Markey to BP Commission: On Flow Rate, Ask What Did BP Know and When Did They Know It

Presents Commission with Timeline Account of BP's Misleading Flow Rate Statements

September 28, 2010 - Supporting the investigation of BP's reporting and planned response to its flow rate estimate following the Macondo well disaster, Representative Edward J. Markey sent a letter today to the Bipartisan National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling, urging them to probe BP's attempt to cloak the true amount of oil spilled into the Gulf of Mexico.

As Chairman of the Energy and Environment Subcommittee, Markey's investigation demonstrated that even as BP was providing low flow rate estimates, internal documents from the company revealed that they knew from the start that the flow rate could be much higher. As part of the letter, Representative Markey released a timeline document illustrating BP's flow rate contradictions.

"What did BP know, and when did they know it - that is what the Commission needs to be looking into," said Representative Markey. "Low balling the flow rate numbers was BP's attempt to hide both the truth and their wallet from the American people."

In the letter to the Commission, Markey writes: "I share your concern that BP's actions may have misled both the public and those charged with responding to the spill. I also note that the true flow rate of the well will have substantial financial implications for the company."

Under current law, BP is required to pay a fine of at least $1,100 to $4,300 per barrel of oil spilled - the higher figure in the case of gross negligence being found against the company. For every 10,000 barrels of oil spilled per day at $4,300 per barrel over the in excess of 80 days of oil spilled into the ocean, the fine would be in excess of $3.5 billion. The total size of the spill will also determine damages BP would have to pay for the spill's effect on natural resources in the Gulf of Mexico.

The full text of the letter is below. CLICK HERE for a signed PDF version of the letter. CLICK HERE for a PDF of documents referenced in the Flow Rate Timeline.

September 28, 2010

The Honorable Bob Graham
The Honorable William K. Reilly
Co-Chairs
Bipartisan National Commission on the
BP Deepwater Horizon Oil Spill and Offshore Drilling
One Thomas Circle, N.W. Fourth Floor
Washington, D.C. 20005

Dear Chairmen Graham and Reilly:

I write regarding the Commission's investigation into the manner in which BP reported on and planned its response to the flow rates of oil spewing from its Macondo Well. As you both are reported to have pointed out during yesterday's Commission hearing, these estimates were consistently low-balled by BP. The Energy and Environment Subcommittee's investigations into this matter demonstrates that at the same time that BP was providing these low estimates, its internal documents show that they knew all along what the likely flow rate was. As you know, accurate flow-rate estimates - that turned out to bear a striking resemblance to BP's internal estimates - were only publicly released following extensive modeling by the Federal Flow Rate Technical Group. I hope that your work will include an investigation into just what BP knew, when it knew it, and what consequences its failure to be fully forthcoming may have had.

I share your concern that BP's actions may have misled both the public and those charged with responding to the spill. I also note that the true flow rate of the well will have substantial financial implications for the company. Under current law, BP would have to pay a fine of at least $1,100 and up to $4,300 per barrel of oil spilled, with the higher figure in the case of gross negligence being found against the company. So for every 10,000 barrels of oil spilled per day at $4,300 per barrel over the in excess of 80 days of oil spilled into the ocean, the fine would be in excess of $3.5 billion. The total size of the spill will also determine damages BP would have to pay for the spill's effect on natural resources in the Gulf of Mexico.

As you may know, the Subcommittee conducted numerous oversight hearings, briefings and other activities related to this matter. During the course of our investigation, we obtained numerous documents and other statements from BP that demonstrate its awareness of the likely flow rate of the well, even at the same time that it was asserting much lower flow rates publicly. I enclose a timeline of the Subcommittee's investigation, which has links to the pertinent documents.

Thank you for your attention to this important matter. My staff stands ready to assist your staff in any way possible.

Sincerely,

Edward J. Markey
Chairman, Subcommittee on Energy
and Environment

Cc: The Honorable Henry A. Waxman
Chairman
House Energy and Business Committee

The Honorable Joe Barton
Ranking Member
House Energy and Business Committee

The Honorable Fred Upton
Ranking Member
Subcommittee on Energy and Environment

Flow rate timeline