UPDATE 1-$10 bln oil liability cap not enough-US Sen. Reid

(Adds quotes and details)

WASHINGTON, May 17 (BestGrowthStock) – A proposed cap of $10
billion in liability for oil companies to cover damages from
oil spills is “inadequate,” U.S. Senate Majority Leader Harry
Reid said on Monday.

Democrats have introduced legislation that would raise the
current $75 million liability cap to $10 billion per company
for each incident. Reid urged fast action on raising the cap,
saying that $75 million was “clearly insufficient” but, “I
certainly think a $10 billion cap is inadequate.”

The move to increase the liability limits has been spurred
by the Gulf of Mexico oil spill that occurred nearly a month
ago, which likely will be one of the biggest environmental
disasters in U.S. history.

An oil rig leased by BP America Inc, a subsidiary of
British oil company BP Plc (BP.L: ), caught fire and sank,
causing a rupture in pipelines connected to an underwater oil
well. According to estimates, at least 5,000 barrels (210,000
gallons/795,000 litres) a day are being dumped into the Gulf of
Mexico by the disaster.

In his prepared remarks, Reid cited a report on CBS’s “60
Minutes” on Sunday of “damning evidence that the roots of this
tragedy are in BP executives efforts’ to pad their own
wallets.”

“Their greed led to 11 horrific and unnecessary deaths. It
has harmed an enormous tourism industry, threatened business at
countless fisheries and disrupted life for many along the Gulf
Coast,” Reid said. “As the pollution grows worse, those
consequences will only compound.”

A Democratic move last week to bring a bill raising the
liability cap to $10 billion was stymied when Republican
Senator Lisa Murkowski of the oil-producing state of Alaska
objected.

Democrats are now looking at other ways to bring the
legislation onto the Senate floor for a vote.

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(Reporting by Richard Cowan and Thomas Ferraro, Editing by
Stacey Joyce)

UPDATE 1-$10 bln oil liability cap not enough-US Sen. Reid