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BP CEO telling Congress he's 'devastated' by spill

2010-06-17 12:03:21

By FREDERIC J. FROMMER and MATTHEW DALY, Associated Press Writers Frederic J.

Frommer And Matthew Daly, Associated Press Writers 2 hrs 20 mins ago

WASHINGTON A day after agreeing to a $20 billion fund to compensate victims

of the disastrous oil spill in the Gulf of Mexico, BP's chief executive expects

to tell Congress that he was "personally devastated" by the explosion of the

Deepwater Horizon oil rig and understands the anger that Americans feel toward

him and his company.

CEO Tony Hayward's contrition isn't likely to soften his landing on Capitol

Hill, where lawmakers are sharpening their knives preparing to channel

constituent anger over the worst environmental disaster in the nation's history

during a hearing that some compare to a public execution.

In prepared testimony obtained by The Associated Press, Hayward said the

explosion and sinking of the BP-operated rig "never should have happened and

I am deeply sorry that they did."

Newly disclosed documents obtained by the AP show that after the Deepwater

Horizon sank, BP made a worst-case estimate of 60,000 barrels a day flowing

into the Gulf of Mexico. That figure is far higher than the company had said

publicly until this week, when the government released its own worst-case

estimate of about 60,000 barrels a day.

The undated estimate by BP, apparently made sometime last month, reflected the

actual situation as it was understood by BP at the time, said Sen. Chuck

Grassley, R-Iowa. Grassley, the senior Republican on the Senate Finance

Committee, obtained the documents as part of an investigation into the oil

spill and its aftermath.

Grassley said it was not clear when exactly BP made the calculation. "Certainly

Americans have a right to know that BP made these estimates, the date these

estimates were determined and why they were not disclosed at that time," he

said Wednesday.

In a letter to BP America President Lamar McKay, Grassley asked BP to explain

when it calculated a worst-case scenario of 60,000 barrels a day and to provide

documents justifying the figure.

In the course of the crisis in the Gulf, Hayward has irritated some with

comments like "I'd like my life back." He strikes a far more deferential tone

in remarks prepared for the congressional hearing.

"To be sure, neither I nor the company is perfect," he said. "But we are

unwavering in our commitment to fulfill all our responsibilities." He said the

company has spent nearly $1.5 billion so far and won't stop spending until the

job is done.

Hayward was to appear before the House Energy and Commerce Committee's

subcommittee on oversight and investigations, which is looking into the April

20 explosion that killed 11 workers and unleashed a flood of oil that has yet

to be stopped. He called it "a complex accident, caused by an unprecedented

combination of failures."

It's unlikely, however, that lawmakers especially in an election year will

adopt President Barack Obama's more conciliatory tone toward BP. After accusing

the company a day earlier of "recklessness," Obama and top advisers met

Wednesday with BP officials, including Hayward and board chairman Carl-Henric

Svanberg. After the meeting, Obama announced BP concessions to pay a $20

billion fund. He said BP was "a strong and viable company," and its stock price

rebounded.

Still, in perhaps a pointed snub, Obama on Wednesday described a "constructive

meeting" with Svanberg but didn't mention Hayward. Last week, the president

said he would have fired Hayward for comments such as when Hayward said he

wanted his life back.

Rep. Bart Stupak, D-Mich., chairman of the oversight and investigations

subcommittee, and the full committee chairman, California Democrat Henry

Waxman, wrote Hayward this week to expect questions on documents showing

company decisions before the explosion "that increased the risk of a blowout to

save the company time or expense."

Ahead of the session, Stupak said of Hayward's appearance, "I expect him to be

sliced and diced."

___

Associated Press writers Matt Apuzzo and Eileen Sullivan contributed to this

report.