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Jul 19, 2010 5:00 PM by Melissa Canone

July 19, Day 90 of the Gulf of Mexico oil spill

A summary of events Monday, July 19, Day 90 of the Gulf of
Mexico oil spill that began with the April 20 explosion and fire on
the drilling rig Deepwater Horizon, owned by Transocean Ltd. and
leased by BP PLC, which is in charge of cleanup and containment.
The blast killed 11 workers. Since then, oil poured into the Gulf
from a blown-out undersea well until BP managed to stanch the leak
Thursday - at least temporarily - with a massive cap.

CAP ON
The federal government Monday allowed BP to keep the cap shut
tight on its ruptured Gulf of Mexico oil well for another day
despite reports of an area where oil or natural gas may be rising
from the sea floor. The Obama administration's point man for the
spill, retired Coast Guard Adm. Thad Allen, said early Monday that
the company promised to watch closely for signs of new leaks around
the mile-deep well, which has stopped gushing oil into the water
since the experimental cap was closed Thursday. On Sunday, he had
demanded increased monitoring. The concern all along - since
pressure readings on the cap weren't as high as expected - was a
leak elsewhere in the well bore, meaning the cap may have to be
reopened to prevent the environmental disaster from becoming even
worse and harder to fix.

COST
BP said Monday that the cost of dealing with the oil spill has
now reached nearly $4 billion. The company said it has made
payments totaling $207 million to settle individual claims for
damages from the spill along the Gulf coast of the United States.
To date, almost 116,000 claims have been submitted and more than
67,500 payments have been made, totaling $207 million.

DISAGREEMENT
With the newly installed cap keeping oil from BP's busted well
out of the Gulf during a trial run, this weekend offered a chance
for the oil company and government to gloat over their shared
success - the first real victory in fighting the spill. Instead,
they spent two days disagreeing over what to with the undersea
machinery holding back the gusher. The apparent disagreement began
to sprout Saturday, when Allen said the giant stopper would
eventually be hooked up to a mile-long pipe to pump the crude to
ships on the surface. But early the next day, BP chief operating
officer Doug Suttles said the cap should shut the oil in until
relief wells are finished.

FEINBERG
The administrator of a $20 billion Gulf oil spill compensation
fund offered a hard sell Monday, promising fishermen and others
with lost income claims from the disaster that he'll be more
generous with them than any court would be. Kenneth Feinberg noted
that claimants are free to instead file a lawsuit, adding that
they'd be crazy to do so because this would give them the money
without waiting for years and paying lawyers. Feinberg made the
comments in a speech to the Economic Club of Washington, D.C., but
his target audience included people and businesses who have
suffered economic harm in the Gulf Coast area. He sounded like a TV
pitchman, reminding them they were under "no obligation" to waive
their rights to sue, unless and until they decide to accept a lump
sum for all present and future injury.

RICO
Using a law originally enacted to combat the Mafia, attorneys
are filing lawsuits accusing BP PLC and Transocean Ltd. of
committing a long-term series of crimes by concealing flaws in
deepwater drilling plans and lacking safeguards to contain a
catastrophic Gulf of Mexico spill. BP has been named in at least
three lawsuits brought under the federal law known as RICO, for
Racketeering Influenced and Corrupt Organizations. Transocean,
which leased the ill-fated Deepwater Horizon drilling rig to BP,
has been named in two. The lawsuits accuse both companies of
committing wire and mail fraud over a number of years by filing
false documents with the U.S. government, and by misleading
investors through other documents and falsehoods. They also allege
an overall oil and gas industry effort to "infiltrate" federal
regulators through favors such as alcohol and drugs, sex, golf and
ski trips, concert and sports tickets.

FORECASTERS
Call it cloudy with a chance of tar balls. TV forecasters along
the Gulf Coast have been trying to predict the path of oil spewing
from the Deepwater Horizon rig. But that's proving more difficult
than predicting sunshine or showers. Forecasters began adding the
slick to the outlook soon after the Deepwater Horizon rig exploded
in April, but their initial success was spotty. The oil didn't move
as quickly as meteorologists predicted, and residents in some areas
like the Florida Panhandle spent days anticipating oil before it
appeared. Even though BP PLC cut off the oil flow for the first
time last week, forecasting oil's landfall will remain a challenge
for months as the sticky stuff continues to wash up.

FEEDING FISHERMEN
Grow up on the water, the children of southern Louisiana learn,
and you'll never go hungry. As long as you can toss a line, a net
or a trap, you can eat - and eat well. Or you could, until now.
Millions of gallons of oil from the April 20 explosion of the
Deepwater Horizon rig have fouled some of the world's richest
fishing grounds from Florida to Texas. Even though BP stopped the
leak for the first time Thursday, more than a third of the Gulf of
Mexico remains closed. For thousands who feed their families from
the water, what once seemed like a never-ending, free buffet of
high-protein, low-fat shrimp, crabs, oysters and fish is off
limits. It's not that people are starving. With compensation checks
from BP and the help of charities such as Second Harvest Food Bank,
they're able to stock their pantries with staples - rice and beans,
grits and cereal, peanut butter and jelly. But they're forced to
pay for protein they used to get for free. And not the kind they
want.

BP
Shares of BP fell Monday after it said the tab for the Gulf of
Mexico oil spill is nearing $4 billion while it monitors oil or gas
seeping near the ruptured well. BP PLC's shares lost $1.61, or 4.3
percent, at $35.49 in midday trading. Investors remain worried
about the mounting costs and whether the latest fix will hold until
a relief well is in place, Argus Research analyst Phil Weiss said.
The cost of dealing with the oil spill - almost $4 billion - equals
about two-thirds of BP's profit in the first three months of the
year.

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