all BP shorts should read this.. you guys are losing hope
Is BP protected by the $75 million dollar liability cap set by the OPA? by admin on June 6, 2010
There was a recent article written by Roger Parloff of Forbes that offers a lot of information about if BP is protected by the $75 million dollar cap on damages that was created by the Oil Pollution Act of 1990, also known as OPA. The OPA was passed in 1990 and it states that the company responsible for the accident is limited to $75 million in economic lawsuit damages with several very large exceptions. One of those exceptions is if the company or any of its contractors acted with gross negligence or violated any federal or state safety law or regulation, the Company can not use the OPA limit. This means that if the BP, Transocean, Halliburton or Cameron violated a safety regulation, the OPA limit will not apply. Additionally, the OPA does not apply to any of BP’s federal or state cleanup costs. BP claims that they have already spent $990 million in cleanup costs as of early June.