British Petroleum Won’t Pay $106,398 Portion of Spill Bill

The owner of the 394,000 gallons of oil spilled off this city’s shores in February has declined to pay one-fifth of the $526,959 the city is seeking in cleanup and emergency-response reimbursement, according to a report released this week.

British Petroleum has paid the city $420,561 of its spill-related claim but, by policy, it will not repay the city for overhead costs. The city is asking for $106,398 in utilities and other overhead expenditures related to the response and cleanup.

However, an agreement proposed between the city and the firm may allow the city to substitute other minor cleanup charges, if discovered, to recover part of its overhead claim, according to a report by City Atty. Gail Hutton and Deputy City Administrator Robert Franz. The City Council on Monday will consider approving that agreement.

Regardless, the city will continue to pursue complete repayment of its claim.

In addition, a legal consultant is helping the city work with state and federal agencies in compiling a potential multimillion-dollar damage claim for environmental and wildlife harm caused by the spill. That claim for additional costs might also include compensation for any perceived tarnishing of the city’s public image incurred by the disaster.

The tanker American Trader on Feb. 7 dumped part of its cargo of Alaskan crude oil into the ocean about a mile and a half off the coast. The vessel apparently punctured its hull on its own anchor while mooring in shallow waters.

British Petroleum’s total payment to the city includes $250,000 that American Trading Transportation, owner of the tanker, previously paid.

Although BP, rather than American Trading, is now assuming financial responsibility for the spill, it plans to seek reimbursement for any money it pays out from the tanker owner and other firms involved in the mooring operation, the city report said.