BP Will Pay For Gulf Oil Spill Disaster, CEO Says

BP Chief Executive Tony Hayward i i

BP Chief Executive Tony Hayward said the company has "made it clear that where legitimate claims are made, we will be good for them" when asked whether BP was prepared to pay claims to individuals who have lost livelihoods owing to the spill. John D. McHugh/AFP/Getty Images hide caption

itoggle caption John D. McHugh/AFP/Getty Images
BP Chief Executive Tony Hayward

BP Chief Executive Tony Hayward said the company has "made it clear that where legitimate claims are made, we will be good for them" when asked whether BP was prepared to pay claims to individuals who have lost livelihoods owing to the spill.

John D. McHugh/AFP/Getty Images

The CEO of petroleum giant BP told NPR on Monday that his company is fully responsible for the cleanup and any "legitimate" claims from an undersea pipeline rupture that threatens to deposit hundreds of thousands of gallons of crude on the U.S. Gulf Coast.

"It is indeed BP's responsibility to deal with this, and we are dealing with it," Tony Hayward told Morning Edition's Steve Inskeep.

"We will absolutely be paying for the cleanup operation. There is no doubt about that. It's our responsibility — we accept it fully," he added.

Hayward also said the British oil giant was "mounting a massive response" to what he described as a "tragic accident."

The Deepwater Horizon offshore drilling rig was hit by an explosion April 20 and sank two days later. More than 90 workers were rescued, but 11 are still missing and presumed dead. BP leased the rig, which lies about 50 miles off the Louisiana coast, from Houston-based Transocean.

Deepwater Horizon Disaster

April 20: Deepwater Horizon drilling rig explodes off Louisiana coast. Eleven workers missing and presumed dead.

April 22: Rig sinks.

April 23: Coast Guard Rear Adm. Mary Landry says no oil appears to be leaking from the undersea wellhead or at the water's surface.

April 24: Leak reported; oil is estimated to be leaking at the rate of 1,000 barrels a day.

April 29: Coast Guard says leak may be five times greater than earlier estimate: 5,000 barrels a day. Louisiana Gov. Bobby Jindal declares state of emergency.

May 1: Coast Guard Adm. Thad Allen is named national incident commander.

May 2: President Obama visits Coast Guard station in Venice, La.

May 3: BP CEO Tony Hayward tells NPR his company will pay for the cleanup and any "legitimate" legal claims.

The cause of the blast has not yet been determined.

When pressed on whether BP was prepared to pay claims to individuals who lose their livelihoods owing to the spill, Hayward said the company has "made it clear that where legitimate claims are made, we will be good for them."

"We have a claims process set up. There are small claims today that are being paid instantly," he said. "[For] bigger claims, we clearly have a process to run through."

Over the weekend, Alabama Attorney General Troy King said he had told BP representatives to stop circulating settlement agreements among coastal residents that reportedly offered payments of up to $5,000 in exchange for not suing the company.

Hayward called it "an early misstep" involving "a standard contract with the team we're using that was eliminated very early in the process."

President Obama has made clear that BP must shoulder the cost of the disaster. "BP is responsible for this leak. BP will be paying the bill," Obama said Sunday as he toured a Coast Guard staging area in Venice, La.

Homeland Security Secretary Janet Napolitano and Interior Secretary Ken Salazar were expected to meet later Monday with top BP executives to discuss the crisis, including how the company planned to pay for the cleanup. On Sunday, federal officials shut down fishing from the Mississippi River to the Florida Panhandle.

The Coast Guard and BP have said it's nearly impossible to know how much oil has already gushed since the rig blast. The Guard had estimated the slick to be at least 1.6 million gallons — equivalent to about 2 1/2 Olympic-sized swimming pools. Other experts say they believe far more oil has been released in a spill many fear now may eclipse the 11 million gallons released by the Exxon Valdez. Sheen from the massive slick has already reached parts of the Louisiana coastline.

Officials say it's likely that oil will continue gushing into the Gulf of Mexico for at least another week as a result of the pipeline rupture 5,000 feet below sea level. A plan to install a device to capture the oil and siphon it to a barge waiting at the surface would take that long, Hayward said.

  • A boat uses a boom and absorbent material to soak up oil in Cat Bay, near Grand Isle, La., on June 28. A tropical storm is expected to hit the Gulf and impede cleanup efforts.
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    A boat uses a boom and absorbent material to soak up oil in Cat Bay, near Grand Isle, La., on June 28. A tropical storm is expected to hit the Gulf and impede cleanup efforts.
    Joe Raedle/Getty Images
  • Florida Gov. Charlie Crist and wife Carole Rome Crist (right) stand with others during a Hands Across the Sand event June 26 in Pensacola, Fla. The event was staged across the nation to protest offshore oil drilling.
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    Florida Gov. Charlie Crist and wife Carole Rome Crist (right) stand with others during a Hands Across the Sand event June 26 in Pensacola, Fla. The event was staged across the nation to protest offshore oil drilling.
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  • Oil clouds the surface of Barataria Bay near Port Sulpher, La., on June 19.
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    Oil clouds the surface of Barataria Bay near Port Sulpher, La., on June 19.
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  • Workers adjust piping while drilling a relief well at the site of the Deepwater Horizon oil spill.
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    Workers adjust piping while drilling a relief well at the site of the Deepwater Horizon oil spill.
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  • A dolphin rises up out of the water near Grand Terre Island off the coast of Louisiana on June 14.
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    A dolphin rises up out of the water near Grand Terre Island off the coast of Louisiana on June 14.
    Derick E. Hingle/AP
  • President Obama stands with Mississippi Gov. Haley Barbour (right) and Gulfport, Miss., Mayor George Schloegel after meeting with residents affected by the oil spill.
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    President Obama stands with Mississippi Gov. Haley Barbour (right) and Gulfport, Miss., Mayor George Schloegel after meeting with residents affected by the oil spill.
    Charles Dharapak/AP
  • Crude oil washes ashore in Orange Beach, Ala., on June 12. Oil slicks, 4 to 6 inches thick in some parts, have washed up along the Alabama coast.
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    Crude oil washes ashore in Orange Beach, Ala., on June 12. Oil slicks, 4 to 6 inches thick in some parts, have washed up along the Alabama coast.
    Dave Martin/AP
  • A volunteer uses a toothbrush to clean an oil-covered white pelican at the Fort Jackson Oiled Wildlife Rehabilitation Center in Buras, La., June 9.
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    A volunteer uses a toothbrush to clean an oil-covered white pelican at the Fort Jackson Oiled Wildlife Rehabilitation Center in Buras, La., June 9.
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  • A shrimp boat skims oil from the surface of the water just off Orange Beach, Ala., as a family enjoys the surf. Oily tar balls have started washing up on Orange Beach and beaches in the western Florida panhandle.
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    A shrimp boat skims oil from the surface of the water just off Orange Beach, Ala., as a family enjoys the surf. Oily tar balls have started washing up on Orange Beach and beaches in the western Florida panhandle.
    Dave Martin/AP
  • Sand from a dredge is pumped onto East Grand Terre Island, La., to provide a barrier against the Deepwater Horizon oil spill, June 8.
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    Sand from a dredge is pumped onto East Grand Terre Island, La., to provide a barrier against the Deepwater Horizon oil spill, June 8.
    Charlie Riedel/AP
  • A dead turtle floats on a pool of oil from the Deepwater Horizon spill in Barataria Bay off the coast of Louisiana on June 7.
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    A dead turtle floats on a pool of oil from the Deepwater Horizon spill in Barataria Bay off the coast of Louisiana on June 7.
    Charlie Riedel/AP
  • Workers use absorbent pads to remove oil that has washed ashore from the spill in Grand Isle, La., June 6.
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    Workers use absorbent pads to remove oil that has washed ashore from the spill in Grand Isle, La., June 6.
    Eric Gay/AP
  • Plaquemines Parish coastal zone director P.J. Hahn lifts an oil-covered pelican out of the water on Queen Bess Island in Plaquemines Parish, La., June 5.
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    Plaquemines Parish coastal zone director P.J. Hahn lifts an oil-covered pelican out of the water on Queen Bess Island in Plaquemines Parish, La., June 5.
    Gerald Herbert/AP
  • Heavy oil pools along the side of a boom just outside Cat Island in Grand Isle, La., June 6.
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    Heavy oil pools along the side of a boom just outside Cat Island in Grand Isle, La., June 6.
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  • President Obama walks alongside Grand Isle Mayor David Camardelle (from right), U.S. Coast Guard Adm. Thad Allen, who is in charge of the federal response to the spill, and Chris Camardelle after meeting with local business owners in Grand Isle, La., June 4.
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    President Obama walks alongside Grand Isle Mayor David Camardelle (from right), U.S. Coast Guard Adm. Thad Allen, who is in charge of the federal response to the spill, and Chris Camardelle after meeting with local business owners in Grand Isle, La., June 4.
    Saul Loeb/AFP/Getty Images
  • A brown pelican sits on the beach at East Grand Terre Island along the Louisiana coast after being drenched in oil from the BP Deepwater Horizon oil spill, June 3.
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    A brown pelican sits on the beach at East Grand Terre Island along the Louisiana coast after being drenched in oil from the BP Deepwater Horizon oil spill, June 3.
    Charlie Riedel/AP
  • U.S. Attorney General Eric Holder announces that the Justice Department has launched a criminal investigation into the BP oil spill. With him, from left: Stephanie Finley and Jim Letten, U.S. attorneys for the Western District of Louisiana; Ignacia Moreno, assistant attorney general for the Environment and Natural Resources Division; Tony West, assistant attorney general, Civil Division; and Do...
    Hide caption
    U.S. Attorney General Eric Holder announces that the Justice Department has launched a criminal investigation into the BP oil spill. With him, from left: Stephanie Finley and Jim Letten, U.S. attorneys for the Western District of Louisiana; Ignacia Moreno, assistant attorney general for the Environment and Natural Resources Division; Tony West, assistant attorney general, Civil Division; and Don Burkhalter, U.S. attorney for the Southern District of Mississippi.
    Cheryl Gerber/AP
  • The oil slick off the coast of Louisiana, seen from above.
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    The oil slick off the coast of Louisiana, seen from above.
    NASA via Getty Images
  • A worker leaves the beach in Grand Isle, La., on May 30. BP is turning to yet another mix of undersea robot maneuvers to help keep more crude oil from flowing into the Gulf.
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    A worker leaves the beach in Grand Isle, La., on May 30. BP is turning to yet another mix of undersea robot maneuvers to help keep more crude oil from flowing into the Gulf.
    Jae C. Hong/AP
  • Protesters cover themselves with a water and paint mixture during a demonstration at a BP gas station in New York City on May 28.
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    Protesters cover themselves with a water and paint mixture during a demonstration at a BP gas station in New York City on May 28.
    Mary Altaffer/AP
  • Workers clean up oil in Pass a Loutre, La.  The latest attempt to plug the leak was unsuccessful.
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    Workers clean up oil in Pass a Loutre, La. The latest attempt to plug the leak was unsuccessful.
    Jae C. Hong, File/AP
  • Residents listen to a discussion with parish officials and a BP representative on May 25 in Chalmette, La. Officials now say that it may be impossible to clean the hundreds of miles of coastal wetlands affected by the massive oil spill.
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    Residents listen to a discussion with parish officials and a BP representative on May 25 in Chalmette, La. Officials now say that it may be impossible to clean the hundreds of miles of coastal wetlands affected by the massive oil spill.
    Sean Gardner/Getty Images
  • An oil-soaked pelican takes flight after Louisiana Fish and Wildlife employees tried to corral it on an island in Barataria Bay on the coast of Louisiana. The island, which is home to hundreds of brown pelican nests as well at terns, gulls and roseate spoonbills, is impacted by oil from the Deepwater Horizon spill.
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    An oil-soaked pelican takes flight after Louisiana Fish and Wildlife employees tried to corral it on an island in Barataria Bay on the coast of Louisiana. The island, which is home to hundreds of brown pelican nests as well at terns, gulls and roseate spoonbills, is impacted by oil from the Deepwater Horizon spill.
    Gerald Herbert/AP
  • A sign warns the public to stay away from the beach on Grand Isle, La. Officials closed the oil-covered beaches to the public indefinitely on Saturday.
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    A sign warns the public to stay away from the beach on Grand Isle, La. Officials closed the oil-covered beaches to the public indefinitely on Saturday.
    John Moore/Getty Images
  • Pelican eggs stained with oil sit in a nest on an island in Barataria Bay on May 22.
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    Pelican eggs stained with oil sit in a nest on an island in Barataria Bay on May 22.
    Gerald Herbert/AP
  • A bird flies over oil that has collected on wetlands on Elmer's Island in Grand Isle, La., May 20. The oil came inland despite oil booms that were placed at the wetlands' mouth on the Gulf of Mexico.
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    A bird flies over oil that has collected on wetlands on Elmer's Island in Grand Isle, La., May 20. The oil came inland despite oil booms that were placed at the wetlands' mouth on the Gulf of Mexico.
    Patrick Semansky/AP
  • Members of the Louisiana National Guard build a land bridge at the mouth of wetlands on Elmer's Island.
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    Members of the Louisiana National Guard build a land bridge at the mouth of wetlands on Elmer's Island.
    Patrick Semansky/AP
  • The hands of boat captain Preston Morris are covered in oil after collecting surface samples from the marsh of Pass a Loutre, La., on May 19.
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    The hands of boat captain Preston Morris are covered in oil after collecting surface samples from the marsh of Pass a Loutre, La., on May 19.
    Gerald Herbert/AP
  • Louisiana Gov. Bobby Jindal (center) and Plaquemines Parish President Billy Nungesser (right) tour the oil-impacted marsh of Pass a Loutre, La. "This is the heavy oil that everyone's been fearing that is here now," said Jindal.
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    Louisiana Gov. Bobby Jindal (center) and Plaquemines Parish President Billy Nungesser (right) tour the oil-impacted marsh of Pass a Loutre, La. "This is the heavy oil that everyone's been fearing that is here now," said Jindal.
    Gerald Herbert/AP
  • BP Chairman and President Lamar McKay (left), with Transocean President and CEO Steven Newman (center) and Applied Science Associates Principal Deborah French McCay, testifies during a Senate Committee on Commerce, Science, and Transportation hearing May 18 on response efforts to the Gulf Coast oil spill.
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    BP Chairman and President Lamar McKay (left), with Transocean President and CEO Steven Newman (center) and Applied Science Associates Principal Deborah French McCay, testifies during a Senate Committee on Commerce, Science, and Transportation hearing May 18 on response efforts to the Gulf Coast oil spill.
    Manuel Balce Ceneta/AP
  • This undated frame grab image received from BP and provided by the Senate Environment and Public Works Committee shows details of the oil spill in the Gulf of Mexico. BP has agreed to display a live video feed of the oil gusher on the Select Committee on Energy Independence and Global Warming Committee's website beginning Thursday evening.
    Hide caption
    This undated frame grab image received from BP and provided by the Senate Environment and Public Works Committee shows details of the oil spill in the Gulf of Mexico. BP has agreed to display a live video feed of the oil gusher on the Select Committee on Energy Independence and Global Warming Committee's website beginning Thursday evening.
    Senate Environment and Public Works Committee/AP
  • President Obama speaks with local fishermen about how they are affected by the oil spill in Venice, La., on May 2.
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    President Obama speaks with local fishermen about how they are affected by the oil spill in Venice, La., on May 2.
    Saul Loeb/AFP/Getty Images
  • Danene Birtell with Tri-State Bird Rescue and Research tends to a Northern Gannet in Fort Jackson, La., on April 30. The bird, normally white when full grown, is covered in oil from the oil spill.
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    Danene Birtell with Tri-State Bird Rescue and Research tends to a Northern Gannet in Fort Jackson, La., on April 30. The bird, normally white when full grown, is covered in oil from the oil spill.
    Alex Brandon/AP
  • Since the explosion, a third oil leak has been discovered in the blown-out well.
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    Since the explosion, a third oil leak has been discovered in the blown-out well.
    Gerald Herbert/AP
  • In this aerial photo taken April 21 more than 50 miles southeast of Venice, La., the Deepwater Horizon oil rig burns.
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    In this aerial photo taken April 21 more than 50 miles southeast of Venice, La., the Deepwater Horizon oil rig burns.
    Gerald Herbert/AP
  • Tendrils of oil mar the waters of the Gulf of Mexico in this satellite image taken Monday. An estimated 5,000 barrels of oil a day are seeping into the Gulf, after an explosion last week on a drilling rig about 50 miles off the Louisiana coast.
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    Tendrils of oil mar the waters of the Gulf of Mexico in this satellite image taken Monday. An estimated 5,000 barrels of oil a day are seeping into the Gulf, after an explosion last week on a drilling rig about 50 miles off the Louisiana coast.
    Courtesy of Digital Globe

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"We have fabricated and will have on location by next weekend a subsea containment system, with the intention of containing the leak," he said. Hayward described the device as "a dome ... that sits over the top of the wellhead and channels the oil to the surface, where it can be contained."

Such an operation, he said, had "never been done at 5,000 feet."

Eight robotic submarines were working around the clock to fix the well's blowout preventer — a "fail safe" that nonetheless was unable to prevent the spill, Hayward said, adding that the mechanism's failure was unprecedented.

"No one understands why it failed," he said.

The company is also in the process of drilling a relief well to isolate the well.

Hayward said 700 fishing vessels had been deployed to support its effort to contain the spill. "In the last 48 hours, we have trained over 3,000 people [who have] signed up on the volunteer program, so there is an enormous effort to work with the local communities," he said. "I talked with a fisherman who was on the program. He was loading his vessel with oil booms to go and deploy them."

He declined to say whether he supported a proposal by Sen. Bill Nelson (D-FL) to temporarily halt all offshore oil drilling until the exact cause of the accident is determined.

"We clearly need to understand what has happened here and that will come out with the investigation," Hayward said.

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