This is why I have water purifiers installed all over my house, who knows what all has been dumped into our water supply.


WASHINGTON(AP) House Republicans on Friday proposed an $11.4 billion fund, about a third of the money coming from the oil industry, to pay for cleanup of water systems contaminated by the gasoline additive MTBE, hoping to clear the way for passage of a broad energy bill.

The proposal would give makers of MTBE, which has been found to contaminate drinking water supplies in at least 36 states, protection against product liability lawsuits brought by communities facing billions of dollars in cleanup costs.

Rep. Joe Barton, R-Texas, presented the proposal to Senate leaders involved in energy bill negotiations. They reserved comment on the plan, saying it needed closer examination.

"We've not passed judgment. We're trying to understand it," said Sen. Jeff Bingaman, D-N.M., the leading Democrat on the Senate group negotiating with the House on final energy legislation.

Barton, who is chairman of the energy conference, said the proposal is "not set in concrete" and that it could change.

The MTBE issue has been seen as the most difficult and most contentious issue to overcome as lawmakers try to approve an energy bill. A number of senators have pledged to block legislation that would shield the MTBE manufacturers from liability lawsuits.

More than 150 lawsuits seek damages because of MTBE water contamination. The cost of cleanup has ranged from several billion dollars to more than $30 billion.

MTBE, or methyl tertiary-butyl ether, is an additive that in the 1990s became used widely in gasoline as an oxygenate to help reduce air pollution. It since has been found to contaminate drinking water across much of the country when gasoline leaks from underground storage tanks.

While its health impact is uncertain, MTBE even at low concentrations causes a foul smell and taste in drinking water. Unlike other, even more toxic, components of gasoline, MTBE flows easily through water because of its chemical composition and is not biodegradable, causing particularly difficult cleanup problems.

Yes they want the taxpayers to help the polluters to clean up the poison they leaked. They should pay for it all. But the Republicans refused to hold them accountable!

Just what we need - another giveaway to the oil industry! Oh, they really need our help.

Shouldn't we give the Republicans at least some credit? We're spending taxpayer money on something besides making war and building jails.

I'd like to see the thing fully funded by the oil companies, but this comes out to being a relatively fair deal for a Republican-controlled congress.

[quote] Republicans on Friday proposed an $11.4 billion fund, about a third of the money coming from the oil industry, to pay for cleanup of water systems contaminated by the gasoline additive MTBE, hoping to clear the way for passage of a broad energy bill.

The proposal would give makers of MTBE, which has been found to contaminate drinking water supplies in at least 36 states, protection against product liability lawsuits brought by communities facing billions of dollars in cleanup costs......

More than 150 lawsuits seek damages because of MTBE water contamination. The cost of cleanup has ranged from several billion dollars to more than $30 billion. [unquote]

So - the republicans throw the democrats a small bone... they need $30 billion (so far) to clean up the mess... the fund will be only $11.4 billion... and the industries will pay 1/3 of that amount. The balance will be paid by your local communities, not the federal government.

[quote=heritage,Jul 26 2005, 07:53 AM]
[quote] Republicans on Friday proposed an $11.4 billion fund, about a third of the money coming from the oil industry, to pay for cleanup of water systems contaminated by the gasoline additive MTBE, hoping to clear the way for passage of a broad energy bill.

The proposal would give makers of MTBE, which has been found to contaminate drinking water supplies in at least 36 states, protection against product liability lawsuits brought by communities facing billions of dollars in cleanup costs......

More than 150 lawsuits seek damages because of MTBE water contamination. The cost of cleanup has ranged from several billion dollars to more than $30 billion. [unquote]

So - the republicans throw the democrats a small bone... they need $30 billion (so far) to clean up the mess... the fund will be only $11.4 billion... and the industries will pay 1/3 of that amount. The balance will be paid by your local communities, not the federal government.

[/quote]

[b]GOIllini;

This should be a full answer to your speculation about the "good intentions" of the Republican controlled Congress! This should be enough to show anybody what the reality is beyond the spin we are fed!

This should be enough to elicit OUTRAGE from any taxpayer! But is it enough for you?[/B]

Ok. So we're getting $4 Billion from the oil industry, and the Republicans are paying another $8 Billion out-of-pocket to clean this stuff up.

That's $8 Billion less that could be going to a new missile system or invading Syria.

I'd really like to see the oil industry put up at least half of the most pessimistic $30 Billion it'd take to clean up the MTBE mess. At the same time, you have to realize that these oil companies aren't making quite as much money as you'd think. Analysts are expecting the three largest U.S.-based oil companies, XOM, CVX, and COP, which account for somewhere around 5 mbpd of production (the U.S. produces around 7-8 mbpd total, although my numbers are also including international production), to turn profits of only around $45-50 Billion. Valero (VLO), the nation's largest refiner, only has a market cap of $20 Billion.

Asking the energy industry to put up 2/3 of its yearly profits- just to settle a single liability like MTBE- is more unreasonable than letting MTBE- a chemical that the government required in the first place- into the environment.

Would spreading the cost over the next five to ten years, and requiring that oil producers get put-options and refiners get crack-spread options on future production to guarantee the money required to cover clean-up costs, be a viable option? This way, the cleanup will take five years, but it's virtually guaranteed to get taken care of. We'll have the oil companies, the NYMEX, two AA rated insurance companies, and a dozen or so reinsurers- all (besides the oil companies) to whom $30 Billion is chump change- guaranteeing that we'll have the money to clean this up.

Investors lose only a little (oil companies lose around 300 kbpd production over ten years), taxpayers break even, and the environment wins big time.

You know, these boys don't operate the same as you or I. When our wallets are empty, we leave the bar. These boys will spend 8 billion on the cleanup and then spend another 8 billion on another war. Then they'll smile and give us a tax cut.

The next time the Democrats get into office, and it will happen, they'll be stuck with a big mess left by the present batch of politicians who seem rather irresponsible with the budget. Borrowed money must be repaid.

[quote from my posting] ....they need $30 billion (so far) to clean up the mess... the fund will be only $11.4 billion... and the industries will pay 1/3 of that amount. The balance will be paid by your local communities, not the federal government [unquote]

Based on a republican press conference yesterday on C-span,

The fund from industry is "voluntary" with a weak "stick" of enforcement.

Its my understanding that the local and state governments will pay the balance of the cleanups, not the federal government. The contaminators have no liability FOREVER.

They put this out to make the Republicans SOUND good, just like Bush's Clear Skies Intitiative. But it's just a big giveaway to the oil industry, which is what the Republicans are all about these days.

I am SOOO cynical of politicians these days. I TRUST NO ONE.

[quote=heritage,Jul 26 2005, 06:10 PM][quote from my posting] ....they need $30 billion (so far) to clean up the mess... the fund will be only $11.4 billion... and the industries will pay 1/3 of that amount. The balance will be paid by your local communities, not the federal government [unquote]

Based on a republican press conference yesterday on C-span,

The fund from industry is "voluntary" with a weak "stick" of enforcement.

Its my understanding that the local and state governments will pay the balance of the cleanups, not the federal government. The contaminators have no liability FOREVER.

[/quote]


With the past financial problems of the states, how can they afford to pay the balance for the cleanup?

I don't think it will happen.

That's it........... this may sound silly, but I am installing a 5 filter Reverse Osmosis Water Purification system in my house along with water softener - I am not Kidding, these exist and are recommended by the EPA to combat pollution in our water. I already have a three filter system, but in light of this issue.... time to upgrade.

I am not getting cancer from the water thank you very much.