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examination 2 Barton himself had overseen those examinations, running committee hearings and pressing BP executives to answer his charges of neglect In response, BP s representative had offered a defense that bore a stunning similarity to Hayward s in its evasiveness: I am not a pipeline expert Barton concluded that BP had essentially bet the company on the premise that its elds in Alaska would be depleted before the pipeline failed BP s policies are as rusty as its pipelines, he said, adding that he was concerned about BP s corporate culture of seeming indifference to safety and environmental issues, and this comes from a company that prides itself in their ads on protecting the environment Shame, shame, shame 3 Yet four years later, it was as if Barton, still the committee s ranking member, had forgotten BP s track record and its corporate culture of seeming indifference He sat at the far corner of the committee bench, now a minority member, and issued his apology before Hayward had had a chance to speak Hayward seemed stunned by Barton s comments, but he showed little reaction4 He began his own remarks by touting the very fund that Barton had criticized It was proof, he said, that BP would honor its promise to make things right The government s oversight would make the claims process more transparent and remove any suspicion about how BP was handling the claims We said all along that we would pay these costs, he said Now the American people can be con dent that our word is good
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Ironically, the idea for a spill fund didn t begin at the White House It was rst proposed by a member of Barton s own party, Florida Senator George LeMieux LeMieux had been proposing for more than a month that Congress should establish a
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revolving account to ensure that the money would be available for the states that needed it5 As BP s stock continued to slide during the month, the Obama administration began eshing out the idea The president summoned Hayward, BP Chairman Carl-Henric Svanberg, and managing director Bob Dudley to the White House to hammer out an agreement on how BP would pay for the fund Some of the details continued to be negotiated throughout the summer, including exactly how BP would provide the funding Initially, the company contributed $3 billion, and Obama appointed as the fund s administrator Kenneth Feinberg, who had been overseeing executive pay packages at nancial rms that received federal bailout money By the time Feinberg took over, in late August, BP had already paid almost $370 million in claims From the government s standpoint, the fund would ensure that economic victims of the spill would be compensated, but it also offered bene ts for BP While the administration made it clear that $20 billion wasn t a cap BP might be forced to contribute more to the fund if claims exceeded that amount it gave investors an element of certainty As the summer wore on and the crisis eased, it seemed unlikely that BP would have to pay more The company s stock began to recover, with the fund serving as a de facto estimate of BP s liability For BP, the spill fund was anything but a shakedown Not only did it offer the company some reprieve from the nancial uncertainty that had been battering it for two months, but it allowed it to foist the administrative duties of paying claims onto the government By mid-August, the company had handed off all responsibility for reviewing, paying, and rejecting claims to Feinberg Almost immediately, he drew the ire of business owners by declaring that the amount that they would receive would be linked to the distance between their businesses and the beach6 Those who were closer would
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