Paula Dittrick
OGJ Senior Staff Writer
HOUSTON, July 30 -- BP PLC plans to voluntarily establish a $100 million fund to support unemployed rig workers experiencing economic hardship as a result of the US deepwater drilling moratorium, the company said July 30.
Creation of the fund fulfills a voluntary commitment BP announced on June 16 to provide $100 million for residents along the Gulf Coast as a gesture of good will, the company said.
US Interior Sec. Ken Salazar initially imposed a 6-month moratorium on deepwater drilling after the Apr. 20 Macondo well blowout and resulting oil spill. BP operates Macondo, which was drilled by Transocean Ltd.’s Deepwater Horizon semisubmersible. The semi sank after an Apr. 20 explosion and fire, which killed 11 workers. Macondo is in 5,000 ft of water on Mississippi Canyon Block 252.
A New Orleans federal judge granted a temporary injunction against the moratorium on June 22, prompting Salazar to impose another ban on July 12 that was based on drilling configurations and technologies instead of water depths.
The Rig Worker Assistance Fund will be administered through the Gulf Coast Restoration and Protection Foundation, a supporting organization of The Baton Rouge Area Foundation (BRAF), a community foundation responding to disasters. After Hurricane Katrina, BRAF raised more than $45 million worldwide, including $8.5 million from companies that was distributed to their displaced workers.
BRAF said it planned to release details soon on how people could apply for grants, adding that grant applications would be accepted starting by Sept. 1.
Separately, BP hired crisis management consultant Witt Associates, which was founded by James Lee Witt, former director of the Federal Emergency Management Agency.
BP said Witt will provide expertise on long-term spill recovery. As BP builds its Gulf Coast Restoration Organization, Witt Associates will help BP liaise with state and local government officials and community organizations.
“Our responsibilities go beyond sealing the well, and the immediate response and cleanup operations,” said Bob Dudley, chief executive of BP’s Gulf Coast Restoration Organization. Dudley has been appointed to succeed Tony Hayward as executive director of BP later this year.
“We want the people of the Gulf Coast to know that we are going to be here as long as it takes to make this right,” Dudley said. “Our commitment extends beyond the economic claims. We are committed to restoring communities and the environment.”
Contact Paula Dittrick at [email protected].
US Government Accountability Office.
