Sen. Robert Menendez asked for a voice vote to pass a bill that would hold oil companies accountable for all damages they create. GOP rejects liability cap bill again

Democrats attempted Thursday to create unlimited liability for oil companies, and for the fourth time since the Gulf crisis began, Republicans objected.

Sen. Robert Menendez (D-N.J.) asked for a voice vote to pass a bill that would hold oil companies accountable for all damages they create, a significant leap from the $75 million cap set by current law. Sen. Jim Inhofe (R-Okla.), ranking member of the Environmental and Public Works Committee, rejected the request.


Menendez's fourth failed shot at moving the liability bill came just a day after BP President Tony Hayward committed to establishing a $20 billion escrow fund, touted by both the White House and Congress, to help clean up what has become the most devastating ecological disaster in American history.

"Are we going to stand up for the communities and the coast along the Gulf shores, or are we going to stand up with Big Oil? That is what this is about, about setting responsibility where responsibility should lie," Menendez said on the floor.

Sen. Bill Nelson (D-Fla.), another chief proponent of the measure, emphasized that while Wednesday's $20 billion commitment from BP was a good starting point, the need for unlimited accountability is necessary for both the current crisis and incidents in the future.

The Florida Democrat cited the "economic devastation" beginning to affect his state's coast as a compelling reason to hold responsible parties to a higher standard.

"The precedent has been set yesterday by them setting up a $20 billion trust fund — but that's not a limit. ... Why should we not allow any kind of future devastation by a company to have the same liability?" Nelson said.

But Republicans worry that by setting unlimited liability for companies wishing to drill for oil, smaller domestic companies effectively would be shut out of the market. Inhofe, echoing the sentiments of colleague Sen. David Vitter (R-La.), who has rejected Menendez's requests in the past, said that by passing this bill, Congress would be favoring the Big Oil entities Democrats have been maligning.

"This would only help the big five or the national oil companies. That's China and Venezuela. Without a cap, they'd be the only ones who could explore out there," Inhofe said.

Despite this most recent failure of moving the liability bill by unanimous consent, Democrats likely will seek to attach the bill to another legislative vehicle, in the form of a proposed energy bill or another bill likely to pass the Senate.