Will American Taxpayers Continue to Foot the Bill for BP's Gulf Oil Disaster?
By Andy Rowell
The devil is always in the detail.
If you read the headlines about BP’s trial in New Orleans you will see that if BP is found guilty it will pay out billions in fines.
Take the Washington Post headline on Monday: “Billions of dollars at stake for BP, other companies as trial opens for Gulf oil spill.”
But just how much money is at stake here?
We know that, depending if BP is found to be grossly negligent it faces fines of up to some $17.2 billion under the Clean Water Act. If it is just negligent the fine falls to as low as $4.4 billion
But what happens if BP settles before the trial ends, something that many observers believe is a distinct possibility?
Last week, in a last-minute settlement proposal reportedly offered by the Justice Department and the five affected gulf states—Alabama, Florida, Louisiana, Mississippi and Texas, BP was offered to pay $16 billion in spill-related fines and penalties.
But, this is where it gets interesting. Buried deep inside a New York Times article on the settlement are the details:
“The settlement proposal would cap the amount of fines that BP might pay for violations of the Clean Water Act to $6 billion, significantly less that it might face if the trial proceeds.” In fact that is more than $10 billion less than the full penalty.
And here comes the interesting thing: “The proposal would allow BP to pay an additional $9 billion to resolve environmental penalties related to the spill, an alternative that would lessen the impact on the company’s tax liabilities. The environmental penalties, under separate laws, are tax deductible, while fines like those imposed under the Clean Water Act are not.”
So any fine that BP pays under the Clean Water Act is not tax deductible, whereas any environmental penalty is.
This means that potentially BP could settle and offset a whopping $9 billion against it tax bill. BP essentially only pays $6 billion in fines, which is small fry for what it could have paid.
We know that BP has already set aside $42 billion for payouts from the spill. It has already paid $4.5 billion in fines and other penalties and $9 billion in a partial settlement with businesses, and individuals and local governments.
Add another $6 billion from Clean Water Act payments and the company could draw a line under the disaster, whilst offsetting the $9 billion against taxes now and in the future. Far from being financially crippling for the company, the sweet-heart tax scam is essentially BP’s get out of jail free card.
In 2010, BP paid no U.S. federal income tax in 2010 due to their massive write-offs related to the costs associated with the oil spill. BP received $10 billion in tax breaks by writing off earlier settlement costs related to the spill, but the Department of Justice forbid the company from taking its most recent $4 billion settlement as a tax write-off in November, reportedly at the urging of Attorney General Holder.
“We can’t penalize polluters like BP by rewarding them with tax deductions. BP, not the American people, should pay for the largest oil spill in U.S. history. Attorney General Holder should once again insist that any penalties imposed as part of a settlement are not tax deductible,” argues Steve Kretzmann of Oil Change International.
This essentially means that the American tax payer would be paying the largest payout from the spill. They are paying twice over: first for a devastated Gulf and now out of their pocket. Kind of makes you feel queasy, doesn’t it?
The Obama administration over the last four years has consistently called for ending oil subsidies. As White House Press Secretary Jay Carney said on Monday, Feb. 25: “Anybody fill up their gas tank this weekend? Think the oil and gas companies can maybe afford to give up their taxpayer—special interest break?”
Good question, Jay.
EcoWatch Daily Newsletter
By Eoin Higgins
Over 300 groups on Monday urged Senate leadership to reject a bill currently under consideration that would incentivize communities to sell off their public water supplies to private companies for pennies on the dollar.
<div id="fea63" class="rm-shortcode" data-rm-shortcode-id="9a6f211c2bc5aedd34837944cb8eeedf"><blockquote class="twitter-tweet twitter-custom-tweet" data-twitter-tweet-id="1281000111481294849" data-partner="rebelmouse"><div style="margin:1em 0">Water in Illinois is overwhelmingly public. Why is Tammy Duckworth sponsoring a bill that aims to change that? https://t.co/1V36Kkd99s</div> — The American Prospect (@The American Prospect)<a href="https://twitter.com/TheProspect/statuses/1281000111481294849">1594249201.0</a></blockquote></div>
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By Alyssa Murdoch, Chrystal Mantyka-Pringle and Sapna Sharma
Summer has finally arrived in the northern reaches of Canada and Alaska, liberating hundreds of thousands of northern stream fish from their wintering habitats.
A Good News Story?<p>On the surface, the <a href="https://doi.org/10.1111/fwb.13569" target="_blank">results from our study</a> appear to provide a "good news" story. Warming temperatures were linked to higher numbers of fish, more species overall and, therefore, potentially more fishing opportunities for northerners.</p><p>Initially, we were surprised to learn that warming was increasing the distribution of cold-adapted fish. We reasoned that modest amounts of warming could lead to benefits such as increased food and winter habitat availability without reaching stressful levels for many species.</p>
Photo of Arctic grayling (left) and Dolly Varden trout (right). Alyssa Murdoch / Lilian Tran / Nunavik Research Centre and Tracey Loewen / Fisheries and Oceans Canada<p>Yet, not all fish species fared equally well. Ecologically unique northern species — those that have evolved in colder, more nutrient-poor environments, such as Arctic grayling and Dolly Varden trout — were showing declines with warming.</p>
Fish Strandings and Buried Eggs<p>Recent news headlines run the gamut for Pacific salmon — from their increased escapades <a href="https://nunatsiaq.com/stories/article/more-pacific-salmon-showing-up-in-western-arctic-waters/" target="_blank">into the Arctic</a> to <a href="https://www.juneauempire.com/news/warm-waters-across-alaska-cause-salmon-die-offs/" target="_blank">massive pre-spawning die-offs</a> in central Alaska. Similarly, results from our study revealed different outcomes for fish depending on local climatic conditions, including Pacific salmon.</p><p>We found that warmer spring and fall temperatures may be helping juvenile salmon by providing a longer and more plentiful growing season, and by supporting early egg development in northern regions that were previously too cold for survival.</p><p>In contrast, salmon declined in regions that were experiencing wetter fall conditions, pointing to an increased risk of flooding and sedimentation that could bury or dislodge incubating eggs.</p>
Headwaters of the Wind River within the largely intact Peel River watershed in northern Canada. Don Reid / Wildlife Conservation Society Canada / Author provided<p>Interestingly, we found that certain climatic combinations, such as warmer summer water temperatures with decreased summer rainfall, were important in determining where Pacific salmon could survive. Summer warming in drier watersheds led to declines, suggesting that lowered streamflows may have increased the risk of fish becoming stranded in subpar habitats that were too warm and crowded.</p>
The Fate of Northern Fisheries<p>The promise of a warmer and more accessible Arctic has attracted mounting interest in new economic opportunities, <a href="https://doi.org/10.1016/j.marpol.2019.103637" target="_blank">including fisheries</a>. As warming rates at higher latitudes are already <a href="https://www.ipcc.ch/sr15/" target="_blank">two to three times global levels</a>, it seems probable that northern biodiversity will experience dramatic shifts in the coming decades.</p><p>Despite the many unknowns surrounding the future of Pacific salmon, many fisheries are currently <a href="https://doi.org/10.1080/03632415.2017.1374251" target="_blank">thriving following warmer and more productive northern oceans</a>, and some <a href="https://doi.org/10.14430/arctic68876" target="_blank">Arctic Indigenous communities are developing new salmon fisheries</a>.</p><p>As warming continues, the commercial salmon fishing industry is poised to expand northwards, but its success will largely depend on extenuating factors such as <a href="https://www.eenews.net/stories/1060023067" target="_blank">changes to marine habitat and food sources</a> and <a href="https://www.yukon-news.com/news/promising-chinook-salmon-run-failed-to-materialize-in-the-yukon-river-panel-hears/" target="_blank">how many fish are caught during the freshwater stages of their journey</a>.</p><p>Even with the potential for increased northern biodiversity, it is important to recognize that some northern communities may be unable to adapt or may <a href="https://thenarwhal.ca/searching-for-the-yukon-rivers-missing-chinook/" target="_blank">lose individual species that are associated with important cultural values</a>.</p>
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By Joni Sweet
If you get a call from a number you don't recognize, don't hit decline — it might be a contact tracer calling to let you know that someone you've been near has tested positive for the coronavirus.
Interviews With Contact Tracers<p>Contact tracing is a public health strategy that involves identifying everyone who may have been in contact with a person who has the coronavirus. Contact tracers collect information and provide guidance to help contain the transmission of disease.</p><p>It's been used during outbreaks of sexually transmitted infections (STIs), Ebola, measles, and now the coronavirus that causes COVID-19.</p><p>It starts when the local department of health gets a report of a confirmed case of the coronavirus in its community and gives that person a call. The contact tracer usually provides information on how to isolate and when to get treatment, then tries to figure out who else the person may have exposed.</p><p>"We ask who they've been in contact with in the 48 hours prior to symptom onset, or 2 days before the date of their positive test if they don't have symptoms," said <a href="https://case.edu/medicine/healthintegration/people/heidi-gullett" target="_blank">Dr. Heidi Gullett</a>, associate director of the Center for Community Health Integration at the Case Western Reserve University School of Medicine and medical director of the Cuyahoga County Board of Health in Ohio.</p>
“You’ve Been Exposed”<p>After the case interview, contact tracers will get to work calling the folks who may have been exposed to the coronavirus by the person who tested positive.</p><p>"We give them recommendations about quarantining or isolating, getting tested, and what to do if they become sick. If they're not already sick, we still want them to self-quarantine so that they don't spread the disease to anyone else if they were to become sick," said Labus.</p><p>Generally, the contact tracer won't ask for additional contacts unless they happen to call someone who is sick or has a confirmed case of the virus. They will help ensure the contact has the resources they need to isolate themselves, if necessary. The contact tracer may continue to stay in touch with that person over the next 14 days.</p><p>"We follow the percentage of people that were contacts, then converted into being actual cases of the virus. It's an important marker to help us understand what kind of transmission happens in our community and how to control the virus," said Gullett.</p>
Why You Should Participate (and What Happens If You Don’t)<p>A <a href="https://www.thelancet.com/journals/laninf/article/PIIS1473-3099(20)30457-6/fulltext" target="_blank">Lancet study</a> from June 16, which looked at data from more than 40,000 people, found that COVID-19 transmission could be reduced by 64 percent through isolating those who have the coronavirus, quarantining their household, and contacting the people they may have exposed.</p><p>The combination strategy was significantly more effective than mass random testing or just isolating the sick person and members of their household.</p><p>However, contact tracing is only as effective as people's willingness to participate, and a small number of people who've contracted the coronavirus or were potentially exposed are reluctant to talk.</p><p>"Contact tracers have all been hung up on, cussed at, yelled at," said Gullet.</p><p>The hesitation to talk to contact tracers often stems from concerns over privacy — a serious issue in healthcare.</p>
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