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BP Prudhoe Bay Royalty Trust Message Board

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  • mityengr mityengr Jun 4, 2010 7:36 PM Flag

    What Happens to BPT

    Its looking more and more like BP assets will be used to pay for settlements, fines, and damages. Minimum fines for environmental damage are about $1000 per barrel per day X 10-20000 barrels per day times say 100 days or $2 billion. Max fine is at least 5 times that and could be more depending on the wrath of congress. Value of lawsuits could easily top this maximum number.
    The govenrment has already prohibited drilling on Gulf leases which amounts to an expropiation since these become worthless until the rules are rewritten and the mess resolved. This is going to take years not six months. I think I saw that BP had about 40% or more of these deepwater leases. The government could just as easily expropiate ALL BP assets in the US including filling stations, refineries, oil fields etc.
    Personally I think that all BP assets in the US will essentially be expropiated by the US to pay for everything. Overseas assets are a big question mark however.
    It would be nice if BP could get a clean sale of their Prudhoe based assets, but it might not work out that way.
    Supposethe government steps in and expropiates these in lieu of fines and damages. Once they got control, what exactly are they going to do with them and how long would it take to resolve all issues?? What happens tothe dividend meantime?

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