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BP has managed to stop the flow of oil from its Macondo well for close to a month now, and focus on the disaster is shifting to the economics of clean-up efforts and pay-outs to Gulf Coast residents. Federal and state agencies are gathering documentation for lawsuits against the company. It is estimated that Federal penalties alone could add-up to $21 billion. Claims by individuals and businesses for lost income may reach $22.7 billion over the next few years. In June President Obama announced that BP would establish a $20 billion escrow account to pay for costs associated with the spill. Negotiations have been ongoing between the administration and BP on the details of the fund. One proposal from those negotiations that was recently made public was to guarantee the funds for the $20 billion escrow with revenue from BP’s oil and gas wells in the Gulf of Mexico. On Wednesday the research and advocacy organization Public Citizen sent a letter to President Obama asking him to reject this proposal. Public Citizen stated it would produce a conflict of interest, making the government reluctant to take regulatory action against the company if those actions would decrease BP’s ability to produce oil and raise revenue.

Guest: Tyson Slocum, Director of Public Citizen’s Energy Program

Find out more at www.citizen.org.