

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  June 3, 2010, 10:12 am

Obama making third trip to Gulf

By Ben Geman

President Barack Obama on Friday will make his third trip to the Gulf Coast since the oil spill began.

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  June 3, 2010, 9:47 am

Florida senator thinks oil flow won't be halted until August

By Michael O'Brien

It's unlikely that engineers will be able to stem the flow of oil into the Gulf of Mexico until August, Sen. Bill Nelson (D-Fla.) suggested Thursday.

Nelson, whose home state of Florida is preparing for oil to reach the beaches of Pensacola, said he has no faith in BP's efforts to end the flow of oil from its damaged deepwater well until relief wells are completed in August.

"Personally, I don't," Nelson said during an appearance on CNN when asked if he has any faith in BP to contain the flow of oil. "I think we're looking at this until August."

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  June 3, 2010, 9:46 am

Ron Paul: Obama facing too much blame on oil spill

By Michael O'Brien

President Barack Obama won a defense of his handling of the Gulf of Mexico oil spill from one GOP congressman on Thursday.

Rep. Ron Paul, the libertarian Republican lawmaker from Texas, said that people were expecting too much from the president in his ability to react to the ongoing spill into the Gulf.

"I'm a pretty big critic of the president," Paul said during an appearance on "Imus in the Morning" on the Fox Business Network, "but I just don't see the justification for coming down hard on the president."

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  June 3, 2010, 9:31 am

Browner on BP: ‘We are not partners’

By Ben Geman

White House energy and climate adviser Carol Browner is emphasizing that federal officials are calling the shots in BP’s effort to contain the Gulf of Mexico oil gusher.

“It is important, I think, for people to understand that BP cannot do anything without the administration’s agreement, and so if an idea is put forward that our brain trust, our scientists, are not comfortable with, they are told that. They do not proceed,” she told National Public Radio.

“We are not partners,” she added in the interview, broadcast Thursday morning, “because at the end of the day, we get to decide what happens.”

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  June 3, 2010, 9:00 am

E2 Round-up: Lobbying battle over drilling limits heats up, BP admits it wasn’t prepared for deepwater spill, offshore insurance costs rise, and speculation about BP CEO’s future abounds

By Ben Geman

Oil companies and environmentalists scrambling to shape post-spill policy

The New York Times explores lobbying efforts by both sides on the question of drilling restrictions and rules.

“Environmentalists and their supporters in Congress, hoping to seize the political momentum, are working to push through measures to extend bans on new offshore drilling, strengthen safety and environmental safeguards and raise to $10 billion or more the cap on civil liability for an oil producer in a spill,” the Times reports.

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